Balancing multiple institutional logics in state‐owned enterprises: A dynamic capabilities perspective

State‐owned enterprises (SOEs) operate at the intersection of state, market and societal domains, where they must deliver financial returns, pursue policy objectives and sustain legitimacy simultaneously. This positioning exposes them to multiple, often conflicting, institutional logics that generate persistent uncertainty. We argue that addressing such institutional logics requires a higher order capability that enables SOEs to orchestrate multiple logics over time. Building on an empirically oriented use of the institutional logics perspective and on the dynamic capabilities (DCs) framework, we develop the concept of Logic Orchestration Capability (LOC). Accordingly, we theorize LOC through three components with six subprocesses: scanning and identifying (sensing), translating and sequencing (seizing) and coupling/decoupling and legitimacy balancing (reconfiguring). The framework explains how SOEs may convert uncertainty generated by institutional complexity into coordinated action while sustaining legitimacy and performance.