The Multiplicity of Institutional Logics and the Heterogeneity of Organizational Responses

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.