Navigating Institutional Plurality: Organizational Governance in Hybrid Organizations

Abstract

Hybrid organizations operate in a context of institutional plurality and enact elements of multiple, often conflicting institutional logics. Governance is highly relevant in navigating such an environment. This study examines how hybrid organizations set up their governance structures and practices. Building on survey data from 70 social enterprises, a subset of hybrid organizations, we identify two types of hybrid organization: conforming hybrids rely on the prioritization of a single institutional logic and dissenting hybrids use defiance, selective coupling and innovation as mechanisms to combine and balance the prescriptions of several institutional logics. We illustrate these mechanisms by drawing on the qualitative analysis of selected cases. This study refines current debates on social enterprises as hybrid organizations. Based on our findings, we speculate that some social enterprises might assume hybridity for symbolic reasons while others – genuine hybrids – do so for substantive reasons.