Counter-Institutional Identities and Product Innovation: “Core-Satellite” as a Response to Competing Logics Shaping Artisan Businesses

Abstract

The recent increase in the number of business studies lends us a better understanding of the multi-faceted behaviors of artisans whose product innovation is made to strategically respond to different logics. The purpose of this study is to develop an analytical framework for artisan product innovation based on the interplay between institutional logics, counter-institutional identities, and product innovation. We argue that craft product innovation results from the comparative power between oppositional identity (artisan identity) and relational identity (entrepreneurial identity) when coping with multiple logics. A qualitative methodology that incorporates in-depth interviews and field observations is applied to offer insights into product innovation among Vietnamese artisan businesses. Our research discovers a new strategy, “Core-Satellite,” that is a tactic in reconciling competing logics. When oppositional identity is strong and relational identity is either strong or moderate at the same time, artisan business owners will create a “core” that provides a strong foundation for innovated products (satellite).