Harnessing Productive Tensions in Hybrid Organizations: The Case of Work Integration Social Enterprises

Julie  Battilana; Metin  Sengul; Anne-Claire   Pache; Jacob  Model

Article | Academy of Management Journal | December 2015

Harnessing Productive Tensions in Hybrid Organizations: The Case of Work Integration Social Enterprises

by Julie Battilana, Metin Sengul, Anne-Claire Pache and Jacob Model

Abstract

We examine the factors that influence the social performance of hybrid organizations that pursue a social mission, and sustain their operations through commercial activities, by studying work integration social enterprises (WISEs). We argue that social imprinting and economic productivity are both important drivers of WISEs' social performance. However, there is a paradox inherent in the social imprinting of WISEs: although it directly enhances their social performance, it also indirectly weakens it by negatively affecting economic productivity. Results based on panel data of French WISEs between 2003 and 2007 are congruent with our predictions. In order to understand how socially imprinted WISEs may mitigate this negative relationship between social imprinting and economic productivity, we also conduct a comparative analysis of case studies. We find that one effective approach is to assign responsibility for social and economic activities to distinct groups while creating "spaces of negotiation"—areas of interaction that allow members of each group to discuss the trade-offs they face. We conclude by highlighting the conditions under which spaces of negotiation can effectively be used to maintain a productive tension in hybrid organizations.

Keywords: hybrid organizations; social enterprise; Social Entrepreneurship; Organizations; Performance Productivity;

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Battilana, Julie, Metin Sengul, Anne-Claire Pache, and Jacob Model. "Harnessing Productive Tensions in Hybrid Organizations: The Case of Work Integration Social Enterprises." Academy of Management Journal 58, no. 6 (December 2015): 1658–1685.

Vox Capital was the first certified impact investing fund in Brazil. Founded in 2009, it provides early-stage capital for companies offering innovative and scalable solutions to enhance the lives of low-income Brazilians, while aiming to simultaneously generate attractive market-rate financial returns for investors. This case examines the evolution of Vox Capital, across understanding the landscape, launching, raising funds, selecting investees, structuring deals, building investee capacities, tracking performance, developing internal systems, and advancing the field of impact investing.

Brothers André and Daniel Albuquerque founded the company Terra Nova in 2001 to mediate land disputes between poor families illegally living in urban areas and the official landowners—with the aspiration to improve the lives of the poor. A business-led approach to the issue, like Terra Nova’s, was innovative and contested amid the widespread belief that land disputes fell solely within the public sector’s purview. After struggling to develop a viable business model, the company received support from impact investing firm MOV Investimentos. By 2019, Terra Nova finally broke even and was exploring opportunities for scaling. But its leaders had to decide the right expansion model for the social business.

Chapter | Handbook of Inclusive Innovation | 2019

Problem, Person, and Pathway: A Framework for Social Innovators

Julie Battilana, Brittany Butler, Marissa Kimsey, Johanna Mair, Christopher Marquis and Christian Seelos

As the appetite for learning about social innovation intensifies, how can we better prepare practitioners for the work of addressing the world’s pressing social problems at the relevant scale? This chapter presents the “3P” framework that we developed to help address this challenge, grounded in our experience researching, teaching, and advising social innovators around the world. In this framework, we propose three key lenses to help social innovators contribute to social change, unpacking the nature of: the problem at hand, the person pursuing change, and the pathway to change. Considering the alignment of these 3Ps provides an organizing template for social innovators to think about how they can effectively contribute to solving social problems. We illustrate how we engage new and experienced social innovators in this learning journey by discussing our pedagogical approach as educators. In conclusion, we discuss future research directions to help address unanswered questions.

Keywords: social innovation; Social Entrepreneurship; Social Issues; Change; Problems and Challenges;

Citation:

Battilana, Julie, Brittany Butler, Marissa Kimsey, Johanna Mair, Christopher Marquis, and Christian Seelos. "Problem, Person, and Pathway: A Framework for Social Innovators." In Handbook of Inclusive Innovation: The Role of Organizations, Markets and Communities in Social Innovation, edited by Gerard George, Ted Baker, Paul Tracey, and Havovi Joshi, 61–74. Cheltenham, UK: Edward Elgar Publishing, 2019. View Details

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Harnessing Productive Tensions in Hybrid Organizations: The Case of Work Integration Social Enterprises

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