Session 225

Institutional logics, legitimacy, and embeddedness in profit and nonprofit organizations

Track C

Date: Tuesday, October 6, 2015


Time: 11:00 – 12:15


Room: Governor's Square 15

Session Chair:

  • Michael Nippa, Free University of Bozen-Bolzano

Title: From La Bohème to La Wally: How Organizational Status Affects the Unconventionality of Opera Repertoires


  • Giulia Cancellieri, IMT Institute for Advanced Studies-Lucca

Abstract: In this paper, we examine how organizational status affects nonconformity in the Italian opera field where the tension between divergent institutional logics threatens the position of high status organizations while opening opportunities for upward status mobility.
Data on 42 Italian opera houses’ repertoires from 2004 to 2011 show that middle status theatres are in the best position to increase the unconventionality of their artistic programs. This also holds true when the risk of delegitimation that stems from nonconformity is so high to compromise the external perception of opera houses’ identities: middle status theatres are more willing than their higher and lower status counterparts to raise the unconventionality of hybrid operas that blur the boundaries between established categorization systems and potentially dilute their identities. Differentiation opportunities and potential for status advancement are strong incentives for middle status theatres to embrace the high-risk path of unconventional hybridity.

Title: Make Hay While the Sun Shines: Increasing Firm Commitment to Industries Supported by Social Movement Organizations


  • Rodolphe Durand, HEC-Paris
  • Panayiotis Georgallis, University of Michigan

Abstract: This article investigates whether local support for social movement organizations that endorse a specific industry encourages firms to increase their commitment to that industry. We argue that firms interpret social movement organizations’ support as a signal of local preferences or confirmatory proof that the sector is promising, and are influenced by the legitimacy accounts produced by these organizations. Using a longitudinal dataset from solar photovoltaic producers operating across the European Union, we find support for our hypotheses. The greater the local support for environmental movement organizations, the more producers increase their commitment to the industry. This effect is stronger for firms with larger relative past commitments and weaker for diversifying entrants. Our findings uncover important differences in how firms are shaped by social movement organizations.

Title: Political Embeddedness, External Shocks, and the Development of Philanthropic Foundations in China


  • Xueyong Zhan, Hong Kong Polytechnic University
  • Na Ni, Hong Kong Polytechnic University

Abstract: This research combines insights from resource dependency and institutional theories to examine the impacts of political embeddedness on revenue growth among Chinese philanthropic foundations in a dynamic setting. Using a dataset of 2,159 Chinese foundations with 6,369 observations for the period of 2005-2012, we tested a few hypotheses on the role of political embeddedness in China’s transitional contexts with two major external shocks to the philanthropic sector, namely the Wenchuan Earthquake in 2008 and the Guo Meimei Scandal in 2011. Our empirical analysis shows that depending on contextual factors, political embeddedness may be either an asset or liability for the long-term revenue growth of philanthropic foundations. The research contributes to a better understanding of the role of political embeddedness in the development of China’s nonprofit sector.

Title: The Effect of Performance Relative to Aspirations on Family Firms’ Acquisition Likelihood: An Institutional Perspective


  • He Soung Ahn, Korea University

Abstract: Incorporating an institutional perspective, this paper argues that family firms’ acquisition likelihood is influenced by their performance relative to aspiration levels because such social and historical comparisons will determine the level of institutional pressure for legitimacy imposed on the family firm. In addition, the institutional pressure for legitimacy is divided into two components. First, as the level of legitimacy for acquisitions as a strategic tool becomes stronger, the relationship between family firms’ relative performance and their acquisition likelihood is weaker. Second, the degree of sensitivity for the institutional pressure should differ within family firms depending on their firm-level characteristics. The main relationship is stronger when family CEO is present, when firm size is larger, and when the family firms has less slack.

All Sessions in Track C...

Sun: 11:15 – 12:30
Session 47: On the Emerging B Corp Phenomenon and the Future of Capitalism
Sun: 16:15 – 17:30
Session 223: Hybrid organizations and business model heterogeneity
Mon: 08:00 – 09:15
Session 39: Who is a stakeholder?
Mon: 11:15 – 12:30
Session 34: New Explanations of Contextual Differences in CSR
Session 222: Profit and nonprofit organizations: Patterns of collaboration and competition
Mon: 13:45 – 15:00
Session 224: Balancing profit and nonprofit objectives across different business models
Tue: 08:00 – 09:15
Session 43: First Principles in Creating Value: Stakeholder Theory
Tue: 11:00 – 12:15
Session 225: Institutional logics, legitimacy, and embeddedness in profit and nonprofit organizations
Tue: 15:45 – 17:00
Session 46: Accidents, Disasters, and Stakeholder Demands
Session 93: Blending CSR, Non-Profit, Symbolic Management and Practitioner Focus Perspectives
Session 226: Trust, loyalty, compassion: The role of resources in balancing multiple objectives

Strategic Management Society