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This paper describes the role of rhetoric in legitimating profound institutional change. In 1997, a Big Five accounting firm purchased a law firm, triggering a jurisdictional struggle within accounting and law over a new organizational form, multidisciplinary partnerships. We analyze the discursive struggle that ensued between proponents and opponents of the new organizational form. We observe that such rhetorical strategies contain two elements. First are institutional vocabularies, or the use of identifying words and referential texts to expose contradictory institutional logics embedded in historical understandings of professionalism, one based on a trustee model and the other based on a model of expertise. A second element of rhetorical strategies is theorizations of change by which actors contest a proposed innovation against broad templates or scenarios of change. We identify five such theorizations of change (teleological, historical, cosmological, ontological, and value-based) and describe their characteristics.

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This paper shows that organizations in market settings face complex institutional contexts to which they respond in different though patterned ways. We show how both regional state logics and family logics impact on organizational responses to an overarching market logic. Regional logics are particularly potent when the activities of firms, especially of large firms, are concentrated in regions whose governments champion regional distinctiveness and where the regional activities of the firm are significant. Family logics affect the decision to downsize, especially in smaller firms. This paper advances institutional theory by showing the influences of nonmarket institutions on market behavior, contributes to the growing recognition of community influences, and highlights the importance of historical context.