HEC Research Papers Series,
HEC Paris

Abstract: We propose that institutional logics are resources organizations use to leverage their strategic choices. We argue that firms with an awareness of multiple available logics, expressed by a larger stock of competences and a broader industrial scope are more likely to add an institutional logic to their repertoire and to become purist in this new logic. We also hypothesize that a favorable opportunity set as expressed by status leads high and low status firms to add a logic but not to focus exclusively on this new logic. We examine our hypotheses in the French industrial design industry from 1989 to 2003 in which a managerialist logic emerged and prevailed along with the pre-existing institutional logics of modernism and formalism. Our findings contribute to theory on the relationship between organizations’ strategy and institutional change and partially address the paradox of why high-status actors play a key role in triggering institutional change when such change is likely to undermine the very basis of their social position and advantage

Keywords: Institutional logics; strategic resources; institutional plurality; strategic choice; logic addition; logic focus

JEL-codes: L00

45 pages, October 29, 2013

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