Hybrid Ventures: Volume 19

To fulfill their economic and social missions, it is imperative yet challenging for hybrid ventures to demonstrate legitimacy (fitting in) while simultaneously projecting distinctiveness (standing out). One important means for doing so is by adopting and promoting the recent B Corporation certification. Drawing on a comprehensive analysis of the emergence of this certification, we argue that when it comes to promoting their businesses, hybrid ventures should not adopt a one size fits all approach. Rather, their promotion strategies need to be adapted to their specific contexts. We theorize and develop a typology of certification promotion strategies for hybrid ventures based on the relative prevalence of other hybrid ventures in the same regions and industries. We conclude by articulating why the B Corporation movement is a rich and underexplored context for scholarship on hybrid ventures, and highlight several promising future research directions.

This chapter demonstrates that social business models do not meaningfully prioritize or impose accountability to “social good” over other purposes in ways that (a) best protect against owners changing their minds or entry of new owners with different priorities and (b) enable reliable accountability over time and across circumstances. This chapter further suggests a model – a “social primacy company” – that actually prioritizes “social good” and meaningful accountability to it. This chapter thus clarifies circumstances under which existing models might be most useful and are not particularly useful, especially as investors, entrepreneurs, employees, regulators, and others pursue shared, common understandings about purposes, priorities, and accountability.

World Vision exists to eradicate extreme poverty. The primary fundraising mechanism that has fuelled its growth into one of the largest international non-governmental organizations (INGOs) has been Child Sponsorship, which connects over 10 million individual donors with vulnerable children around the world. However, shifts in the market, geopolitical landscape, and institutional logics have seen this once innovative product come under increasing pressure. Using World Vision New Zealand (WVNZ) as a case study, we explore the challenges of implementing social entrepreneurship strategies, including the institutional constraints of developing new business models, through hybridization. Hybridity has gained increasing attention in the field of entrepreneurship and has been offered as a sense-making frame for business model innovation within social entrepreneurship. The use of institutional logics to understand the challenges of hybrid organizing in social entrepreneurship has been invaluable. However, as with any theoretical perspective, this approach has limitations. We suggest that nuanced challenges and sources of resistance to social entrepreneurship in established sectors and organizations might usefully be explored through concepts drawn from complexity theory. Specifically, we propose the use of the concept of structural attractors, which enables the explication of convergent, unifying, and generative dynamics. Our case study findings suggest that, paradoxically, the very essence of historical success may constrain future success. To wit, when faced with changes to institutional and market conditions, WVNZ was constrained by the very construct that enabled its initial growth. The challenge that this case demonstrates is that despite ostensibly hybrid shifts occurring in the management, governance, and espoused innovation strategy of the organization, the governing structural attractor of Child Sponsorship has constrained innovation and change.

Indigenous entrepreneurship and hybrid venture creation represents a significant opportunity for Indigenous peoples to build vibrant Indigenous-led economies that support sustainable economic development and well-being. It is a means by which they can assert their rights to design, develop and maintain Indigenous-centric political, economic and social systems and institutions. In order to develop an integrated and comprehensive understanding of the intersection between Indigenous entrepreneurship and hybrid ventures, this chapter adopts a case study approach to examining Indigenous entrepreneurship and the underlying global trends that have influenced the design, structure and mission of Indigenous hybrid ventures. The cases present how Indigenous entrepreneurial ventures are, first and foremost, hybrid ventures that are responsive to community needs, values, cultures and traditions. They demonstrate that Indigenous entrepreneurship and hybrid ventures are more successful when the rights of Indigenous peoples are addressed and when these initiatives are led by or engage Indigenous communities. The chapter concludes with a conceptual model that can be applied to generate insights into the complex interrelationships and interdependencies that influence the formation of Indigenous hybrid ventures and value creation strategies according to three dimensions: (i) the overarching dimension of indigeneity and Indigenous rights; (ii) indigenous community orientations and (iii) indigenous hybrid venture creation considerations.

We contribute to the growing literature examining how social enterprises might best accommodate their hybrid structure when pursuing dual goals of social improvement and economic sustainability. Drawing on extant literature, the case is made for why synergy between the social and commercial business models that hybrid social enterprises employ should positively impact effectiveness in delivering organization outcomes. We then develop a method for comparing the synergy between the social and commercial business models employed within and across organizations, and test the method using a sample of seven social enterprises operating in different social fields. Results demonstrate that our method can be applied consistently across a range of social enterprise types and that variation in degree of synergy is considerable with overlap rates ranging from 9% to 77%. Using learning from this exploratory study, we develop propositions describing how and why social entrepreneurs develop business model synergy, the relationship between business model synergy and organizational performance, and suggest future research to test these propositions. Implications for theory development and practice are discussed.

The objective of this chapter is to understand innovative processes of resource redeployment taking place during consumption. We label this as consumer entrepreneurship. We define consumer entrepreneurship as the process of sharing and recombining resources innovatively to seek opportunities for self-creating user value. Through the illustration of heterogeneous forms of consumer peer-to-peer sharing, we argue that consumer entrepreneurship: (1) differs ontologically from a view of entrepreneurship as creation of exchange value; (2) bridges the notion, established in marketing studies, of consumers as value creators with the field of entrepreneurship; (3) develops mostly when the process of sharing is regulated informally, based on trust relationships; and (4) thrives as groups of sharing consumers discover and enact their values through the experimentation of multiple forms of product and service procurement. On the basis of these points, consumer entrepreneurship contributes to provide a novel perspective on hybrid organizations, that is, a view of hybrid organizations as everyday spaces where consumers create heterogeneous forms of (utilitarian, social, or environmental) value that they personally use as opposed to reward exchanges. Relative to the current definition of hybrid organizations (Pache & Santos, 2013) and organizing (Battilana & Lee, 2014), we argue that consumer entrepreneurship helps better explain “why, when, and how” consumers increasingly engage in peer-to-peer sharing organizations – a fledging and still underexplored way of organizing consumption worldwide.

Hybrid ventures are on the rise, both in practice and in scholarly circles. Despite this momentum, there is a paucity of inter-organizational research on hybrid ventures. Such research is necessary to substantiate a prevailing belief about hybrid entrepreneurs: namely, that they are actively changing the world. Highlighting three “innovations” that hybrid entrepreneurs and their ventures bring to organizational fields – (1) a hybrid identity, (2) a hybrid organizational form, and (3) a hybrid logic – this chapter identifies inter-organizational research questions and scholarly conversations that may be capable of evaluating whether hybrid entrepreneurs are indeed “agents of change.”