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INSTITUTIONAL LOGICS IN
ACTION
Michael Lounsbury and Eva Boxenbaum
ABSTRACT
This double volume presents state-of-the-art research and thinking on
the dynamics of actors and institutional logics. In the introduction, we
briey sketch the roots and branches of institutional logics scholarship
before turning to the new buds of research on the topic of how actors
engage institutional logics in the course of their organizational practice.
We introduce an exciting line of new works on the meta-theoretical
foundations of logics, institutional logic processes, and institutional
complexity and organizational responses. Collectively, the papers in this
volume advance the very prolic stream of research on institutional logics
by deepening our insight into the active use of institutional logics in
organizational action and interaction, including the institutional effects of
such (inter)actions.
Keywords: Institutional logics; institutional complexity; practice;
institution
Research on institutional logics has become one of the most rapidly growing
intellectual domains in organization theory. Testifying to this trend is the
growing proliferation of logics articles in top sociology and management
journals (e.g., American Journal of Sociology, Administrative Science
Quarterly, Academy of Management Journal, Academy of Management
Review), the growing citations to these works, and the fact that logics
research has become one of the largest submission topic areas at the
Organization and Management Theory Division of the Academy of
Management (in 2012, it was second only to the topical area of corporate
governance and strategy). Since the initial Friedland and Alford (1991)
statement on institutional logics, there has been steady growth in the
development of theory and empirical research. The Institutional Logics
Perspective (Thornton, Ocasio, & Lounsbury, 2012) integrates this line of
inquiry into a multidimensional, cross-level model and framework,
offering a focal point for the gathering of scholars forging a new wave
of institutional theorizing. Encounters among scholars of institutional
logics manifest at varied conferences, including the European Group on
Organization Studies and the Academy of Management. Logics research
includes that which is qualitatively as well as quantitatively oriented and
embraces macro-historical as well as micro-processual approaches to
social life.
The papers assembled in this special two-volume edition of Research in
the Sociology of Organizations were seeded by a conference held in Banff,
Alberta (Canada) in June 2012 entitled Organizing Institutions: Creating,
Enacting and Reacting to Institutional Logics. The conference was the
third in a series of conferences sponsored by the ABC Network1 a broad
group of institutional scholars co-organized by the Copenhagen Business
School, Harvard University, and University of Alberta. The conference
itself was premised on the integration of North American and Scandinavian
institutional ideas and research communities.
Research on institutional logics, seeded in North America but with
contributions now regularly produced by both European and North
American scholars (almost equally), has broadened over the past decade
or so to focus not only on the effects of shifts in dominant logics, but also on
understanding the implications of plural logics and how organizations
respond to institutional complexity. This development reects a growing
recognition that conicting and overlapping pressures stemming from multiple
institutional logics create interpretive and strategic ambiguity for organizational leaders and participants (Greenwood, Raynard, Kodeih, Micelotta, &
Lounsbury, 2011). These directions articulate well with Scandinavian
10
11
Logics: The Alberta Oil Sands Case, 20082011. They puzzle about the
conditions under which signicant anomalies may not generate fundamental
changes in practices, identities, and institutional logics, which extend
the process models forwarded by Lounsbury and Crumley (2007) and
Thornton et al. (2012). They highlight three retrenchment processes, cultural
positioning, behavioral resistance, and feedback shaping, which impede
innovation. Their paper signals the fruitfulness and need for the more direct
incorporation of power and politics in institutional logics research, as well
as the need to delineate the mechanisms that propel as well as inhibit
change.
In Institutional Logics as Strategic Resources, Durand, Szostak,
Jourdan, and Thornton (2013) argue that institutional logics can provide
key resources for organizational strategy. Drawing on a study of the
French industrial design industry, they show how rms may strategically
embrace additional logics, and possibly abandon ones once held dear, as a
result of their more cosmopolitan awareness of available logics. Their
arguments help to importantly link research in strategic management to
the institutional logics perspective, highlighting the utility of exploring how
logic dynamics are interpenetrated with and can inuence the strategic
choices of rms.
Pouthier, Steele, and Ocasio (2013) track the intertwining of institutional
logics in collective identities in their paper, From Agents to Principles: The
Changing Relationship between Hospitalist Identity and Logics of Health
care. In particular, they attend to changes in the strength, content, and
permanence of logic-identity associations, and explore the conditions under
which such associations might be eschewed. Drawing on an inductive case
study of the development of the hospitalist identity in the U.S. health care
eld, they propose several mechanisms through which logic-identity
associations may be weakened. Clearly, much more research is required to
understand the relationship of logics and identities (collective and individual), especially how they become fully or partially coupled/decoupled,
and how these different kinds of situations may affect social interaction and
associated behavioral outcomes.
In Legacies of Logics: Sources of Community Variation in CSR
Implementation in China, Raynard, Lounsbury, and Greenwood (2013)
employ a cross-level comparative research design to explore how the
legacies of previously dominant logics might be shaping organizational
behavior. Focusing on the spread of corporate social responsibility (CSR)
initiatives among Chinese corporations, important imprinting effects as well
as regional variations from the East, West, and South are identied. The
12
authors argue that these are linked to the legacies of state logics associated
with former leaders Mao and Deng. While this paper contributes to our
understanding of how Western frames and practices (e.g., CSR) are
variously penetrating Chinese rms, it raises provocative questions about
which aspects of once-dominant logics might be more likely to endure and
which are likely to fade away. We know very little about the legacies of
logics and the mechanisms by which they continue to shape organizational
behavior.
Schneiberg (2013) provocatively explores the utility of more or less
agentic focused institutionalisms in Lost in Transposition? (A Cautionary
Tale): The Bank of North Dakota and Prospects for Reform in American
Banking. The case of the Bank of North Dakota is a fascinating tale of
various efforts to transpose a model state-community hybrid institution,
that helped the people of North Dakota weather the recent nancial crisis
better than most, to other states interested in constructing more communityoriented solutions to nance. Schneiberg highlights how many conditions
identied in the literature as favorable to institutional entrepreneurship were
present, yet all efforts to transpose this model failed. Schneibergs paper
highlights the need to study failure cases more intently something that has
been woefully missing in the literature on agency and institutional dynamics.
He argues for scholarship that more carefully situates actors in their
contexts and engages more structuralist imageries and approaches, which
takes seriously the multilevel nature of institutional systems (see also
Schneiberg, 2007). Schneibergs call resonates with the institutional logics
perspective (Thornton et al., 2012).
The second volume comprises 11 papers that thematically address
Institutional Complexity and Organizational Responses. In Embedded
in Hybrid Contexts: How Individuals in Organizations Respond to
Competing Institutional Logics, Pache and Santos (2013) develop novel
theory about how individuals inside organizations experience and react to
competing institutional logics. They theorize how the degree of adherence to
a logic relates to different kinds of responses (ignorance, compliance,
resistance, combination, or compartmentalization) to situations involving
competing logics. Their aim is to contribute further to the microfoundations of the institutional logics perspective by focalizing the behavior of
individuals and to catalyze further research on how the actions of
individuals in an organization contribute to the saliency and dominance
of particular logics in an organization as well as the construction of hybrid
forms. These are all important issues that require systematic scholarly
attention.
13
Jarzabkowski, Smets, Bednarek, Burke, and Spee (2013) call for more
attention to practice and practice theories in their paper, Institutional
Ambidexterity: Leveraging Institutional Complexity in Practice. They
challenge the literature on institutional ambidexterity, including how it is
invoked in theorizing how organizations respond to institutional complexity
(e.g., Greenwood et al., 2011), and provide a practice-based conceptual
framework to more appropriately guide the study of ambidexterity under
conditions of novel or routine institutional complexity. Since the study of
practice is central to the institutional logics perspective (Friedland & Alford,
1991; Thornton et al., 2012), it would be particularly fruitful to engage such
wider conversations and ideas on practice to reimagine and guide research
on the dynamics of institutional complexity.
In their paper, Beyond the Family Firm: Reasserting the Inuence of the
Family Institutional Logic across Organizations, Fairclough and Micelotta
(2013) argue that the institutional logics literature, and organization theory
more generally, has not yet accounted for the profound and pervasive effects
of the institutional logic of family. They document how in the highly
professionalized Italian law rm eld, rms continue to be inuenced by the
family logic and resist foreign capitalist intrusions. Given that, they examine
a country where one would expect the family logic to be particularly
pronounced, more comparative country research is required to assess
whether and how the family logic has similar effects in other settings.
Hills, Voronov, and Hinings (2013) Putting New Wine In Old Bottles:
Utilizing Rhetorical History To Overcome Stigma Associated With A
Previously Dominant Logic, explore how Ontario wineries try to project a
modern, high-quality image. Drawing on rhetorical history analysis, they
highlight the challenges of adhering to a new dominant, ne winemaking
logic, as the Ontario wine industry tried to shift from a focus on low-quality
mass production to a high-quality craft. As part of this process, wineries
also had to try to distance themselves from their original, but now
stigmatized, low-quality, mass production logic, by telling stories that
selectively and creatively depicted their historical origins. Such forms of
cultural entrepreneurship (Lounsbury & Glynn, 2001) require much more
detailed attention, and future research should detail in more depth how
stories are creatively constructed with vocabularies associated with different
logics (Loewenstein, Ocasio, & Jones, 2012), and how that relates to
outcomes such as industry and rm legitimation and performance.
The next three papers shed varied light on CSR, a topic that has attracted
much scholarly interest as of late. In Imageries of Corporate Social
Responsibility: Visual Recontextualization and Field-Level Meaning,
14
Hollerer, Jancsary, Meyer, and Vettori (2013) study how Austrian rms use
visual artifacts, which they label imageries-of-practice, to translate CSR,
a globally theorized practice model. Marshaling evidence based on over
1,600 images in corporate CSR reports, they argue that shared visual
language plays a crucial, and largely unexplored, role in the management of
institutional complexity as well as the emergence and reconguration of
eld-level logics. Expanding the range of cultural entrepreneurship research
beyond verbal vocabularies, the study imageries-of-practice provides an
interesting new direction for research on institutional logics and organizational behavior (see also Meyer, Hollerer, Jancsary, & van Leeuwen, 2013).
The study of imageries-of-practice also connects to rhetorical history as
the translation of abstract global ideas into concrete local knowledge can
link the past to the present and future.
Glynn and Raffaelli (2013), in Logic Pluralism, Organizational Design,
and Practice Adoption: The Structural Embeddedness of CSR Programs,
draw on a survey and archival data from 161 Fortune 500 rms to explore
how CSR programs get instantiated. Investigating core claims about
institutional complexity, Greenwood et al. (2011) nd that rms segment
practices into units that align with the logic emphasized by the CSR practice
being adopted. CSR practices with a perceived business benet (consistent
with a market logic) tended to be housed in mainline business units, while
CSR practices lacking a business case (and justied via a community logic)
are more likely to be located in corporate or philanthropic foundations.
Future research should probe in more depth how institutional logics shape
the adoption and implementation of practices inside organizations, and how
these processes reinforce or perhaps provide opportunities for the alteration
of organizational design.
In Strange Brew: Bridging Logics via Institutional Bricolage and the
Reconstitution of Organizational Identity, Christiansen and Lounsbury
(2013) explore how institutional complexity may be resolved through what
they label institutional bricolage, which they dene as the process by
which actors inside an organization combine elements from different logics
to construct new artifacts. Drawing on an illustrative case study of the
Carlsberg Brewery group and their development of a Responsible Drinking
Guide Book, they argue that institutional bricolage requires the problematization and renegotiation of an organizations identity. They document
how the Responsible Drinking Guide Book relied on the integration of
elements from social responsibility and market logics, which required the
creative use of organizational resources differentially located across time
and space. This study highlights the fruitfulness of bridging the literatures
15
on institutional logics and organizational identity, and suggests the need for
more penetrating intra-organizational studies of how institutional complexity is perceived and resolved.
The paper by Vican and Pernell-Gallagher, Instantiation of Institutional
Logics: The Business Case for Diversity and the Prevalence of Diversity
Mentoring Practices, develops a process theory of logic instantiation based
on a study of the eld of corporate diversity management. Focusing on
explaining variation in the adoption of diversity mentoring practices, they
nd that logic instantiation was inuenced by various factors including the
characteristics and perceptions of diversity managers, and organizational
goals. They highlight that issues related to power and social skill inuence
interpretive work and new practice adoption. Echoing other studies in the
volume, they point out that organizational design importantly affects how
organizations cope with institutional complexity. This study also points to
the need to account for the role of key individual actors within an organization, including how they are able to mediate between external demands and
opportunities related to plural logics, and the internal dynamics of organizing. We expect to see much more research in this direction in the future
expanding our understanding of sources of practice variation as well as the
management of institutional complexity.
Fengs (2013) study, The Internal Complexity of Market Logics:
Financial Sophistication and Price Determination, shifts the study of
complexity beyond individual rms to explore variability within institutional
orders in this paper, that of the market. Drawing on interviews with
investment bankers who underwrite initial public offerings (IPOs), Feng
explores the multiplicity of market logics and their relationship to pricing
outcomes. He argues that market logics are internally complex and can
support a variety of pricing orientations, and shows that underwriters
construct different hybrid market logics through the deceptive use of market
logic vocabulary to mask their own power and interests. Thus, logic hybridity
for Feng stems from the power and status associated with particular
investment banks and investment bankers. Demonstrating the fruitfulness of
the institutional logics perspective to core questions in economic sociology,
this paper paves a road for future research on market logics and pricing.
The last two papers provide key methodological contributions to the
study of institutional logics. In their provocative study, Taking Stock of
Institutional Complexity: Anchoring a Pool of Institutional Logics into the
Interinstitutional System with a Descendent Hierarchical Analysis,
Daudigeos, Boutinot, and Jaumier (2013) focus attention on how logics
evolve in a eld over time. They employ a novel methodology, descendent
16
CONCLUDING THOUGHTS
In the 1980s, the new institutionalism burst on the scene and provided a
foundation for the development of scholars and scholarship through the
study of isomorphism and diffusion using event history modeling
techniques. Since then, institutional theory has been rejuvenated, invigorated, and expanded in multiple ways. Extending this tradition, institutional
logics research promises to renew the institutional approach to organizations by providing an integrative and coherent theoretical foundation for a
new line of institutionalist scholarship; though theoretically diverging from
early new institutionalist statements (e.g., DiMaggio & Powell, 1983) in
fundamental ways, the institutional logics perspective retains important
continuities with its intellectual roots, including the embrace of foundational
intellectual commitments, a cosmopolitan orientation toward scholarship,
and a profound sense of community that W. Richard Scott and many other
scholars have built, cherished, and nurtured since the late 1970s.
It is clear that research on institutional logics is providing a generative
and energizing focal point for scholarly development, one that enhances our
17
NOTE
1. The ABC conferences were nanced through a network grant from the Danish
Council for Independent Research Social Sciences in collaboration with
participating institutions.
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