This paper aims to consider the legitimacy challenges faced by hybrid organizations, examining the narrative strategies hybrids use in responding to these challenges and offering a framework for managers to consider in their choice of narratives.
A narrative analysis of texts addressing the legitimacy of the business models used by four hybrid organizations is conducted.
The results of the analysis suggest that the nature of conflicting stakeholder demands – centered on goals or means – is an integral factor influencing hybrids’ choice of narrative strategies to emphasize distinctiveness or conformity.
This paper adds to extant research examining the challenges hybrid organizations face and emphasizes that the choice of narrative strategies is an important factor hybrids must consider when managing legitimacy. Generalizability is a notable limitation of the case approach; the authors suggest areas for future research to address this limitation.
The research offers a practical framework for hybrids’ leaders, as they manage legitimacy, choosing to emphasize distinctiveness or conformity in the face of conflicts regarding goals or means.
By studying the legitimacy challenges faced by hybrid organizations, this study can form a more complete view of legitimation, encompassing different types of enterprises offering distinct value propositions.
