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The relationship between institutional logics and organizational legitimacy remains largely unaddressed in organizational theory and management research. We explore how individual evaluators primed with a particular institutional logic react to organizational signals sent by a firm's product/service pricing and by its engagement in corporate social responsibility (CSR) activities. In three experimental studies, we identify how the activation of a market logic or a family logic in evaluators’ minds moderates the effect of pricing and CSR engagement signals on their judgments of legitimacy of a firm, as well as on their behavioral intentions. An unexpected finding from our study was that, while participants primed with the family logic reacted positively to a CSR engagement signal sent by the firm but remained indifferent to a market-based premium-pricing signal, those primed with the market logic reacted positively to both premium-pricing and CSR engagement signals, suggesting that CSR engagement forms part of their understanding of the market logic.

On the Role of Institutional Logics in Legitimacy Evaluations: The Effects of Pricing and CSR Signals on Organizational Legitimacy