Hybrid Organizations - Value Creation & Strategy

Content 

In recent years, hybrid organizations - organizations that rely on two or more institutional logics - have grown in importance in society. Rather than being purely private, public, or civil society organizations, entities such as social enterprises, sports clubs, state‑owned enterprises, mutuals, and privately owned schools combine norms and practices from multiple sectors. 

Managing this institutional complexity is challenging. When organizations have dual missions, both internal and external stakeholders may be uncertain about strategic priorities and how resources should be allocated. At the same time, successful hybrid organizations can achieve extraordinary performance because they draw resources and legitimacy from a broad range of stakeholders. 

The purpose of this course is to explore the roles accounting plays in managing multiple institutional logics in hybrid organizations. 

Relevance to students 

Hybrid organizations are becoming increasingly important in society. Historically, the Stockholm School of Economics has focused strongly on the private sector, particularly multinational corporations and professional service firms. This course offers students a broader perspective by introducing the public and civil society sectors and the institutional complexity that arises when organizations operate across sectors. 

The School’s educational mission, FREE - "being free and alive in relation to the unknown" - emphasizes intellectual curiosity and openness to new perspectives. This course complements other courses in the program by encouraging students to reflect, develop empathy, and strengthen entrepreneurial thinking. 

Martin Carlsson‑Wall has published several articles and book chapters on accounting in hybrid organizations and serves as research director for the Center for Sports and Business. 

Research on accounting in hybrid organizations contributes to two fields: accounting and organizational theory. In the course literature, the first module focuses primarily on organizational theory, while modules two and three emphasize accounting research. 

This introductory course complements other courses in the BSc program by providing contextual knowledge of hybrid organizations and the role accounting plays within them. From a career perspective, the course may be particularly relevant for students interested in roles within social enterprises (for example the Norrsken Foundation, the Red Cross, or Stadsmissionen), sports organizations, or state‑ and municipality‑owned enterprises. Understanding institutional complexity is also valuable for students considering careers in management consulting. 

Combining theory and practice 

The course consists of 15 lectures that combine theory‑based sessions, project coaching where students apply theoretical concepts, guest lectures, and a field trip. 

Lecture 1: Introduction 

Lecture 2: Introduction to hybrid organizations 

Lecture 3: Project introduction 

Lecture 4: Accounting in sport 

Lecture 5: Guest lecture 

Lecture 6: Accounting in culture 

Lecture 7: Guest lecture 

Lecture 8: Accounting in social enterprises 

Lecture 9: Accounting in family firms 

Lecture 10: Accounting in state‑owned enterprises 

Lecture 11: Accounting in state‑owned enterprises – part 2 

Lecture 12: Guest lecture 

Lecture 13: Project coaching 

Lecture 14: Guest lecture 

Lecture 15: Exam preparation 

Field trip 

High‑level guest lecturers and faculty

Teaching faculty 

Martin Carlsson‑Wall (Course Director, Department of Accounting) 

Guest lecturers* 

Guest lecturers in the first edition of the course included: 

Håkan Strandlund, CFO, AIK Football 

Ulrika Årehed Kågström, Chair, the Royal Dramatic Theatre 

Mattias Nordqvist, professor in family business, Stockholm School of Economics 

Ola Peter Gjessing, Senior Analyst, Norges Bank Investment Management 

*from previous years

Intended learning outcomes

To successfully complete the course, students must demonstrate knowledge of: 

1. How and why hybrid organizations differ from organizations that rely primarily on a single institutional logic. 

2. The accounting practices involved in managing hybrid organizations, including budgeting, performance metrics, and costing. 

3. Contextual differences among hybrid organizations. For example, public sector hybrids such as state‑owned companies must address transparency requirements and regulatory frameworks, while social enterprises must manage identity‑related motivations and values among employees. 

Format and structure

The course combines lectures, seminars, and a project across four modules:

1. Introduction to hybrid organizations and their growing importance in society.
2. Value creation practices in civil society hybrids (for example social enterprises, cultural organizations, sports organizations, family firms, and mutuals). 
3. Value creation practices in public hybrids (for example state‑owned companies, municipality‑owned companies, hospitals, universities, and public‑private partnerships).
4. Project work. 

Literature

Module 1: An introduction to hybrid organizations and their growing importance in society 

Battilana, J., Lee, M., Walker, J., & Dorsey, C. (2012). In search of the hybrid ideal. Stanford Social Innovation Review. 

Besharov, M., & Smith, W. (2014). Multiple institutional logics in organizations: Explaining their varied nature and implications. Academy of Management Review. 

Smith, W., & Besharov, M. (2019). Bowing before dual gods: How structured flexibility sustains organizational hybridity. Administrative Science Quarterly. 

Module 2: Accounting in civil society hybrids 

Carlsson‑Wall, M., Kraus, K., & Messner, M. (2016). Performance measurement systems and the enactment of different institutional logics. Management Accounting Research. 

Chenhall, R. H., Hall, M., & Smith, D. (2013). Performance measurement, modes of evaluation and the development of compromising accounts. Accounting, Organizations and Society. 

Christiansen, J. K., & Skærbæk, P. (1997). Implementing budgetary control in the performing arts. Management Accounting Research. 

Ferry, L., & Slack, R. (2021). Counter accounting for hybrid organizing. Accounting, Auditing & Accountability Journal. 

Schäffer, U., Strauss, E., & Zecher, C. (2015). The role of management control systems in situations of institutional complexity. Qualitative Research in Accounting & Management. 

Module 3: Accounting in public hybrids 

Carlsson‑Wall, M., Iredahl, A., Kraus, K., & Wiklund, M. (2021). Management controls during extreme situations. Qualitative Research in Accounting & Management. 

Ezzamel, M., Robson, K., & Stapleton, P. (2012). The logics of budgeting in the educational field. Accounting, Organizations and Society. 

Gerdin, J. (2020). Management control as a system. Management Accounting Research. 

Kaufman, M., & Covaleski, M. (2019). Budget formality and informality amid divergent institutional logics. Accounting, Organizations and Society. 

Kreander, N., & McPhail, K. (2019). State investments and human rights? Accounting, Auditing & Accountability Journal. 

Morinière, A., & Georgescu, I. (2021). Hybridity and performance measurement in healthcare organizations. Accounting, Auditing & Accountability Journal.