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This study aims to understand the construction process of an organizational identity in a hybrid organization.

The author developed a single case study based on in-depth interviews, non-participant observations and document analysis in a credit cooperative.

After periods of changes in organizational identity (from idealism to pragmatism), the formation of a paradoxical organizational identity was observed in which the core value became a central polarity between idealism and pragmatism; after periods when members engaged in actions that promoted resistance or change, they framed past events in a story of stable dynamics between idealism and pragmatism; and pro-distinctiveness and -similarity forces in relation to other organizations were reconciled in a quest for optimal distinctiveness that simultaneously enabled the development of uniqueness and adequacy.

This is the first study to adopt a paradox perspective to analyze the identity of a cooperative.

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