Institutional Logics Perspective Research Articles

Market or Community? An Institutional Logics Interpretation of how MNE Subsidiaries Respond to Mandated Social Innovation in India

Despite growing concern in the social innovation (SI) literature about the tackling of grand challenges, our understanding of the role of multinational enterprises (MNEs) remains in its infancy. This article examines foreign MNE subsidiaries’ SI investments focusing on United Nations’ Sustainable Development Goals (UNSDGs) in host countries. Using financial data from large, listed subsidiaries of foreign MNEs operating in India, along with hand-collected data from firms’ disclosures of corporate social responsibility (CSR) activity for five years starting in 2015, we utilise the externalities framework propounded by Montiel et al. (2021). This neatly translates the 17 UNSDGS into actionable goals to examine the efforts of foreign MNE subsidiaries in increasing positive externalities as opposed to reducing negative externalities via SI-related investment in host countries. The study also evaluates the effects of the local embeddedness of the foreign MNE subsidiaries on SI investment. We find that MNE subsidiaries tend to favour increasing positive externalities as compared to reducing negative externalities through their SI investments. Also, older subsidiaries tend to prioritize greater investments in SI projects related to reducing negative externalities and subsidiaries with higher MNE ownership tend to reduce investments in SI projects related to increasing positive externalities. We discuss possible interpretations of the exploratory results using the institutional logics perspective and conclude with implications for policy and future research.

The commercialisation of microfinance: deploying management control to address institutional complexity

PurposeThe study aimed to examine the transformation of a non-profit microfinance institution (MFI) into a hybrid social enterprise, and the role of formal and informal controls in reconciling the discordance between the two conflicting (social and commercial) objectives that emerged due to the transformation.Design/methodology/approachA case study of a non-governmental MFI located in Southeast Asian country was conducted. This case study drew on the institutional logics perspective as an analytical tool to understand the complexity of change and the mobilisation of management control practices to align two conflicting goals at the core of the MFI’s organisational strategies. This study adopted the interpretive approach and relied on multiple data sources, including semi-structured interviews and documentary evidence.FindingsThe application of commercial principles in the operations of the MFI occurred in several phases. First, the MFI changed from a non-profit business model to a hybrid social enterprise, which pursued a double bottom-line strategy. The informal control practices inherent in the organisation’s culture created a high level of social awareness embedded within a social logic. In contrast, the formal control practices were directly linked to the new commercial logic. The synergy between the two logics was optimised by reinforcing formal and informal control practices.Originality/valueThis study offers insights into the role of control systems in reconciling the discordance between competing social and financial objectives within a non-governmental MFI that enjoys substantial financial and nonfinancial support from the government.

Do Social Interaction Mechanisms Affect University Reputation? Evidence from the UK Higher Education Sector

We investigate the influence of skilful utilization of social interaction dynamics on creating reputations for UK Higher Education Institutions (HEIs) during public funding cuts and scrutiny. The paper employs a content analysis method and follows an empirical design with a unique sample of 148 UK HEIs. To gauge reputation, we rely on participatory data from the Guardian newspaper's 2014–15 environmental and ethical performance ratings for the People & Planet University League. Multiple regression analysis is applied to address the research hypotheses. The results indicate that open, accountable, and transparent sensemaking in sustainable development (SD) practices over the years is the predominant dynamic for enhancing HEIs’ reputation. This paper underscores the need to consider the institutional logics perspective as a theoretical foundation for a comprehensive understanding of the link between sustainability disclosure and an institution's reputation, image, and public goodwill within the higher education (HE) context. HEIs’ leadership should invest in SD and its associated disclosure practices. Policy‐makers and accounting regulators should establish consistent and comparable reporting requirements for sustainable performance within the HE sector. This paper is the first to empirically examine the direct impacts of HEIs’ compliance with sustainability duties on organizational performance.

Reconceptualizing accountability in NGO-corporate partnerships: an institutional logics perspective

PurposeDeveloping economies often lack sufficient state regulation to encourage corporations to engage with environmental sustainability challenges. Environmental NGOs fill this vacuum but this relationship is fraught with challenges, linked to each party’s competing interests. This paper examines how an environmental NGO operating in a developing country manages such challenges.Design/methodology/approachA longitudinal case study, from 2017–2022, based on semi-structured interviews and documentary analysis, with the main periods of field work in 2017 and 2020.FindingsWe unravel nuanced dynamics of accountability within an NGOs collaborative ecosystem. Our findings reveal a web of interlinked obligations and expectations, strategically adopted to reconcile environmental and CSR logics fostering trustworthy partnerships with firms. Despite aiming for transformative change, the NGO made gradual initiatives, to meet the challenges of fostering systemic change in developing nations. Institutional logics of professionalism and development allowed NGO members avoid mission drift and realign upward accountability relations into lateral ones.Originality/valueThe study provides insight into successful NGO-corporate partnerships and illustrates how accountability is negotiated, upheld, and reconceptualized in such collaborations.

Enterprises’ response strategies towards a mission-oriented innovation initiative – a reflection on China’s indigenous innovation

ABSTRACT Mission-oriented innovation initiatives hold significant value for nations worldwide. Responses of innovative actors account for the final outcomes and achievements of these initiatives, while which are still unexplored. Based on the institutional logics perspective, we develop a framework to elucidate the response strategies of different kinds of enterprises towards the indigenous innovation proposed in the National Middle and Long-Term Program for Science and Technology Development 2006–2020 (MLP), the most influential mission-oriented innovation policy in China during the past 20 years. By combining primary interview materials with secondary data, we initially analyse the logic conflicts that enterprises face, the changes in logic conflict scenarios under this initiative (including the types and degrees of conflicts), and the potential benefits they can get from this initiative. We then delve deeper into investigating their response strategies. Our research provides a new lens for researchers and policymakers.

Unintended use of a calculative practice: conflicting institutional logics in the Norwegian fishing industry

PurposeThis paper explores how conflicting institutional logics shape the behaviors of macro- and micro-level actors in their use of a calculative practice. Thereby, this paper explains how quantification can undermine the intended purpose of a governance system based on a single number.Design/methodology/approachThe study draws upon the literature on calculative practices and institutional logics to present the case of how a single number—specifically the conversion factor for Atlantic Cod, established by macro-level actors for the purposes of governance within the Norwegian fishing industry—is interpreted and used by micro-level actors in the industry. The study is based on documents, field observations and interviews with fishers, landing facilities, and control authorities.FindingsThe use of the conversion factor, while intended to protect fish stock and govern industry actions, does not always align with the institutional logics of micro-level actors. Especially during the winter season, these actors may seek to serve their interests, leading to potential system gaming. The reliance on a single number that overlooks seasonal nuances can motivate unintended behaviors, undermining the governance system’s intentions.Originality/valueIntegrating the literature on calculative practices with an institutional logics perspective, this study offers novel insights into the challenges of using quantification for the governance of complex industries. In particular, the paper reveals that when the logics of macro- and micro-level actors conflict in a single-number governance system, unintended outcomes arise due to a domination of the macro-level logics.

Change in a project-based organization: The mutual shaping of institutional logics and change programs

Modern organizational transformations increasingly rely on change programs led by the introduction of new information technology. Managing these information technology-based change programs within project-based organizations presents unique challenges due to the division between ongoing business processes and temporary project activities. This study uses an institutional logics perspective to understand how a project-based organizational context shaped and was shaped by an information technology-based change program. Through a three-year longitudinal case study on the interaction between a project-based organization and its information technology program, our findings reveal that institutional logics prevailing in the project-based organization significantly influenced the program's implementation. In turn, the information technology program acted as a catalyst for change, creating a competitive environment where two primarily segmented logics—a project organizing logic and an asset management logic—competed for dominance. The conflict between these logics led to new beliefs, values, and practices being dominant, marking a shift in balance between the two logics. Our findings contribute to increasing understanding of the dynamic interplay between project-based organizations and information technology-based change programs, shedding light on their mutual evolution over time and offering a deeper understanding of transformative change within project-based organizations.

Understanding the evolution of international human resource management research: a bibliometric review over the past 25 years (1995–2019)

PurposeThe aim of this paper is to offer a comprehensive overview of the field of international human resource management (IHRM) research by tracing its evolutionary development over a 24-year period. The study seeks to understand how the field has progressed by considering historical research themes and their subsequent integration into more recent scholarly work, thereby identifying current and emerging research trends.Design/methodology/approachThis paper employs bibliometric analysis to examine the evolutionary path of IHRM research from 1995 to 2019. A dataset of 1,507 articles from journals specializing in IHRM, international business and general management was created. Analysis at the keyword, thematic and network levels was conducted to identify trends, historical context and the interrelatedness of research themes.FindingsThe analysis reveals that IHRM research has gone through several phases of thematic focus, from initial emphasis on cultural differences and expatriate management to more recent topics like global talent management and digital transformation. Earlier research themes continue to be incorporated and re-contextualized in modern scholarship, highlighting the field’s dynamic nature.Originality/valueThis paper is one of the first to use a bibliometric approach to systematically examine the evolution of IHRM research. It not only provides a historical perspective but also outlines future research trends, incorporating the institutional logic perspective. The findings offer deep insights that are valuable for researchers, practitioners and policymakers interested in the development of IHRM research and its practical implications.

Unveiling whiteness: an approach to expand equity and deepen Public Administration’s racial analysis

Public Administration’s attempts to understand race and racism insufficiently engage with the historical processes and legacies of White Supremacy. This paper problematizes whiteness and proposes an approach to expand social equity and deepen the field’s racial analysis. Drawing on institutional logics perspective, we identify and describe logics of whiteness, an analytic approach that reveals whiteness through the logics of racial capitalism and whiteness as property and provides entry for historical, systems-connected, multi-level analyses of race, racism, racial categorization, and racialized power. We locate whiteness in the institution of citizenship to engage these logics and interrogate how citizens and citizenship are defined by and served in the bureaucracy. Neoliberalism has allowed the administrative state to assign differential citizenship identities across groups according to the logics of whiteness, with both symbolic and material implications for individual lives and for Public Administration theory and praxis.

The Mismatch Between World Bank Actions and the Decentralization of Educational Systems in LMICs

The World Bank’s (WB) growing emphasis on decentralizing educational systems has sparked widespread discussion in the literature. This study examines whether WB reforms are indeed associated with decentralizing educational systems in low- and middle-income countries (LMICs), as commonly assumed. Using unique, untapped country-level panel data on 30 LMICs from 1990 to 2019, I do not find a significant association between the WB’s actions and changes observed in educational systems. Employing the institutional logics perspective, I argue that the WB’s diffusion of “homogeneous” educational reforms may clash with “heterogeneous” socioeconomic, political, and cultural contexts, thus hindering the direct translation of reforms into tangible outcomes on the ground.

Extending the boundaries of academic entrepreneurship: demonstrating the instrumentality of new logics for addressing social inclusion

AbstractAcademic entrepreneurship (AE) has gained widespread acclaim globally for bridging the gap between academia and industry, as well as addressing the issue of socio-economic inclusion and the impact of research. In this paper, we both relate to, and extend scholarly work in the domains of AE and social inclusion by investigating the process of AE from an interplay of institutional logics perspective, with an emphasis on the diversity strands to which academic entrepreneurs belong. Drawing on extensive fieldwork of 55 academic researchers affiliated with 6 UK universities, our findings highlight the co-existence of profession, science logic and market logic, combined with the new logics that we introduce—diversity and impact logics—in capturing value through AE for addressing social inclusion. We make an empirical and theoretical contribution by demonstrating the instrumentality of these logics as enablers and constraints on the process of AE. We also advance the theory on logics and AE by demonstrating how the intersection of logics creates different kinds of salient points and pressures for academics and university policy makers. Closely linked to this, we make policy contributions by putting forward policy insights that are bottom-up and tailored based on a thorough understanding of the experiences and views of academic entrepreneurs.

Institutionalisation of sustainability reporting in Pakistan: the role of field-configuring events and situational context

PurposeThis paper aims to investigate the role of field-configuring events (FCEs) and situational context in the institutionalisation of sustainability reporting (SR) in Pakistan.Design/methodology/approachThis paper uses insights from the institutional logics perspective and qualitative research design to analyse the interplay of the institutional logics, FCEs, situational context and social actors’ agency for the institutionalisation of SR among leading corporations in Pakistan. A total of 28 semi-structured interviews were carried out and were supplemented by analysis of secondary data including reports, newspaper articles and books.FindingsThe emerging field of SR in Pakistan is shaped by societal institutions, where key social actors (regulators, enablers and reporters) were involved in the institutionalisation of SR through FCEs. FCEs provided space for agency and were intentionally designed by key social actors to promote SR in Pakistan. The situational context connected the case organisations with FCEs and field-level institutional logics that shaped their decision to initiate SR. Overall, intricate interplay of institutional logics, FCEs, situational context and social actors’ agency has contributed to the institutionalisation of SR in Pakistan. Corporate managers navigated institutional logics based on situational context and initiated SR that is aligned with corporate goals and stakeholder expectations.Practical implicationsFor corporate managers, this paper highlights the role of active agency in navigating and integrating institutional logics and stakeholders’ expectations in their decision-making process. For practitioners and policymakers, this paper highlights the importance of FCEs and situational context in the emergence and institutionalisation of SR in developing countries. From a societal point of view, dominance of business actors in FCEs highlights the need for non-business actors to participate in FCEs to shape logics and practice of SR for wider societal benefits.Social implicationsFrom a societal point of view, dominance of business actors in FCEs highlights the need for non-business actors to participate in FCEs to shape logics and practice of SR for wider societal benefits.Originality/valueThis paper focuses on the role of FCEs and situational context as key social mechanisms for explaining the institutionalisation of SR.

How do suppliers respond to institutional complexity? Examining voluntary public environmental disclosure in a global manufacturing supply network

AbstractWhen making decisions about their commitments to environmental practices and performance, suppliers face heterogenous institutional logics and their diverse prescriptions for action. How do suppliers respond to such institutional complexity? We examine this question in the context of suppliers' voluntary public environmental disclosures (disclosure). Specifically, our study assembles a unique panel data set of global manufacturing suppliers and their annual contractual relationships with buyers. Building on the institutional logics perspective and the sustainable supply network literature, we hypothesize that suppliers selectively mimic the disclosure of their buyers by following market, corporate, and sustainability logics. Our study contributes to the institutional logics perspective and the sustainable supply network literature by indicating that in the context of disclosure, market and sustainability logics both actively shape suppliers' responses to institutional complexity. Furthermore, we find support for mimicry as a mechanism of buyer influence that can lead to disclosure heterogeneity across suppliers even when they follow the same logic, which opens new avenues for research. Our findings can be leveraged by buyers, policymakers, and other stakeholders interested in advancing transparency and sustainability in supply networks.

How do changing institutional logics affect innovation? The cases of Online Electric Vehicle and Fuel Cell Electric Vehicle in Korea

ABSTRACT The coevolution of technological capabilities and institutional arrangements is critical for the success of innovations. Yet, it remains unclear how actors’ shifting relations during institutional change affect innovation. The paper examines the dynamics in how actors shape the institution by integrating the institutional logics perspective with policy mix literature. Insights are drawn from the Online Electric Vehicle and Fuel Cell Electric Vehicle cases in Korea, where involved stakeholders revealed contrasting identities and practices throughout the innovation stages. While both cases witnessed shifts in institutional logics, the repercussions on innovation differed depending on the characteristics of actors’ identity mix. Findings contribute to institutional theory by expanding the traditional dyadic perspective on incumbent and emerging institutional logics. We also add to the policy mix literature by introducing a neo-institutional perspective. The paper concludes by underlining how the overarching characteristics of the institutional mix trigger different coordination failures.

Expanding the Scope of Institutional Logics Research

AbstractThe institutional logics perspective provides a powerful theory that emphasizes how symbolic beliefs and material practices are intertwined in relatively enduring configurations that can profoundly shape behavior across space and time. In this article, we build upon the arguments and insights of Haveman, Joseph-Goteiner, and Li, suggesting the need for a broader research agenda on the dynamics of institutional logics in China and around the world. Building on some of our recent writings, we argue for the need to go beyond the study of how logics have effects, to understand how logics themselves cohere, endure, and co-evolve in dynamic interrelationships with other logics.

Diversity in foreign direct investment and environmental innovation of emerging market firms: The effect of ownership-conveyed institutional logics

Although foreign direct investment (FDI) allows emerging market firms (EMFs) to experience various institutions and learn to innovate, we know little about the] effects of exposure to diverse institutions on EMFs’ environmental innovation—a sustainable approach to pursuing economic growth. Incorporating the institutional logics perspective with the learning-from-diversity view, we investigate how an EMF’s environmental innovation benefits from diverse environmental regimes embedded in both its inward and outward FDI. We posit that EMFs become environmentally innovative by learning from diverse environmental regimes embedded in FDI activities. Also, this learning effect depends on the institutional logics dominant in these firms, demarcated by their ownership structure. Whereas the market capitalism logic strengthens EMFs’ learning-from-diversity effect, the state socialism logic does not. Analyses of a sample of 275 publicly listed Chinese firms between 2009 and 2018 support these theoretical arguments. Our findings contribute to the learning-from-diversity and institutional logics literature.

Institutional logics and organizational filters: Differential responses to innovation and environmentalism in China’s cleantech sector

While the institutional logics perspective has been applied to explore various empirical contexts, less is known about how different organizations respond differentially to the pressures that are imposed by logics. We investigate how different organizational attributes moderate institutional logics differently by using a proprietary dataset of venture capital and private equity (VC/PE) investment in cleantech startups in China. We first delineate two distinct logics—market and proenvironmental—that shape VC/PE investment across different regions. Moreover, we identify two organizational attributes—state ownership and business model—which moderate the two logics differently. Whereas the business model of venture investment firms (VC vs. PE) effectively resonates with the market logic, state ownership fails to make a firm more attentive to either of the logics. We contribute to the logics perspective by complementing our understanding of organizational filters, showing the relationships between two distinct logics and cleantech investment, and extending the study of logics to authoritarian contexts.

The impact of autonomy on sustainable performance in foreign subsidiaries: an empirical study from Chinese construction industry

PurposeForeign construction subsidiaries play an important role in the global construction market. How to establish and maintain long-term sustainable performance has attracted increased attention, but only a few studies have considered this issue. The purpose of this study is to explore the relationship between autonomy and the sustainable performance of subsidiaries and to provide support for their management control modes.Design/methodology/approachFrom an institutional logics perspective, empirical research using a questionnaire survey was conducted following the methodological framework of this study. Relevant data were collected from 106 experienced managers of foreign construction subsidiaries, and the hypotheses were tested through a regression model.FindingsThe results show that foreign construction subsidiaries have a high degree of operational autonomy, which tends to strengthen their embeddedness in the host country and improve their sustainable performance. However, the role of strategic autonomy is not found to be significant. The moderation results show that the positive impact between operational autonomy and external network embeddedness is strengthened by institutional distance. Institutional distance has no significant moderating impact on the relationship between strategic autonomy and external network embeddedness, respectively.Research limitations/implicationsGeographical limitations may exist as the survey is focused on the Chinese construction foreign subsidiaries. However, based on an institutional logics perspective, this study discusses the management control mode of foreign subsidiaries, which enriches the antecedents of sustainable performance and can provide an in-depth explanation of the effects of the organizational strategies of multinational construction enterprises.Practical implicationsThis study provides beneficial information for the sustainable performance of foreign construction subsidiaries. It will provide detailed guidance to managers located in different institutional environments on optimally promoting the sustainable development of subsidiaries.Originality/valueThis study identifies autonomy as an important antecedent, making it one of the first studies investigating autonomy on the sustainable performance of foreign construction subsidiaries. The findings of this study can contribute to the construction subsidiaries' sustainable performance literature and provide novel, comprehensive knowledge for academia and practice.

Field dynamics as context – A multi-perspective combined analysis of the effects of context on entrepreneurship

Addressing the growing need for nuanced understandings of entrepreneurial contexts, this article presents a multifaceted pragmatic framework for scrutinising the ‘field of entrepreneurship’ and its associated dynamics. Drawing on Bourdieu's theory of practice and the institutional logics perspective, we introduce the concept of the field as a mid-level analytical lens—positioned between micro and macro perspectives—that captures the complex interplay of agency and structure in entrepreneurial activity. Our conceptualisation of the field enables the dissection of structural logics and actor dispositions, alongside the institutional processes that shape the entrepreneurial landscape. In response to calls for innovative methodologies in entrepreneurship research, we propose a combined analytical approach to unpack the layered complexities of entrepreneurial contexts, from individual actors to broader institutional influences. The utilisation of this ‘field of entrepreneurship’ concept, with a particular focus on field dynamics, serves as a pragmatic analytical unit, contributing to the broader discourse by balancing simplicity, accuracy, and generalisability. This research consequently offers a novel methodological avenue for exploring what facilitates or impedes entrepreneurial activity within varying contexts.

When Worlds Collide: Journalistic, Market, and Tech Logics in the Adoption of News Recommender Systems

ABSTRACT An increasing number of media organisations are adopting news recommender systems (NRS). Such algorithmic technologies, which prioritise content based on, for example, previous user behaviour or popularity metrics, may have far-reaching repercussions for news work. Despite this, the implications of NRS implementation for intra-organisational practices as well as dynamics and tensions between involved actors remain understudied. Against this background, this study examines decision-making processes and relationships between actors participating in NRS projects from an institutional logics perspective and places a particular emphasis on resulting tensions between journalistic, market, and tech logics. Drawing on 32 in-depth qualitative interviews with news media professionals across ten news organisations in the Netherlands and Switzerland, we discover a wide range of strategies which aim to reconcile logic multiplicity in the specific case of NRS development. Such negotiation efforts can ultimately promote new work practices and forms of collaboration but may also have broader implications for the distribution of power and voice within news organisations.