IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v172y2024ics0148296323007609.html
   My bibliography  Save this article

Institutional logics and organizational filters: Differential responses to innovation and environmentalism in China’s cleantech sector

Author

Listed:
  • Chen, Xiaoyang
  • Wei, Yifan
  • Wang, Milo Shaoqing

Abstract

While the institutional logics perspective has been applied to explore various empirical contexts, less is known about how different organizations respond differentially to the pressures that are imposed by logics. We investigate how different organizational attributes moderate institutional logics differently by using a proprietary dataset of venture capital and private equity (VC/PE) investment in cleantech startups in China. We first delineate two distinct logics—market and proenvironmental—that shape VC/PE investment across different regions. Moreover, we identify two organizational attributes—state ownership and business model—which moderate the two logics differently. Whereas the business model of venture investment firms (VC vs. PE) effectively resonates with the market logic, state ownership fails to make a firm more attentive to either of the logics. We contribute to the logics perspective by complementing our understanding of organizational filters, showing the relationships between two distinct logics and cleantech investment, and extending the study of logics to authoritarian contexts.

Suggested Citation

  • Chen, Xiaoyang & Wei, Yifan & Wang, Milo Shaoqing, 2024. "Institutional logics and organizational filters: Differential responses to innovation and environmentalism in China’s cleantech sector," Journal of Business Research, Elsevier, vol. 172(C).
    • Handle: RePEc:eee:jbrese:v:172:y:2024:i:c:s0148296323007609
    DOI: 10.1016/j.jbusres.2023.114401
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296323007609
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2023.114401?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Zhao, Eric Yanfei & Lounsbury, Michael, 2016. "An institutional logics approach to social entrepreneurship: Market logic, religious diversity, and resource acquisition by microfinance organizations," Journal of Business Venturing, Elsevier, vol. 31(6), pages 643-662.
    2. Xiaping Cao & Michael Lemmon & Xiaofei Pan & Meijun Qian & Gary Tian, 2019. "Political Promotion, CEO Incentives, and the Relationship Between Pay and Performance," Management Science, INFORMS, vol. 65(7), pages 2947-2965, July.
    3. David Ahlstrom & Garry D. Bruton, 2006. "Venture Capital in Emerging Economies: Networks and Institutional Change," Entrepreneurship Theory and Practice, , vol. 30(2), pages 299-320, March.
    4. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    5. Paul H. Malatesta & Kathryn L. DeWenter, 2001. "State-Owned and Privately Owned Firms: An Empirical Analysis of Profitability, Leverage, and Labor Intensity," American Economic Review, American Economic Association, vol. 91(1), pages 320-334, March.
    6. Min-Dong Paul Lee & Michael Lounsbury, 2015. "Filtering Institutional Logics: Community Logic Variation and Differential Responses to the Institutional Complexity of Toxic Waste," Organization Science, INFORMS, vol. 26(3), pages 847-866, June.
    7. Christopher Marquis & Yanhua Bird, 2018. "The Paradox of Responsive Authoritarianism: How Civic Activism Spurs Environmental Penalties in China," Organization Science, INFORMS, vol. 29(5), pages 948-968, October.
    8. Heather A. Haveman & Yongxiang Wang, 2013. "Going (More) Public: Institutional Isomorphism and Ownership Reform among Chinese Firms. (更多的)上市流通：制度同构与中国公司的股权改革," Management and Organization Review, The International Association for Chinese Management Research, vol. 9(1), pages 17-51, March.
    9. Jianjun Zhang & Xiaowei Rose Luo, 2013. "Dared to Care: Organizational Vulnerability, Institutional Logics, and MNCs’ Social Responsiveness in Emerging Markets," Organization Science, INFORMS, vol. 24(6), pages 1742-1764, December.
    10. Wei, Yifan, 2017. "Organizational Imprinting and Response to Institutional Complexity: Evidence from Publicly-Traded Chinese State-Owned Firms in Hong Kong," Management and Organization Review, Cambridge University Press, vol. 13(2), pages 345-373, June.
    11. Royston Greenwood & Amalia Magán Díaz & Stan Xiao Li & José Céspedes Lorente, 2010. "The Multiplicity of Institutional Logics and the Heterogeneity of Organizational Responses," Organization Science, INFORMS, vol. 21(2), pages 521-539, April.
    12. Wooldridge, Jeffrey M., 1997. "Multiplicative Panel Data Models Without the Strict Exogeneity Assumption," Econometric Theory, Cambridge University Press, vol. 13(5), pages 667-678, October.
    13. Wright, Mike & Lockett, Andy & Clarysse, Bart & Binks, Martin, 2006. "University spin-out companies and venture capital," Research Policy, Elsevier, vol. 35(4), pages 481-501, May.
    14. Wei, Yifan, 2022. "Regional governments and opportunity entrepreneurship in underdeveloped institutional environments: An entrepreneurial ecosystem perspective," Research Policy, Elsevier, vol. 51(1).
    15. Liu, Yuhuan & Zhang, Chenjian & Jing, Runtian, 2016. "Coping with Multiple Institutional Logics: Temporal Process of Institutional Work during the Emergence of the One Foundation in China," Management and Organization Review, Cambridge University Press, vol. 12(2), pages 387-416, June.
    16. Huang,Yasheng, 2008. "Capitalism with Chinese Characteristics," Cambridge Books, Cambridge University Press, number 9780521898102, September.
    17. Michael N. Young & Mike W. Peng & David Ahlstrom & Garry D. Bruton & Yi Jiang, 2008. "Corporate Governance in Emerging Economies: A Review of the Principal–Principal Perspective," Journal of Management Studies, Wiley Blackwell, vol. 45(1), pages 196-220, January.
    18. Xiaowei Rose Luo & Chi-Nien Chung, 2013. "Filling or Abusing the Institutional Void? Ownership and Management Control of Public Family Businesses in an Emerging Market," Organization Science, INFORMS, vol. 24(2), pages 591-613, April.
    19. Paul A. Gompers & Josh Lerner, 1998. "What Drives Venture Capital Fundraising?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 29(1998 Micr), pages 149-204.
    20. van den Heuvel, Matthias & Popp, David, 2023. "The role of venture capital and governments in clean energy: lessons from the first cleantech bubble," Energy Economics, Elsevier, vol. 124(C).
    21. Jia, Nan, 2016. "Political Strategy and Market Capabilities: Evidence from the Chinese Private Sector," Management and Organization Review, Cambridge University Press, vol. 12(1), pages 75-102, March.
    22. Julie Battilana & Bernard Leca & Eva Boxenbaum, 2009. "How actors change institutions : Towards a theory of institutional entrepreneurship," Post-Print hal-00576509, HAL.
    23. Boliang Zhu, 2017. "MNCs, Rents, and Corruption: Evidence from China," American Journal of Political Science, John Wiley & Sons, vol. 61(1), pages 84-99, January.
    24. Cynthia E. Devers & Todd Dewett & Yuri Mishina & Carrie A. Belsito, 2009. "A General Theory of Organizational Stigma," Organization Science, INFORMS, vol. 20(1), pages 154-171, February.
    25. Miguel Meuleman & Kevin Amess & Mike Wright & Louise Scholes, 2009. "Agency, Strategic Entrepreneurship, and the Performance of Private Equity–Backed Buyouts," Entrepreneurship Theory and Practice, , vol. 33(1), pages 213-239, January.
    26. Mike W. Peng & Justin Tan & Tony W. Tong, 2004. "Ownership Types and Strategic Groups in an Emerging Economy," Journal of Management Studies, Wiley Blackwell, vol. 41(7), pages 1105-1129, November.
    27. Christine Volkmann & Klaus Fichter & Magnus Klofsten & David B. Audretsch, 2021. "Sustainable entrepreneurial ecosystems: an emerging field of research," Small Business Economics, Springer, vol. 56(3), pages 1047-1055, February.
    28. Fabio Bertoni & María Ferrer & José Martí, 2013. "The different roles played by venture capital and private equity investors on the investment activity of their portfolio firms," Small Business Economics, Springer, vol. 40(3), pages 607-633, April.
    29. Haveman, Heather A. & Wang, Yongxiang, 2013. "Going (More) Public: Institutional Isomorphism and Ownership Reform among Chinese Firms," Management and Organization Review, Cambridge University Press, vol. 9(1), pages 17-51, March.
    30. Isin Guler & Mauro F Guillén, 2010. "Institutions and the internationalization of US venture capital firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(2), pages 185-205, February.
    31. Furman, Jeffrey L. & Porter, Michael E. & Stern, Scott, 2002. "The determinants of national innovative capacity," Research Policy, Elsevier, vol. 31(6), pages 899-933, August.
    32. Christopher Marquis & Gerald F. Davis & Mary Ann Glynn, 2013. "Golfing Alone? Corporations, Elites, and Nonprofit Growth in 100 American Communities," Organization Science, INFORMS, vol. 24(1), pages 39-57, February.
    33. Haveman, Heather A. & Wang, Yongxiang, 2013. "Going (More) Public: Institutional Isomorphism and Ownership Reform among Chinese Firms," Management and Organization Review, Cambridge University Press, pages 17-52.
    34. White, Steven & Gao, Jian & Zhang, Wei, 2005. "Financing new ventures in China: System antecedents and institutionalization," Research Policy, Elsevier, vol. 34(6), pages 894-913, August.
    35. Yidi Guo & Quy Nguyen Huy & Zhixing Xiao, 2017. "How middle managers manage the political environment to achieve market goals: Insights from China's state‐owned enterprises," Strategic Management Journal, Wiley Blackwell, vol. 38(3), pages 676-696, March.
    36. Nee, Victor & Opper, Sonja, 2012. "Capitalism from Below: Markets and Institutional Change in China," Economics Books, Harvard University Press, number 9780674050204, Spring.
    37. Andrew Metrick, 2010. "The Economics of Private Equity Funds," The Review of Financial Studies, Society for Financial Studies, vol. 23(6), pages 2303-2341, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xiaoming He & Lin Cui & Klaus E. Meyer, 2022. "How state and market logics influence firm strategy from within and outside? Evidence from Chinese financial intermediary firms," Asia Pacific Journal of Management, Springer, vol. 39(2), pages 587-614, June.
    2. Zongshi Chen & Douglas B. Fuller & Lu Zheng, 2018. "Institutional isomorphism and Chinese private corporate philanthropy: state coercion, corruption, and other institutional effects," Asian Business & Management, Palgrave Macmillan, vol. 17(2), pages 83-111, April.
    3. Raymond Fisman & Yongxiang Wang, 2015. "Corruption in Chinese Privatizations," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 31(1), pages 1-29.
    4. Shipeng Yan, 2020. "A Double-Edged Sword: Diversity Within Religion and Market Emergence," Organization Science, INFORMS, vol. 31(3), pages 558-575, May.
    5. Sun, Sunny Li & Liang, Hao, 2021. "Globalization and affordability of microfinance," Journal of Business Venturing, Elsevier, vol. 36(1).
    6. Weilei (Stone) Shi & Sunny Li Sun & Daying Yan & Zhu Zhu, 2017. "Institutional fragility and outward foreign direct investment from China," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(4), pages 452-476, May.
    7. Wu, Xiaojie & Tan, Xiaoxia & Wang, Xiuqiong, 2023. "The institutional logics perspective in management and organizational studies," Journal of Business Research, Elsevier, vol. 167(C).
    8. Wei, Yifan, 2022. "Regional governments and opportunity entrepreneurship in underdeveloped institutional environments: An entrepreneurial ecosystem perspective," Research Policy, Elsevier, vol. 51(1).
    9. Liang, Hao, 2015. "Finance and society : On the foundations of corporate social responsibility," Other publications TiSEM 10890071-7018-4327-85de-e, Tilburg University, School of Economics and Management.
    10. Fadel Jaoui & Omolola Amoussou & Francis H. Kemeze, 2022. "“Catch me if you can” on drivers of venture capital investment in Africa," African Development Review, African Development Bank, vol. 34(S1), pages 117-140, July.
    11. Zhang, Jiamin & Gu, Qian, 2021. "Turning a curse into a blessing: Contingent effects of geographic distance on startup–VC partnership performance," Journal of Business Venturing, Elsevier, vol. 36(4).
    12. Mike W. Peng & Sergey Lebedev & Cristina O. Vlas & Joyce C. Wang & Jason S. Shay, 2018. "The growth of the firm in (and out of) emerging economies," Asia Pacific Journal of Management, Springer, vol. 35(4), pages 829-857, December.
    13. Jia, Ning & Wang, Dan, 2017. "Skin in the game: General partner capital commitment, investment behavior and venture capital fund performance," Journal of Corporate Finance, Elsevier, vol. 47(C), pages 110-130.
    14. Liu, Yu & Wei, Zuobao & Xie, Feixue, 2014. "Do women directors improve firm performance in China?," Journal of Corporate Finance, Elsevier, vol. 28(C), pages 169-184.
    15. Jeaneth Johansson & Malin Malmström & Joakim Wincent & Vinit Parida, 2021. "How individual cognitions overshadow regulations and group norms: a study of government venture capital decisions," Small Business Economics, Springer, vol. 56(2), pages 857-876, February.
    16. Martínez-García, Irma & Basco, Rodrigo & Gómez-Ansón, Silvia, 2021. "Dancing with giants: Contextualizing state and family ownership effects on firm performance in the Gulf Cooperation Council," Journal of Family Business Strategy, Elsevier, vol. 12(4).
    17. Wei, Yifan, 2022. "Reprint of: Regional governments and opportunity entrepreneurship in underdeveloped institutional environments: An entrepreneurial ecosystem perspective," Research Policy, Elsevier, vol. 51(9).
    18. Runhui Lin & Ya Li & Tao Peng & Hongjuan Zhang, 2017. "Venture capital reputation and portfolio firm performance in an emerging economy: The moderating effect of institutions," Asia Pacific Journal of Management, Springer, vol. 34(3), pages 699-723, September.
    19. Richard Harrison & William Scheela & P. C. Lai & Sivapalan Vivekarajah, 2018. "Beyond institutional voids and the middle-income trap: The emerging business angel market in Malaysia," Asia Pacific Journal of Management, Springer, vol. 35(4), pages 965-991, December.
    20. Helen Wei Hu & Jiamin Zhang, 2023. "How do Corporate Social Responsibility and Innovation Co-evolve with Organizational Forms? Evidence from a Transitional Economy," Journal of Business Ethics, Springer, vol. 186(4), pages 815-829, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:172:y:2024:i:c:s0148296323007609. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.