Old Habits Die Hard - A Case Study on the Implications of Privatization on Institutional Logics

Abstract: Purpose: The purpose of this thesis is to understand how a privatization process affects a company’s institutional logic in the presence of path dependence mechanisms, and to delineate the implications this has on the firm’s value creation strategy. Theoretical Perspectives: This thesis builds upon general ownership theories from the perspective of institutional logics. To these perspectives, path dependence and value creation theory are added in order to provide a nuanced understanding. Methodology: A qualitative case study was carried out in order to fulfill the intended purpose, in combination with an abductive approach. Findings: The findings of this study conclude that there is a salience of path dependence in legitimacy-seeking behavior within a privatized SOE, which seem to have some effect on the value creation motives of the company. Conclusion: The conclusions drawn from the study is that the case company, even after the IPO, continues to pursue societal value in addition to shareholder value. This implies that the company has not completely changed from state logic to a profit maximizing market logic, but rather that it operates by a mix of these.