Publication Type

Journal Article

Version

Postprint

Publication Date

4-2017

Abstract

Institutional theory has explained greater prevalence of many strategic actions by increases in their legitimacy over time, but has not developed theory on how firms decide between actions backed by competing institutional logics. We address this shortfall by applying theory of organizational coalitions and power to predict effects of external influence through ownership and internal influence through decision participation. We analyze how the old state socialism logic and the new market capitalism logic compete for influencing the Chinese firms’ engagement in merger and acquisitions. We found that the logics affected firm M&A decisions through the coalitions committed to each logic, both reflected in the external power source of ownership and in the internal decision making structure of the board of directors. We also found that the strength of each coalition changed as the market capitalism logic became established and influenced the other coalition.

Discipline

Business | Organizational Behavior and Theory | Strategic Management Policy

Research Areas

Strategy and Organisation

Publication

Academy of Management Journal

Volume

60

Issue

2

First Page

671

Last Page

694

ISSN

0001-4273

Identifier

10.5465/amj.2015.0698

Publisher

Academy of Management

Copyright Owner and License

Authors

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Additional URL

http://doi.org/10.5465/amj.2015.0698

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