Purpose - We examine how an old organizational form interacts with a new one to maintain the former’s status and legitimacy during the change process in institutional logics. We focus on how state-owned enterprises (SOEs) crowd out three market-based organizational forms to maintain legitimacy and status during institutional change from state logic to market logic in China. In addition, we examine the moderating effects of export intensity and firm age of market-based enterprises on the aforementioned relationship.
 Design/Methodology/Approach - To test our hypotheses, we use a panel data set on manufacturing firms in China from 2011 to 2015. We utilize event history analysis because our dependent variable is the exit of market-based firms. We select the parametric Weibull model because it outperforms other survival models.
 Findings - Our results generally support our hypotheses. SOEs crowd out market-based organizational forms mainly owing to identity conflict. SOEs are likely to be hostile toward market-based firms with strong market identity, such as those with high export intensity and old market-based firms.
 Research - Implications Findings provide implications for policy makers and market-based enterprise managers in Korea. We highlight that Chinese and Korean SOEs are not precisely comparable but they are similar in several ways. We propose that policy makers in Korea develop and implement policy measures to control SOEs’ negative actions toward market-based firms and to dilute SOEs’ state identity. Lastly, we suggest that Korean market-based enterprise managers consider the effect of market identity on their survival and build connections with the government to strengthen market-based firms’ competitiveness and legitimacy.