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Two Essays on Changes in Institutional Logics and their Impacts on Organizational Survival and Decision-making

PhD Thesis Defense

This dissertation explores how state-owned enterprises (SOEs) overcome the liability of stateness and survive during the process of institutional logic change in China and how firms react to irreversible external political events that cause institutional logic change in Korea. Essay 1 examines how SOEs thrive in a state capitalism system of China. It focuses on how SOEs in China interact with three more market-based organizational forms (Privatized private-owned enterprises (POEs), New POE entrants, and foreign-owned enterprises (FOEs)) when state socialist and market capitalism logic coexist. Drawing on the institutional logics perspective and state capitalism literature, I explore how SOEs incorporate cognitive templates and material elements from more market-based forms. Intermediation, optimization, decentralization, and transformation—the four mechanisms that help SOEs adopt elements and survive have also been discussed. A panel dataset of manufacturing firms in China from 1999 to 2005 was used for analysis. Essay 2 explores when institutional logic changes as a result of an irreversible external political event, how firms respond to navigate and shape new institutional environment. The governmental transition from a conservative to a liberal government after Korea’s presidential elections in 1997 has been examined. I highlight that when ideological shift occurs across a society after a presidential election, firms will try to connect to a diverse emerging sociopolitical elites. Selecting an independent director whose local political ideology is compatible to the new government’s political orientation is proposed as a relational institutional strategy a firm can deploy. I argue that board members’ U.S. undergraduate and domestic elite school experience are related to adoption of the strategy. The contingent effects of demographic similarity between directors and emerging political elites and of directors’ local political ideology have also been examined. The results of the two essays largely support the hypotheses.

 

Speaker :
Mr Kyung Hwan (Andy) Yun, HKUST
Venue :
via Zoom
Date :
08.06.2020
Time :
9:00am-12:00pm