Navigating Dual Logics: The Interplay Between Family and Entrepreneurial-Market Logics in Family Firms

Abstract Family firms often operate at the intersection of multiple institutional logics. While prior research highlights tensions between family and market logics, the role of entrepreneurial-market logic in family firms and how competing logics are coordinated remain underexplored. This study examines the interplay between family and entrepreneurial-market logics in family firms. Drawing on an in-depth case study of a large family firm in the MENA region and analyzing the data using the Gioia methodology, we investigate how these logics are enacted. The findings show that family and entrepreneurial-market logics coexist across different organizational domains and generate distinct coordinating mechanisms. Rather than prioritizing one logic over another, the firm manages tensions through assimilation and blending. These mechanisms include practices such as ambidextrous governance systems and legacy-driven competitiveness, enabling the simultaneous preservation of family continuity and pursuit of entrepreneurial growth. Building on these insights, we develop the FABE typology, which distinguishes four types of logics based on variations in the source of authority and basis of strategy: Family Logic, Assimilated Logic, Blended Logic, and Entrepreneurial-Market Logic. These findings reveal how competing institutional logics translate into coordination practices and provide a framework for understanding how family firms navigate the dual demands of family and entrepreneurial-market logics.