The Use of Logics in a Transitional Economy

Using the dual concepts of ‘dominant logic’ and institutional logics, this paper examines how senior managers in the context of transition economy navigate between the competing logics of state- dependency and... [ view full abstract ]

Using the dual concepts of ‘dominant logic’ and institutional logics, this paper examines how senior managers in the context of transition economy navigate between the competing logics of state- dependency and market-dependency when seeking to explain their firms’ business strategies. By comparing accounts in matched-paired case studies drawn from state versus private sectors, the study reveals how top teams develop shared dominant logics which are patterned in a manner which reveals that the degree of state-dependency was the critical variable and that market was a subsidiary variable. Further, the study found that it was the top teams in the state-owned firm which articulated the more confident, proactive expansionary plans, while the top managers in the private sector firm presented more cautious and incremental business strategies. Contextual conditions are described which help account for these contrasting patterns.