The Interplay of Logics in the Creation of New Businesses
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2020-08-21
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en
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Abstract
Entrepreneurs are highly dependent upon their stakeholders. Due to this dependency, entrepreneurs are oftentimes required to deal with conflicting prescriptive demands of behaviors, strategies, and goals. These conflicting demands can already appear before businesses are established, in the period defined as the mode of entry. These conflicting demands are embedded in higher-order belief systems called institutional logics. When multiple misaligned institutional logics are at play, challenges arise. The purpose of this study was to explore how entrepreneurs deal with these misaligned logics in their mode of entry. A qualitative semi-structured interview study was used to collect and analyze data from ten entrepreneurs about their entry modes. This study showed that entrepreneurs often face hybridity in their mode of entry, and make use of several strategies to manage hybridity. The results show that entrepreneurs deal with central hybridity by blending the incompatible prescriptions of logics into a more compatible form. Furthermore, entrepreneurs outsource logics in case of incompatible hybridity to avoid activities prescribed by the incompatible peripheral logic. Finally, entrepreneurs make use of legal force to manage central incompatible hybridity, in order to remove the incompatibility in its entirety. Further research is suggested to dive deeper into the use of legal force as a strategy to manage hybridity and create additional insights regarding the benefits and prerequisites of the use of this strategy.
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Faculteit der Managementwetenschappen