From Logic Acceptance to Logic Rejection: The Process of Destabilization in Hybrid Organizations

Abstract

We study the introduction of the private logic into a mature Italian hospital that was governed previously as a hybrid of professional and public logics. Intriguingly, the reconstituted hospital was for several years widely praised for its strong clinical and financial performance, but quickly and with little warning, it became riven by political differences that led to its demise. Through our case analysis, we develop a multilevel model that reveals the destabilizing process that can unfold when a new logic enters an established organization. We contribute to the hybrids literature by explaining the puzzle of how a new logic can become accepted and then rejected in organizations, emphasizin..