The Logic of Innovation: A Study on the Narrative Construction of Intrapreneurial Groups in the Light of Competing Institutional Logics

Abstract

This paper focuses on entrepreneurial groups as a narrative construct within organizations, i.e., intrapreneurial groups. It analyzes the narrative construction of intrapreneurial groups within different institutional logics using the example of a company in the automotive industry. As part of the institutional logic of the market, a logic of innovation exists in this company. This logic establishes narratives, which determine how sense-making and the narrative construction of intrapreneurial groups occur. The paper analyzes these narratives and the way in which intrapreneurial groups are socially constructed within them. However, the analysis shows that while the logic of innovation is diffused throughout the entire organization, it comes into conflict with other logics when members of the organization apply it to discussions on upcoming changes. Referring to the research on institutional logics and institutional complexity, the paper analyzes such conflicts between logics. Within these conflicts, the narrative construction of intrapreneurial groups changes. The paper further contributes to research on intrapreneurial groups by analyzing how the narrative construction of intrapreneurial groups changes according to other logics, which are taken up in order to restrict the logic of innovation and confront the logic of innovation in conflicts.