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How Do Institutional Prescriptions (Fail to) Address Governance Challenges Under Institutional Hybridity? The Case of Governance Code Creation for Cooperative Enterprises

Author

Listed:
  • Jozef Cossey

    (KU Leuven
    UCLouvain)

  • Adrien Billiet

    (KU Leuven)

  • Frédéric Dufays

    (KU Leuven
    HEC Liège, University of Liège)

  • Johan Bruneel

    (KU Leuven
    IESEG School of Management, Univ. Lille, CNRS, UMR 9221 - LEM - Lille Economie Management)

Abstract

Codes of governance have mushroomed in contexts operating under a single, dominant institutional logic, such as publicly listed corporations. These codes act as institutional prescriptions that help spread best practices throughout industries. More recently, in some countries, specific codes have been developed for hybrid organizations that integrate multiple, conflicting institutional logics simultaneously, such as cooperative enterprises. Drawing on an extensive set of qualitative data, we ask how such institutional prescriptions may (fail to) address governance challenges in organizations with multiple, conflicting institutional demands. In doing so, we extend current literature on governance of hybrid organizations, which has so far focused on individual and organizational levels, to include institutional-level strategies. While governance codes are often inspired by deontological ethics to solve issues in a single institutional logic, we find that governance codes for hybrid organizations should not prioritize a single institutional logic, nor follow a deontological approach to improving governance, but should, on a more pragmatist take, remain open to continuous learning.

Suggested Citation

  • Jozef Cossey & Adrien Billiet & Frédéric Dufays & Johan Bruneel, 2025. "How Do Institutional Prescriptions (Fail to) Address Governance Challenges Under Institutional Hybridity? The Case of Governance Code Creation for Cooperative Enterprises," Journal of Business Ethics, Springer, vol. 196(2), pages 451-470, January.
    • Handle: RePEc:kap:jbuset:v:196:y:2025:i:2:d:10.1007_s10551-023-05581-z
    DOI: 10.1007/s10551-023-05581-z
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