Ambidextrous sustainability, organisational structure and performance in hybrid organisations

Abstract

PurposeDrawing on paradox theory, this study explores how ambidextrous sustainability relates to organisational performance in hybrid organisations represented by Swedish municipal housing corporations, and how this relationship is contingent on the organisational structure of these organisations.Design/methodology/approachThe study relies on the data collected from Swedish municipal housing corporations. These data sources consist of a survey sent to the management team members in Swedish municipal housing corporations, financial and non-financial archival data on these corporations, interviews with the management team and board members, and observations of meetings involving the management team and board of directors at a Swedish municipal housing corporation. Quantitative data of the study were analysed using descriptive statistics, correlation analysis and linear multiple regression analysis. Qualitative data were analysed employing deductive thematic analysis and were used to illustrate and discuss the results of the quantitative analysis.FindingsThe quantitative findings show that ambidextrous sustainability, i.e. the alignment between an explorative orientation and an exploitative orientation towards sustainability, has a weakly positive relationship with financial performance and a positive relationship with social performance in hybrid organisations represented by Swedish municipal housing corporations. The study further shows that a high level of the structural element “connectedness” weakened the relationship between the ambidextrous sustainability and financial performance of the organisation in the study. In contrast, a lower level of connectedness reinforced and strengthened this relationship. Our qualitative material illustrates how the quantitative findings could be explained by the interaction between the board of directors and the management team of these hybrid organisations.Originality/valueThe study shows how ambidextrous sustainability, employed for conceptualisation of the sustainability strategy in hybrid organisations, represented by Swedish municipal housing corporations, can impact on facets of performance (i.e. financial, social and environmental) differently. The study further highlights the importance of organisational structures in these relationships in a hybrid context.

Accounting, performance and accountability challenges in hybrid organisations: a value creation perspective

“…Ferry and Slack (2022) show the emergent conflictual tensions between social and economic logic and the need to balance these logics through. Maine et al (2022) propose that ambidextrous sustainability strategies encapsulate the simultaneous pursuit of divergent strategic orientations.…”

“…Mixing values can be related to multiple objectives. Some AAAJ special issue articles relate to “public benefit” objectives and private benefits in the case of benefit corporations (Baudot et al , 2022), market and social objectives in a federal power administration (Convery and Kaufman, 2022), financial, social and environmental objectives in social housing companies (Maine et al , 2022), short- and long-term humanitarian activities (Sargiacomo and Walker, 2022), the goals of cost-efficiency and the needs of individual childcare (Schrøder et al , 2022), and the mission of “care” and the value of “public service” with “efficiency” (Moriniére and Georgescu, 2022). Other articles demonstrated the existence of and tensions between the multiplicity of institutional logics, such as economic and social logics (Ferry and Slack, 2022); the logics of calculating the long-term social and economic impacts of preventive social investments (Kastberg Weichselberger and Lagström, 2022); regulatory/bureaucratic, market and service logics in the case of information and communication technology (ICT) service providers (Maran and Lowe, 2022); community, public and market logics in the case of public and private partnership (PPP) policies (Stafford and Stapleton, 2022) and healthcare (medical), administrative and political-institutional logics (Rautiainen et al , 2022).…”

“…The paper on social investments emphasises a design idea that presupposes the formation of new associations and relationships (Kastberg Weichselberger and Lagström, 2022). The paper on social housing emphasises the strategies that enable hybrid organisations to respond to the expectations of different stakeholders (Maine et al , 2022). The study on the Great Exhibition emphasises the emancipatory potential of counter (dialogic) accounting to serve pluralism better and give a democratic voice to marginalised stakeholders (Ferry and Slack, 2022).…”

“…Legitimising is a crucial concern for hybrid organisations as legitimacy demands from external audiences, society and media may impose constraints, limitations and important performance measurement and accountability problems. However, the same demands may be windows of opportunity for hybrid organisations as well as for blame avoidance and credit-seeking that can benefit from the multiplicity of legitimacy requirements (Baudot et al , 2022; Maine et al , 2022). In the AAAJ special issue, these three mechanisms have been enhanced to understand the highly complicated characteristics of value creation in different settings of hybridity.…”

“…Hybrid organisations are a clear example of organisations that experience the pressures of sustainability, and their complex hybrid nature has an impact on new corporate reporting practices (such as sustainability, integrated and sustainable development goals (SDGs) reporting) in a surprising way (Alexius and Grossi, 2018; Argento et al , 2019a; Guthrie and Martin-Sardesai, 2020; Manes Rossi et al , 2020). Sustainability strategies enable hybrid organisations to respond to the expectations of different stakeholders within and outside the organisations in obtaining different facets of performance (Maine et al , 2022). However, state ownership and control do not necessarily imply increased sustainability disclosure (Argento et al , 2019a).…”