Understanding how hybrid organisations tackle social challenges

Abstract

PurposeThe purpose of this paper is to examine how hybrid organisations combine institutional logics to tackle complex social needs.Design/methodology/approachA multiple case study design was followed, and cases were selected using a two-staged sampling process. Using qualitative analysis, the mechanisms through which logics are selected, prioritised and get integrated in the strategies and practices of these organisations are illustrated.FindingsThe study contributes to the literature on hybrid organisations and their ability to address social problems in two important ways. First, the paper reveals through the concept of institutional rationality why market-based organisations emerge to address complex social needs in a complex institutional context. Second, the study demonstrates that there is heterogeneity in how logics are blended externally in their strategies and in how logics are integrated internally within the organisation.Research limitations/implicationsAll the cases are selected from India; hence the possibility that the findings are valid only for countries with similar institutional and socio-economic contexts cannot be negated.Practical implicationsThe policy implication is that if business organisations should embrace social goals substantively, a regulation in the form of CSR is not enough. Instead, there should be institutional provisions to promote such hybrid organisational forms where alternative logics such as community, profession, etc., are part of the core logics of the organisation.Originality/valueThis study connects the strategic choices of organisations with their institutional logics’ configuration in the Indian context.