Hybrid organisational form as a response to institutional complexity: The case of local municipally owned corporations in Lahore

Abstract

AbstractThis paper explores hybrid organisational forms that have emerged in response to institutional complexity. For this purpose, the paper studies organisational practices to explore hybrid characteristics in municipally owned corporations (MOCs) and differentiate between distinct manifestations of hybridity. Using a case study research design, three MOCs are selected as units of analysis, and 30 semi‐structured interviews are conducted to explain why and how organisations emerge as hybrid organisations through the adoption of multiple institutional prescriptions that compete with their existing logic. The findings of the study reveal a practical approach to managing complexity where organisations tend to form different hybrids rather than simply accepting or rejecting institutional pressures. The study offers insights into the outcomes within organisational milieus as they navigate and assimilate these competing pressures, underscoring that the resultant ramifications may not invariably align with initial expectations.Points for practitioners Providing municipally owned corporations (MOCs) a clear framework that outlines their tasks, responsibilities, and expected results can prevent conflicts arising from differing institutional logics, ensuring that MOCs operate in alignment with the government's objectives. Hybrid organisations must cultivate a culture that emphasises adaptation and flexibility to gradually integrate the competing logic that improves system performance and sustainability. While introducing reforms, practitioners should invest in capacity‐building efforts for public organisations. Training and support initiatives are imperative to equip organisations with the skills needed to adapt, integrate conflicting pressures, and effectively cope with the demands of evolving institutional environments.