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.