Session 224

Balancing profit and nonprofit objectives across different business models

Track C

Date: Monday, October 5, 2015


Time: 13:45 – 15:00


Room: Governor's Square 15

Session Chair:

  • Aline Gatignon, University of Pennsylvania

Title: Academic Strategies in Light of General Strategy Frameworks: Evidence from Universities in Finland


  • Mikko Luoma, University of Vaasa
  • Tanja Risikko, University of Jyvaskyla
  • Paula Erkkilä, Centria University of Applied Sciences

Abstract: This study examines academic strategies from the content perspective. Since the early 1980s, universities and other higher education institutions have been forced to manage themselves strategically because of factors including reduced public funding, the pressures and opportunities brought by internationalization, developments in teaching, and increased accountability to stakeholders. The study employs content analysis and multivariate statistical techniques, to examine the written strategies of 13 Finnish universities. Specifically, the study investigates to what degree their strategies conform to general content strategy frameworks, such as generic competitive strategies, strategic types, and value disciplines. The results indicate very little conformance with such frameworks. Finally, the implications of these findings for the business context are discussed.

Title: The Social Entrepreneur’s Dilemma: Entrepreneurial Strategy and Charter School Performance


  • Chao Guo, University of Pennsylvania
  • Charlotte Ren, Temple University

Abstract: In this study, we introduce and examine “the social entrepreneur’s dilemma”: how a social entrepreneur’s strategic choice that leads to enhanced financial performance tends to negatively affect social performance, or vice versa. Using panel data of charter schools in Texas (1997-2007), we find evidence that an organization’s strategic choice has differing effects on different dimensions of organizational performance: a broader scope of services hurts an organization’s financial performance, but improves its social (academic) performance. Similarly, a differentiation strategy hurts financial performance but improves social (academic) performance. Furthermore, in a more turbulent environment, the positive impact of differentiation on academic performance would vanish, whereas the negative impact of scope expansion and differentiation on financial performance would increase even further.

Title: Theorizing (Pre) Hybrid Organizing: An In-Depth Account of an Organization's Struggle to Go Hybrid


  • Anjan Ghosh, Indian Institute of Management - Calcutta
  • Shahzad Ansari, University of Cambridge
  • Sougata Ray, Indian Institute of Management - Calcutta

Abstract: Whilst strategic management research has begun to explore hybrid organizing, the question of how organizations decide to go hybrid needs more attention. Exploring this decision process is important for two reasons. First, it promises insights into why some organizations transition into hybrid while others do not and second; it sheds light on the different tracks organizations select for transitioning into a hybrid form. Traditional non profit organizations (NPO) shifting into social entrepreneurship (SE) offer rich settings for studying such a transition. We conducted an ethnographic study on a leading Indian NPO and show how the decision making process towards social entrepreneurship unfolds. We contribute to the strategy process literature by (1) showing the role of key organizational elements influencing the decision towards adopting a hybrid form and (2) developing a model of hybrid grafting.

Title: When Do New Economic Elites Engage In Social Change? Evidence From Successful Indian Entrepreneurs


  • Leena Kinger Hans, INSEAD
  • Balagopal Vissa, INSEAD

Abstract: We explore the issue of how new economic elites change civil society. We focus on an important subset of the new economic elite - commercial entrepreneurs that have experienced economic success through an exit event from their for-profit venture; and theorize on whether they subsequently transition into social entrepreneurship. Using an imprinting perspective we develop a framework on how achieved and ascribed imprinting elements influence successful commercial entrepreneurs’ transition to social entrepreneurship. We tested our framework on the population of Indian entrepreneurs that experienced a successful exit from their for-profit venture during 2003 - 2014. Our results suggest that entrepreneurs’ age at exit as well as exit valuation of their for-profit venture are important predictors of their transition to social entrepreneurship. In addition, exit valuation positively moderates the effects of other imprinting elements on the transition to social entrepreneurship.

All Sessions in Track C...

Sun: 11:15 – 12:30
Session 47: On the Emerging B Corp Phenomenon and the Future of Capitalism
Sun: 16:15 – 17:30
Session 223: Hybrid organizations and business model heterogeneity
Mon: 08:00 – 09:15
Session 39: Who is a stakeholder?
Mon: 11:15 – 12:30
Session 34: New Explanations of Contextual Differences in CSR
Session 222: Profit and nonprofit organizations: Patterns of collaboration and competition
Mon: 13:45 – 15:00
Session 224: Balancing profit and nonprofit objectives across different business models
Tue: 08:00 – 09:15
Session 43: First Principles in Creating Value: Stakeholder Theory
Tue: 11:00 – 12:15
Session 225: Institutional logics, legitimacy, and embeddedness in profit and nonprofit organizations
Tue: 15:45 – 17:00
Session 46: Accidents, Disasters, and Stakeholder Demands
Session 93: Blending CSR, Non-Profit, Symbolic Management and Practitioner Focus Perspectives
Session 226: Trust, loyalty, compassion: The role of resources in balancing multiple objectives

Strategic Management Society