Mission Drift and the Sustainability of Hybrid Organizations in Extreme Institutional Contexts: The Case of a Communitarian Microfinance Institution in Brazil

Author:

Marconatto Diego1,Barin Cruz Luciano2,Aguilar Delgado Natalia3

Affiliation:

1. Management Department, Universidade do Vale do Sinos (UNISINOS)

2. Management Department, HEC Montreal

3. International Business Department, HEC Montreal

Abstract

Hybrid organizations are those striving to balance business operations with social and environmental goals. The previous literature has largely disregarded the strategies that these organizations use to avoid mission drift, or the risk of losing sight of their social missions in their efforts to generate revenue. In this paper, we draw on the case of a communitarian bank in Brazil to investigate what strategies hybrid organizations mobilize to avoid mission drift in extreme institutional contexts. We argue that by developing the ability of “embedding within the local community”, hybrid organizations are better equipped to guarantee the sustainability of their hybrid nature.

Publisher

Consortium Erudit

Subject

General Medicine

Reference96 articles.

1. Abramovay, Ricardo; Junqueira, Rodrigo Gravina P. 2005.A sustentabilidade das microfinanças solidárias. Revista de Administração da Universidade de São Paulo (RAUSP), São Paulo, Vol. 40, No1, p. 19-33, jan./fev./mar.

2. Adler, P. S. and S.-W. Kwon, (2002). “Social Capital: Prospects for a New Concept”, Academy of Management Review, 27(1), p. 17.

3. Almandoz, J. (2012). “Arriving at the starting line: The impact of community and financial logics on new banking ventures,” Academy of Management Journal, 55(6): p. 1381-1406.

4. Alves, S., & Soares, M. (2006). Microfinanças. Democratização do crédito no Brasil. Atuação do Banco Central. Brasília: BCB.

5. Amin, W., Qin, F., Ahmad, F., & Rauf, A. (2018). Ownership Structure and Microfinance Institutions’ Performance: A Case of Latin America. European Online Journal of Natural and Social Sciences, 7(1), p. 127.

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