Institutional logics

17 important questions on Institutional logics

What are institutional logics?

Existing formal and informal boundaries of institutional context, that are considered as codes of conducts. Offer legitimacy.

What is institutional complexity?

The presence of multiple conflicting logics.

What are institutional strategies?

The options available to organisations when responding to institutions
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What are the main categories of institutional strategies?

1. Compliance/acquiescence - completely adhere to logic
2. Compromise - partially adhere to the prescribed logic
3. Avoid/disguise - non-compliance to logic
4. Defy - openly challenge prescribed logic
5. Manipulate - attempt to modify prescribed logic

What are the forms of the compliance strategy?

1. Purposeful decision - when its too costly to disobey the rules
2. Habitual behaviour - no consideration involved, acting that way because you've always been doing it
3. Mimicry - mimicking behaviour of legitimate firms to to uncertainty of what most appropriate/effective action is to take.

What are pacifying and bargaining tactics?

Fall under the compromise strategy, when organisations strive to balance the expectations of stakeholders

What is concealing non-conformity?

Form of avoid strategy, where organisation devise a plan that implies conformity without following through with the implementation.

What are the 3 forms of avoid strategy?

1. Concealing non-conformity
2. Buffering
3. Escaping

What are the 3 forms of defying strategy?

1. Dismissing - ignoring the institution completely, because it can get away with it
2. Challenge - openly questioning the validity of the institution
3. Attack - actively denouncing or belittling the institution.

What are the 3 forms of the manipulation strategy?

1. Co-opt - with institutional force.
2. Influence tactics - through lobbying agains laws etc.
3. Controlling = organisation try to dominate the institution through power

What are the factors of an optimal strategy?

1. Ability to conform
2. Willingness to conform
3. The need to conform (depends on stakeholders)

What are the smaller factors that determine institutional strategy?

1. Institutional strength
2. Heterogeneity in the institutional environment - amount of possibly conflicting institutions present. High heterogeneity lead to lower expectations of firm's compliance due to some degree of flexibility 
3. Outcome uncertainty - when an organisation is unsure of results of compliance
4. Type of institution - formal institutions are easier to manipulate due to formality dictating a specific party that can be negotiated with

What is institutional entrepreneurship?

Refers to activities of actors that have an interest in certain institutional concepts and that influence resources to construct new institutions or transform existing ones

What is the difference between manipulation strategies and institutional entrepreneurships?

In manipulation strategies an organisation reacts to existing institutions, a passive perspective, while in institutional entrepreneurship the organisation takes an active approach and creates a new institution that was previously absent

What is the paradox of embedded agency?

It's the paradox of how an organisation is shaped by institutions and that in order to change the institutions, they should change their own performance

How can institutional entrepreneurs overcome the paradox?

1. Awareness of alternatives - embeddeness of entrepreneurs leads them to not being able to see alternatives in their own institutional context
2. Openness to alternatives
3. Motivation to adopt alternatives - through financial incentive

How does institutional entrepreneurship demonstrate how new institutions are created?

1. Mobilisation of resources
2. Construction of rationales
3. Forging of new inter-actor relations

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