Hybrid Organizations as Shape-Shifters: Altering Legal Structure for Strategic Gain

Abstract

Social entrepreneurs navigate a complex landscape of legal structures in which they need to select among forprofit, nonprofit, and mixed-entity structures. This study of 48 hybrid organizations identifies why social entrepreneurs chose one legal structure over another and explains what motivates half of them to change their legal structure as they build their enterprise. It highlights the critical desire for flexibility among social entrepreneurs, discusses the implications that changes to legal structure may have for companies and hybrids in partnerships, and explores how companies can leverage hybrid structures to go beyond their current scope of CSR initiatives.