We aim to understand how actors respond to field logic plurality and maintain legitimacy through business model innovation. Drawing on a longitudinal field study in the fashion industry, we traced how de novo and incumbent firms incorporate circular logics in business models (for sustainability) and uncover how the intersection between issue and exchange fields creates institutional complexity and experimental spaces for business model innovation. Our findings showed a shift in the discourse on circular logic that diverted attention and resources from materials innovation (e.g., recycling) to business model innovation (e.g., circular business models). By juxtaposing institutional complexity and external pressure to maintain legitimacy, we derived four strategic business model innovation responses—preserve, detach, integrate and extend—that illuminate how actors leverage shifting logics and innovate extant business models (for sustainability). We make novel contributions to the literature on organizational fields, business models for sustainability, and business model innovation.
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Purpose: The purpose of this paper is to examine the history of the Dutch cooperative Rabobank to understand how the structure of an organisation determines how individual employees validate norms within that organisation. Design/methodology/approach: Data over an approximately 10-year period starting 25 years ago are analysed, and the value of relating a historical analysis and narrative approach to ethical and institutional theories in economics and management science is demonstrated. Findings: Regulation in the banking sector appears to have a strong normative aspect. The choice between state and private ownership is based on ideology. The author argues that the private ownership model was based primarily on an ideology surrounding economic efficiency, but that in fact there are other logics that also promote economic development. This contributes to the understanding of the interaction between sector standards, organisational structures and the values of organisations and individual employees. The structure of an organisation enables key employees to deviate slightly from the organisation’s prevailing norms in response to pressures from the wider environment, and those individuals thereby become symbols of that organisation. Originality/value: The perspective on management history put forward in this paper enables assessing the distinction between normative notions in institutional environments and the organisation as a whole as represented in its governance structure and narratives that key employees disseminate about the organisation. This in turn helps us to understand the interaction between sector standards, organisational characteristics and values represented by individual employees. The author reveals the strong normative impact of banking regulation in line with an older ideological model focused on economic efficiency rather than market logics and the interests of society.
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This paper tries to contribute to the clarification of the problems concerning professional justifications from an ideal-typical point of view, which inevitably implies that it doesn’t deal with real problems and their solutions. The starting point is Freidsons (2001) idealtypical distinction between professionalism, market and bureaucracy. Abbotts (1988) analysis of professionalism will be used to convert Freidsons distinction of power into a distinction of expertise. By making use of Savornin Lohman & Raaff (2001) the distinction is extended by two more logics, the public and the private one. It will be shown that all five logics rest on different action values and that these differing values can cause serious misunderstandings concerning professional justifications.
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