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Research Seminar: Jeff York
March 9, 2018 @ 3:15 pm - 4:45 pm
The Division of Economics and Business presents:
Research Seminar: Jeff York, Associate Professor, University of Colorado – Boulder
Green to Gone? The Impact of Regional Institutional Logics on New Firm Survival
The study of hybrid organizations, which combine previously incompatible logics within a firm, has emerged as an area of interest for scholars interested in how new (de novo) organizations can address social and environmental problems in an economically sustainable manner (Batilana & Lee, 2014; Battilana & Dorado, 2010; Wry & York, 2017). Researchers have studied hybrid organizations in numerous contexts including recycling (Lounsbury, Ventresca, & Hirsch, 2003), micro-lending (Zhao & Wry, 2016; Battilana & Dorado, 2010), renewable energy (Sine & Lee, 2009; Kapoor & Furr, 205; Meek, Pacheco, & York, 2010), and grass-fed meat (Weber, Heinze, & DeSoucey, 2008). However, the survival of such ventures has not yet been systematically examined. Scholars have suggested that hybrid ventures may be based in highly salient founder identities, and thus, may be more persistent than their traditional entrepreneur counterparts (York & Lenox, 2014; Wry & York, 2017). On the other hand, hybrid ventures may be more likely to fail because their businesses are not single-mindedly focused on maximizing firm value, but have an additional goal of generating positive externalities for society (Conger et al., 2018; Santos, 2012; Battilana & Dorado, 2010). Given these conflicting viewpoints, and the fact that hybrid ventures are increasingly important vehicle for addressing social and environmental problems, a critical examination of the drivers that impact their survival is warranted. In this study we bridge the literature on entrepreneurial survival to the hybrid organization literature to examine how institutional logics impact firm survival. Our theory and findings make several contributions. First, we extend prior literature which has shown that regional variation in norms may impact the entry rates of hybrid ventures (e.g. York & Lenox, 2014) to show that socio-cultural variation also impacts on firm survival. Second, we demonstrate that institutional logics in a region impact firm survival by moderating the impacts of market factors, rather than directly influencing survival. Third, we show that the moderating impacts of regional logics is greater for de novo firms than de alio entrants. By theorizing and providing evidence for a mechanism by which culture impacts the survival of hybrid ventures, our study answers the call to identify predictors of survival (e.g., Dacin, Dacin, & Tracey, 2011) beyond the equivocal impact of market factors. These findings have clear implications for future theory on entrepreneurial survival, industry formation, hybrid organizations and offer practical suggestions for the founders of hybrid ventures.