Institutional logics, work, and outcomes: The case of Sony and Toshiba in the HD optical disc standard war

This paper explores the relationships between institutional logics and institutional work when a new technological change is occurring in the field. We argue that when institutional work (actions) does not align with institutional logics (rules), the institutionalization process might not always connect to or generate positive outcomes. By examining a case of the Sony Blu-ray Disc versus Toshiba HD DVD standard war, our results compare differentiated institutional work and institutional logics between two Japanese companies, as well as analysis of mechanisms that led to different business outcomes. Through content analysis of media reports and archival data over 2002–2008, we found two institutional logics (corporate logic vs. consumer logic) based on correspondent institutional work (i.e., stakeholder management, copyright protection, and production performance) between Sony and Toshiba. Findings also show that Toshiba, as an incumbent firm, was not able to align institutional works with its logic, resulting in a failure in the standard war.