INSTITUTIONAL LOGICS AND STRATEGIC ORIENTATIONS IN FIRMS: The Case of Social Enterprises

Received:October 12, 2017  Revised:October 12, 2017

Key Words:  Institutional logics; strategic orientation; founding conditions; social enterprises; China

Author NameAffiliation
Yingzhao Xiao* The Chinese University of Hong Kong 
Kevin Au The Chinese University of Hong Kong 
Zhen Liu Qingdao University of Technology 

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Abstract:
      Multiple institutional logics in organizations often provide firms with contesting scripts for action, leading to conflicts and challenges. A better understanding of how logics are incorporated and instantiated within organizations is critical for directing firm behavior. Drawing on the institutional logics and imprinting arguments, we posit that strategic orientations project the behavioral assumptions of institutional logics on firm practices and confer the enduring impacts of founding conditions on firm development. A bootstrapping analysis of a dual-informant survey of 230 social enterprises shows that social imprinting negatively affects performance, and that competitor and social orientations partially mediate the above relationship. The findings thus show how social imprinting could enact a combination of business and social behavior within firms. Implications for strategy and organization research are discussed.

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