Learning Institutional Logics

Vern Glaser University of Alberta

Jochem Kroezen University of Cambridge

Pat ThorntonDuke University

Why Learning & Institutional Logics

• Prior empirical research on logics—macro– Consequences of logics shifting– Mediation & management of conflicting logics

• Prior theoretical research on logics– Theorization, socialization, vocabularies, frames,

narratives, institutional entrepreneurs• Only assumes most fundamental micro

mechanism—cognitive schema

Ideal Types of LogicsCategories Market Profession

Root Metaphor Transaction Relational network

Sources of Legitimacy Share price Personal expertise

Sources of Authority Shareholder activism Professional association

Sources of Identity FacelessAssociation with quality

of craft; Personal reputation

Basis of Norms Self-interest Associational membership

Basis of Attention Status in market Status in profession

Basis of Strategy Increase profit Increase personal reputation

Informal Control Mechanisms Industry analysts Celebrity professionals

Economic System Market capitalism Personal capitalism

Cognitive Schemas

• Entities and event schemas (Wyer, 2004)

• Cultural experience leads to individuals learning distinct schemas (Hong et al., 2000)

– Pragmatic Reasoning Schema (Koo & Choi, 2005)

– Implicit Theory of Attributes (Dweck et al., 1995)

– Implicit Theory of Agency (Hong et al., 2000; Menon et al., 1999)

– Implicit Theory of Morality (Chiu et al., 1997)

Theoretical Gap

• If individuals develop these schemas based on their cultural experiences, it seems that individuals may learn institutional logics by learning particular schemas associated with an institutional order

• What types of schemas do individuals learn from institutional logics?

Our Study

• We compare differences in cognitive schemas learned by finance and nursing professionals during professional training

Methods

• We collect data from texts associated with two professional training programs at the University of Alberta– Masters of Financial Management degree, Textbook =

Principles of Global Finance– Masters of Nursing program, Textbook = Fundamentals of

Canadian Nursing

• We analyze the data in four phases– I: Open coding based on entity/event schemas (Wyer 2004)

– II: Vocabulary analysis (Loewenstein, Ocasio & Jones 2012)

– III: Qualitative coding analysis (Goodrick & Reay 2010)

– IV: Develop a theoretical framework based on our coding

FindingsType of Schema Market/Finance Professions/NursingPragmatic Reasoning Schema

Deductive, Abstract, Theoretical

Inductive, Concrete, Case-Based

FINANCE: The goal of the firm is to maximize shareholder value because the “financial manager should act in the interests of the firm’s owners, its stockholders.”A decision-making process used to realize this goal is “the comparison of cash payments at different dates.”

NURSING:The goal of nursing “involves four areas, “(a) promoting health and wellness, (b) preventing illness, (c) restoring health, and (d) caring for the dying.”The decision-making processes used by the nurse reflect case-based intuition, the expert practitioner is described in the following way. “Demonstrates highly skilled, intuitive, and analytical ability in new situations. Is inclined to take a certain action because it ‘feels right.’”

FindingsType of Schema Market/Finance Professions/NursingImplicit Theory of Agency

Agency Resides in Powerful Strategic Decision-Makers

Agency is Embedded in a

Cultural Context

FINANCE: Corporations “face two principal financial decisions” – the “investment decision” (such as Union Pacific spending $330 million to purchase equipment) and the “financing decision” (such as Union Pacific repaying $1.4 billion of debt).

NURSING:Nurses seek to facilitate client decision-making by “involving clients in decisions about their own health,” “encouraging clients to take action for their own health,” “involving clients in identifying their own health care needs,” “involving clients in planning, using, and evaluating their own health care services,” and “encouraging and using community development approaches.”

FindingsType of Schema Market/Finance Professions/NursingImplicit Theory of Attributes

Entity Theory Based on Performance

Goals

Incremental Theory Based on Learning

GoalsImplicit Theory of Morality

Pragmatic-Based, Focusing on Self-

Interest

Duty-Based, Focusing on the

Weak

Contributions

• We develop an understanding of the micro-level cognitive schemas associated with institutional logics

• This theoretical infrastructure can help explain puzzles such as the spread/dominance of the market logic– Pragmatic reasoning schema of the finance logic

enables it to spread globally more effectively than a case-based approach to nursing

Future Research

• Experimentally test the findings of this paper– Use experimental vignettes derived from dynamic

constructivist studies– Nursing vs. finance students– Entering vs. exiting students