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Institutional arbitrage: how actors exploit institutional difference

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Title: Institutional arbitrage: how actors exploit institutional difference
Authors: Perkmann, M
Phillips, N
Greenwood, R
Item Type: Journal Article
Abstract: In this paper, we explore how actors benefit from bringing together incompatible institutional logics-an activity we call institutional arbitrage-and discuss why they do so despite the challenges it creates. We develop a taxonomy of four basic tactics of institutional arbitrage that are rooted in differences between logics in terms of resource valuation, purpose, practices, and legitimacy. These tactics enable actors to create benefits by engaging with actors from fields adhering to different logics or integrating practices from other fields. We also discuss some of the factors that enable actors to deploy these tactics in particular institutional settings. We conclude with a discussion of some of the potential consequences of institutional arbitrage for actors, organizations, and the broader organizational field within which arbitrage occurs.
Issue Date: 12-Apr-2022
Date of Acceptance: 6-Jan-2022
URI: http://hdl.handle.net/10044/1/94101
DOI: 10.1177/26317877221090313
ISSN: 2631-7877
Publisher: Sage
Start Page: 1
End Page: 20
Journal / Book Title: Organization Theory
Volume: 3
Copyright Statement: © The Author(s) 2022. This article is distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 License (https://creativecommons.org/licenses/by-nc/4.0/) which permits non-commercial use, reproduction and distribution of the work without further permission provided the original work is attributed as specified on the SAGE and Open Access pages (https://us.sagepub.com/en-us/nam/open-access-at-sage).
Publication Status: Published
Online Publication Date: 2022-04-12
Appears in Collections:Imperial College Business School

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