Organizations often face the challenge of institutional complexity, which involves incompatible prescriptions from multiple institutional logics. To deal with this challenge, prior researchers have proposed several strategies to tackle conflicts within and between organizations. The success of these solutions fundamentally hinges on achieving clarity. However, while clarity often brings further conflicts for both internal and external stakeholders, I argue that ambiguity logic is an alternative approach to deal with institutional complexity as it creates space for negotiations and potential solutions. As such, this paper proposes five research propositions that examine when ambiguous language and behavior can be better used to deal with institutional complexity. In general, the use of ambiguity logic is associated with power. Specifically, ambiguity logic is better applied in organizations when power is more evenly distributed among the stakeholders.
