A Blessing and a Curse: Institutional Embeddedness of Longstanding MNE Subsidiaries in Emerging Markets

This article examines the institutional strategies of multinational enterprises (MNEs) operating in an emerging market, drawing attention to how longstanding foreign subsidiaries proactively negotiate their involvement with socio-political actors. We build on institutional logics to explain how MNE subsidiaries develop sustained political, cultural, and cognitive embeddedness. Using an inductive, interpretive study of four century-old Dutch MNE subsidiaries with a colonial legacy in Indonesia, we examine these three dimensions of the institutional environment, finding that local employees embedded in both the MNE and the host country sets of logics ‒ rather than expatriate managers ‒ most effectively facilitated sustained institutional embeddedness. Our findings also suggest that embedding practices in host institutional contexts and developing structures that align with host institutional expectations provided a platform for the unfolding of institutional strategies by local employees. However, MNE subsidiaries face contrasting logics between home and host country institutions, placing significant strains on MNEs’ ability to enact change.     

Between advocacy,compliance and commitment: A multilevel analysis of institutional logics in work environment management

In this study we explore the development and enactment of institutional logics in the field of work environment management. We show how three historically developed logics constitute different values and practices that guide professionals’ organizational action. Using both historical and contemporary qualitative data, we show how the three institutional logics are present in the field of work environment, and how the logics are enacted simultaneously by actors within four large organizations in Denmark. The study contributes to the literature on institutional logics. The logics perspective is combined with critical realism to describe the inter-relatedness between the levels of society, institutional fields, and organizations, and by elaborating the near-decomposable relations between institutional logics and orders. The study contributes to the literature on work environment management by investigating the ideational lenses through which regulations and interventions are perceived by organizational actors, and how these perceptions may lead to different organizational outcomes and outlooks in work environment management.     

Rethinking Institutions and Organizations

In this Point–Counterpoint article we argue that institutional scholarship has become overly concerned with explaining institutions and institutional processes, notably at the level of the organization field, rather than with using them to explain and understand organizations. Especially missing is an attempt to gain a coherent, holistic account of how organizations are structured and managed. We also argue that when institutional theory does give attention to organizations it inappropriately treats them as though they are the same, or at least as though any differences are irrelevant for purposes of theory. We propose a return to the study of organizations with an emphasis upon comparative analysis, and suggest the institutional logics perspective as an appropriate means for doing so.     

Multiple Institutional Logics in Health Care: ‘Productive Ward: Releasing Time to Care’

Health care organizations are often confronted with multiple institutional logics. In this study, a longitudinal case study method was used to gain insights into the adoption decision-making and implementation process of an apparently hybrid innovative practice when multiple logics are present. The case study focuses on the adoption and implementation of ‘Productive Ward: Releasing Time to Care’ in a Dutch hospital. This is a quality improvement programme developed by the National Health Service (NHS) in the United Kingdom. The results show that institutional logics complicate the adoption and implementation process.     

MNC practice transfer: institutional theory,strategic opportunities and subsidiary HR configuration

Human resource (HR) practice transfer is an important topic in the domain of strategic international human resource management (SIHRM). Previous research in practice transfer has emphasized the challenges arising from the institutional distance between the home and host countries. However, potential opportunities due to this distance have been largely overlooked. Shifting the focus away from looking at institutional distance as a constraint, we examine the possibilities of strategic opportunities that exist because of institutional distance. We argue multinational corporation (MNC) subsidiaries can exploit these opportunities to gain competitive advantage. Building upon SIHRM literature, institutional theory and the resource-based views, we propose a conceptual framework explaining how institutional environments present strategic opportunities. We argue that these strategic opportunities are most abundant in the case of moderate institutional distance between the two countries. Building upon the conceptualization of strategic opportunities, we propose a model of subsidiary HR configuration, and then we explain how an HR configuration could be a source of competitive advantage. Further, we examine the role of MNCs' overall SIHRM orientation in relation to the identification and exploitation of strategic opportunities.     

Through the Looking‐Glass: The Impact of Regional Institutional Logics and Knowledge Pool Characteristics on Opportunity Recognition and Market Entry

This study investigates how regional variations in institutions and knowledge pools impact new firm entry into emerging industry sectors. Using the cleantech industry sector as a research context, we hypothesize and find that supportive regional institutional logics – shared meaning systems in a community that confer legitimacy upon particular goals and practices – generate cognitive schemas (mental models) that facilitate opportunity recognition and increase new firm entry rates. Drawing from research on socially situated cognition, we demonstrate that supportive institutional logics have a greater impact on new firm entry when a regional knowledge pool is larger, but a reduced impact on new firm entry when the knowledge pool is more specialized. These findings integrate previously distinct perspectives from institutional theory and knowledge economics, while contributing to research on how new industry sectors emerge.     

Dimensional effects of Korean SME’s entrepreneurial orientation on internationalization and performance: the mediating role of marketing capability

This study examines how three different dimensions of entrepreneurial orientation (proactiveness, innovativeness, and risk-taking) each determine internationalization strategies and enhance international performance among small and medium-sized enterprises (SMEs) through the mediating role of marketing capabilities. An integrative theoretical framework built on international entrepreneurship and a resource-based approach was tested in the context of Korean SMEs. Analyses of 401 survey data collected from Korean exporting SMEs revealed the differential effects of each entrepreneurial orientation and the mediating effect of marketing capability on internationalization strategies and performance. Proactiveness and risk taking appeared to function as significant antecedents of marketing capability. Marketing capability, in turn, significantly decreased internationalization scope and increased the financial performance of Korean SMEs, though it did not influence internationalization scale. This study further confirms that the mediating role of marketing capability in entrepreneurial orientation-performance relationships vary by entrepreneurial orientation dimensions. Taking the direct and indirect roles of the entrepreneurial orientation dimensions together, this study recommends the critical prioritization of risk-taking over proactiveness. It extends previous approaches to the triad of resource–capability–performance. Theoretical contributions and insightful managerial implications are also provided.     

Institutional Logics in Police Performance Indicator Development: A Comparative Case Study of Spain and Finland

Police performance is not easily measurable and the organization and circumstances of police work vary among European countries. Further, police work is surrounded by multiple pressures to make it both economical and effective. Consequently, there are multiple institutional logics in decision-making which may affect the selection and the use of police key performance indicators (KPIs). The KPI selection and use processes reflect the institutional logics, though KPI use may also sometimes influence the institutional logics of police work. In this study, we analyze the KPIs and institutional logics in police work in Finland and Spain. A comparative case research approach is used in order to highlight the differences in institutional logic emphases and in circumstances. Data from semi-structured interviews, internet reports, project work, and discussions are used. Both similarities and differences in the KPIs and in the institutional logic emphasis are found between the Finnish and Spanish police. Understanding the partly general and partly locally constructed nature of institutional logics may facilitate the development of police work performance measurement. We also suggest ways of coping with multiple institutional logics. For example, risk analyses and selecting KPIs against the current institutional logic may facilitate organizational developments.     

From National Service to Global Player: Transforming the Organizational Logic of a Public Broadcaster

We present organizational logics as a meso‐level construct that lies between institutional theory's field‐level logics and the sense‐making activities of individual agents in organizations. We argue that an institutional logic can be operationalized empirically using the concept of a discourse – that is, a coherent symbolic system articulating what constitutes legitimate, reasonable, and effective conduct in, around, and by organizations. An organization may, moreover, be simultaneously exposed to several institutional logics that make up its broader ideational environment. Taking these three observations together enables us to consider an organizational logic as a spatially and temporally localized configuration of diverse discourses. We go on to show how organizational logics were transformed in the Australian Broadcasting Corporation between 1953 and 1999 by examining the changing discourses that appeared in the Corporation's annual reports. We argue that these discourses were modified through three main forms of discursive agency: (1) undertaking acts of ironic accommodation between competing discourses; (2) building chains of equivalence between the potentially contradictory discourses; and (3) reconciling new and old discourses through pragmatic acts of ‘bricolage’. We found that, using these forms of discursive agency, a powerful coalition of actors was able to transform the dominant organizational logic of the ABC from one where the Corporation's initial mission was to serve national interests through public service to one that was ultimately focused on participating in a globalized media market. Finally, we note that discursive resources could be used as the basis for resistance by less powerful agents, although further research is necessary to determine exactly how more powerful and less powerful agents interact around the establishment of an organizational logic.     

New product development in foreign customer relationships: a study of international SMEs

Abstract

This study identifies a gap in research concerning how small and medium-sized enterprises (SMEs) can benefit from pursuing locally (rather than globally) oriented internationalization strategies. Becoming overly dependent on one single foreign market could potentially reduce the inflow and diversity of new knowledge that can serve as input for new product development. This study discusses how this risk can be minimized. In this endeavour we create a theoretical model that investigates how the local sales concentration and relationship-specific commitment of SMEs relates to new product development. To do this we draw on the behavioural internationalization process framework. The theoretical model is tested on an effective sample of 188 Swedish SMEs. The results show that relationship-specific commitment mediates the effect of local sales concentration on new product development. The implication is that investments which enable collaboration in important business relationships are crucial requisites for keeping firms innovative and in pace with market fluctuations. The findings thus contribute to international business literature by showing that a local market scope of operations combined with a relationship orientation are beneficial for new product development in international SMEs.     

Does Illegitimate Corporate Behaviour Follow the Forms of Polity? The Turkish Experience

In this study, we argue that illegitimate corporate actions can not only be strategic responses to the conflicting technical and institutional demands at the field level but also manifestations of the contradictory higher‐order institutional logics at the polity level. By focusing on the statist polity, somewhat neglected by the new institutional theory, we argue that the contradictory nationalist and capitalist institutional logics in the statist polity generate illegitimate corporate actions. We also propose that uncertainties and opportunities created by statist polity characteristics such as weak policy‐making capacity, neopatrimonialism, and clientelism lead to illegitimate corporate actions by triggering conflict between nationalism and capitalism. To demonstrate this, we examine the Turkish case, by focusing particularly on a recent example of illegitimate corporate action, namely the pursuit of non‐operating revenues. The case supports our arguments. It implies that illegitimate corporate behaviours may be ‘institutionalized’ as continuously reproduced by the actors embedded in a polity. It also implies that the impression management techniques to legitimate illegitimate behaviours may vary according to the forms of polity. Finally, it suggests that organizations may adopt hybrid missions as a survival strategy in a contradictory and uncertain business environment, paradoxically ultimately restricting their competitive capacities.     

Institutional theory and HRM: A new look

The context of HRM is important but undertheorized (Paauwe, 2009) and subsequently underresearched (Jackson, Schuler, & Jiang, 2014). We offer two recent perspectives of institutional theory—institutional logics and institutional work—as theoretical lenses through which scholars can explore the influence of institutional context on HRM and more intriguingly the influence of HRM professionals on their institutional contexts. Though others have introduced institutional theory to HRM scholarship (e.g. Paauwe & Boselie, 2003), we bring a conceptualization of institutional theory that reflects its advances over the last fifteen years, advances highly relevant to HRM scholars. While previous conceptualizations of institutional theory focus on the direct constraint of institutions on HRM, institutional logics emphasizes complexity, multilevel dynamics, and agency. Similarly, institutional work addresses agency at the day-to-day level, exploring how actors create, maintain, and disrupt the institutional contexts in which they are embedded. Directions for HRM research are discussed.     

国际营销动态能力的制度驱动机制研究——基于四川长虹国际化进程的案例分析

随着国际市场动荡性的不断增强,国际化企业如何在持续变化的外部环境下获取和维持竞争优势成为战略营销研究的关注焦点;国际营销动态能力概念为企业应对激烈国际市场竞争提供了新的指导工具。本研究基于制度理论的视角,从管制、规范和文化认知三大系统中识别出若干制度因素;通过对四川长虹国际化进程的案例分析,考察了企业在不同国际化阶段驱动国际营销动态能力的关键因素及实现机制;最后对研究所提供的理论和实践启示进行讨论。     

Acquaintance or partner? Social economy organizations,institutional logics and regional development in Australia

The social economy as a regional development actor is gaining greater attention given its purported ability to address social and environmental problems. This growth in interest is occurring within a global environment that is calling for a more holistic understanding of development compared to traditionally economic-centric conceptions. While regional development policies and practices have long considered for-profit businesses as agents for regional growth, there is a relatively limited understanding of the role of the social economy as a development actor. The institutional environment is a large determinant of all kinds of entrepreneurial activity, and therefore understanding the relationships between the social economy and broader regional development processes is warranted. This paper moves beyond suggestions of an economic-centric focus of regional development by utilizing institutional logics as a theoretical framework for understanding the role of social enterprises in regional development. A multiple case study of ten social enterprises in two regional locations in Australia suggests that social enterprises can represent competing logics to economic-centric institutional values and systems. The paper argues that dominant institutional logics can promote or constrain the inter-play between the social and the economic aspects of development, in the context of social enterprises.     

Conformist innovation: an institutional logics perspective on how HR executives construct business school reputations

In this paper, we explore whether Legge’s classic 1970s criticism of human resource (HR) executives as ‘conformist innovators’ is still relevant. Drawing on institutional logics, we analyse HR managers’ rationales for choosing particular university business schools to provide senior executive development. Our mixed-methods study demonstrates that senior HR managers socially construct and enact business school reputations by drawing on strategic rationales. These rationales are embedded in societal, field and organizational logics, especially the extant reputational rankings of international business schools and an ‘ideal’ template of elite business schools. We find that these rationales, and the decisions they evince, tend to confirm the traditional picture of conformist innovation among HR executives. We discuss the implications for the reputation of HR as a profession, their employers and business schools.     

Accidental activists: headhunters as marginal diversity actors in institutional change towards more women on boards

We present a qualitative study that examines the role of headhunters as actors in a broader institutional change process aiming to increase gender diversity on corporate boards. We draw on institutional and diversity management theories to conceptualise their change agency in the broader field of women on boards. We describe their role as ‘accidental activists’ and theorise two micro‐processes that define their change agency in this field: voluntaristic framing of intentionality and role redefinition by drawing on competing logics. This conceptualisation does not match the heroic image of the institutional entrepreneur driving institutional change, or that of the tempered radical championing diversity, but rather casts light into a marginal and previously neglected change role. We demonstrate the opportunistic and precarious nature of this role with regard to both institutional change and diversity management and discuss its possibilities and perils.     

Visualizing institutional logics in sociomaterial practices

This paper aims to deepen our understanding of the mechanisms underlying the mutual constitution of competing institutional logics and sociomaterial entanglements by combining a sociomaterial lens with the institutional logics perspective. We present findings from an interpretive, longitudinal case study at the emergency general surgery ward of a Nordic university hospital. By focusing our analysis on how sociomaterial affordances emerge through the implementation, use and continued development of digital and physical visualization boards, we show how these artifacts constitute an integral part of the operational staff's sensemaking and enactment of a new institutional logic. We make two contributions. First, we show how the perceived affordances of a technology are created from the experience of using several different technologies and how the rejection of one technology can simultaneously constitute another. Second, we show how visualization artifacts, entangled in sociomaterial practices, can shape individual focus of attention and thus facilitate the integration of a new institutional logic in operational practice.     

Lost and Found in Translation: How Firms Use Anisomorphism to Manage the Institutional Complexity of CSR

Prior research on the internationalization of firms from emerging countries has fruitfully invoked institutional theory to emphasize the legitimacy benefits that firms that obtain from showing isomorphism with international norms such as Corporate Social Responsibility (CSR). Without denying the intuitive appeal for these firms to communicate acceptance of CSR, we suggest that firms face a legitimacy trade-off, where the hoped-for legitimacy benefits of isomorphism must be weighed against other home-country institutional considerations. We advance and test this notion that firms will navigate this institutional complexity by engaging in anisomorphism, i.e., espousing general acceptance with international values but with selective ‘translation’ based on home country differences. We test our predictions by analysing firms' communication of CSR, using a unique dataset comprised of 245 firms observed over the period from 2000 to 2018. Consistent with our predictions, we find that firms from countries more reliant on natural resource extraction (e.g., mining and fossil fuel industries) de-emphasize the environmental component of CSR, and firms from more autocratic countries de-emphasize the human rights component of CSR. Additionally, and consistent with our presumption of firms' weighing the international versus home-country legitimacy trade-off, we find that these main effects are sensitive to changes in firms' levels of internationalization.     

用供需网理念推进企业技术创新研究——以宁波中小企业为例

金融危机使得企业技术创新被提到了更为重要的位置,宁波作为中小企业众多、技术创新意识强烈的城市之一,具有典型性。而供需网的网络性、多功能性、开放性等特征,可以促进宁波中小企业拥有全局视野,充分合作,促进企业科研成果的商品化和科研体制的改革,并促进产业结构的调整,提高产业的竞争力。另外,研究区域经济,加强中小企业信息化的基础平台建设;培养全球化眼光,运用供需网理念;注重人才培养,进行多层次人力资源开发等措施,也能帮助中小企业走出技术创新发展瓶颈。     

Do entrepreneurs from institutionally distinct countries apply different decision logic when internationalizing their companies? A multiple-case analysis

Literature on entrepreneurs’ decision logic has either focused on effectuation or causation, lacking comparison and analysis of logics when founders come from different institutional environments. This paper presents an exploratory study examining the behaviors, beliefs, and decisions of entrepreneurs (all typical drivers for new market entries), considering those institutional differences. Research was based on the comparison of two case studies of young software companies, one from Brazil and one from Germany, each founded by two entrepreneurs with similar academic and professional backgrounds. Results indicate that apparently, business environment affects founders’ decision logics with much more strength than the institutional environment.