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Evolving technology and ongoing interest in understanding student outcomes have combined in the rapid development and application of real time labor market information (LMI) in postsecondary institutions. This paper explores the theoretical explanations for the differences observed in how public community colleges and private liberal arts colleges respond to the proliferation of new forms of labor market information. We apply two popular institutional theories, institutional logics and isomorphism, to explore contrasting sector responses and concerns as we consider the institutional environment in which they are situated. In doing so we extend the use of institutional theory in postsecondary education and add to the empirical literature on data use in postsecondary education.