A Tale of Two Cities: Competing Logics and Practice Variation In the Professionalizing of Mutual Funds
Academy of Management Journal, Vol. 50, pp. 289-307, 2011
19 Pages Posted: 5 May 2011
Date Written: May 3, 2011
This paper examines practice diffusion in an environment where competing logics exist, focusing on how organizational and practice variations are institutionally shaped. Empirically, I study how trustee and performance logics in the mutual fund industry that were rooted in different geographic locations (Boston and New York) led to variation in how mutual funds established contracts with independent professional money management firms. This focus on competing logics redirects institutional research away from isomorphism and the segregation of institutional and technical forces, and towards an appreciation of how multiple forms of rationality provide a foundation for ongoing struggle and change in organizational fields. Implications for the dominant two-stage institutional model of diffusion as well as research on institutions, organizations, and professions are discussed.
Keywords: institutional logics, mutual fund, institutional theory
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