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The paper provides empirical evidence on impediments of the emerging social impact investment field in Germany. The study is based on 19 in-depth interviews with social impact investing funds, investment advisors, and social entrepreneurs as investees. It takes an explorative approach because of the nascent stage of research on the subject. By systematically relating the perspectives of the actors involved, the study gives a broad empirical picture on the major challenges for social impact investing in Germany. Results reveal nine critical problem areas we have arranged along three dimensions: financial returns, social returns, and relationships and infrastructure. They comprise investors’ and social entrepreneurs’ practices, institutional settings which are still heavily influenced by peculiarities of the German welfare systems, as well as undeveloped framework conditions in the social investment market. By interpreting the results through a lens of conflicting institutional logics, we further contribute to this research stream by showcasing social impact investing as a core area of friction between the logics of the market and civil society.
We examine how societal-level institutional logics impact the way in which hybridity develops in nonprofit organizations using international, comparative and qualitative case studies of community regeneration organizations in England and France. The research applies theoretically based conjectures about types of hybridity to empirical data generated from 20 interviews, document analysis and observation in five nonprofits in the city of Lyon and five in Sheffield. We find that the French nonprofits are ‘blended’ hybrids that integrate state and community institutional logics, while ‘assimilated’ hybrids combining state, community and market logics are found in the English cases. Undertaking contextually situated analysis of institutional logics generates new knowledge on the influences on nonprofits’ rules, practices and narratives, so improving the level of knowledge about, and capacity to manage, this sector.
Drawing from 41 qualitative interviews with Norwegian voluntary football clubs and local public stakeholders, this paper explores whether voluntary sport clubs (VSCs) are a convenient measure for including refugees in society. The following research questions are addressed: what expectations of refugee inclusion initiatives do local stakeholders hold towards voluntary sport clubs, and how do the clubs grapple with pursuing non-sport and sport objectives and systems simultaneously? The results show that the football clubs face high expectations of refugee inclusion. Although the football clubs generally understand and accept the expectations, inclusion and integration activities are costly in terms of time and competence and challenge the club’s capacities. Two competing logics are identified in the data: a functional logic passively welcoming everyone that are keen and resourced to play football and a moral and proactive logic, that expects the clubs to reach out to include refugees that are alien to the organization of indigenous sport. We find that despite external expectation, the sport clubs are not fast-tracks to refugee integration because the logic sustaining their existence and practices are at odds with the logic prescribing refugee integration through sport.
Social enterprises have gained wide recognition as a tool for solving social and environmental problems. They generate new opportunities in the social sphere, while being active in the commercial field. They are hybrid organizations that face many challenges when pursuing frequently conflicting goals. Social enterprises are therefore an expression of the possibility of different institutional logics coexisting as part of the same organization. Social enterprises running a commercial activity and using business-like practices legitimize the market logic, while the social goal of their operation is consistent with the logic of social welfare. Although there an intense discussion takes place in the literature on institutional logics that may affect nonprofits’ activity as hybrid organizations, so far the topic has been empirically verified only to a limited extent. The aim of this article is to examine the successful coexistence of the market logic and the social-welfare logic in NGOs acting as social enterprises. On the basis of a representative national survey of 3800 NGOs, including 412 carrying out market sales and thereby referred to as social enterprises, a one-factor analysis of variance was carried out. The obtained findings of the study indicate that social enterprises acting as non-governmental organizations successfully combine the market and the social-welfare logics.
Social enterprises pursue a dual mission: on the one hand, they strive for social purpose, while on the other, they try to achieve economic stability despite scarce resources. To achieve the dual mission, social enterprises avail themselves of both for-profit and non-profit institutional logics. Due to this combination of multiple institutional logics, such enterprises can be classified as hybrid organizations. This study focuses on these organizations and investigates tensions between social enterprises and various stakeholder groups caused by the use of commercial logics within the social sector. In particular, we examine the perception of commercial versus social welfare logics by various stakeholder groups, and investigate the effects on organizational communication. Our study is centered on social franchise enterprises. We use an exploratory qualitative research approach based on semi-structured interviews with 21 social franchisors and social franchisees of seven social franchise enterprises. Our main results suggest that the use of commercial logics in the social sector tends to decrease the legitimacy of social franchise enterprises in the eyes of internal stakeholders, the general public, and various (but not all) external stakeholder groups. Many stakeholders of social franchise enterprises show a strong aversion to commercial logics, and particularly to commercial terminology. Overall, we conclude that social franchise enterprises very consciously apply commercial and social welfare logics and use alternative terminology where necessary to retain legitimacy and prevent tensions.
The institutional logics perspective provides a powerful theoretical lens that emphasizes how meanings and practices are intertwined in relatively enduring configurations that can profoundly shape organizational behavior across space and time. In this article, we propose the need for a broader research agenda on the dynamics of institutional logics in the Chinese context, particularly in three aspects. We begin by elaborating on the distinct configuration of logics in China, where state logic is more dominant and often directs other logics, thus shaping organizational behavior differently than its Western counterpart. We then argue for the need to examine (1) the change of logics per se, leveraging China’ market transition, which provides a unique opportunity to observe how existing configurations of logics undergo transformational change and regain coherence; (2) the governance of logics, focusing on the influence of social evaluators and command posts; and (3) the diffusion of the China Model, a distinct configuration of logics and orders, to other countries through the Chinese state’s political and economic campaigns.
This article advances research at the intersection of macro talent management (TM) and the career capital of expatriates. It does so by reporting the findings of a qualitative study of self-initiated expatriates’ strategies of engaging the practices of a city-level TM institution to facilitate career capital formation. Strategies of engaging city-level practices of TM have diverse, at times paradoxical implications. Self-initiated expatriates employ strategies of engaging institutional practices to (1) support global career mobility without considerable adjustment, (2) develop local networks and careers in the host country, and (3) even actively escaping an expanding sphere of international institutions. The article explains how dynamics of career capital formation occur as (un)anticipated consequences of being exposed to institutional logics of adopted TM practices. Corporate and market-oriented logics of TM realized in an international city institution ambiguously combined with community logics, for some self-initiated expatriates resembling those of traditional expatriate institutions.
Transdisciplinary approaches for sustainability brings natural and social science researchers together with non researchers to fill gaps in scientific knowledge and catalyze change. By connecting diverse academic fields and sectors, it addresses complex problems and enables learning for problem solving. However, institutional barriers, funding constraints, time limitations, and evaluation criteria hinder collaborative progress. Our review reveals tensions at institutional and individual levels. Our findings underscore the significance of soft skills in assembling effective transdisciplinary teams. Embracing transdisciplinary science, as suggested by our review, can enhance problem-solving, and foster transformations for sustainability and resilience.
Technical summary
Sustainability challenges in the age of the Anthropocene require researchers and practitioners to collaborate across multiple academic disciplines and multiple professions outside of universities. In this paper we draw on theories of institutional logics to explore how those involved in transdisciplinary environmental research and practice draw on particular sets of values and norms but encounter challenges to collaboration. These institutional logics include (among others) seeking societal/environmental impact, commercial objectives, and academic knowledge generation. In this paper we review the growing literature on the research experience of transdisciplinarity in sustainability; discuss the processes of managing such research; and present a framework that outlines the challenges and tensions at each stage of the innovation/research process. We set out an agenda for managing tension that calls for recognizing the challenges, learning how to work with tensions, and building capabilities for future careers involving transdisciplinary research. The paper shows a key competence or skill for transdisciplinarians is the ability to develop complex collaborative relationships for sustainability drawing together different institutional logics, approaches, methods, goals, and values.
Social media summary
Transdisciplinary science: bridging disciplines, solving challenges. Soft skills and collaboration key to success.
This commentary applauds Haveman, Joseph-Goteiner, and Li's (2023) efforts to build arguments around institutional logics to explain China’s remarkable economic progress since 1978. But it also calls for broadening the focus of this inquiry so it can more generally explain why and how some societies are able to build connections between cultures and institutions that enable widespread societal progress, while other countries fail to do so. In particular, I suggest that this line of inquiry would benefit from drawing more deeply on the extensive body of writings by economic historians who have compared the economic progress of different societies over a long period.
The institutional logics perspective provides a powerful theory that emphasizes how symbolic beliefs and material practices are intertwined in relatively enduring configurations that can profoundly shape behavior across space and time. In this article, we build upon the arguments and insights of Haveman, Joseph-Goteiner, and Li, suggesting the need for a broader research agenda on the dynamics of institutional logics in China and around the world. Building on some of our recent writings, we argue for the need to go beyond the study of how logics have effects, to understand how logics themselves cohere, endure, and co-evolve in dynamic interrelationships with other logics.
Institutional logics are interrelated sets of cultural elements (norms, values, beliefs, and symbols) that help people and organizations make sense of their everyday activities and order those activities in time and space. In this paper, we describe the rise of a robust literature on institutional logics, which mostly focuses on Western societies. We then describe changes in Chinese society and economy over the past four decades, as it shifted from state-controlled planning and redistribution to market-mediated exchange. We detail how the institutional logics that guide Chinese firms have been transformed in the wake of the economic transition. The state logic, which developed in the Maoist era, valorizes equality, national community, and political stability. Although it is still in evidence, it has been partly supplanted by a market logic that encourages efficiency, competition, and property rights. But this market logic differs from the one that prevails in Western capitalist economies. The Chinese version of the market logic valorizes the central role that the state and the Communist Party continue to play in economic life. Therefore, in the Chinese version of the market logic, efficiency, competition, and property rights are tempered by a continued concern for political stability. We review and summarize the existing literature on institutional logics and Chinese firms, and then identify fruitful lines that future research could take.
Health-Care Coalitions (HCCs) provide an important emergency response safety net function across the United States in preparedness and responses to disasters. A key challenge is the variation in the maturity and operational readiness of HCCs. The purpose of this study was to identify key tenets that define high-functioning HCCs and help mature HCCs into a higher-functioning state of operations.
Methods:
This was a qualitative study based on grounded theory methodology using semi-structured interviews for data collection and thematic analysis. Participants were stakeholders (n = 39) of HCCs from across the United States at local, state, and federal levels.
Results:
Through an institutional logics lens, the 3 key attributes for high functioning-HCCs were identified as (1) having an established and growing partnership, (2) being value-driven culture, and (3) being response ready. In addition, 3 logics were deemed essential for guiding HCCs: sources of governance, sources of partner engagement, and sources of sustainability. Participant responses describe the importance of these attributes and logics in influencing decision-making processes, supporting a community’s resilience during a disaster, and fostering robust relationships among community partners.
Conclusions:
Addressing these attributes and logics in planning and management of HCCs can help establish the foundation for partner collaborations and high-functioning HCCs.
Rejecting the notion, endorsed by John Searle, of an “individual institution,” this chapter treats them as inherently social, and expresses no surprise that institutions have formed a central focus of sociological analysis since the discipline's founding. Engaging especially with work in the area of organizational theory and, beyond sociology, organizational and management studies, this chapter identifies an underlying dimension along which the literature can be arrayed, running from (macro, structural) scripts to (more micro, agentic) skills, as embodied in work by John Meyer and Neil Fligstein, respectively. Between these endpoints, this chapter identifies not only a similarly well-known Scandinavian institutionalism associated with March and Olsen and focusing on the microfoundation of bounded rationality, but also literature on institutional logics and institutional work emerging from business and management programs and only now starting to impact the broader social sciences. Beyond traditional strengths in explaining institutional maintenance, work in these idioms is making real progress in accounting for institutional origins and change.
The turbulent 1830s saw a sequence of great political and social reforms in the United Kingdom. One such reform was the introduction of a locally funded Poor Law in Ireland. The development of a nascent welfare system in 1838 coincided with a boom in the formation of microfinance institutions in Ireland. The focus of this study is the expansion of a hybrid organizational form, Loan Fund Societies (LFSs), in the ten years prior to the Great Irish Famine of 1845–1849. LFSs were legally established with a conflictual structure: acting as commercially viable charitable institutions required to provide credit to the deserving poor (to enable them to be self-sufficient) while dedicating their “profits” to supporting the indigent poor. This study uses an analytical framework drawing inspiration from institutional logics to explore and better understand Irish microfinance in the early nineteenth century, a period of profound socioeconomic and socioreligious changes. It seeks to explain the factors that motivated the establishment and de-establishment of microfinance institutions amid this tumult. Legislative changes in LFS business parameters in 1843 made the tensions between being charitable and commercially sustainable salient; and, for some, it made continued existence untenable.
The boundaries between state and charitable activities within the NHS are set out in regulations but are also enacted, blurred, and contested through local practices. This article reports research on NHS Charities– charitable funds set up within NHS organizations to enhance statutory provision – in Scotland. We analysed financial accounts and conducted qualitative interviews with staff in 12 of the 14 NHS Charities in Scotland, where they are generally known as endowments. Our findings suggest that Scotland’s endowments are relatively wealthy in charitable terms, but that this wealth is unevenly distributed when population size and socio-economic deprivation are considered. We also identify two diverging organisational approaches to decisions, including those about appropriate and inappropriate fundraising. We argue that these approaches cohere with contrasting ‘state’ and ‘charitable’ institutional logics, which in turn imply different attitudes to potential inequalities, and to relationships with local publics.
Previous research has debated whether guanxi persists or declines with the development of formal institutions. This study addresses this debate by investigating how the development of formal institutions in China's state-owned organizations influences employees’ guanxi behavior. Building on institutional logics theory, I propose that guanxi behavior is a reaction to the socialist institutions adopted by state-owned enterprises (SOEs) and is associated with the collective identity of SOEs. Thus, employees’ identification with SOEs is the mechanism that influences their guanxi behavior. A survey of 721 employees from 12 organizations compared guanxi behavior across three types of organizations with different degrees of state ownership: SOEs, public firms, and joint ventures. The results showed that the employees of joint ventures identify less with SOEs and engage in less guanxi behaviors than do SOE employees. The employees of public firms still identify with SOEs, and their guanxi behavior did not differ from that of SOE employees. Identification with SOEs mediated the effect of organizational type on guanxi behavior, whereas formalization did not. Therefore, the development of formal institutions does not necessarily decrease guanxi behavior, and its effect depends on whether the collective identity underlying guanxi is changed. This study has important implications for guanxi research, institutional logics theory, and transition economies.
From a modern institutional economics viewpoint, blockchain is an institutional technology that minimizes transaction costs and greatly reduces intermediation. Through an analysis of blockchain, I demonstrate the possibilities of extended institutional approach – a new generation of complexity-focused methodologies and theories of institutional analysis that complement and expand the standard institutional paradigm. By using the theory of transaction value, I argue blockchain technologies not only will lead to a significant reduction in transaction costs but will also reorient intermediaries toward improving the quality of transactions and expanding the offer of additional transaction services. The theory of institutional assemblages indicates it is impossible to form a homogeneous system of blockchain-based institutions associated exclusively with the principles of decentralization, transparency, and openness. Blockchain-based institutions will be of a hybrid and conflicting nature, combining elements of opposing institutional logics – regulatory and algorithmic law, Ricardian and smart contracts, private and public systems, and uncontrollability and arbitration.
Research on state-level suffrage associations points to women's greater participation in the public sphere—higher education, the professions, and civic organizations—as a significant predictor of a state's suffrage association succeeding in securing woman suffrage prior to passage of the Nineteenth Amendment. This finding raises the question of how women gained access to those areas of public life that had formal barriers to entry—higher education and the professions. Specifically, did women's participation in civic organizations play a role in helping women gain access to these areas of the public realm? Using event history analysis, this study explores the role of the Literary Club movement and the Suffrage movement in influencing a state's policy regarding women's right to practice law. I employ the concept of institutional logics to argue that Clubwomen and Suffragists exploited contradictions in the logics of traditional gender roles and of the American political system to press for expanded opportunities for women in the public realm. Their success in these efforts, however, was influenced by their organizations’ deference to the dictates of traditional gender roles.
The purpose of this paper is to explore how middle managers respond when an existing institutional logic is reinforced through radical organisational change. We analyse documents and interviews with middle managers in three public sector contexts (hospitals, upper secondary schools, municipal agencies) in which the power balance between the managerial and professional logics changed through mergers. Contrary to expectations from previous research, we found a variety of responses across contexts. Our data suggest that the middle managers chose whether to acknowledge available information about the managerial logic, and that they either accepted or rejected the new power balance between the logics. There were two different ways of accepting the new power balance: by showing loyalty or through resignation. Its rejection took the form of strategically adhering to the managerial logic as a novice, even though a middle manager was, or should have been, familiar with this logic.
Firms face a variety of institutional logics and one important question is how individuals within firms manage these logics. Environmental managers in particular face tensions in reconciling their firms’ commercial fortunes with demands for greater environmental responsiveness. We explore how institutional work enables environmental managers to respond to competing institutional logics. Drawing on repeated interviews with 55 firms, we find that environmental managers face competition between a market-based logic and an emerging environmental logic. We show that some environmental managers embed the environmental logic alongside the market logic through variations of creation and disruption, thus over time creating institutional change, which can result in blended logics. Others, however, pursue a strategy of status quo or disengagement through maintenance or other forms of disruption, where the two logics coexist in principle but not in practice; instead the market logic retains its dominance. We discuss the implications of our findings for research.