Institutions as resource context

Kaisa Koskela-Huotari · Stephen Louis Vargo

170 citations0/0 files storedJournal of Service Theory and Practice

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Service and Product Innovation Innovation and Knowledge Management Management and Organizational Studies

Abstract

Purpose – The purpose of this paper is to examine the role of institutions and institutional complexity in the process through which resources-in-context get their “resourceness.” Design/methodology/approach – To shed light on the process of potential resources gaining their “resourceness,” the authors draw from two streams of literature: the service ecosystems perspective and institutional theory. Findings – The authors combine the process of resources “becoming” with the concept of institutions and conceptualize institutional arrangements, and the unique sets of practices, symbols and organizing principles they carry, as the sense-making frames of the “resourceness” of potential resources. In service ecosystems, numerous partially conflicting institutional arrangements co-exit and provide actors with alternative frames of sense-making and action, enabling the emergence of new instances of “resourceness”. Research limitations/implications – The paper suggests that “resourceness” is inseparable from the complex institutional context in which it arises. This conceptualization reveals the need for more holistic, systemic and multidisciplinary perspectives on understanding the implications of the process of resources “becoming” on value co creation, innovation and market formation. Practical implications – As the “resourceness” of potential resources arises due to the influence of institutions, managers need a more profound understanding of the complimentary and inhibiting institutional arrangements and the related practices, symbols and organizing principles that comprise the multidimensional context in which they operate. Originality/value – This paper is one of the first to focus specifically on the process of resources “becoming,” using a systemic and institutional perspective to grasp the complexity of the phenomenon.

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References

1991Firm Resources and Sustained Competitive Advantage 1983The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields 2004Firm resources and sustained competitive advantage 1990Institutions, Institutional Change and Economic Performance 1977Institutionalized Organizations: Formal Structure as Myth and Ceremony 2004The iron cage revisited institutional isomorphism and collective rationality in organizational fields 1991Institutions, Institutional Change and Economic Performance 1984The Constitution of Society. Outline of the Theory of Structuration

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