Differences in Organizing Between Unions and NGOs: Conflict and Cooperation Among Swedish Unions and NGOs

The protection of workers’ rights is at the heart of the ongoing debate on business ethics. In balancing transnational corporations’ (TNCs) influence in private regulatory systems intended to protect workers’ rights in emerging economies, several authors have emphasized the importance of cooperative relationships between unions and NGOs. In practice, however, conflict has often entered into union–NGO relations, weakening the protection of workers’ rights. We argue that cooperative union–NGO relationships are difficult to form in part because of the differences existing between how unions and NGOs organize. More specifically, based on two qualitative studies, we demonstrate that the problems stem from differences in organizing related to (i) identity construction, (ii) governance systems, and (iii) resources. The article concludes with a discussion on the possibility of successful union–NGO cooperation and improved protection of workers’ rights in emerging economies.     

The Influence from the Past: Organizational Imprinting and Firms’ Compliance with Social Insurance Policies in China

Using a nationwide survey of randomly selected manufacturing firms in representative Chinese cities, we examine how firms’ compliance with social insurance policies is shaped by their historical imprinting, by their founding ownership structures, as well as by massive institutional changes. Our empirical results suggest that firms founded in the state socialist era and firms founded as Chinese state-owned enterprises (SOEs) were infused with socialist institutional logics of labor relations, and they tended to comply with social insurance policies even in the present market socialist era. Chinese SOEs restructured into private and joint-ventured firms attenuated the lingering effect of organizational imprinting and provide social insurances for fewer workers. This research is among the first to probe the historical influence on labor protection in contemporary society. Through studying the stability and changes of socialist institutional logic of labor relations, our research leads to a better understanding of the situation of labor relations in contemporary China.     

When institutional change outruns the change agent: The contested terrain of entrepreneurial microfinance for those in poverty

We argue that institutional change moves through stages punctuated by recurring attempts to formally redefine the boundaries and logics of organizational fields that institutional entrepreneurs initially establish. With a grounded theory model, we demonstrate that institutional change in microfinance started with dominant development logic, shifted to market logic, and got stuck in a conflict over regulatory logic. We show how the role of the entrepreneur can change markedly over time while the institutional change process continues unabated. We present institutional entrepreneurship as an evolving phenomenon and suggest that the interplay between institutional entrepreneurs and established organizational fields is highly nuanced.     

Internal Cohesion in Response to Institutional Plurality: The Administrative Sciences Association of Canada

Addressing the underdeveloped area of the interrelationships between institutional logics, organizational legitimacy, and organizational identity, we undertake a critical hermeneutic analysis of the archives of the Administrative Sciences Association of Canada (ASAC) and the context in which the association exists. Through our analysis we show how ASAC's response to the conflicting institutional logics of Canadianism and business schools has been one of internal cohesion, with continuous attempts to create collaborative synergies between the logics, rather than succumbing to internal conflict and fragmentation. Copyright © 2013 ASAC. Published by John Wiley & Sons, Ltd.     

Sustaining Inter-organizational Relationships Across Institutional Logics and Power Asymmetries: The Case of Fair Trade

This paper explores an empirical puzzle, namely, how inter-organizational relationships can be sustained between organizations that draw upon distinctive—and potentially conflicting—institutional logics under conditions of power asymmetry. This research analyses cases of these relationships and suggests some key conditions underlying them. Examining relationships between ‘Fair Trade’ organizations and corporate retailers, a series of contingent factors behind the dynamic persistence of such relationships are proposed, namely: the presence of pre-existing ‘hybrid logics’; the use of boundary-spanning discourses; joint tolerance of conflict; and co-creation of common rules. These four elements are supported by a fifth mediating factor, i.e. the presence and use of a Fair Trade certification system in the collaboration. The latter appears as a central vehicle facilitating cross-logic relationships—it can be seen as a ‘boundary object’ embodying a series of narratives and discourses that are open to multiple interpretations corresponding to the dominant institutional logics of each partner organization.     

Beyond Wages and Working Conditions: A Conceptualization of Labor Union Social Responsibility

This article integrates theory and concepts from the business and society, business ethics, and labor relations literatures to offer a conceptualization of labor union social responsibility that includes activities geared toward three primary objectives: economic equity, workplace democracy, and social justice. Economic, workplace, and social labor union stakeholders are identified, likely issues are highlighted, and the implications of labor union social responsibility for labor union strategy are discussed. It is noted that, given the breadth of labor unions in a global work environment, labor union social responsibility also has implications for NGOs, corporations, and how corporate social responsibility is viewed going forward. This article concludes by noting that the nexus of labor relations and corporate social responsibility warrants more attention in management and labor relations literatures.     

Navigating contradictory logics in the field of luxury retailing

When designing luxury retail experiences, luxury managers are often encouraged to focus on a single logic: the logic of distinction. Evidence suggests, however, that multiple logics influence the field of luxury retailing. In this paper, we explore the implications of such multiplicity, focusing particularly on logics coming into tension with one another. Our research questions are: 1) What are the logics that come into conflict in luxury retail settings and 2) How can luxury retail managers navigate conflicts between logics to facilitate positive customer experiences in luxury retail settings? Based on extensive ethnographic fieldwork in the luxury field, we find conflicts mainly between three logics: distinction, pragmatism, and hedonism. We show that each logic is underpinned by different values, different linguistic practices, and different focal objects. We further find that conflicts between the logics tend to become acute during specific interactions during the customer journey. Our findings also suggest that since luxury boutiques are by and large designed to enforce the distinction logic, luxury retailers at times struggle to accommodate and navigate the conflicts that occur between these logics. We identify three interrelated sets of practices, collectively referred to as experiential hybridization, that effectively allow luxury retailers to address the challenge of logic complexity. Theoretically, our research helps illuminate institutional logics as a factor that informs customers’ experiences in contemporary retail fields such as luxury. Managerially, we suggest ways for luxury retailers to manage logic conflict and deliver superior customer experiences.     

Protect,profit, profess,promote: Establishing legitimacy through logics of diversity in Canadian accounting firm recruitment documents

Prospective accounting recruits are increasingly diverse. Drawing on a theoretical framework that combines legitimacy theory, impression management, and institutional logics, we use content analysis to examine how the eight largest Canadian accounting firms refer to diversity in their recruitment websites. Our analysis reveals accounting firms adopt multiple institutional logics and various impression management strategies to enhance legitimacy in the eyes of prospective diversity‐sensitive employees. We find four “Ps” of diversity‐related institutional logics—protect, profit, profess, and promote—all of which are at play in accounting firms' websites. Further, we find that diversity is far from being an institutionalized concept. Copyright © 2015 ASAC. Published by John Wiley & Sons, Ltd.     

Institutional logics and social enterprises: Entry mode choices of foreign hospitals in China

When social enterprises, being defined by their social mission and profitability, internationalize, they need to respond to institutional logics in the host country. By juxtaposing institutional logic and entry mode choice literature, this paper shows how social enterprises accommodate different institutional logics when they enter foreign markets. We collected data on Chinese healthcare reform, governmental policies and their changes, and conducted 36 in-depth interviews and three expert group meetings. By analyzing five non-Chinese hospitals entering China, we show how social enterprises, as hybrid organizations, respond to governmental, commercial, and social institutional logics, when entering a foreign market.     

NGOs’ influence on MNEs’ social development strategies in varying institutional contexts: A transaction cost perspective

In this paper, we examine the effect of nongovernmental organizations (NGOs) on the transaction costs multinational enterprises (MNEs) assume in their nonmarket social development strategies. We develop propositions to predict the effect of three important aspects of the institutional context on how NGOs affect MNE transaction costs: institutional development, institutional distance and institutional dynamism. We also propose how these relationships are moderated by the level of civil society development in the countries in which these entities interact. We conclude with suggestions for further research.     

Caught in a communicative catch-22? Translating the notion of CSR as shared value creation in a Danish CSR frontrunner

There is a growing interest in how the notion of corporate social responsibility (CSR) as shared value creation is translated in Scandinavia. However, current research seems to disregard that the specific institutional context is ambiguous, enabling the organization, and its internal stakeholders to translate the institutional logics into contradictory meanings of CSR as shared value creation. Building on the institutional logics perspective and the metaphor of translation, and framed within a case study of a Danish CSR frontrunner, this paper explores how the notion of CSR as shared value creation is translated at both the organizational and individual level through discourse. The study shows that the organization and its internal stakeholders employ different strategies to reconcile the institutional logics of ethics and economy, suggesting that the translation processes are a complex communicative matter of continuously balancing the contradictory institutional logics to maintain legitimacy in the eyes of external stakeholders.     

The Micro-level Foundations and Dynamics of Political Corporate Social Responsibility: Hegemony and Passive Revolution through Civil Society

Exploration of the political roles firms play in society is a flourishing stream within corporate social responsibility (CSR) research. However, few empirical studies have examined multiple levels of political CSR at the same time from a critical perspective. We explore both how the motivations of managers and internal organizational practices affect a company’s choice between competing CSR approaches, and how the different CSR programs of corporate and civil society actors compete with each other. We present a qualitative interpretative case study of how a French children’s clothing retailer develops CSR practices in response to accusations of poor working conditions and child labor in its supply chain. The company’s CSR approach consists of superficial practices, such as supplier audits by a cooperative business-organized nongovernmental organization (NGO) and philanthropic activities, which enable managers to silence more radical alternative models defended by other NGOs, activists, and trade unions. By this approach, the core business model based on exploitative low-cost country sourcing remains intact through self-regulated CSR. Through the case study, we develop a framework of dynamism in competing CSR programs. We discuss the implications of our study for CSR researchers, company managers, and policy makers.     

Corporate Community Involvement and Local Institutions: Two Case Studies From the Mining Industry in Tanzania

Corporate community involvement contributes capital or resources in various forms to a community. However, such involvement may also influence local institutions that determine how well these resources are used, that is, the extent to which they are used to promote the public good rather than being subject to private capture. For community involvement to have a beneficial effect on local development, corporations need to consider their impact on local institutions. Presented in this article are two case studies from Tanzania that illustrate how community involvement activities of two mining firms have resulted in misappropriation of and conflict over corporate community involvement funds. It is argued that corporations need an analytical approach that integrates a differentiated stakeholder approach with institutional theory to contribute to local development in poor communities.     

Alignment of Divergent Organizational Cultures in IT Public-Private Partnerships

The cooperation of public and private sector organizations is a viable option for decision makers in the public sector for improving information technology (IT) infrastructures, acquiring innovation, and increasing management know-how. Effective partnering in public-private partnerships (PPP) is difficult though, because the involved stakeholder groups have divergent interests and organizational cultures. Using institutional logics as meta-theoretical lens, this exploratory, interpretive case study analyzes an IT PPP in Germany. The results reveal public- and private-side organizational culture differences and how the partners aligned their cultural differences by the development and legitimization of a partnership norm as well as the necessary partnership practices. The case analysis also illustrates how public sector and private sector organizations succeeded with the transition of public sector and private sector employees into a partnership organization and the management of different organizational cultures.     

Relationship of business and NGOs: an empirical analysis of strategies and mediators of their private relationship

Managing the relationship with nongovernmental organizations (NGOs) is a key capability for most companies, because dialogue with stakeholders is a requested feature of Corporate Social Responsibility (CSR). This paper analyses the relationship between businesses and NGOs in Spain. By applying grounded theory, the authors summarize this relationship in the dynamics of conflict and cooperation. NGOs' strategies vis-à-vis companies are categorized and the variables explaining different approaches on both companies' and NGOs' side are examined. The paper concludes by placing the private relationship with NGOs in a wider context (the public arena), dominated by the approach-withdrawal dynamics between firms and NGOs. Finally, this paper presents the theory that results from this research.     

International network formation,home market institutional support and post-entry performance of international new ventures

Effectuation and causation decision-making logics are noted to be major alternative approaches to international network formation. However, knowledge is lacking on how and the conditions under which the two approaches contribute to post-entry performance of international new ventures (INVs). We integrate the theory of effectuation and institutional development logic to explain how effectuation and causation approaches to international network formation individually and jointly contribute to post-entry performance under varying conditions of home market institutional support. We test our proposed framework on primary data from 228 INVs in a sub-Saharan African economy. Results suggest that greater uses of both effectuation and causation approaches to international network formation are associated with stronger post-entry performance. More interestingly, results show that the joint effect of the two international network formation approaches on post-entry performance is amplified under conditions of low home market institutional support. Our findings provide theoretical and managerial insights on the importance of complementing effectual and causal reasoning in international network formation in weak home market institutional environments.     

Management of sustainable fashion retail based on reuse– A struggle with multiple logics

ABSTRACT

In scholarly conversations, reuse is one of the common suggested strategies to render fashion retail sustainable. Previous research has stressed the complexity of fashion reuse and the importance of a well-organized system. The complexity stems from processes that involve many actors as well as products hard to evaluate. Consequently, it is challenging to organize reuse-based fashion retail, and studies are needed to further develop knowledge regarding how to manage such systems. Hence, the purpose of this paper is to highlight the complexity in the management of such an initiative, by identifying and explaining obstacles as well as implications. With institutional logics as a framework, three local logics (shopping mall, reuse, and work integration) are used to analyze the management of a reuse-based mall. Despite the mall’s success in getting sufficient donations and creating publicity, it has struggled to establish itself as viable reuse-based fashion retail. The findings illustrate the complexity created by the interplay of different logics and how the complexity influences both the daily and strategic management of the mall. Further, the outcome of this interplay depends largely on which rationality is enacted by involved actors. The study also extends literature on institutional logics, showing that differences in individual actors’ attention, knowledge, skills, coordination, and material conditions influence how logics are enacted and managed. We suggest that there are inherent managerial contradictions in the sustainable practices in fashion retail. Thus, in scholarly conversations, it is important to discuss what different divergent sustainability dimensions imply when seeking solutions for sustainable retail. In practice, there is a need to acknowledge and balance the presence of multiple logics, making it crucial to have competence in all logics. Also, managers of reuse-based fashion retail must consciously and continuously scrutinize their own strategies and actions to avoid an imbalance between the logics.     

Bankers at the gate: Microfinance and the high cost of borrowed logics

In this paper we examine how the interaction between influences of commercial banking and poverty alleviation shaped the evolution of modern microfinance. Using institutional theory as a lens, we observe that the commercial banking logic increasingly displaced the microfinance field's foundational poverty alleviation and development principles over time. We argue that this process of displacement can occur inadvertently as organizations that embody multiple logics draw disproportionately on only one of those logics when developing legitimating accounts of their activity to stakeholders. Furthermore, we introduce the concept of permeability – the extent to which the elements of a logic are ambiguous and loosely coupled – to explain why some logics may be more or less open to the influence of other logics. We conclude by discussing implications for entrepreneurship and poverty alleviation more generally.     

When Marketing Dare Not Speak Its Name: Understanding Market Orientation in Chinese NGOs

ABSTRACT

The market orientation construct has proven to be of value to profit-seeking firms. It ought to be of value to NGOs too. Some previous research has been done to facilitate understanding of market orientation in NGOs, but the methodologies used have mostly been quantitative, and nothing is known about the market orientation of Chinese NGOs. To address this research gap, a qualitative case study methodology was used to develop a deeper understanding of how market orientation is practiced among NGOs in Hong Kong (China). Mapping with previous studies, the research found that three factors together explained the varying degrees of market orientation in the NGOs studied: senior management factors, organizational and institutional factors, and structural and system factors. But more importantly, an NGO’s funding base was found to moderate the relationship between these antecedents and an organization’s market orientation. The more that the NGO relies on public funding or a small number of funders the weaker the influence of the antecedents on market orientation. The more that the NGO relies on private funders, a diversified group of funders, or self-funding, the stronger the influence of the antecedents on market orientation, and the closer its understanding of market orientation is likely to be to that of a commercial entity. The article finishes with a substantive theoretical model for market orientation in the Chinese NGO context.     

Aesthetic logics,terroir and the lamination of grower champagne

ABSTRACT

This paper examines how aesthetic institutional logics and objects shape markets. We focus on the champagne field, for which dominant category conventions include luxury, celebration and protected regional origin (exemplified by grande marque champagne). Our attention, however, is on more recent, alternative conventions, such as site-specific terroir and passionate artisanality (exemplified by “grower champagne”). In analyzing how trade associations, small-scale producers and wine writers represent champagne, we offer an approach that is sensitive to both top-down and bottom-up dynamics of logics. Drawing on the concept of lamination to provide a processual bridge between category conventions and institutional objects (and thus logics), we find that representations from the three actor groups build up – layering and (at least partially) overlapping – such that both dominant and alternative frames come to shape the champagne field. We suggest how divergent representational practices may be directed at and by a common aesthetic institutional object.