Article | Academy of Management Journal | December 2010

Building Sustainable Hybrid Organizations: The Case of Commercial Microfinance Organizations

by Julie Battilana and Silvia Dorado

Abstract

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 organizational members are hiring and socialization policies.

Keywords: Organizational Structure; Microfinance; Growth and Development Strategy; Identity; Commercialization; Balance and Stability; Policy; Recruitment; Business Model;

Citation:

Battilana, Julie, and Silvia Dorado. "Building Sustainable Hybrid Organizations: The Case of Commercial Microfinance Organizations." Academy of Management Journal 53, no. 6 (December 2010).