Interorganizational Relationships and Hybrid Organizations: Understanding Antecedents and Outcomes

Prior work either examined whether hybrid organizations focus on different characteristics when choosing partners than their traditional commercial counterparts (internal view), or whether hybrid organizations’ potential partners are more likely to choose them because of their hybridity (external view). Drawing on institutional logics theory, we examine both views simultaneously to understand the propensity of partnering and relationship outcomes. Relying on a dataset of bank loans between firms certified as hybrid organizations and banks recognized as hybrid organizations, we show that loan agreements are most likely when both partners are hybrid organizations. Likewise, loan terms also become more favorable when institutional logics match. Our findings contribute to the study of hybrid organizations, showing that outcomes of their interorganizational relationships are best understood through a dyadic view.