Thursday, March 26, 2015

Strategic Responses to Hybrid Social Ventures

LEE Matthew, JAY Jason
Strategic Responses to Hybrid Social Ventures California Management Review (forthcoming)

We consider how established companies respond to the entry of hybrid social ventures in their industries. Hybrid social ventures – new companies that combine business and social missions – create value through their orientation toward sustainability , and thus compete with established companies for customers and employees. However, cooperative forces simultaneously shape this interaction . Specifically, hybrid social ventures share an interest in the advancement of established companies’ sustainability activities , thereby creating opportunities for collaboration . Based on the analysis of eight established consumer - facing companies , we suggest that these companies’ responses to hybrid social ventures are shaped by the opportunities they perceive for sustainability - oriented value creation with their own customers and employees These opportunities are qualitatively different, sometimes a symmetric, and jointly influence companies’ strategic responses. We conclude with practical implications for managers responding to the rise of sustainability values among their stakeholders and competitors.