Combining Social Welfare and Market Logics: What Drives Social Performance in Socioeconomic Hybrids?
Socioeconomic hybrid organizations combine the social welfare and market logics: they pursue a social mission but they rely on commercial activities to generate revenues necessary to sustain their operations. Although they have been identified as a promising way of organizing, we do not know how they can succeed at achieving their social mission while facing different, and potentially conflicting, demands imposed by the logics they combine. We address this gap by exploring the factors that influence the level of social performance in socioeconomic hybrids. We argue that investment in the social mission is positively associated with higher social performance in these organizations. We further argue that social imprinting (i.e., the early emphasis put by the founding team on the accomplishment of the organization’s social mission) and organizational productivity both enhance the positive impact of investment in the social mission. The results, based on a panel of social integration enterprises operating in France between 2003 and 2007, are congruent with our predictions. This paper suggests that socioeconomic hybrids can leverage the synergies between the logics they combine and points out the conditions under which they can do so.
BATTILANA, J., PACHE, A.C., SENGUL, M. and MODEL, J. (2012). Combining Social Welfare and Market Logics: What Drives Social Performance in Socioeconomic Hybrids? In: 2012 Academy of Management Annual Meeting.