Abstract

Do overlapping institutional logics necessarily lead to upheaval and emergence of a new order? Or can organizations belonging to different worldviews coproduce and maintain the social structure? We examine these questions with the introduction of market finance organizations to coproduce French films. Drawing on symbolic interaction and institutional theories and qualitative and quantitative data, we develop and test theory on the role of deference as a means of coproduction among foreign and incumbent organizations in overlapping institutional environments. Foreign organizations are more likely to engage in deferent coproduction when their presentation needs, avoidance efforts, and local recognition are high. We argue that deference is a capital conversion mechanism that enables foreign organizations to gain social capital but with negative consequences for financial performance. Our analysis clarifies how deference enables actors to maintain their identity and the social structure and suggests extended scope for institutional and deference theories with implications for the effects of market capitalism in societies.

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