2. How Non-Profit Organizations Deal with
Multiple Institutional Logics
The Case of CSR-Related Collaborative Projects Aimed
at Improving Corporate Supply Chains
3.
4. Table of content
• Introduction
• Institutional Logics
• Social Hybrid organizations
• Why is it relevant
• The interviews
• Findings
• Conclusion
8. Institutional logics
• “are the formal and informal principles of action,
interaction, and interpretation that guide and
constrain decision-makers in accomplishing the
firm's tasks and in obtaining social status, credits,
and rewards in the process.” (Ocasio, 1997, p.196)
• “set of rules, premiums, and sanctions that men
and women in a particular context create and re-
create in such a way that their behavior and
accompanying perspectives are to some extent
regularized and predictable” (Jackall, 1988, p.112)
9. Institutional logics
• “are the formal and informal principles of action,
interaction, and interpretation that guide and
constrain decision-makers in accomplishing the
firm's tasks and in obtaining social status, credits,
and rewards in the process.” (Ocasio, 1997, p.196)
• “set of rules, premiums, and sanctions that men
and women in a particular context create and re-
create in such a way that their behavior and
accompanying perspectives are to some extent
regularized and predictable” (Jackall, 1988, p.112)
15. Social Hybrid Organizations
“neither profit maximizers nor charities, neither
capitalists nor social activists, social business hybrids
primarily use commercial means to achieve a social or
environmental mission and adopt different legal forms
depending on their regulatory context” (Santos, Pache,
and Birkholz, 2015, p.38)
18. “
”
How do NGOs/NPOs - which aim at improving
social and/or environmental performance of
corporate actors through remunerated
“contractual work/formal collaboration” -
solve tensions linked to the multiple
institutional logics they face?
Research Question
19. “
”
-What is the nature of institutional logics characterizing these
NGOs/NPOs?
-What are the specific tensions generated by these multiple
institutional logics?
-How do they handle these tensions?
-What are the advantages and limitations of such partnerships
to improve social and environmental performance in global
supply chains?
-Due to the multiple logics these organizations face, is there
any dominant logic?
Underlying questions
24. The Competing Logics
Characteristics Social/environmental logic Commercial logic
Goal
-Improve the supply chain of the companies in
order to minimize the impact on the
society/environment and create sustainability
-Offer services to companies to generate
income
Organizational
form
-Non-profit form is legitimate because it helps
to focus in the improvement of the supply chain
of companies and create sustainability
-For-profit form is legitimate because it helps to
give the necessary resources to continue
operating
Governance
mechanism
-Horizontal management helps take into
account social/environmental needs
-Hierarchical management ensures that the
different locations are aligned to the goals
enacted by the CEO and/or founder(s)
-Monitoring strategy and operations
Professional
legitimacy
-Professional legitimacy is driven by
contribution to the social/environmental
mission
-Professional legitimacy is guided by technical
and managerial expertise
25. Response Patterns
Social/environmental
and commercial logics
Goal
Impact
Collaboration /
Partnership
Organizational
form
Legal Status and
Profit destination
Ownership
Control
Negotiation
Management
Professional
legitimacy
Staff background
26. Identification of the response patterns
SOLIDARIDAD TFT
ELEMENTS Soc. / Env. Both Commercial Soc. / Env. Both Commercial
Impact X X
Collaboration /
Partnership
X X
Legal Status
and Profit
destination
X X
Ownership X X
Negotiation X X
Management X X
Staff
background
X X
TOTAL 4 2 1 4 2 1
27. Selective Coupling rather than
decoupling nor compromising
• “for hybrids, which are embedded in environments where the
scrutiny of institutional referents is hard to avoid, selective
coupling appears to be a safer and thus more viable strategy
than decoupling, because it does not put them at risk of being
caught faking compliance” (Pache and Santos, 2013, p.994)
31. LIMITATIONS AND OPPORTUNITIES
FOR FUTURE RESEARCH
• “An important issue in case study research is
the degree to which findings are generalizable
to a broader population” (Pache and Santos,
2013, p.996).
• Place of the interviews
• More people, possible pattern.
• Hierarchical level
• Test questionnaire
• Future
32. LIMITATIONS AND OPPORTUNITIES
FOR FUTURE RESEARCH
• “An important issue in case study research is
the degree to which findings are generalizable
to a broader population” (Pache and Santos,
2013, p.996).
• Place of the interviews
• More people, possible pattern.
• Hierarchical level
• Test questionnaire
• Future
Why did I chose this topic?
Formed in a Opus Dei university
Industrial and System engineer
Logistics courses
A lot of problems in Peru with the nature and stuff, developing country. Netflix
I like the paradox, when something need to deal with itself
New theme for me
Next slide I explain
Hablar de esto y resaltar cosas (siguiente diapo)
Integró las anteriores Jackall (1988), and Friedland and Alford (1991),
“An ‘institutional logic’ is an empirically and historically variable combination of explicit norms governing behaviour (“Every citizen should vote”), a legal rule with a sanction attached (“Nonvoters must pay a fine”), and an implicit premise of action that permeates all social relationships (“All Americans have the right to hire another American to work for them at whatever wage they will accept”). Where an institutional logic is reinforced by explicit norms, sanctioned law, and action premises, it is likely to be relatively stable” (Alford and Friedland,1985, p.428)
Colocar concepto fácil y corto de institutional logics
Integró las anteriores Jackall (1988), and Friedland and Alford (1991),
WISE Work Integration Social Enterprises
Mamá, hijo viendo tele y que le dice que lave los platos
“organizations symbolically endorse (avalan, ratifican) practices prescribed by one logic while actually implementing practices promoted by another logic, often one that is more aligned with organizational goals” (Pache and Santos, 2013, p.974).
In that case, organizations symbolically adopt the externally promoted policy while actually implementing the practice that is coherent with their internal institutional influences
“organizations conform closely to the meanings and categories ritually defined by the environment, but do not attempt seriously to implement them at the operational level” (Scott, 2003: 279).
Organizations symbolically adopt the externally promoted policy while actually implementing the practice that is coherent with their internal institutional influences
decoupling may be hard to sustain in contexts where institutional logics conflict over extended periods of time
Mamá, hijo viendo tele y que le dice que lave los platos
“organizations symbolically endorse (avalan, ratifican) practices prescribed by one logic while actually implementing practices promoted by another logic, often one that is more aligned with organizational goals” (Pache and Santos, 2013, p.974).
In that case, organizations symbolically adopt the externally promoted policy while actually implementing the practice that is coherent with their internal institutional influences
“organizations conform closely to the meanings and categories ritually defined by the environment, but do not attempt seriously to implement them at the operational level” (Scott, 2003: 279).
Organizations symbolically adopt the externally promoted policy while actually implementing the practice that is coherent with their internal institutional influences
decoupling may be hard to sustain in contexts where institutional logics conflict over extended periods of time
Al minimo level, crafting a new behaviour (with elements). Bargain with institutional referents to change the demands.
Go out to party and having examans
“compromise involves the attempt by organizations to enact institutional prescriptions in a slightly altered form, crafting an acceptable balance between the conflicting expectations of external constituents” (Pache and Santos, 2013, p.974-975).
combination’ of competing logics
Compromising strategies may allow hybrid organizations to partially attend to the conflicting demands exerted by institutional referents, thus avoiding the risk of losing the endorsement of actors whose prescriptions would be otherwise ignored
may not always be an available strategy for organizations embedded in competing institutional logics, as it may be difficult to reach when the logics promote competing goals or when the practices promoted by the logics are fully incompatible or difficult to modify
combination’ of competing logics
Compromising strategies may allow hybrid organizations to partially attend to the conflicting demands exerted by institutional referents, thus avoiding the risk of losing the endorsement of actors whose prescriptions would be otherwise ignored
may not always be an available strategy for organizations embedded in competing institutional logics, as it may be difficult to reach when the logics promote competing goals or when the practices promoted by the logics are fully incompatible or difficult to modify
Combination of activieties drawn from each logic inan attempt to secure each endorsement from a wide range of field-level actors
INTERNAL CHALLENGES - A un nivel muy alto, puede ocasionar “internal rifts”
“hybrid organizations may reconcile competing logics by enacting a combination of activities drawn from each logic in an attempt to secure endorsement from a wide range of field-level actors” (Pache and Santos, 2013, p.974)
Caso de Bolivia, no puede crecer
may reconcile competing logics by enacting a combination of activities drawn from each logic in an attempt to secure endorsement from a wide range of field-level actors (Greenwood et al., 2011).
combination’ of competing logics - ACTIVITIES
A un nivel muy alto, puede ocasionar “internal rifts”
Caso de Bolivia, no puede crecer
may reconcile competing logics by enacting a combination of activities drawn from each logic in an attempt to secure endorsement from a wide range of field-level actors (Greenwood et al., 2011).
INTACT DEMANDS!!!
involved the selective coupling of intact demands drawn from each logic.
“selective coupling refers to the purposeful enactment of selected practices among a pool of competing alternatives. Selective coupling allows hybrids to satisfy symbolic concerns, just as decoupling does.”
“including one altered through decoupling and one altered through compromise”
“allows hybrids to manage the incompatibility between logics and thus reduce the risks and costs of alternative practice-level strategies, such as decoupling or compromising” (Pache and Santos, 2013, p.973)
“selective coupling refers to the purposeful enactment of selected practices among a pool of competing alternatives. Selective coupling allows hybrids to satisfy symbolic concerns, just as decoupling does.”
“including one altered through decoupling and one altered through compromise”
involved the selective coupling of intact demands drawn from each logic.
“allows hybrids to manage the incompatibility between logics and thus reduce the risks and costs of alternative practice-level strategies, such as decoupling or compromising” (Pache and Santos, 2013, p.973)
Next slide I explain
I’m speaking about SOCIAL HYBDRID ORGANIZATIONS, not only hybrid organizations
A hybrid organization is an organization that mixes elements, value systems and action logics - Wikipedia
A hybrid organization is an organization that mixes elements, value systems and action logics - Wikipedia
“At the forefront of addressing this challenge are social businesses hybrids, often also called social enterprises—organizations that run commercial operations with the goal of addressing a societal problem, thus adopting a social or environmental mission.” (Santos, Pache, and Birkholz, 2015, p.37)
Puede existir varias, de acuerdo en qué parte se realice el spillover, (creación de valor)
The world, competing logcs, understand them, opposite
Read main question
Are going to build some theory
I conducted the interviews around the following themes:
Interviewee’s motivation(s), profile and profile of people working in his organization.
Strategy of the organization, who defines the goals and the strategic development.
Resemblance with not-for-profit firm/for-profit firm. To what extend does the commercial and/or pro social/environmental logic drive the organization.
Dilemmas and tensions caused by the hybridity of the organization.
Internal and external perceptions about the organization collaborating with companies.
Impact of the organization and possible drift of institutional logics
Semi-structured fits better for this type for…
Sample of high level ranked people
Considerations, not go get bias, only two interviews, niche “market”
Semi-structured to go deeper in themes that I found relevant, libertad, rankeados, no rigida
Sample of high level ranked people
Considerations, not go get bias, only two interviews, niche “market”, hard to enter
The Competing logics have been clustered into 4 themes
INSPIRED BY PACHE AND SANTOS
The Competing logics have been clustered into 4 themes
Thanks to the observation, it was evident that indeed there are two logics. The one driving the way of the organization is the social/environmental logic, and the commercial logic is seen as a way to continue operating to keep improving the supply chain
summarize the belief systems that characterize the two competing logics.
7 elements mapped with the 4 initial logic’s characteristic
After analyzing the data obtained from the interviews, 7 organizational elements were shown. Figure 2 shows these 7 elements mapped with the 4 initial logic characteristics
Data structure
Mission guardians The legitimate owners of sites are those who adhere to and are willing to protect the organization’s social mission.
Legal Status and Profit destination [Soc. / Env.]
This is aligned with what Pache and Santos (2013) mention “Sites should be formed as nonprofits because that legal status is the best safeguard against mission drift” (p.984)
Money is need
Recordar que Pache y Santos estudiaron las WISE Work Integration Social Enterprises
Porque seleccionan parte de cada lógica, decoupling y combine
Organizations will need to try to find the combination of weight for each logic in order to continue operating and, at the same time, achieve the goals that they enact.
The institutional logics that were identified in this study are the social/environmental logic and the commercial logic.
Selective coupling rather than decoupling nor compromising.
The goal is to have a positive impact in the society and environment by working/collaborating with companies.
Money is needed in order to continue operating, but they do not try to maximize it.
Not relevant strong tensions created by the opposite two logics
Some limitations could be created by the law, the government, the human capital factor (they have no skills nor abilities) or by the fact that the organization do not have presence in a specific place (country or region).
In the future, there is a high probability that new organizations with the same business model will appear or that the existing ones will grow and start to deal whit the same institutional logics.
Read main question
Two competing logics, one is stronger, that leads
HASTA PATTERN LUEGO CAMBIO
This study is aware of this and that only a small amount of interviewees and organizations participated in it.
Interviews were made with France and South America offices, in two organizations that are global. The way they face this tensions could variate, caused by factors that are not the purpose of this study, from other countries or regions.
In the case that more people from the same company were interviewed, this study could lead to a pattern
of the employees could differ even in the same organization - Also probably the hierarchical level of the employees could differ even in the same organization, more focus in the social or in the financial goal and also the area of the organization could have different mentality.
It would be recommendable that the questions were tested with a few persons from the organizations in order to know if the questions were clear and didn’t lead to misunderstanding, resulting in a more robust questionnaire
In the future hybrids social organization will continue appearing, creating alliances with big or medium companies, but still keeping in mind the social and financial goals, this will lead to have more opportunity to approach them in order to have a better and broad understanding of their behavior for future researchs.
hybrids social organization will continue appearing, keeping in mind the social and financial goals
