This study proposes a new explanation for institutional differences of organizations in China. It focuses on how two organizational forms dominant in contemporary art markets – commercial galleries and auction houses – were first established in China in the 1990s. Based on archival and interview data, it argues that the organizational forms were introduced to China due to mimetic isomorphism, and that their divergences from the foreign models are the result of unintended consequences of institutional work. It highlights the role of individual agency, including the role of foreign nationals, in organization-building in China. The findings also have implications for institutional theory: the article shows how the political, cultural and institutional context in China shaped institutional work that needed to be conducted and led to unintended consequences of institutional work.
