Hybrid Organizations: Origins, Strategies, Impacts, and Implications
2015, California Management Review
https://doi.org/10.1525/CMR.2015.57.3.5Abstract
This introduction to the special issue on hybrid organizations defines hybrids, places them in their historical context, and introduces the articles that examine the strategies hybrids undertake to scale and grow, the impacts for which they strive, and the reception to them by mainstream firms. It aggregates insights from the articles in this special issue in order to examine what hybrid organizations mean for firms and practicing managers as they continue to grow in number and assume a variety of missions in developing and developed countries.
FAQs
AI
What explains the rise in hybrid organizations since the 1970s?
The development of hybrid organizations is linked to rising societal awareness of social issues and legislative changes, such as the rise of Benefit Corporations and similar structures. B Lab has certified 1,212 B Corporations operating across 38 countries since 2008, highlighting this trend.
How do hybrid organizations navigate mission drift and financial viability?
Hybrid organizations often struggle with mission drift while trying to remain financially viable; effective alignment between social impact and profit is critical. Research shows that specific business model designs can improve sustainability and help avoid mission drift.
What legal structures do hybrids commonly adopt for strategic advantage?
About 50% of hybrids studied changed their legal structures to better align social and financial goals. This flexibility can enable access to funding and partnerships, indicating the critical role of legal form in hybrid organization strategy.
What impacts do hybrid organizations have on traditional firms?
Hybrids can influence traditional firms through competition or collaboration, leading to the adoption of innovative practices. Research shows that established companies may engage with hybrids as allies in sustainability efforts, creating mutually beneficial outcomes.
How can hybrid organizations measure their social impact effectively?
Holt and Littlewood developed a Hy-Map process that helps hybrid organizations identify and monitor both positive and negative impacts on stakeholders. This approach facilitates a deeper understanding of the trade-offs involved in achieving social value creation.
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- O'Toole and Vogel, op. cit.
- Lee and Jay, op. cit.
- Rawhouser, Cummings, and Crane, op. cit.
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- Santos, Pache, and Birkholz, op. cit.
- Haigh, Dowin Kennedy, and Walker, op. cit.
- Ibid.
- Hockerts, op. cit.
- Santos, Pache, and Birkholz, op. cit.
- Ibid.
- Hockerts, op. cit.
- Lee and Jay, op. cit.
- Ibid.
- Hockerts, op. cit.
- Holt and Littlewood, op. cit.
- California Management Review, Vol. 57, No. 3, pp. 5-12. ISSN 0008-1256, eISSN 2162-8564. © 2015 by The Regents of the University of California. All rights reserved. Request permission to photocopy or reproduce article content at the University of California Press's Rights and Permissions website at http://www.ucpressjournals.com/reprintinfo.asp. DOI: 10.1525/cmr.2015.57.3.5.