Unfolding institutional plurality in hybrid organizations through practices: The case of a cooperative bank |
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| Institution: | 1. Laval University, 2325 Rue de L''Université, Québec City, Canada;2. University of Pisa, 10 Via Cosimo Ridolfi, 56124, Pisa, Italy;1. School of Accounting, Southwestern University of Finance and Economics, Chengdu, 611130, China;2. School of Economics and Management, Harbin Institute of Technology, Shenzhen, 518055, China;3. Department of Accounting and Information Systems, Rutgers Business School-Newark and New Brunswick, Rutgers University, 1 Washington Square Park, Room #934, Newark, NJ, 07102, USA;4. Department of Finance and Economics, Rutgers Business School-Newark and New Brunswick, Rutgers University, 100 Rockafeller Road, Room #5135, Piscataway, NJ, 08854, USA;1. School of Economics and Business Administration, Saint Mary''s College of California, USA;2. College of Business, Hankuk University of Foreign Studies, South Korea;3. School of Accounting and Finance, Hong Kong Polytechnic University, Hong Kong;4. Barowsky School of Business, Dominican University of California, USA |
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| Abstract: | This paper provides a theoretically informed analysis of how institutional pluralism unfolds in hybrid organizations through practices. Building on Quattrone's (2015) procedural model, the paper studies institutional plurality in the case of an Italian cooperative bank that has experienced enduring success. By reversing the usual approach to logic, defined as a stable set of beliefs, this paper shows that this hybrid organization uses a recursive system of practices in search of social order. This hybrid organization interrogates its organizational imperatives and defines adequate ways to achieve them. This paper then observes that this system of practices is permeable to external pressures, i.e., inspections by the central bank, a reform of cooperative banks, political pressure for mergers and acquisitions, and Italy's sovereign debt crisis. While such an organization appears to be ongoingly accountable to its multiple stakeholders, external pressures undermine its community accountability system and push this hybrid organization towards compliance accountability. Based on our findings, this paper develops a process model for hybrid organizations to navigate institutional plurality and to explain the potential limitations of the accountability system. |
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| Keywords: | Hybrid organizations Institutional plurality Accountability External pressures Practices Cooperative bank |
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