This study advances the understandings of institutional transition in the tourism literature by integrating two areas of study: the theory and practices of analysis informed by the research on institutional logics and on coopetition. Adopting a qualitative study of four tourism operators and their related organizations in a tourism market, we develop a concept of institutional co-creation to describe how networking, exchanging and framing influence organizational performance. The findings show that in responding to the changes of institutional factors, organizational members in the tourism industry transform their institutional logics through the interaction of coopetition. The present case contributes to the nascent literature on tourism by conceiving the institutional environment for organizational sustainability under a fast changing tourism economy.