What is it about?
This article is directed to managers and entrepreneurs of companies that while competing as a profit-oriented businesses, they have an important and visible social mission to achieve. The article shows the strategic hurdles of these companies especially in the growth phase and it proposes some interesting solutions.
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Why is it important?
This article shows for the first time that for social hybrids should the internal, human resource tensions are not the only problem to solve. Customers reactions and demand spillovers are important factors to take into account in the growth phase of the company. This means that the classical Porter niche differentiation strategy could only be partially applied in this case, and that new strategic approach should be considered.
Perspectives
Personally, I think the work on this paper was very interesting and challenging, not only for the topic and the issues discussed, but also because it represents a very nice piece of work in terms of the logical arguments used to sustain the propositions. Given the novelty, and the lack of extensive and validated datasets on the topic, it is also a good basis for future empirical studies.
Prof. Marco Giarratana
Fundacion Instituto de Empresa
Read the Original
This page is a summary of: Social Business Hybrids: Demand Externalities, Competitive Advantage, and Growth Through Diversification, Organization Science, October 2016, INFORMS,
DOI: 10.1287/orsc.2016.1080.
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