IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v9y2017i8p1375-d106955.html
   My bibliography  Save this article

How Do Internet Enterprises Obtain Sustainable Development of Organizational Ecology? A Case Study of LeEco Using Institutional Logic Theory

Author

Listed:
  • Hao Ren

    (School of Economics and Management, Beihang University, Beijing 100191, China)

  • Rongrong Wang

    (School of Economics and Management, Beihang University, Beijing 100191, China)

  • Suopeng Zhang

    (School of Economics and Management, Beihang University, Beijing 100191, China)

  • An Zhang

    (State Key Laboratory of Resources and Environmental Information System, Institute of Geographical Sciences and Natural Resources Research, Chinese Academy of Sciences, Beijing 100101, China)

Abstract

This study explores how Internet enterprises integrate different industries to sustainably develop organizational ecology, using institutional logic theory and an exploratory case study of LeEco, a famous Chinese Internet enterprise. The findings are as follows: (1) There are two main barriers to sustainable development of internal organizational ecology: resource barriers and information barriers. To overcome these obstacles, managers should carry out a series of institutional practices so that the organizational ecology obtains both product and institutional legitimacy; (2) A new institutional practice, the rigid/flexible method, is proposed, which includes implementation, communication, incentive, and cultural mechanisms. This method can help reconcile institutional logic conflicts caused by multiple logic coexistences in the organizational ecology; (3) A sustainable development model of organizational ecologies for Internet enterprises is presented, based on institutional logic, for closed-loop analysis of the ecological growth path. Based on a case study of China’s Internet environment, this paper opens up the “black box” of the internal growth of Internet enterprises at the micro level, complementing the macro studies in the literature. This study enriches organizational ecology theory and institutional logic theory. In addition, the case study of LeEco provides sufficient information on sustainable development to serve as a model for other Internet enterprises.

Suggested Citation

  • Hao Ren & Rongrong Wang & Suopeng Zhang & An Zhang, 2017. "How Do Internet Enterprises Obtain Sustainable Development of Organizational Ecology? A Case Study of LeEco Using Institutional Logic Theory," Sustainability, MDPI, vol. 9(8), pages 1-21, August.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:8:p:1375-:d:106955
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/9/8/1375/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/9/8/1375/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sandeep Rustagi & William R. King & Laurie J. Kirsch, 2008. "Predictors of Formal Control Usage in IT Outsourcing Partnerships," Information Systems Research, INFORMS, vol. 19(2), pages 126-143, June.
    2. William Ocasio & Nevena Radoynovska, 2016. "Strategy and commitments to institutional logics : Organizational heterogeneity in business models and governance," Post-Print hal-02312181, HAL.
    3. Rik Wenting & Koen Frenken, 2011. "Firm entry and institutional lock-in: an organizational ecology analysis of the global fashion design industry," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 20(4), pages 1031-1048, August.
    4. Laurie J. Kirsch & Dong-Gil Ko & Mark H. Haney, 2010. "Investigating the Antecedents of Team-Based Clan Control: Adding Social Capital as a Predictor," Organization Science, INFORMS, vol. 21(2), pages 469-489, April.
    5. Laurie S. Kirsch, 1997. "Portfolios of Control Modes and IS Project Management," Information Systems Research, INFORMS, vol. 8(3), pages 215-239, September.
    6. Alessandro Lomi & Erik R. Larsen & John H. Freeman, 2005. "Things Change: Dynamic Resource Constraints and System-Dependent Selection in the Evolution of Organizational Populations," Management Science, INFORMS, vol. 51(6), pages 882-903, June.
    7. Laurie J. Kirsch & V. Sambamurthy & Dong-Gil Ko & Russell L. Purvis, 2002. "Controlling Information Systems Development Projects: The View from the Client," Management Science, INFORMS, vol. 48(4), pages 484-498, April.
    8. Cui, Yu & Jiao, Jie & Jiao, Hao, 2016. "Technological innovation in Brazil, Russia, India, China, and South Africa (BRICS): An organizational ecology perspective," Technological Forecasting and Social Change, Elsevier, vol. 107(C), pages 28-36.
    9. Gino Cattani & Simone Ferriani, 2008. "A Core/Periphery Perspective on Individual Creative Performance: Social Networks and Cinematic Achievements in the Hollywood Film Industry," Organization Science, INFORMS, vol. 19(6), pages 824-844, December.
    10. Hayagreeva Rao & Philippe Monin & Rodolphe Durand, 2003. "Institutional change in toque ville : Nouvelle cuisine as an identity movement in French gastronomy," Post-Print hal-02311672, HAL.
    11. Abbott, Kenneth W. & Green, Jessica F. & Keohane, Robert O., 2016. "Organizational Ecology and Institutional Change in Global Governance," International Organization, Cambridge University Press, vol. 70(2), pages 247-277, April.
    12. John Freeman & Erik R. Larsen & Alessandro Lomi, 2012. "Why is there no cannery in 'Cannery Row'? Exploring a behavioral simulation model of population extinction," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 21(1), pages 99-125, February.
    13. Frick Bernd & Wallbrecht Björn, 2012. "Infant Mortality of Professional Sports Clubs: An Organizational Ecology Perspective," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 232(3), pages 360-389, June.
    14. Dominik Rueede & Karin Kreutzer, 2015. "Legitimation Work Within a Cross-Sector Social Partnership," Journal of Business Ethics, Springer, vol. 128(1), pages 39-58, April.
    15. Laura B. Cardinal & Sim B. Sitkin & Chris P. Long, 2004. "Balancing and Rebalancing in the Creation and Evolution of Organizational Control," Organization Science, INFORMS, vol. 15(4), pages 411-431, August.
    16. Garry D. Bruton & David Ahlstrom & Han–Lin Li, 2010. "Institutional Theory and Entrepreneurship: Where Are We Now and Where Do We Need to Move in the Future?," Entrepreneurship Theory and Practice, , vol. 34(3), pages 421-440, May.
    17. Rodolphe Durand & Hayagreeva Rao & Philippe Monin, 2003. "Institutional Change in Toque Ville: Nouvelle Cuisine as an Identity Movement in French Gastronomy," Post-Print hal-00480858, HAL.
    18. Bill McEvily & Jonathan Jaffee & Marco Tortoriello, 2012. "Not All Bridging Ties Are Equal: Network Imprinting and Firm Growth in the Nashville Legal Industry, 1933–1978," Organization Science, INFORMS, vol. 23(2), pages 547-563, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xu Chen & Chunhong Liu & Yao Jiang & Changchun Gao, 2021. "What Causes the Virtual Agglomeration of Creative Industries?," Sustainability, MDPI, vol. 13(16), pages 1-18, August.
    2. Jaime Ortiz & Hao Ren & Kei Li & An Zhang, 2019. "Construction of Open Innovation Ecology on the Internet: A Case Study of Xiaomi (China) Using Institutional Logic," Sustainability, MDPI, vol. 11(11), pages 1-17, June.
    3. Xu Chen & Chunhong Liu & Changchun Gao & Yao Jiang, 2021. "Mechanism Underlying the Formation of Virtual Agglomeration of Creative Industries: Theoretical Analysis and Empirical Research," Sustainability, MDPI, vol. 13(4), pages 1-21, February.
    4. Minelle E. Silva & Marina D. Figueiredo, 2017. "Sustainability as Practice: Reflections on the Creation of an Institutional Logic," Sustainability, MDPI, vol. 9(10), pages 1-13, October.

    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. Gregory D. Moody & Laurie J. Kirsch & Sandra A. Slaughter & Brian Kimball Dunn & Qin Weng, 2016. "Facilitating the Transformational: An Exploration of Control in Cyberinfrastructure Projects and the Discovery of Field Control," Information Systems Research, INFORMS, vol. 27(2), pages 324-346, June.
    2. Laurie J. Kirsch & Dong-Gil Ko & Mark H. Haney, 2010. "Investigating the Antecedents of Team-Based Clan Control: Adding Social Capital as a Predictor," Organization Science, INFORMS, vol. 21(2), pages 469-489, April.
    3. Alex Estevam & Denis Dennehy & Kieran Conboy, 2022. "Using Flow Tools to Enact Control in Software Development Projects: A Cross-case Analysis," Information Systems Frontiers, Springer, vol. 24(1), pages 287-304, February.
    4. Liu, Shan & Deng, Zhaohua, 2015. "How environment risks moderate the effect of control on performance in information technology projects: Perspectives of project managers and user liaisons," International Journal of Information Management, Elsevier, vol. 35(1), pages 80-97.
    5. Bart A. De Jong & Katinka M. Bijlsma-Frankema & Laura B. Cardinal, 2014. "Stronger Than the Sum of Its Parts? The Performance Implications of Peer Control Combinations in Teams," Organization Science, INFORMS, vol. 25(6), pages 1703-1721, December.
    6. Stephen K. Kim & Amrit Tiwana, 2016. "Chicken or egg? Sequential complementarity among salesforce control mechanisms," Journal of the Academy of Marketing Science, Springer, vol. 44(3), pages 316-333, May.
    7. Sandeep Rustagi & William R. King & Laurie J. Kirsch, 2008. "Predictors of Formal Control Usage in IT Outsourcing Partnerships," Information Systems Research, INFORMS, vol. 19(2), pages 126-143, June.
    8. Christian Jung-Gehling & Erik Strauss, 2018. "A Contemporary Concept of Organizational Control: Its Dependence on Shared Values and Impact on Motivation," Schmalenbach Business Review, Springer;Schmalenbach-Gesellschaft, vol. 70(4), pages 341-374, November.
    9. Rob Gleasure & Kieran Conboy & Lorraine Morgan, 2019. "Talking Up a Storm: How Backers Use Public Discourse to Exert Control in Crowdfunded Systems Development Projects," Information Systems Research, INFORMS, vol. 30(2), pages 447-465, June.
    10. Bai, Xiaoou & Tsang, Eric W.K. & Xia, Wei, 2020. "Domestic versus foreign listing: Does a CEO's educational experience matter?," Journal of Business Venturing, Elsevier, vol. 35(1).
    11. Habib Mahama & Zhichao (Alex) Wang, 2023. "Impact of the interactive and diagnostic uses of performance measurement systems on procedural fairness perception, cooperation and performance in supply alliances," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(3), pages 3253-3296, September.
    12. Downes, Rebecca & Daellenbach, Urs & Donnelly, Noelle, 2023. "Remote control: Attitude monitoring and informal control in distributed teams," Journal of Business Research, Elsevier, vol. 154(C).
    13. Rauter, Romana & Globocnik, Dietfried & Baumgartner, Rupert J., 2023. "The role of organizational controls to advance sustainability innovation performance," Technovation, Elsevier, vol. 128(C).
    14. Donghwan Cho, 2019. "Exploring the Ambivalent Effects of Control Modes on Project Performance Dimensions in Software Development Outsourcing," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 9(1), pages 1-7, January.
    15. Pierre Poinsignon & Thomas Paris, 2020. "« A diachronic view of the role of collaborative spaces in the creative industries: The singular case of the French « atelier Nawak » »," Post-Print hal-03097441, HAL.
    16. Frédéric C. Godart & Charles Galunic, 2019. "Explaining the Popularity of Cultural Elements: Networks, Culture, and the Structural Embeddedness of High Fashion Trends," Organization Science, INFORMS, vol. 30(1), pages 151-168, February.
    17. Gino Cattani & Roger L. M. Dunbar & Zur Shapira, 2013. "Value Creation and Knowledge Loss: The Case of Cremonese Stringed Instruments," Organization Science, INFORMS, vol. 24(3), pages 813-830, June.
    18. Jennings, P. Devereaux & Greenwood, Royston & Lounsbury, Michael D. & Suddaby, Roy, 2013. "Institutions, entrepreneurs, and communities: A special issue on entrepreneurship," Journal of Business Venturing, Elsevier, vol. 28(1), pages 1-9.
    19. Yang, Feifei & Shinkle, George A. & Goudsmit, Mirjam, 2022. "The efficacy of organizational control interactions: External environmental uncertainty as a critical contingency," Journal of Business Research, Elsevier, vol. 139(C), pages 855-868.
    20. Giulia Cancellieri & Massimo Riccaboni, 2015. "From La Bohème to La Wally: How Organizational Status Affects the (Un)conventionality of Opera Repertoires," Working Papers 5/2015, IMT School for Advanced Studies Lucca, revised May 2015.

    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:gam:jsusta:v:9:y:2017:i:8:p:1375-:d:106955. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.