View article

In this study, we argue that illegitimate corporate actions can not only be strategic responses to the conflicting technical and institutional demands at the field level but also manifestations of the contradictory higher‐order institutional logics at the polity level. By focusing on the statist polity, somewhat neglected by the new institutional theory, we argue that the contradictory nationalist and capitalist institutional logics in the statist polity generate illegitimate corporate actions. We also propose that uncertainties and opportunities created by statist polity characteristics such as weak policy‐making capacity, neopatrimonialism, and clientelism lead to illegitimate corporate actions by triggering conflict between nationalism and capitalism. To demonstrate this, we examine the Turkish case, by focusing particularly on a recent example of illegitimate corporate action, namely the pursuit of non‐operating revenues. The case …