Mission and Money: Unpacking Competition between Hybrid Organizations in the Nascent MOOC Market

Abstract

This study explores the competition between hybrid organizations in a nascent market over time. Grounded in a multi-case theory-building study of two massive open online course (MOOC) technology ventures, this study contributes at the intersection of organization theory and strategy in relation to hybrid organizations. The theoretical framework indicates that hybrid ventures in nascent markets engage in competitive games that include setting performance objectives, creating distinct hybrid forms, and making relevant moves. I find that successful hybrid ventures (1) play their own games as the market forms, (2) adapt how they play their games as the market evolves, and (3) rely on boards of directors to organize their games over time. In contrast, less successful hybrid ventures struggle to adapt their games as the market evolves, ultimately blunting their abilities to achieve their missions. As the market evolves, hybrid ventures must adapt their forms to sustain and gain performance advantages. A core insight is that the flexibility (or inflexibility) of venture governance shapes how effectively a hybrid venture adapts to the market and competes with rivals. Overall, this study provides a novel view of how hybrid organizations compete for both the mission and the money in nascent markets over time.