Institutional Logics: Motivating Action and Overcoming Resistance to Change

Institutional logics are interrelated sets of cultural elements (norms, values, beliefs, and symbols) that help people and organizations make sense of their everyday activities and order those activities in time and space. In this paper, we describe the rise of a robust literature on institutional logics, which mostly focuses on Western societies. We then describe changes in Chinese society and economy over the past four decades, as it shifted from state-controlled planning and redistribution to market-mediated exchange. We detail how the institutional logics that guide Chinese firms have been transformed in the wake of the economic transition. The state logic, which developed in the Maoist era, valorizes equality, national community, and political stability. Although it is still in evidence, it has been partly supplanted by a market logic that encourages efficiency, competition, and property rights. But this market logic differs from the one that prevails in Western capitalist economies. The Chinese version of the market logic valorizes the central role that the state and the Communist Party continue to play in economic life. Therefore, in the Chinese version of the market logic, efficiency, competition, and property rights are tempered by a continued concern for political stability. We review and summarize the existing literature on institutional logics and Chinese firms, and then identify fruitful lines that future research could take.