Importance of hybrid organizations in cutthroat competitive business

Hybrid organizations are ubiquitously established at global stage. A hybrid organization is illustrated as a market-oriented and has broad-spectrum operation. In the arena of Institutional Economics, the phrase “hybrid organization” is used in reference to hybrids that operate between market and hierarchy. Such organizations unify features of non-profit organizations, for example volunteering, mission orientation and creating social and economic value. Fast paced globalization led to the hybridization process and the advent of hybrid organizations.



Hybrid organizations mainly tackle environmental and social issues while retailing the product and services to gain advantage such as fair trade matters, social entrepreneurship in banking services. Essentially, hybrid organization hold functional and central structures and have similar administration policies. Subsequently, the hybrid organization is considered as a unification of government and a private company.

It is visualized that numerous companies may engrained in hybridity. Hybrid organizations are flourishing in energy industry. For example, universities that offer consultancy sessions on a profitable basis. Another case of hybrid structure is Toyota Motor Corporation. In this organizational framework, the functional and product structure responsibilities are mingled, wherein chief engineers are accountable for product structure job and managers have functional responsibilities.

There are advantages and disadvantages of Hybrid organisations. Key benefit of hybrid organization is intermingling of public responsibilities and marketable activities which can have positive impact on productivity. Hybrid organizations make Alliance of business and local goals and it has functional proficiency, flexibility and suppleness in business functions of all units of organizations.

There are some shortcomings of hybrid organizations such as some conflicts may rise between business and other sectors. In hybrid organizations, there are more expenses of unnecessary administration and lethargic response to business scenario.


In short, Hybrid organization may signify traits of non-financial performance valuation and substitute capitalization. All hybrid organizations produce social and economic value and are linked with motive, responsibility and revenue.

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