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The Multiplicity of Institutional Logics and the Heterogeneity of Organizational Responses

Author

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  • Royston Greenwood

    (School of Business, University of Alberta, Edmonton, Alberta T6G 2R6, Canada)

  • Amalia Magán Díaz

    (Universidad de Almería, 04120 Almería, Spain)

  • Stan Xiao Li

    (Schulich School of Business, York University, Toronto, Ontario M3J 1P3, Canada)

  • José Céspedes Lorente

    (Universidad de Almería, 04120 Almería, Spain)

Abstract

This paper shows that organizations in market settings face complex institutional contexts to which they respond in different though patterned ways. We show how both regional state logics and family logics impact on organizational responses to an overarching market logic. Regional logics are particularly potent when the activities of firms, especially of large firms, are concentrated in regions whose governments champion regional distinctiveness and where the regional activities of the firm are significant. Family logics affect the decision to downsize, especially in smaller firms. This paper advances institutional theory by showing the influences of nonmarket institutions on market behavior, contributes to the growing recognition of community influences, and highlights the importance of historical context.

Suggested Citation

  • Royston Greenwood & Amalia Magán Díaz & Stan Xiao Li & José Céspedes Lorente, 2010. "The Multiplicity of Institutional Logics and the Heterogeneity of Organizational Responses," Organization Science, INFORMS, vol. 21(2), pages 521-539, April.
    • Handle: RePEc:inm:ororsc:v:21:y:2010:i:2:p:521-539
    DOI: 10.1287/orsc.1090.0453
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    References listed on IDEAS

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