Hybrid organization

From the legitimization point of view, hybrids are attuned to catering to the demands of multiple audiences: the government, citizens and clients, as well as the competitive markets.

[5] The relational aspect appears as integration and separation (node), in dyads between e.g professionals and managers and between providers and beneficiaries, and within networks as actors with different attributes.

[7] In addition, hybrid organizations can achieve long-term sustainability by blending social and economic imperatives and engaging with diverse stakeholder groups.

The combination of public and private governance structures further complicates goal formation, requiring alignment of diverse electoral and ownership systems.

[9] The combination of governance modes places pressure on measurement systems to serve the information needs arising from public elections and share ownership.

Finally, the multiplicity of funding sources—including tax-based, donation-based, and private investment-based models—places pressure on tracking systems to ensure transparency and efficient resource use across these diverse funders.

[11] Basically public and private sector organizations differ from each other from the point of view of their environment, organization-environment transactions and organizational roles, structures and processes.

In contrast, public sector hybrid organizations usually prioritize social or environmental objectives and use financial sustainability as a means to achieve their mission.

The authors reviewed prior research and provided a qualitative framework for classification of different types of hybrid organizational arrangements consisting of breadth of purpose, boundary determination, value creation and stability mechanisms.

[17] In addition, conflicts can occur because hybrid organizations need to balance between institutional demands and stakeholder interests [18] This problem is similarly emphasized from the perspective of agency theory.