Competing logics: Project failure in Gaspesia

SummaryThis study examines the non-economic conformity of governments, unions and firms that engaged in a large project failure within a highly competitive industry. Although the principal actors in this event ostensibly responded to economic rationality, social and normative pressures over-rode the market rationality of government institutions, firms, communities and investors. This over-ride of technical rationality may be explained by mutually reinforcing institutional and organizational logics.This case will trace the evolution and failure of a large pulp and paper project in Gaspesia. It argues that institutional and organizational theory help explain why some organizations fail to respond to bad economic news due to powerful appreciative systems and different logics and strategy processes. The case study illustrates a more general framework that can be useful in understanding projects and strategizing.