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Sustaining Inter-organizational Relationships Across Institutional Logics and Power Asymmetries: The Case of Fair Trade

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Abstract

This paper explores an empirical puzzle, namely, how inter-organizational relationships can be sustained between organizations that draw upon distinctive—and potentially conflicting—institutional logics under conditions of power asymmetry. This research analyses cases of these relationships and suggests some key conditions underlying them. Examining relationships between ‘Fair Trade’ organizations and corporate retailers, a series of contingent factors behind the dynamic persistence of such relationships are proposed, namely: the presence of pre-existing ‘hybrid logics’; the use of boundary-spanning discourses; joint tolerance of conflict; and co-creation of common rules. These four elements are supported by a fifth mediating factor, i.e. the presence and use of a Fair Trade certification system in the collaboration. The latter appears as a central vehicle facilitating cross-logic relationships—it can be seen as a ‘boundary object’ embodying a series of narratives and discourses that are open to multiple interpretations corresponding to the dominant institutional logics of each partner organization.

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Notes

  1. Note that ‘Fairtrade’ in one word was introduced to refer to Fair Trade certification—as part of their brand strategy—by Fairtrade International.

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Acknowledgments

This research has been carried out in the framework of an Interuniversity Attraction Pole funded by the Belgian Science Policy Office under the title “If not for Profit, for What and How?”. The authors would like to thank Silvia Dorado, Geoff Moore, François Maon, Valérie Swaen and two anonymous reviewers for their useful comments and suggestions.

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  1. Saïd Business School, University of Oxford, Park End Street, Oxford, OX1 1HP, UK

    Alex Nicholls

  2. HEC Management School, University of Liege, Rue Louvrex 14, 4000, Liege, Belgium

    Benjamin Huybrechts

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Nicholls, A., Huybrechts, B. Sustaining Inter-organizational Relationships Across Institutional Logics and Power Asymmetries: The Case of Fair Trade. J Bus Ethics 135, 699–714 (2016). https://doi.org/10.1007/s10551-014-2495-y

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