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Building Sustainable Hybrid Organizations: The Case of Commercial Microfinance Organizations
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We explore how new types of hybrid organizations (organizations that combine institutional logics in unprecedented ways) can develop and maintain their hybrid nature in the absence of a "ready-to-wear" model for handling the tensions between the logics they combine. The results of our comparative study of two pioneering commercial microfinance organizations suggest that to be sustainable, new types of hybrid organizations need to create a common organizational identity that strikes a balance between the logics they combine. Our evidence further suggests that the crucial early levers for developing such an organizational identity among organization members are hiring and socialization policies.
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... To illustrate the potential contribution of our theoretical argument, we revisit a puzzle reported by Battilana and Dorado (2010) (Battilana & Dorado, 2010, p. 1427). ...
... To illustrate the potential contribution of our theoretical argument, we revisit a puzzle reported by Battilana and Dorado (2010) (Battilana & Dorado, 2010, p. 1427). ...
... In fact, the two organizations differed significantly in how they used sayings and implemented the doings of their employees. Battilana and Dorado (2010) reported that Organization 1 focused foremost on vocabularies ...
The practice-driven perspective in organizational institutionalism has proposed that what actors say and do is decisive for the enactment of practices in everyday situations. However, this perspective has predominantly considered the role of doings and has disregarded the distinct role of sayings used in everyday situations. Our theoretical argument proposes the co-constitutive coexistence of sayings and doings in the enactment of practices that explains why and when doings inform specific sayings and why and when sayings prefigure specific doings. Theorizing this coexistence reveals when it is that sayings bolster the reproduction and stabilization of doings, when they contribute to change, and when sayings cannot coordinate doings because actors literally cannot understand one another. We argue that the consideration of the coexistence of sayings and doings is relevant for practice-driven institutionalism, as it enables the differentiation of the situated impact of doings and sayings on the development of practices. To develop this argument, we build on insights from the embodiment perspective within the philosophy of mind (i.e. philosophy of embodiment), which suggests that the body and its sensorimotor states in practices play an instrumental role in cognition and language use.
... Rannsóknir á skoðanakerfum innan banka benda til þess að hefðbundið banka skoðanakerfi (banking logic) eigi sér langa sögu. Grundvallargildi banka skoðanakerfisins byggir meðal annars á því að skipulagsheildir séu reknar með hagnaði, til að mynda með því að haekka vexti (Battilana og Dorado, 2010;Pache og Santos, 2010, ná hagkvaemni með alþjóðlegri starfsemi (Marquis og Lounsbury, 2007) og með því að maeta útlánatapi og styrkja eiginfjárgrunn (Morduch, 1999). Rannsóknir hafa sýnt að bankar leggja gjarnan ofuráherslu á það skoðanakerfi til þess að tryggja lögmaeti (Zhang, 2021). ...
... Fyrir banka eru niðurstöður rannsóknarinnar þó engu að síður mikilvaegar upplýsingar um þaer áskoranir sem felast í fjórðu iðnbyltingunni. Ef ekki er unnið með hindranirnar, þá er haetta á samkeppni og togstreitu innan skipulagsheilda (Battilana og Dorado, 2010;Johansen og Waldorff, 2017). Til þess að fylgja eftir stafraenum breytingum þarf að koma inn ný þekking og nýjar áherslur. ...
... Ákveði bankar hins vegar að fylgja ekki eftir kröfum um innleiðingu nýrra stafraenna lausna, tryggja þeir til skamms tíma ákveðið lögmaeti, en tapa því til lengri tíma. Ástaeða neikvaeðra breytinga til lengri tíma er að finna í því að nýjar taeknilausnir miða að því að auka skilvirkni og hagkvaemni, sem aftur er mikilvaegur hluti banka skoðanakerfisins (Battilana og Dorado, 2010;Pache og Santos, 2010. Ef bankar verða uppvísir af því að nýta ekki hagkvaemar lausnir, rýrir það lögmaeti þeirra byggt á banka skoðanakerfinu (Mangematin o.fl., 2014). ...
Fjórðu iðnbyltingunni hafa fylgt miklar tækniframfarir m.a. í formi bjálkakeðja, gervigreindar og stafrænna lausna. Þeim fylgir aukin krafa um innleiðingu bæði vegna samkeppni og skilvirkni. Því fylgja áskoranir fyrir skipulagsheildir sem háðar eru lögmæti og stöðugleika. Stofnanakenningarnar hafa sýnt fram á að skipulagsheildir eru í sífelldri togstreitu á milli skilvirkni og lögmæti, sem verður síst minni þegar ný skoðanakerfi ógna lögmæti ríkjandi skoðanakerfis. Bankar byggja tilveru sína á lögmæti, jafnvel í enn ríkara mæli en skipulagsheildir almennt. Í þessari grein er sjónum beint að íslenskum bönkum og hvernig þeir bregðast við áskorunum stafrænnar byltingar. Markmið rannsóknarinnar var að kanna hvort ríkjandi skoðanakerfi hamli tækniþróun innan bankakerfisins á Íslandi. Eigindleg aðferðafræði var notuð og voru hálfstöðluð viðtöl tekin við 11 einstaklinga frá fimm bönkum, bæði eldri hefðbundnum bönkum og nýrri sem styðjast meira við stafrænar lausnir. Viðmælendur voru valdir með tilgangsúrtaki og komu hvoru tveggja frá viðskipta og upplýsingatækni sviðum bankanna. Gögnin voru greind með aðferðum grundaðrar kenningar. Niðurstöður leiddu í ljós að ríkjandi skoðanakerfi hafa hamlandi áhrif á tækniþróun innan bankakerfisins. Banka skoðanakerfið, stutt upplýsingatækni skoðanakerfinu, rekst á við hið nýja stafræna skoðanakerfi, en áhersla fyrrnefndu skoðanakerfanna á stöðugleika og lögmæti dregur úr möguleikum á að tileinka sér nýja tækni hratt og örugglega. Eldri bankar standa einnig frammi fyrir áskorunum vegna hamlandi eldri upplýsingatæknikerfa. Á meðan nýrri bankar aðgreina sig með stafrænni nálgun verða einnig fyrir þrýstingi að aðlagast hefðbundnara banka skoðanakerfi. Rannsóknin varpar ljósi á flókið samspil skoðanakerfa, einsleitnikrafta og lögmætis í tækniþróun banka. Mikilvægt er fyrir banka að vera meðvitaðir um þessar hindranir og leita leiða til að samþætta ólík skoðanakerfi, með þeim hætti að innleiðing nýrrar tækni leiði ekki til ágjafar á lögmæti. Frekari rannsóknir eru nauðsynlegar til að öðlast dýpri skilning á myndun og viðhaldi lögmætis innan bankakerfisins í takt við tæknibreytingar.
... In complex markets with multiple co-existing logics, organizations typically engage in hybridization, i.e., the combination of multiple practices and cultural values, drawn from different logics (e.g., Yoshikawa, Tsui-Auch, & McGuire, 2007). Hybridization provides not only a means to maintaining legitimacy vis-à-vis multiple stakeholders (Battilana & Dorado, 2010), but also a source of learning, innovation and the recombination of practices into new knowledge (Besharov & Smith, 2014). Hybridization is particularly critical for MNEs as it allows them to combine practices from the variegated logics they face due to their geographically dispersed presence. ...
... MNEs can also avoid the effects of host-country nationalist sentiments through selective hiring. Organizational identities are derived from the shared meanings and assumptions of members; hence researchers have highlighted how staffing and employment can influence the trajectory and shape of identification (Battilana & Dorado, 2010). By screening for nationalist sentiments and hiring employees whose values and meanings align with the firm, both at home and in subsidiaries, MNEs can minimize the imprinting effects of nationalist sentiments on their identities. ...
International business scholars have recognized the impact of political and economic nationalism on the multinational enterprise (MNE). We complement these approaches by highlighting the sociological manifestations of nationalism and their implications for the MNE. We argue that nationalist sentiments , i.e., widely shared assumptions of superiority over other nations and cultures, constitute an under-researched but critical element in international business (IB). Drawing insights from organizational sociology, we elucidate how nationalist sentiments manifest in the MNE’s external and internal environment. Specifically, we suggest that nationalist sentiments accentuate national institutional logics , generate status-based categorizations of foreign and domestic firms, and heighten emphasis on national organizational identities . These manifestations impact the MNE’s operations by limiting room for hybridization of dissimilar practices and routines, increasing the risk of discrimination and stereotyping by local audiences, and entrenching resistance to foreign ideas and practices among organizational members. We suggest that MNEs have three strategic choices in responding to nationalist sentiments: avoid their manifestations, mitigate their implications, or leverage nationalist sentiments to the MNE’s advantage. In sum, our framework provides a starting point for IB scholars to examine the strategic implications of nationalist sentiments for the MNE.
Social enterprises face funding challenges caused, among other things, by investors focusing too much on risk and return. As traditional capital markets do not meet the needs of social entrepreneurs, crowdfunding can be an alternative way to raise funds for the development of their business. In this context, crowdfunding has not been sufficiently researched, and its growing importance in business finance makes it worth understanding its impact on social enterprises. Therefore, this paper helps to fill this gap in the literature by analysing social entrepreneurs’ use of alternative forms of finance such as crowdfunding. The observation of social enterprise activities in Poland, which has been carried out systematically for several years, justifies the thesis that this phenomenon as a practical activity is relatively new and research is fragmentary and rather than in-depth. Hence the idea to address this very issue in this paper. Therefore, our study collects qualitative data from 21 social entrepreneurs to find out the reasons that facilitate or hinder its use by social enterprises.
Purpose
This study aims to examine the relationship between institutional logics and specifications quality, and how this relationship is mediated by the legitimacy of the procurement process and stewardship behaviour.
Design/methodology/approach
This study draws on insights from institutional logics theory, and legitimacy and stewardship behaviour literature. We conducted an extended literature review to gain a comprehensive understanding of “institutional logics” and their manifestations in organizational contexts, utilizing the 2000–2024 data collected from the EBSCO, Scopus and Web of Science databases, complemented with Google Scholar. We gather that institutional logics manifest in several forms, and that while some organizations may thrive on a single logic, in certain contexts institutional logics can manifest in combinations – “multiple logics or hybrids”. Based on this understanding, we developed testable research hypotheses, predicting the influences of institutional logics – professional logic, efficient service logic and delivery (market) logic, on legitimacy, stewardship behaviour and specifications quality. We then carried out an empirical study, adopting a quantitative cross-sectional survey design with a self-administered questionnaire to test the hypothesized relationships. The empirical data were obtained from 162 procuring and disposing entities in Uganda and analyzed using the partial least squares structural equation modelling technique.
Findings
The study findings reveal that institutional logics exert a strong positive effect on the legitimacy of the procurement process and on stewardship behaviour, which, in turn, both positively influence specifications quality.
Research limitations/implications
The study findings have implications for theory and practice. The study findings provide useful insights that support the conceptual and theoretical development of institutional logics theory and applications in procurement literature. In addition, the study findings enhance procurement managers’ understanding of the mechanisms through which institutional logics can foster specifications quality. However, considering the fact that the study was conducted in a single country context, and focused on the public sector only, the findings of the study might not be generalizable globally.
Originality/value
This study contributes to established knowledge about quality management and procurement by examining the legitimacy of the procurement process and stewardship behaviour of those involved in procurement processes as mechanisms through which procuring entities are able to use institutional logics to enhance specifications quality. In addition, the study highlights areas for future research that may be explored to increase understanding of the value of institutional logics in ensuring specifications quality, and the link between specifications quality and the general performance of procuring entities.
Now in its second edition, this extended and thoroughly updated handbook introduces researchers and students to the growing range of theoretical and methodological perspectives being developed in the vibrant field of strategy as practice. With new authors and additional chapters, it shows how the strategy-as-practice approach in strategic management moves away from disembodied and asocial studies of firm assets, technologies and practices to explore and explain the contribution that strategizing makes to people working at all levels of an organization. It breaks down many of the traditional paradigmatic barriers in strategy to investigate who the strategists are, what they do, how they do it, and what the consequences or outcomes of their actions are. This essential work summarizes recent developments in the field while presenting a clear agenda for future research.
Now in its second edition, this extended and thoroughly updated handbook introduces researchers and students to the growing range of theoretical and methodological perspectives being developed in the vibrant field of strategy as practice. With new authors and additional chapters, it shows how the strategy-as-practice approach in strategic management moves away from disembodied and asocial studies of firm assets, technologies and practices to explore and explain the contribution that strategizing makes to people working at all levels of an organization. It breaks down many of the traditional paradigmatic barriers in strategy to investigate who the strategists are, what they do, how they do it, and what the consequences or outcomes of their actions are. This essential work summarizes recent developments in the field while presenting a clear agenda for future research.
This paper contributes to research at the intersection of institutional theory and the emerging literature on institutional imprinting by studying how the persistence and decay of founding institutional imprints affect network-based innovation strategies in small firms during later stages of economic transition. In do so, we are able to investigate both the extent of imprints and the boundary conditions that serve to strengthen or weaken their persistence. We situate our study in a fast-growing but under-studied transition economy, Vietnam, applying multiple estimation methods on a multilevel panel sample of 2644 small entrepreneurs over 6 years. Our major findings are, firstly, that firms launched before transition are influenced by socialist imprints and rely more on small and concentrated informal social networks, while firms launched after transition rely more on newer formal market institutions to generate innovations, and, secondly, that management and industry experience strengthens network-based innovation strategies and, thus, amplifies the persistence of socialist imprinting in firms established prior to transition.
https://www.tandfonline.com/doi/full/10.1080/08985626.2024.2365768?scroll=top&needAccess=true
Previous theories of organizational identification have focused on how individuals define and maintain positive self-concepts based on their cognitive connections to favorably perceived organizations. Yet, recent empirical findings suggest that organizational identifications may be defined in more complex and adaptive ways. In particular, recent research suggests that peoples' social identities may be based on both positive and negative cognitive relationships with organizations, as well as conflicted relationships and neutral relationships. Grounded in these findings, I develop a theory of organizational identification that includes three new cognitive processes by which individuals may define themselves: organizational disidentification, organizational schizo-identification, and organizational neutral-identification. I discuss how adding these cognitions to models of organizational identity extend the application of these models and further illuminate the adaptive and flexible nature of the human self-concept in organizational settings.
In Great Minds In Management Ken G. Smith and Michael A. Hitt have brought together some of the most influential and original thinkers in management. Their contributions to this volume not only outline their landmark contributions to management theory, but also reflect on the process of theory development, presenting their own personal accounts of the gestation of these theories. The result is not only an ambitious and original panorama of the key ideas in management theory presented by their originators, but also a unique collection of reflections on the process of theory development, an area which to date little has been written about by those who have actually had experience of building theory. In their concluding chapter, Ken G. Smith and Michael A. Hitt draw together some common themes about the development of management theory over the last half a century, and suggest some of the conclusions to be drawn about how theory comes into being.
The United States, France and Britain use markedly different kinds of industrial policies to foster economic growth today. To understand the origins of these different policies, this book examines the evolution of public policies governing one of the first modern industries, the railroads. The author challenges conventional thinking in economics, political science and sociology by arguing that cultural meaning plays an important role in the development of purportedly rational policies designed to promote industrial growth. This book has implications for the study of rational institutions of all sorts, including science, management and economics, as well as for the study of culture.
Kitchens takes us into the robust, overheated, backstage world of the contemporary restaurant. In this rich, often surprising portrait of the real lives of kitchen workers, Gary Alan Fine brings their experiences, challenges, and satisfactions to colorful life. A new preface updates this riveting exploration of how restaurants actually work, both individually and as part of a larger culinary culture.