Micro-institutional Change and Organization Design: A Process Model of Logic Elaboration
We develop a process model of logic elaboration from a case study of a China-based financial training company. Based on 8 years’ of real time observations and interviews, we theorize how a firm steeped in a professional logic endogenously initiates a micro-institutional change to elaborate on its professional logic by incorporating elements from a market logic. The findings suggest that recognition, experimentation, articulation, and infusion are the key processes that underlie logic elaborations. Our study contributes to literatures on institutional change and organizational design by documenting empirically how a dominant logic could enable actors to incorporate an alternative logic through organizational design.