In this article, we explain the mechanisms that allow social enterprises to balance their missions, and the risk of mission drift as organizations grow. We empirically explore Incubator-BUS (I-BUS), a student organization within a private Brazilian university, which sought to incubate cooperatives for vulnerable groups. Although initially successful in balancing its missions, I-BUS then failed. We show how scaling-up can complicate the balancing of different missions within the same organization. We propose that, to balance their missions, social enterprises—especially recently formed (...) and democratically managed enterprises—need not only “spaces of negotiation,” as suggested in the literature, but also “herding spaces” that connect an organization to its institutional context. We indicate why herding spaces are critical, but then show how scaling-up can result in organizational “compartmentalization” that undermines them. (shrink)

This study explores social enterprises’ strategies for addressing mission drift. Relying on an inductive comparative case study of two Italian social enterprises, we show how stakeholder engagement combined with social accounting can successfully support a social venture to re-balance its positioning between wealth generation and social value creation. Indeed, stakeholder engagement helps the internal actors of a social enterprise to rationalize and embody pro-social values previously abandoned, while social accounting reinforces this embodiment process by showing the reintroduced social commitment of (...) the social enterprise to external audiences. Conversely, strategies focused only on social accounting and without significant engagement of external stakeholders prove to be unsuccessful in counterbalancing mission drift because they fail to activate the necessary process of internal re-introduction and operationalization of pro-social values and objectives. (shrink)

Organizational institutionalism has shown how institutional entrepreneurs can introduce new logics into fields and push for their broader acceptance. In academic science in the United States, however, market logic gained strength without such an entrepreneurial project. This article proposes an alternative “practice selection” model to explain how a new institutional logic can gain strength when local innovations interact with changes outside the field. Actors within a field are always experimenting with practices grounded in a variety of logics. When one logic (...) is dominant, innovations based on alternative logics may have trouble gaining the resources they need to become more broadly institutionalized. But if a changing environment starts systematically to favor practices based on an alternative logic, that logic can become stronger even in the absence of a coherent project to promote it. This is what happened in US academic science, as growing political concern with the economic impact of innovation changed the field’s environment in ways that encouraged the spread of local market-logic practices. (shrink)

This study examines how institutional logics interplay in a cross-sector social partnership that manages refugee integration in a rural district in Germany. In an inductive 15-month case study that drew on interviews and observations, we observe the dynamic materialization of institutional logics in day-to-day practices and an increasing contradiction and even rivalry between community- and market-based institutional logics over time. As a result, we delineate a model explaining the interplay of institutional logics along two dimensions: the dominance of one salient (...) logic and whether conflicts arise among logics. Our analysis also addresses the unifying properties of community as an institutional logic, especially in the context of urgency conditions. In addition, we show the influence of exogenous events and their media coverage on the interplay and conflicts of institutional logics. By unfolding the complexity of refugee integration—one of the global grand challenges of the present—we deepen the current understanding of the specific challenges addressed by cross-sector social partnerships. (shrink)

This article draws on ethnographic data from a field leading university licensing office to document and explain a key step in the process of institutionalization, the abstraction of standardized rules and procedures from idiosyncratic efforts to collectively resolve pressing problems. I present and analyze cases where solutions to complicated quandaries become abstract bits of professional knowledge and demonstrate that in some circumstances institutionalized practices can contribute to the flexibility of expert reasoning and decision-making. In this setting, expertise is rationalized in (...) response to institutional tensions between academic and business approaches to deal making and professional tensions between relational and legal approaches to negotiation. Abstraction and formalization contribute both to the convergence and stability of routines and to their improvisational use in professional work. Close attention to these processes in a strategic research setting sheds new light on an interesting tension in sociological theories of the professions while contributing to the development of a micro-level, social constructivist institutional theory. (shrink)

In this paper, we derive a four-stage process model of how hybrid organizations respond to specific challenges that arise under conditions of value pluralism and institutional complexity. Engaging in exploratory qualitative research of six Australian hybrid organizations, we identify institutional and organizational responses to pluralism, particularly as organizations strive to uphold multiple value commitments, such as social, environmental and/or financial outcomes. We find that by employing a process of separating, negotiating, aggregating, and subjectively assessing the value that is created, our (...) cases demonstrate how they move between logics in a dynamic fashion and address specific challenges of cognitive dissonance, incommensurability, interdependence and aggregation. Our model contributes to the literature by reframing the notion of ‘tensions’ that arise in conditions of hybridity and characterize specific challenges and sequential responses that may go some way to addressing why some hybrids employ particular responses to pluralism and why some succeed. (shrink)

The question of how multinational enterprises respond to local corporate social responsibility expectations remains salient, also in the context of many African governments’ attempts to define and regulate business responsibilities. What determines whether MNEs respond to such local, state-driven expectations as congruent with their global commitment to CSR? Adopting an institutional logics perspective, we argue that a higher global CSR commitment will lead to higher local responsiveness when regulatory distance is low, but it will lead to lower local responsiveness when (...) regulatory distance is high. We find support for our hypothesis using data on 93 MNEs’ responses to the South African state’s Broad-Based Black Economic Empowerment policy. We thus contribute to the global–local CSR literature and show how MNEs’ local CSR responsiveness will be shaped by not only the local context but also their home country and firm-internal environments. (shrink)

Growing research suggests social ventures (SVs) variably combine social and profit orientations in core organizational features, and this variation in hybridity leads to divergent organizational dynamics and outcomes. However, no comprehensive and precise measurement scale has emerged to capture the varying degrees of hybridity across SVs. To advance theory and empirical research, this study presents an instrument for assessing how organizational actors perceive the degree to which social and market logics are (a) compatible and (b) central to organizational functioning. An (...) inductive-confirmatory two-study approach ( Nstudy1 = 293, Nstudy2 = 315) validates a hybridity scale—composed of 6-item compatibility and 4-item centrality factors—for U.S. nonprofit organizations, benefit corporations, and social enterprises. Moreover, results reveal perceived compatibility is associated with SVs’ revenue structure, whereas centrality is related to their legal status. The development of this scale will facilitate large-scale quantitative research that systematically examines the varied nature, drivers, and implications of organizational hybridity. (shrink)

This study examines activities and processes through which projects of moral regulation are implemented as well as lived, transformed, and resisted by their targeted actors. Our ethnographic study focuses on discourses and practices of civic duty for orderly and hygienic conduct in the rehabilitation of marketplaces in Yaoundé, Cameroon. By drawing on the inhabited institutions approach and the literature on ethics as practice, our analysis extends research on moral work to put forward a perspective on moral regulation as a situated (...) practice. We show how moral work is built on individual reflections but is simultaneously negotiated through actors’ relationships, that is, responsibilities to family, interactions within the community, and personal history. (shrink)

Emergent structural approaches to institutional complexity tend to inhibit the role of agency in addressing logic multiplicity scenarios. Prior studies of logic multiplicity have documented a diverse set of outcomes, ranging from domination through hybridization, and characterized by various levels of conflict. A new stream of research has emerged that seeks to explain this heterogeneity through the structural components of complexity. These studies tend to minimize the role of agency in institutional complexity scenarios, positing that outcome diversity, and the organization’s (...) ability to exert agency, can be accounted for by the interaction of exogenously determined parameters, such as centrality, compatibility, prioritization, and jurisdictional overlap. This article revisits the role of agency in these models, suggesting that agency is not only framed by, but may itself shape, structure. The article draws on a comparative case study in five Israeli nonprofit organizations, focusing on the introduction of the business logic through a strategic planning process, and the challenge that this represents for the legacy social logic. The case studies demonstrate that organizations regularly use a set of distinctive mechanisms to manipulate the structural components of complexity, and, in so doing, agentically regulate logic multiplicity outcomes. (shrink)

Collaborative governance (CG) is becoming the common currency of decision‐making, able to surmount existing institutional constraints to effectively address challenges related to sustainability and social and environmental corporate behavior. CG approaches may however result in institutional complexity. As an illustration of CG in the domain of corporate social responsibility (CSR), the ISO 26000 standard is a legitimate point of reference for organizations worldwide. The standard represents a pluralistic institutional logic that resonates several tensions arising from the domain it tries to (...) standardize, the nature of its development process, its interpretation of CSR and the type of standard it represents. This article aims to identify and examine strategic responses to ISO 26000 by various standards‐related organizations (including national standardization institutes, certification organizations, and service providers) and to contribute to the understanding of strategic responses of organizations to pluralistic institutional logics that result from CG. (shrink)

Social entrepreneurship increasingly involves collective, voluntary organizing efforts where success depends on generating and sustaining members’ participation. To investigate how such participatory social ventures achieve member engagement in pluralistic institutional settings, we conducted a qualitative, inductive study of German Renewable Energy Source Cooperatives. Our findings show how value tensions emerge from differences in RESCoop members’ relative prioritization of community, environmental, and commercial logics, and how cooperative leaders manage these tensions and sustain member participation through temporal, structural, and collaborative compromise strategies. (...) We unpack the mechanisms by which each strategy enables members to justify organizational decisions that violate their personal value priorities and demonstrate their varying implications for organizational growth. Our findings contribute new insights into the challenges of collective social entrepreneurship, the capacity of hybrid organizing strategies to mitigate value concessions, and the importance of logic combinability as a key dimension of pluralistic institutional settings. (shrink)

We examine the framing mechanisms used to maintain a cross-sector partnership that was created to address a complex long-term social issue. We study the first 8 years of existence of an XSP that aims to create a market for recycled phosphorus, a nutrient that is critical to crop growth but whose natural reserves have dwindled significantly. Drawing on 27 interviews and over 3000 internal documents, we study the evolution of different frames used by diverse actors in an XSP. We demonstrate (...) the role of framing in helping actors to avoid some of the common pitfalls for an XSP, such as debilitating conflict, and in creating sufficient common ground to sustain collaboration. As opposed to a commonly held assumption in the XSP literature, we find that collaboration in a partnership does not have to result in a unanimous agreement around a single or convergent frame regarding a contentious issue. Rather, successful collaboration between diverse partners can also be achieved by maintaining a productive tension between different frames through “optimal” frame plurality—not excessive frame variety that may prevent agreements from emerging, but the retention of a select few frames and the deletion of others toward achieving a narrowing frame bandwidth. One managerial implication is that resources need not be focussed on reaching a unanimous agreement among all partners on a single mega-frame vis-à-vis a contentious issue, but can instead be used to kindle a sense of unity in diversity that allows sufficient common ground to emerge, despite the variety of actors and their positions. (shrink)

Given the extraordinary politicization of culture in an era of globalization, it is surprising that Sesame Street has gained acceptance and legitimacy in more than fifty countries during the last five decades. Sesame Street’s ubiquity around the world presents us with the question I address in this article: how do partner organizations work together, on the ground, to locally adapt a hybrid cultural product? Using data from real-time interactions between NY staff and partners, I show how teams from different cultures (...) who do not share collective representations are able to create them through transnational interaction by: (1) constructing value to align their interests (2) exchanging complex cultural knowledge to customize and build alliances together. The Sesame Street case, then, allows us to grapple with “culture in interaction” at the transnational level, shedding light on culture in transnational interaction. (shrink)

Introducing and implementing corporate sustainability poses many challenges to business organizations. In this longitudinal, inductive study, we focus on how such challenges are handled in a Dutch bank that is developing its sustainability policies. We examine why there is such a high degree of tension and conflict within the organization and identify how the development of these policies is affected by the interplay between subcultures and institutional logics. We show how different subcultures affect the enactment of logics by infusing the (...) rational and mindful behavior coming from logics with (sub)cultural values, beliefs, and assumptions. In turn, conflicting logics amplify subcultural characteristics between groups by shaping different behavior and practices. Together, this leads to a magnification of subcultural differences while, at the same time, logics are increasingly being perceived as incompatible. (shrink)

We analyse the tensions in a hybrid collaboration and how these are mitigated using boundary-spanning community impact, leading to compatibility between distinctive institutional logics. Our qualitative longitudinal study undertaken during 2011–2016 involved reviewing literature and archival data, key informant interviews, workshop and focus groups. We analysed common themes within the data, relating to our two research questions concerning how and why hybrids collaborate, and how resulting tensions are mitigated. The findings suggest a viable model of service delivery termed hybridized collaboration (...) in which the inherent tensions from different institutional logics do not prevent success. Paradoxically, multiple logics are a basis for the partnership’s existence, but the ability to achieve different and occasionally conflicting aims simultaneously can be difficult, resulting in tensions. We offer two novel insights. First, we highlight how social enterprise hybrids collaborate locally and in multi-organizational relationships. We found that the initial opportunity to collaborate was catalysed by the existence of shared objectives. Pre-existing relationships between organizations, and the existence of synergistic capabilities also influence the choice of partners. Secondly, we identify how tensions arise, and are mitigated via several factors including the pre-existing relationships, allowing for regular “spaces of negotiation” between collaborators, the shared social mission, community social impact, the resulting public relations, and shared resources and knowledge. (shrink)