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

See all articles by Michael Lounsbury

Michael Lounsbury

University of Alberta - Department of Strategic Management and Organization

Date Written: May 3, 2011

Abstract

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

Suggested Citation

Lounsbury, Michael, A Tale of Two Cities: Competing Logics and Practice Variation In the Professionalizing of Mutual Funds (May 3, 2011). Academy of Management Journal, Vol. 50, pp. 289-307, 2011. Available at SSRN: https://ssrn.com/abstract=1830310

Michael Lounsbury (Contact Author)

University of Alberta - Department of Strategic Management and Organization ( email )

Edmonton, Alberta T6G 2R6
Canada

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