Institutional entrepreneurship and organizational innovation

Abstract

In this article, we address the question of institutional and organizational change through the start-up of new ventures. Following the institutional entrepreneurship theory, we examine the process of divergent change and the kinds of institutional work enabling entrepreneurs operating in a peripheral social position of mature fields to challenge the existing status quo. We argue that the start-up of new organizations can be an opportunity for repositioning existing traditional entrepreneurial capabilities by combining them with additional and complementary competences towards new institutional logics. Building on an in-depth longitudinal case study of a group of Italian small and medium-sized enterprises – acting intentionally as a community for innovation – we highlight the contextual conditions and the implementing factors allowing this type of institutional entrepreneurship. Our study makes two main contributions. First, we try to fill the gap with existing research mostly focused on dominant organizations, by showing how institutional entrepreneurship can be implemented by low-status organizations, within highly institutionalized fields. Second, we shed light on the process implementing new divergent organizational forms, by bridging established mature firms with new innovative fields.