Organizational Responses to Contending Institutional Logics: The Moderating Effect of Group Dynamics

Abstract

This paper advances knowledge on how the forms of institutional logics that emerge and become venerated among members of a singular organization in a heterogeneous field are influenced by struggles between contending interest groups. It examines the moderating effect of group dynamics that occur when an organization attempts to balance novel institutional complexity within organizational bounds through its hiring and promotion systems. The authors argue that, while the specific institutional oppositions of heterogeneous fields compel organizational changes, the institutional forms that emerge and become legitimate among members of an organization in such fields are the effects of indeterminate social processes of regularization and breaking of coexisting logics. The paper provides insights into how the negotiations among groups of organizational actorsover the process and outcome of institutional change are influenced by asymmetric power relationships yet significantly mediated by their social strategies. The findings reported are from an ethnography of the enactment of institutional changes at a South Korean credit card company following the economic crisis in 1997 and the International Monetary Fund bailout programme.

Green entrepreneurship in the sharing economy: utilising multiplicity of institutional logics

“…Hybridisation of practices and structures through integrating institutional logics from different domains is well-demonstrated as a viable strategy for organisational accomplishments (Scott 2001;Battilana and Dorado 2010;Bjerregaard and Jonasson 2013;Jay 2013;Pache and Santos 2013;Tracey et al 2011;McPherson and Sauder 2013). By strategically employing practices drawn from alternative logics, organisations can gain legitimacy and acceptance (Pache and Santos 2013).…”

Managing Institutional Complexity in Public Sector Reform: Hybridization in Front‐line Service Organizations

“…). It may also include individual group‐level factors such as group dynamics (Bjerregaard and Jonasson ). Overall, research suggests that it is difficult to combine multiple logics in an existing organization, and that organizations need to develop new capabilities for this purpose.…”

“…Such compatibility may include structural components such as size, form, types of competence, and strategic objectives, in addition to organizational practices and processes (Jarzabkowski et al 2013). It may also include individual group-level factors such as group dynamics (Bjerregaard and Jonasson 2013). Overall, research suggests that it is difficult to combine multiple logics in an existing organization, and that organizations need to develop new capabilities for this purpose.…”

The Role of Local Context in the Cross‐border Acquisitions by Emerging Economy Multinational Enterprises

“…ability to deal with changes, to the MNE (Huang et al, 2015;Junni et al, 2015). However, to exploit these heterogeneous benefits, the MNE has to bear transaction costs associated with managing the differences in local contexts (Bjerregaard and Jonasson, 2014;Hennart, 2009).…”