Navigating Paradox as a Mechanism of Change and Innovation in Hybrid Organizations

doi:10.5465/AMJ.2010.0772

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Navigating Paradox as a Mechanism of Change and Innovation in Hybrid Organizations

Journal Article•DOI•

Navigating Paradox as a Mechanism of Change and Innovation in Hybrid Organizations

Jason Jay¹•Institutions (1)

Massachusetts Institute of Technology¹

01 Feb 2013-Academy of Management Journal (Academy of Management)-Vol. 56, Iss: 1, pp 137-159

TL;DR: The authors developed a process model of navigating such paradoxes: in sensemaking about paradoxical outcomes, actors grapple with definition of success and can transform the organizational logic, or novel synthesis between them when outside perspectives enable a clearer view of the paradox.

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Abstract: Hybrid organizations combine institutional logics in their efforts to generate innovative solutions to complex problems. They face unintended consequences of that institutional complexity, however, which may impede their efforts. Past scholars have emphasized conflicting external demands, and competing internal claims on organizational identity. Data from an in-depth field study of the public-private Cambridge Energy Alliance suggest another consequence: paradoxes of performing (Smith & Lewis, 2011) that generate ambiguity about whether certain organizational outcomes represent success or failure. This article develops a process model of navigating such paradoxes: in sensemaking about paradoxical outcomes, actors grapple with definition of success and can transform the organizational logic. The result can be oscillation among logics, or novel synthesis between them when outside perspectives enable a clearer view of the paradox. Hybrid organizations' capacity for innovation depends in part on the results of this change process.

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The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields (Chinese Translation)

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Paul DiMaggio, Walter W. Powell

01 Jan 2008

TL;DR: In this article, the authors argue that rational actors make their organizations increasingly similar as they try to change them, and describe three isomorphic processes-coercive, mimetic, and normative.

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Abstract: What makes organizations so similar? We contend that the engine of rationalization and bureaucratization has moved from the competitive marketplace to the state and the professions. Once a set of organizations emerges as a field, a paradox arises: rational actors make their organizations increasingly similar as they try to change them. We describe three isomorphic processes-coercive, mimetic, and normative—leading to this outcome. We then specify hypotheses about the impact of resource centralization and dependency, goal ambiguity and technical uncertainty, and professionalization and structuration on isomorphic change. Finally, we suggest implications for theories of organizations and social change.

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2,134 citations

Journal Article•DOI•

Inside the Hybrid Organization: Selective Coupling as a Response to Competing Institutional Logics

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Anne-Claire Pache¹, Filipe Santos²•Institutions (2)

ESSEC Business School¹, INSEAD²

01 Aug 2013-Academy of Management Journal

TL;DR: In this article, the authors explore how hybrid organizations, which incorporate competing institutional logics, internally manage the logics that they embody, and identify a specific hybridization pattern that they refer to as "Trojan horse", whereby organizations that entered the work integration field with low legitimacy because of their embeddedness in the commercial logic strategically incorporated elements from the social welfare logic in an attempt to gain legitimacy and acceptance.

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Abstract: This article explores how hybrid organizations, which incorporate competing institutional logics, internally manage the logics that they embody. Relying on an inductive comparative case study of four work integration social enterprises embedded in competing social welfare and commercial logics, we show that, instead of adopting strategies of decoupling or compromising, as the literature typically suggests, these organizations selectively coupled intact elements prescribed by each logic. This strategy allowed them to project legitimacy to external stakeholders without having to engage in costly deceptions or negotiations. We further identify a specific hybridization pattern that we refer to as "Trojan horse," whereby organizations that entered the work integration field with low legitimacy because of their embeddedness in the commercial logic strategically incorporated elements from the social welfare logic in an attempt to gain legitimacy and acceptance. Surprisingly, they did so more than comparable organizations originating from the social welfare logic. These findings suggest that, when lacking legitimacy in a given field, hybrids may manipulate the templates provided by the multiple logics in which they are embedded in an attempt to gain acceptance. Overall, our findings contribute to a better understanding of how organizations can survive and thrive when embedded in pluralistic institutional environments. [ABSTRACT FROM AUTHOR]

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1,546 citations

Cites background from "Navigating Paradox as a Mechanism o..."

...They can take different forms, including public-private partnerships incorporating elements from state, market, and civil society logics (Jay, 2013), biotechnology companies incorporating science and market logics (Powell & We are especially indebted to Associate Editor Tima Bansal for her guidance throughout the reviewing process, as well as to three anonymous reviewers for their very valuable comments on our manuscript....
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...They can take different forms, including public-private partnerships incorporating elements from state, market, and civil society logics (Jay, 2013), biotechnology companies incorporating science and market logics (Powell & We are especially indebted to Associate Editor Tima Bansal for her guidance…...
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Journal Article•DOI•

Sensemaking in Organizations: Taking Stock and Moving Forward

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Sally Maitlis¹, Marlys K. Christianson²•Institutions (2)

University of British Columbia¹, University of Toronto²

10 Jun 2014-The Academy of Management Annals

TL;DR: For instance, the authors defined sensemaking as the process through which people work to understand issues or events that are novel, ambiguous, confusing, or in some other way violate expectations.

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Abstract: Sensemaking is the process through which people work to understand issues or events that are novel, ambiguous, confusing, or in some other way violate expectations. As an activity central to organizing, sensemaking has been the subject of considerable research which has intensified over the last decade. We begin this review with a historical overview of the field, and develop a definition of sensemaking rooted in recurrent themes from the literature. We then review and integrate existing theory and research, focusing on two key bodies of work. The first explores how sensemaking is accomplished, unpacking the sensemaking process by examining how events become triggers for sensemaking, how intersubjective meaning is created, and the role of action in sensemaking. The second body considers how sensemaking enables the accomplishment of other key organizational processes, such organizational change, learning, and creativity and innovation. The final part of the chapter draws on areas of difference and debate h...

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1,174 citations

Cites background from "Navigating Paradox as a Mechanism o..."

...…Nag et al., 2007; Yu et al., 2005), organizational learning (Christianson et al., 2009; Colville, Hennestad, & Thoner, 2013; Haas, 2006; Kayes, 2004; Thomas, Sussman, & Henderson, 2001), and innovation and creativity (Drazin et al., 1999; Hill & Levenhagen, 1995; Jay, 2013; Ravasi & Turati, 2005)....
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..., 2009; Colville, Hennestad, & Thoner, 2013; Haas, 2006; Kayes, 2004; Thomas, Sussman, & Henderson, 2001), and innovation and creativity (Drazin et al., 1999; Hill & Levenhagen, 1995; Jay, 2013; Ravasi & Turati, 2005)....
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...In a study of a hybrid organization, Jay (2013) showed how sensemaking about paradoxical performance outcomes built the organization’s capacity for innovation....
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Journal Article•DOI•

Social Enterprises as Hybrid Organizations:A Review and Research Agenda*

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Bob Doherty¹, Helen Haugh², Fergus Lyon³•Institutions (3)

University of York¹, University of Cambridge², Middlesex University³

01 Oct 2014-International Journal of Management Reviews

TL;DR: In this paper, the authors identify hybridity, the pursuit of the dual mission of financial sustainability and social purpose, as the defining characteristic of social enterprises, and assess the impact of hybridity on the management of the SE mission, financial resource acquisition and human resource mobilization.

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Abstract: The impacts of the global economic crisis of 2008, the intractable problems of persistent poverty and environmental change have focused attention on organizations that combine enterprise with an embedded social purpose. Scholarly interest in social enterprise (SE) has progressed beyond the early focus on definitions and context to investigate their management and performance. From a review of the SE literature, the authors identify hybridity, the pursuit of the dual mission of financial sustainability and social purpose, as the defining characteristic of SEs.They assess the impact of hybridity on the management of the SE mission, financial resource acquisition and human resource mobilization, and present a framework for understanding the tensions and trade-offs resulting from hybridity. By examining the influence of dual mission and conflicting institutional logics on SE management the authors suggest future research directions for theory development for SE and hybrid organizations more generally.

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1,128 citations

Cites background from "Navigating Paradox as a Mechanism o..."

...…two different species (OED 2010) and, in the organization and management literature, the term has been employed to describe organizations that span institutional boundaries (Brandsen and Karré 2011; Jay 2013; Pache and Santos 2012; Smith 2010) and operate in multiple functional domains (Ruef 2000)....
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...…previous research has noted that strategies to respond to competing external demands include compromising, avoiding, defying and manipulating (Jay 2013; Pache and Santos 2013), and deleting, compartmentalizing, aggregating and synthesizing to cope with internal identity struggles (Jay…...
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...This is important, as research has found that internal organizational processes mediate the external and internal demands faced by hybrid organizations (Jay 2013)....
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...In hybrid organizations, previous research has noted that strategies to respond to competing external demands include compromising, avoiding, defying and manipulating (Jay 2013; Pache and Santos 2013), and deleting, compartmentalizing, aggregating and synthesizing to cope with internal identity struggles (Jay 2013; Kratz and Block 2008)....
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...By definition, hybrids are the offspring of two different species (OED 2010) and, in the organization and management literature, the term has been employed to describe organizations that span institutional boundaries (Brandsen and Karré 2011; Jay 2013; Pache and Santos 2012; Smith 2010) and operate in multiple functional domains (Ruef 2000)....
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Journal Article•DOI•

Advancing Research on Hybrid Organizing – Insights from the Study of Social Enterprises

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Julie Battilana¹, Matthew Lee¹•Institutions (1)

Harvard University¹

11 Feb 2014-The Academy of Management Annals

TL;DR: In this article, the authors propose that social enterprises that combine the organizational forms of both business and charity at their cores are an ideal type of hybrid organization, making social enterprise an attractive setting to study hybrid organizing.

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Abstract: Hybrid organizations that combine multiple organizational forms deviate from socially legitimate templates for organizing, and thus experience unique organizing challenges. In this paper, we introduce and develop the concept of hybrid organizing, which we define as the activities, structures, processes and meanings by which organizations make sense of and combine multiple organizational forms. We propose that social enterprises that combine the organizational forms of both business and charity at their cores are an ideal type of hybrid organization, making social enterprise an attractive setting to study hybrid organizing. Based on a literature review of organizational research on social enterprise and on our own research in this domain, we develop five dimensions of hybrid organizing and related opportunities for future research. We conclude by discussing how insights from the study of hybrid organizing in social enterprises may contribute to organization theory.

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1,126 citations

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References

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Book•

Discovery of Grounded Theory: Strategies for Qualitative Research

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Barney G. Glaser, Anselm L. Strauss

12 Oct 2017

TL;DR: The Discovery of Grounded Theory as mentioned in this paper is a book about the discovery of grounded theories from data, both substantive and formal, which is a major task confronting sociologists and is understandable to both experts and laymen.

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Abstract: Most writing on sociological method has been concerned with how accurate facts can be obtained and how theory can thereby be more rigorously tested. In The Discovery of Grounded Theory, Barney Glaser and Anselm Strauss address the equally Important enterprise of how the discovery of theory from data--systematically obtained and analyzed in social research--can be furthered. The discovery of theory from data--grounded theory--is a major task confronting sociology, for such a theory fits empirical situations, and is understandable to sociologists and laymen alike. Most important, it provides relevant predictions, explanations, interpretations, and applications. In Part I of the book, "Generation Theory by Comparative Analysis," the authors present a strategy whereby sociologists can facilitate the discovery of grounded theory, both substantive and formal. This strategy involves the systematic choice and study of several comparison groups. In Part II, The Flexible Use of Data," the generation of theory from qualitative, especially documentary, and quantitative data Is considered. In Part III, "Implications of Grounded Theory," Glaser and Strauss examine the credibility of grounded theory. The Discovery of Grounded Theory is directed toward improving social scientists' capacity for generating theory that will be relevant to their research. While aimed primarily at sociologists, it will be useful to anyone Interested In studying social phenomena--political, educational, economic, industrial-- especially If their studies are based on qualitative data.

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53,267 citations

Journal Article•DOI•

The Discovery of Grounded Theory: Strategies for Qualitative Research.

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Helmut R. Wagner, Barney G. Glaser, Anselm L. Strauss

01 Jun 1968-Social Forces

44,847 citations

Journal Article•DOI•

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Kathleen M. Eisenhardt¹•Institutions (1)

Stanford University¹

01 Feb 2009

TL;DR: In this paper, the authors describe the process of inducting theory using case studies from specifying the research questions to reaching closure, which is a process similar to hypothesis-testing research.

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Abstract: Building Theories From Case Study Research - This paper describes the process of inducting theory using case studies from specifying the research questions to reaching closure. Some features of the process, such as problem definition and construct validation, are similar to hypothesis-testing research. Others, such as within-case analysis and replication logic, are unique to the inductive, case-oriented process. Overall, the process described here is highly iterative and tightly linked to data. This research approach is especially appropriate in new topic areas. The resultant theory is often novel, testable, and empirically valid. Finally, framebreaking insights, the tests of good theory (e.g., parsimony, logical coherence), and convincing grounding in the evidence are the key criteria for evaluating this type of research.

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40,005 citations

Book Chapter•DOI•

The iron cage revisited institutional isomorphism and collective rationality in organizational fields

[...]

Paul DiMaggio, Walter W. Powell

01 Apr 1983-American Sociological Review

TL;DR: In this paper, the authors argue that rational actors make their organizations increasingly similar as they try to change them, and describe three isomorphic processes-coercive, mimetic, and normative.

...read moreread less

32,981 citations

Journal Article•DOI•

Institutionalized Organizations: Formal Structure as Myth and Ceremony

[...]

John W. Meyer, Brian Rowan

01 Sep 1977-American Journal of Sociology

TL;DR: Many formal organizational structures arise as reflections of rationalized institutional rules as discussed by the authors, and the elaboration of such rules in modern states and societies accounts in part for the expansion and i...

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Abstract: Many formal organizational structures arise as reflections of rationalized institutional rules. The elaboration of such rules in modern states and societies accounts in part for the expansion and i...

...read moreread less

23,073 citations

"Navigating Paradox as a Mechanism o..." refers background in this paper

...Meyer, J. W., & Rowan, B. 1977....
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...Later there emerged a “neoinstitutionalism” (DiMaggio & Powell, 1983; Meyer & Rowan, 1977; Powell & DiMaggio, 1991) focused on external actors that impose values and expectations on organizations....
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