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College aantekeningen Hybrid Organizations
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Samenvatting en college-aantekeningen Lectures Hybrid Organizations - Master Sociologie - Track: Politics, Policy and Societal Development
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Lectures Hybrid OrganisationsLecture 1: Introduction to Hybrid Organising 2
Lecture 2: The importance of (institutional) context for hybrid organisations 6
Lecture 3: Interorganisational Networks for Sustainability 15
Lecture 4: Financing and impact 22
Lecture 5: Scaling & Internationalisation 32
Lecture 6: Strategic Human Resource Management and Motivation 39
The course is divided into two parts:
1. Foundations and contexts
- Introduction to hybrid organising
- The importance of context
- Interorganisational networks for sustainability
2. Starting and managing organisations with multiple goals
- Financing
- Scaling and internationalisation
- HR & motivation
1
,Lecture 1: Introduction to Hybrid Organising
Hybrid organisation - what kind of approach can reach a more sustainable goal & combine private
and public sector together?
How hybrid organisations emerged: ideas about organising changed a lot the past few years
In earlier days the main idea for organisations was to make profit → but then in the 1970s there was a
turn to finance; creating more value to shareholders instead of just producing something → due to
globalisation there was outsourcing of low skilled labour → Corporate Social Responsibility emerged
in response to globalisation of labour → ideology of this market approach (making profit and
contributing to shareholders/social problems) = blurring sector lines, e.g. social enterprises
- Turn to finance: using asset in
companies in different ways to
create more profit for shareholders
- Globalisation (e.g. moving
production overseas to areas with
cheaper labour)
- CSR: emerged with companies
working irresponsibly overseas →
code of conduct on how companies
could regulate themselves
- Social problems AND blurring where profit companies can also be more sustainable
Why do hybrid organisations matter?
- Trying to solve problems in het best way
- Doing business with the poor
- Trying to change problematic systems (change systems that replicate inequality)
- Collaborating to bring skills together from different sectors
→ They must overcome unique organisational challenges in order to succeed.
Hybrid organisations can be seen as a response (norms, attitude and regulations evolve)
The organisations are all meeting in the middle & held
more accountable and reflecting values.
Norms, attitudes and regulations evolve → people buying
products because of the social/sustainability mission of
the company (consumer role).
Definition hybrid organisation: organisations at the
interface between for-profit and non-profit sectors that address social and ecological issues. Social
enterprises address social problems by means of markets (Haigh & Hoffman).
- Other definition of hybrid organisation: social enterprise that addresses social problems by
means of the market (Mair)
2
,Hybridity matters for issues hybrids face
Matters for… Comments
1. Legal structure - Ownership, profit Hybrids can have different
- L3C management legal forms. This matters for
- Benefit corporation - Social legitimacy things lionke how much
- Flexible purpose - Access to finance, taxes profit they can distribute to
corporation A legal form provides a structure shareholders or what tax
for governing who gets what benefit they gain
money (among other provisions),
and thus can also reinforce
behaviour that either leads to
maximising profit or not
2. Financing - Disruption in resource Discuss in financing lecture
allocation
3. Customers and - When the same, focusing on
beneficiaries/mission drift growth doesn't detract
Mission drift: focus on social
purpose might stray away and
starts to have a bigger focus
on profit
4. Organisational culture and - Intrapersonal conflict Discuss in sociology lecture
talent development - Decision-making paralysis
Value spillovers
- Traditional value spillover: maximising the value & created for the transacting partner (the
client) → more money to the firm
- EX: watching a movie on Netflix; business transaction between you and the company
that does not benefit anyone else
- Automatic value spillover: profit is aligned with impact → reduce negative value spillovers
(the existence of the company creates benefits)
- EX: Nuru Energy: reduces negative value spillovers (commercialises renewable
energy and product replaces harmful kerosene)
- Contingent value spillover: profit is linked with impact, but requires training, awareness
raising and mentoring (value link is contingent on something)
- EX: Kiva & Grameen (banking for the poor) → loans to small businesses; value spillover
when income is invested in children’s education etc.
Different hybrid organisation forms
1. Market hybrid (e.g. Nuru Energy) - more financially
stable
2. Blending hybrid (e.g. Kiva) - contingent value spill
3. Bridging hybrid (e.g. hire autistic people) - clients
are not primary beneficiaries & automatic value spil
4. Coupling hybrid (e.g. WISE) - contingent value spill
Hybrids can be understood in a typology that distinguishes
them by the relationship between clients and beneficiaries
and whether value spillovers are automatic or contingent.
Such a distinction matters for financing, mission drift,
management and other aspects of organising.
3
, A spectrum of hybrids based on profit-focus
Hybrid organisations can fall in a spectrum ranging from primarily social or environmental outcome
focus to primarily economic outcome focus. Hybrids can be understood on the spectrum related to
the profit they aim to distribute to shareholders. Even nonprofits with some earned income can be
understood as hybrids.
Hybrids as levers of change - to mainstream business
What is the role of business in society? What kinds of organisational forms help organisations work
for society?
“Where corporate sustainability was once considered ‘heresy’ - an idea at variance with the dominant
orthodoxy of business - it has now become ‘dogma’-accepted, legitimate and even required.” (Haigh
& Hoffman)
See slides for examples of companies in this scheme. Below a table with explanation image.
4
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