“Organizational Response to Institutional Pluralism: Ambidextrous Buyer-supplier Social Relationships across Institutions in China” by Dr. Zhi YANG
Dr. Zhi YANG
Associate Professor of Business Management
Associate Dean, School of Management
Huazhong University of Science & Technology
Institutional logics are cultural beliefs and rules that shape the cognitions and behaviors of actors. Plural institutional logics coexist in transitional economies such as China and make incoherent, competing and enduring tensions. Firms embedded in such plural institutions may suffer from conflicting pressures and perform adversely. We argue in this study that firms may respond to the institutional pluralism by simultaneously establishing social relationships with suppliers from conflicting institutions, so as to alleviate the tension and improve their performance. Based on the survey and census data of 126 manufacturing firms in china, we find that firms establishing ambidextrous buyer-supplier social relationships across institutions are better off in China. And the effect will be stronger when there is intensive competition, but will be attenuated when one institution dominates the other in local economy.