Institutional Logic
Institutional logic refers to the socially constructed, historical patterns of material practices, assumptions, values, and beliefs through which people reproduce their material subsistence, organize power, and define the meaning of their social realities institutional-theory. It serves as a lens for understanding how broader societal orders influence organizational behavior and strategy.
Core Characteristics
- Socially Constructed: Logics are not inherent but emerge from collective action and historical contingency.
- Multi-level: Operates at the level of broad societal fields (e.g., market, state, religion) and specific organizational contexts.
- Competitive and Complicated: Organizations often face conflicting logics (e.g., professional vs. market logic), leading to hybridization or institutional work.
Application in Digital Transformation
Recent scholarship challenges traditional ROI-centric evaluation models for digital initiatives, arguing that they fail to capture the structural shifts driven by Institutional Logic.
- Beyond Financial Metrics: Burton-Jones - Changing the conversation on evaluating digital transformation in argues that digital transformation must be evaluated through the lens of institutional change rather than just efficiency gains.
- Healthcare Case Study: Analysis of Queensland Health highlights how digital tools disrupt established professional and clinical logics, requiring a shift in how benefits are conceptualized (Burton-Jones et al., 2010/2019).
- Evaluation Frameworks: Suggests that successful transformation aligns new technologies with prevailing institutional logics or actively manages the tension between old and new logics.
See Also
- Neo-institutionalism
- Institutional Work
- Digital Transformation