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Nisar Shah, Arsalan

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Nisar Shah, Arsalan
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https://libra.unine.ch/handle/123456789/1030

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  • Publication
    Métadonnées seulement
    Hybrid Organizations: Defining Characteristics and Key innovation Factors
    (2015-7-13)
    Trones, Maren
    ;
    Lunnan, Anders
    ;
    Nisar Shah, Arsalan 
    Hybrid organizations surpass the boundaries between typical for-profit and non-profit entities, by being both market-oriented and mission-centered. Hybrid organizations use market forces to solve social and environmental issues, and engage in commercial activities to sustain their operations. They can be promising agents of multiple value creation, by offering alternative approaches for addressing economic, social and environmental needs. However, as these organizations don’t correspond with established organizational forms, they may experience difficulties in maintaining their hybrid form. Such organizations often exist between the institutionally legitimate forms of organizing, as they combine conflicting institutional logics. As a result , these organizations face challenges related to legal form, financing and organizational culture. This paper looks at the characteristics of hybrid organizations, and how they can maintain their organizational sustainability and hybrid nature. Through a phenomenological research design consisting of individual interviews with five entrepreneurs who have experienced success with their hybrid business in Latin America, the study links existing theories of hybrid organizations with empirical evidence, and shows that the organizations are characterized by having realistic visionaries as founders, innovative business model design, novel forms of financing like crowdfunding and environmental/social mission embedded in the organizational identity. Moreover, the study shows that the legal and financial framework for hybrids are not fully developed yet. The majority of the founders have considered novel forms of financing like crowdfunding as a viable source of finance, but only one of the companies have conducted a campaign on a crowdfunding platform. In this paper, we argue that key factors in understanding how the organizations sustain their hybrid nature are related to their activity system and organizational identity.. Organizations can more easily sustain their hybrid nature by designing business models that have integrated social, environmental and commercial activities. The organizations from this study have managed to foster an organizational culture committed to multiple missions and effective operations, despite having diverse workforces as well. This means that identifying and communicating organizational values are crucial for the viability of hybrid organizations. Several of the companies report to benefit internally from their hybrid nature, which may be explained by how the individuals define themselves and the enterprise.