Journal of Business Ethics (2020) 165:547–563

https://doi.org/10.1007/s10551-018-04098-0

ORIGINAL PAPER

Enabling Sustainable Transformation: Hybrid Organizations in Early

Phases of Path Generation
Susanna Alexius1 · Staffan Furusten1

Received: 25 August 2017 / Accepted: 24 December 2018 / Published online: 14 February 2019
© The Author(s) 2019

Abstract
The rapidly growing research on hybrid organizations in recent years suggests that these organizations may have particular
abilities to facilitate institutional change. This article contributes to our understanding of change and, in particular, sustain-
able transformation in society by highlighting the importance of organizational forms. Looking more closely at the role of
hybrid organizations in processes of path generation, we analyze the conditions under which hybrid organizations may enable
path generation. A retrospective (1988–2017) exploratory case study of the Swedish hybrid organization The Natural Step
confirms how hybrids can take part in- and may facilitate the early phases of path generation: assimilation and coalescence.
The conclusion drawn is that hybrids have multivocal abilities that enable them to earn trust and authority to open up “neu-
tral” spaces for orientation and connection between actors in separated sub-paths, and that this in turn may ease tensions
and trigger dialogue and exchange, also between former opponents. Yet, as also seen in the case, this enabling position of
the hybrid may be both fragile and temporary.

Keywords Path-generation · Institutional change · Hybrid organization · Multivocality · Sustainability · The Natural Step ·
Sweden

Introduction generating profit, and employing sustainable strategies. Less

attention has, however, been devoted to theorizing the condi-
In contemporary society, debates on the need for a sustain- tions for when hybrids may make use of their multivocality
able turn in society are topical. Translated into business to contribute to generating new ethical trajectories in society.
studies this often means research that, in general terms In fact, although the role of organizations is emphasized in
and in various ways, focuses on issues related to organi- studies of path generation and market formation, there has,
zational change towards more sustainable and responsible to date, been little discussion of the theory on the contribu-
strategies and production processes. Within this wide field tion by different organizational forms in general, and hybrid
of study, organizational hybridity is an age-old theme that organizations in particular.
has re-emerged over the last decade, thanks to its increased Drawing on theory of societal change (path generation
relevance for complex contemporary change processes. A and market formation) as well as theory of hybrid organi-
common theoretical argument in this growing body of lit- zations, the aim of this study is to open the way to a more
erature is that hybrids have particular multivocal abilities nuanced discussion on the role of organizational forms in
(Jancsary et al. 2017) and are hence able to handle multiple processes of sustainable transformation. We do so with a
and conflicting demands such as taking social responsibility, particular focus on the role of hybrid organizations and the
phases during which, and conditions under which, they may
be able to facilitate change. Theoretically, the study aims
* Susanna Alexius
[email protected] to contribute to our understandings of societal change and
sustainable transformation by exploring the research ques-
Staffan Furusten
[email protected] tion: What is the role of organizational forms and, in par-
ticular, the role of hybrid organizations in processes of path
1
Score (Stockholm Centre for Organizational Research), generation? In so doing, the study also contributes to theo-
Stockholm School of Economics and Stockholm University, ries of hybrid organization, foremost by introducing hybrid
Stockholm, Sweden

13
Vol.:(0123456789)

Content courtesy of Springer Nature, terms of use apply. Rights reserved.

548 S. Alexius, S. Furusten

organizations as potentially significant actors in processes discrete organizing that generate particular trajectories for
of path generation. development in different fields. It also intimates, however,
The findings presented in this paper draw on a retrospec- that processes of organizing may develop in different ways,
tive case study covering nearly three decades of operations depending on what actions are taken, how they are taken,
in The Natural Step (TNS), which was established as a hybrid by whom, and when. This corresponds well to Garud et al.
organization in the late 1980s. While combining a world (2010) argument of how new societal paths are created. They
savior mind-set with commercial actions, according to stud- state, for example, that it is likely that “initial conditions [for
ies of the environmental movement (Boström 2001) and the action] are not given, but flexibly defined and constructed
diffusion of CSR (Windell 2006; Frostensson 2010; Alexius through negotiations by actors” (2010, p. 763).
et al. 2017) in Sweden, TNS was a significant actor in a This represents a more dynamic view of development in
formative period of the Swedish sustainability and CSR field a field than that suggested by the theory of path dependency.
and market in the early 1990s. In this paper, we attempt to Theories of change as “path-dependent,” tend to overempha-
explain how this happened and thereby contribute to illumi- size individual actors’ first-mover advantages in setting the
nating the general research question of the role of different stage and shaping the content in ways that supposedly “lock
organizational forms in processes of societal transformation. in” all followers. Based on empirical insights, the concept of
It goes without saying that a single organizational case path dependency has also been criticized for under-empha-
study cannot provide all the answers, but if we are to guide sizing the role of agency, as in “experimentation, conversion
the way towards a more sustainable future for ourselves and and recombination of institutional resources, or leverage
the planet we need every piece of the puzzle. The need for embeddedness in multiple fields to transpose practices and
such exploratory empirically based theory-generating stud- logics across boundaries” (Bothello and Salles-Djelic 2018,
ies has been emphasized, in recent years, in a repeated call p. 96; see also; Djelic and Quack 2007; Garud et al. 2010).
for empirical studies on the coexistence of and responses Inspired by earlier critical studies on institutional change,
to multiple logics in organizational fields, with a particular organizational reform, and the creation and travel of ideas
focus on the micro-perspective of these issues and connect- between cultures and organizations (Czarniawska and Sevón
ing it to meso- and macro-level developments (Kodeih and 1996; Czarniawska and Joerges 1996; Sahlin-Andersson
Greenwood 2014; Reay and Hinings 2009; Purdy and Gray 1996; Brunsson and Olsen 1993; Furusten 1999; Røvik
2009; Dunn and Jones 2010; Meyer and Höllerer 2010; Su 2000), the alternative concept of “path generation” has been
et al. 2017). This study responds to these calls by focusing introduced in order to better capture change that results from
on the role of actors and actions from a micro-perspective the contribution of a number of sub-paths involving differ-
while theorizing on conditions that enable hybrid organiza- ent actors with different economic and political interests,
tions to play a significant role in early processes of path normative orientations and social identities (Djelic and
generation. Quack 2007). The concept of path generation thus suggests
that, in order to understand change, we must continue to go
Theorizing Societal Change Processes beyond individual agentic-based assumptions and, rather,
depart from an assumption of an emergent development
Considering that natural- as well as social scientists stress where different actors with different economic and political
an urgent need for actions to handle today’s complex global interests, normative orientations and social identities take
challenges such as climate change and migration, it is highly part over long periods of time, not only at specific moments
relevant that the business ethics research community strives or critical junctures as suggested in theories of path depend-
to develop and enrich the understanding of societal change ency. Path generation therefore suggests a need to study the
processes on global and transnational as well as local and actions undertaken by different actors who have the ability
national levels of analysis. to mobilize support and legitimacy for new approaches and
Looking at basic research on societal change processes to establish institutions that socialize other actors towards
and central issues such as what- and who contributes to the new approach (Djelic and Quack 2007, p. 181).
change, when, and how, two key insights are that such tra- Similar arguments for pervasive social change are also
jectories do not take a single linear “path” nor do they stem echoed in economic sociological literature on spontaneous
from individual actors. Czarniawska (2013), for example, market formation. Aspers (2011), for example, divides pro-
argues that actions taken by particular actors can be seen as cesses of market formation into three phases: orientation,
responses and consequences of actions taken by other actors contraction and cohesion, concluding that markets emerge
before them while constructing “action nets.” Introducing spontaneously as an unintended result of actors who mutu-
the concept “organizing spirals,” Furusten and Werr (2017) ally adjust to one another’s behavior. This normally involves
conclude that such actions may generate transnational order. many actors that gradually orient towards one another in
These are examples of constantly ongoing inexplicit and processes where their old identities may be changed and

13

Content courtesy of Springer Nature, terms of use apply. Rights reserved.

Enabling Sustainable Transformation: Hybrid Organizations in Early Phases of Path Generation 549

new cultures may be created as relations are negotiated (e.g., scientific disciplines, hence a mechanism of path re-ori-
orientation and negotiation of who may be sellers and buy- entation towards an emphasis on issues related to how the
ers, and what may be exchanged). It is clear that contraction planet can be maintained and recover from climate change.
and exchange take place only after the phase of orientation Although Bothello and Salles-Djelic (2018) argue that
and culture-making, however, also in the case of market for- we can understand institutional change towards a more
mation, Aspers (2011) argues that we still know too little environmental transnational trajectory through the lens of
about what and who enables (or hinders) this crucial early these four mechanisms (assimilation, coalescence, coopta-
development. tion and recombination), they also emphasize that it is a
By directing our interest to early phases of social forma- “crooked” trajectory that is an outcome of nested parallel
tion, the concept of path generation is useful when seeking processes in separated paths, events, and decisions taken
to understand and theorize about how social transformation over decades. Despite this being an important contribu-
is likely to occur. Thus far, however, theorizing on mecha- tion to how sustainability became a transnational issue,
nisms for path generation is at an early stage. Building on we still know little about how and why actions that con-
Bothello and Salles-Djelic (2018), to date one of few empiri- tribute to path generation are taken, and how different
cally based theoretizations of this concept, is therefore rea- types of organizations contribute in ways that generate
sonable. They suggest that the evolution of how environmen- new paths. And despite path generation theory’s ambi-
talism has been conceptualized since the 1960s and onward tion to demonstrate how different kinds of organizations
can be divided into different regimes: sustainable develop- mobilize, champion and appropriate different conceptu-
ment, sustainability, and resilience. Each regime is seen as alizations and labels, as these studies typically analyze
a new path generated through the mechanisms of assimila- transnational macro-development, they cannot explicitly
tion, coalescence, cooptation and recombination. At differ- discuss how different organizations go about doing this
ent points in time these mechanisms facilitate interaction in local or national contexts, and whether or not it mat-
between separated sub-paths, such as scientization, mana- ters what organizational form the different contributing
gerialism, and risk management. The authors also claim that organizations have. Hence, much exploration and theory
the generation of new paths can be understood as a conse- building remains to be done with regard to the specific
quence of interaction between sub-paths around issues such mechanisms of distributed agency that produce and alter
as overpopulation, pollution and the use of poisons. Through institutional trajectories.
interaction, separated paths are assimilated and transformed Further justifying the relevance of studies of how differ-
from isolated national movements into a transnational mat- ent types of organizations might take part in societal change,
ter. Such assimilation of knowledge helps to pave the way for in the literature on corporate social responsibility (CSR)
further actions, enabling environmentalism to be picked up scholars like den Hond and de Bakker (2007) and Rasche
by actors other than scientists. One outcome they describe is et al. (2013) note the lack of studies that examine the role
the UN-initiated “Brundtland Report,” where issues such as of non-business actors as possible facilitators in processes
international security, resource scarcity, overpopulation and of institutional change towards a more sustainable society.
social exclusion were coalesced into a single comprehensive In a similar vein, Ahrne and Brunsson (2011) add that it is
concept: sustainable development. Thus, in the Brundtland generally relevant to pay particular attention to non-business
Report, arguments earlier cultivated in separated sub-paths actors since they may have different abilities and ways of
merged, and earlier loosely coupled issues and disconnected organizing than, for example, multinational corporations
actors came together in a broad construct, leading to the have (cf. Chapple and Moon 2005; Vigneau et al. 2015).
institutionalization of a transnational sustainable develop- Taking this argument one step further, the rapidly grow-
ment regime. The Brundtland Report spread widely, and in ing interest in hybrid organizations, that is, a term often
turn generated further interaction between actors previously used to frame non-business actors, in recent years (see next
separated on relatively isolated paths. section) highlights the fact that such organizations are often
The period from around the mid-1990s and onward, characterized by a familiarity with combining different log-
Bothello and Salles-Djelic define as a phase of path stabi- ics of operation that may give them a particular ability to
lization, that they describe as triggered by a co-optation facilitate early processes of institutional change as arenas
of environmentalism by institutional trajectories such as for the bridging and blending of logics, traits and ideas from
managerialization and neo-liberalism, during which sus- the different organizational “ideal types” they reflect (Alex-
tainability became an outcome that organizations were ius and Furusten 2019). So far, however, there is a lack of
expected to measure. The most recent concept established empirical studies of such actions. Our interest here in this
in the transnational environmental discourse is “resil- paper is therefore to contribute to the theorizing on societal
ience,” which is understood to have emerged through change and path generation by exploring the role of a spe-
a recombination of knowledge cultivated in different cific type of actor, the hybrid organization.

13

Content courtesy of Springer Nature, terms of use apply. Rights reserved.

550 S. Alexius, S. Furusten

Hybrid Organizations comparison, the concept of “hybrid organization” is a more

neutral concept which encourages critical analysis of the
Exploring hybridity in organizations is not a new phenome- possible ethical approach and social impact, without taking
non (March and Simon 1958; March 1962; Cyert and March those for granted a priori.
1963; Billis 2010; Denis et al. 2015; Skelcher and Rathgeb On one hand, the literature on hybrid organizations pre-
Smith 2015). Yet, research on hybrids has intensified in the sents hybridity as a condition that gives an organization the
past decade as the number of hybrid organizations in con- opportunity to harvest legitimacy-enhancing elements from
temporary society is reported to be growing (e.g., Haigh different institutional logics (e.g., market, political and civic
et al. 2015). Hybrid organizations are generally character- logics) in order to survive and thrive (Brunsson 1994; Bat-
ized by three attributes (Mair et al. 2015): (1) a variety of tilana and Dorado 2010). On the other hand, due to the high
stakeholders, (2) the pursuit of multiple and often conflicting degree of institutionalization of the ideal-typical forms of
goals, and (3) engagement in diverse or inconsistent activi- organization in contemporary society (Thornton et al. 2012),
ties. As such, hybrids do not fit neatly into one of the ideal- organizational stakeholders and policy-makers can become
typical organizational categories of the corporation, the puzzled and “institutionally confused” when a hybrid’s
political organization, or non-governmental organizations behavior does not match these descriptions (Brunsson 1994;
such as the association. Instead, the typical hybrid organi- Alexius and Grossi 2017). Although hybrid organizations
zation is characterized as a blend of operational logics and/ often face a challenge in handling the tensions embedded
or a blend of ideal-typical structural traits (cf. Billis 2010; in their identity, the conflicting logics they respond to, and
Denis et al. 2015; Grossi and Thomasson 2015; Skelcher the practices they implement (Battilana and Lee 2014; San-
and Rathgeb Smith 2015). As such, hybrids are argued to tos et al. 2015), they may also, by their very constitution,
be well-adapted to handle colliding worlds at institutional be well-adapted to handle such situations (Alexius and
crossroads. Positioned at the interface between logics, the Furusten 2019). In constitutional hybrids (Alexius et al.
hybrid offers opportunities for innovation (Padgett and 2017), founded with the explicit purpose of creating value
Powell 2012). Comparing hybrids to traditional businesses, by operating in between the market, the public sector and
Hockerts (2015, p. 102) argues on a similar note that hybrids civil society, such conflicts of interests are a natural part of
are “much more open to sharing lessons and encouraging the organizational constitution and often a source of pride
others to copy their approaches.” This suggests that hybrid for its owners and management.
organizations might represent what Jancsary et al. (2017, However, how hybrid organizations select, prioritize &
p. 1162) see as a potential role category “positioned at the integrate plural institutional logics remains a topic in need
interface of two or more logics [that] are multivocal in the of further theoretical development (Kraatz and Block 2008;
sense that their evocation offers the opportunity to leave Denis et al. 2015). Jancsary et al. (2017) also call for more
open which logic is initiated.” This ability, Jancsary et al. studies that explore the conditions that enable organizations
argue, is likely to allow the organization more leeway to to develop multivocal skills, thus the competence of balanc-
conform to institutional plurality, giving it advantages in ing between institutional logics.
selecting elements from different institutional logics.
The rise of hybrids in contemporary society is explained Research Design, Methods and Materials
by scholars with reference to an increasing prevalence of
pluralistic and complex institutional environments (Pache In order to analyze the role of hybrid organizations in pro-
and Santos 2010, 2013; Thornton and Ocasio 2008; Brom- cesses of path generation, we have employed an explora-
ley and Meyer 2015), institutional conditions that these tory retrospective case study approach. Like Bothello and
authors suggest suit hybrid organizations particularly well. Salles-Djelic (2018), we acknowledge the importance of
In addition, it is also argued that acute social, environmental the nestedness of organizations in path generation, but since
and economic challenges open up “opportunity spaces” for the focus here is more on exploring what role a particu-
hybrids (Holt and Littlewood 2015). lar organizational form may play in this regard, we have
A typical study object in this line of contemporary organi- applied what Stebbins (2001) calls a “concatenated explora-
zation literature is the “social enterprise” that mixes business tory approach.” This means that we have striven to view our
with charity (Aiken 2006; Mars and Lounsbury 2009; Bat- single case in a wider context—over time as well as within
tilana and Dorado 2010; Grassl 2011; Ebrahim et al. 2014). the contextual framework of larger sets of actors, actions
However, as pointed out by Greenwood and Freeman (2017), and processes, well-explored by Bothello and Salles-Djelic
concepts such as “social enterprise,” “social venture,” or (2018). From a path-generating perspective, an exploratory
“social entrepreneurship” may be seen as “politically approach is particularly useful (Otley and Berry 1994), not
tainted” concepts that may invite, a priori, to assumptions least in developing theory based on case data on groups,
on social impact (see also Dorado and Ventresca 2013). In processes and activities that have “received little or no

13

Content courtesy of Springer Nature, terms of use apply. Rights reserved.

Enabling Sustainable Transformation: Hybrid Organizations in Early Phases of Path Generation 551

systematic empirical scrutiny … or have grown to maturity 2015), a particularly formative phase for framing environ-
[…] but have changed so much along the way that they beg mentalism in terms of corporate social responsibility and
to be explored anew” (Stebbins 2001, p. 11). Also Eisen- sustainability is likely to date to the years around 1990.
hardt (1989) emphasizes the appropriateness of applying an Boström (2001) noted that The Natural Step (TNS) was an
exploratory approach to topics that, thus far, have not under- organization bordering the Swedish fields of science, envi-
gone much empirical scrutiny. The role of hybrid organiza- ronmental activism and management consulting, and por-
tions in path-generation processes is an understudied, yet trayed a peculiar and uncommon hybrid of the traits and
relevant, research topic. logics of a research institute, activist association and com-
Generally speaking, the single-case exploratory approach mercial consultancy. Alexius et al. (2017) made similar note
has several strengths, such as better chances of incorporat- of TNS’s entrepreneurial and boundary-spanning role in the
ing rich and detailed data as well as unexpected data and emerging field of sustainability in Sweden during the 1990s.
data that spans longer periods of time, making it possible to This seemed to apply in particular from the establishment of
perform temporal comparisons. The approach is also highly TNS in 1988–1989 until about 1995.
useful when aiming to relate micro-level analyses to meso- Thus, without going into empirical detail about its role
and macro-levels of analyses (while comparative designs in the development of the field of sustainability in Sweden,
of a large number of cases typically focus on the meso- and earlier research had identified TNS as a potentially signifi-
macro-levels). A combination of single-case and multiple- cant actor. Yet, these earlier studies neither aimed to explore
case designs is hence a fruitful approach for the research hybridity in detail nor aimed to contribute to theories of
community when collaborating to theorize a certain topic. path generation. In terms of hybridity, over the years TNS
As with all research designs, exploratory research on a has combined several institutional logics: (1) the scientific
single case has its limitations. One risk with exploration is logic of a research institute, (2) the civic logic of an activist
that the data gathered becomes too general and descriptive, NGO and, in later years, (3) the market logic of a manage-
and with a single case comes the risk of overemphasizing ment consulting firm (see case narrative below). For these
patterns seen in the case as generally representative. To man- reasons, and for its interesting historical development from
age the weaknesses and aim for the strengths of the design, the late 1980s through 2017, TNS was selected as the case
employing robust strategies for data validation is key. To for comparisons over time and a qualitative case study was
make the most of our case, we have used a number of strate- designed to this end (cf. Alvesson and Deetz 2000).
gies inspired by the methodology work by a range authors When analyzing the previous studies (in which TNS was
like Lincoln and Guba (1985), Kirk and Miller (1986), present) in relation to hybrid organizing, we found it rea-
Eisenhardt (1989), Otley and Berry (1994), Alvesson and sonable to assume that TNS could somehow have made use
Sköldberg (1994), Maxwell (1996), Johnson (1997), Alves- of its hybridity to help initiate and shape a new path in the
son and Deetz (2000), Davies and Harré (2001), Stebbins emerging field. However, informed by theory on path gen-
(2001) and Rehn (2006). Noting that the advice offered is eration (Djelic and Quack 2007), it is unlikely that new paths
rather similar across these authors’ works, and respecting are created by a single entrepreneur (cf. Hwang and Pow-
the limited space available here, we refer in the sections ell 2005). TNS was therefore explored as one organization
below to Johnson (1997) comprehensive list for validation nested in sets of other organizations and parallel processes,
as a useful and illlustrative summary of what validation of all engaged in contributing to an ethical and environmental
qualitative analyses generally means and has meant for our turn in Sweden.
work in practice.

Case Selection Methods and Materials

The selection of the case to be studied builds on insights Contact with TNS was established in December 2012 and
from previous research on the development of the environ- the main data collection began in the spring of 2013. In
mental movement (Boström 2001) and the field of sustain- gathering the data, we used a combination of methodologi-
ability services in Sweden (Windell 2006; Frostenson 2010; cal techniques (Schatzman and Strauss 1973), aiming for
Alexius et al. 2017). As suggested by Eisenhardt (1989), a thick description (Geertz 1973) of the evolution of the
when selecting the case organization, we aimed for a theo- organization and its potential role in processes of path gen-
retically useful case that could extend the theory (of path eration. This involved extensive document studies of avail-
generation) by filling a conceptual category (the role of able internal and external documentation of the history of
hybrid organizations). TNS, such as internal TNS written material (reports and
Considering the findings of earlier and broader field stud- website data, and documentation published by the founder
ies performed in the Scandinavian context (cf. Strand et al. throughout the years, and Robèrt 1992, 1995, 2002, 2017)

13

Content courtesy of Springer Nature, terms of use apply. Rights reserved.

552 S. Alexius, S. Furusten

as well as earlier, external research that mentioned TNS written documents of the history of the organization, website
(e.g., Boström 2001). This material was complemented by data, and field notes from participant observations, (b) meth-
12 approximately 90-min long semi-structured interviews ods triangulation (document studies, interviews, participant
with all but one (whom we were unable to reach) of the observations), and (c) investigator triangulation, in the sense
active TNS co-workers and decision-makers at the time of of teamwork between two authors in collecting and interpret-
the interview study (2013). Nine of the interviews are cited ing the data, and (d) theory triangulation, where we have
in this paper and thus listed in the references at the end of used multiple theories and perspectives to help interpret and
the paper. Half of the 12 interviewees had been with TNS explain the data (i.e., mainly theory on path generation and
since the early days, around 1990 (while the others joined hybrid organizing).
later on). In terms of data validation strategies, access to As all but one of the interviews were conducted in Swed-
both interviewees and other sources of verbatim accounts ish, relevant sections of these interviews have been trans-
(observations of meetings, the founder’s own books) means lated into English by the authors. None of the informants
that the case narrative to a large extent is based on low infer- requested anonymity, and all gave their oral, recorded con-
ence descriptors, i.e., verbatim accounts of the informants’ sent to use the interview data in academic publications. A
own views (Johnson 1997). Historical documents have been few key informants asked for and were given the opportunity
used as a further sounding board, helping us to make con- to read and comment on earlier drafts of the paper. These
textualized interpretations of the contemporary interview interactions resulted in a small number of minor revisions,
material. In addition, to capture the contemporary culture mainly the addition of details or clarification of emic con-
and operations of TNS at the time of study, we observed two cepts used by the practitioners. This participant feedback
internal staff meetings and a 2-day sustainability course with represents another validity-promoting strategy to verify
clients given by TNS in its Stockholm office. interpretations and extended insight (Johnson 1997). In addi-
tion, it goes without saying that the analysis has benefited
Data Analysis from peer review, where tentative analyses have been pre-
sented and discussed in a number of research seminars and
The documents, the field notes, and the verbatim transcrip- international conferences since the project began in 2013.
tions totaling approximately 25 h of interview time along Throughout the research process, the authors have aimed for
with our own reflections noted after each interview session, reflexivity in the form of critical self-reflection on our poten-
were analyzed in several rounds. The data was coded in an tial biases and predispositions, where having two researchers
abductive mode (Alvesson and Sköldberg 1994; Rehn 2006) gather and analyze the data adds an extra dimension (Otley
using a general topic guide that focused on gaining a better and Berry 1994). Employing these kinds of validating strate-
understanding of TNS’s role as a hybrid organization, with gies in data generation and analysis has been argued to push
particular concentration on its potential role in path genera- the exploratory research towards both methodological and
tion and the establishment of the Swedish sustainability field theoretical rigor (Stebbins 2001; Eisenhardt 1989).
over time. Taking advantage of access to retrospective data that
Following a first round of coding, the data was recoded to spans over a long time period, which offers the possibility of
ensure that all relevant instances of the interview text were within-case analyses and comparisons over time instead of
retrievable. Since this project is a collaboration between two between-case comparisons and analysis (Eisenhardt 1989),
authors, all coding and analyses were first conducted indi- we aimed for a relevant periodization. To this end, we first
vidually by the two authors, after which another round of mapped the different activities of TNS chronologically to
re-coding and analysis was conducted jointly. In an interpre- capture how the organization had interacted with its insti-
tative mode, a cross-reading of all of the interview transcrip- tutional environment and stakeholders. The long-term com-
tions and field notes was performed by the authors to tease mitment by the group of key informants who had stayed with
out analytical patterns and relevant themes. Allowing time TNS since its early days offered the valuable opportunity
between the rounds of analysis provided an opportunity for of interviewee retrospection to complement the documenta-
further reflection, enabling the discovery of new meaningful tion from different time periods. As mentioned above, other
patterns (Davies and Harré 2001). Although all of the data interviewees were relatively recently employed and thereby
collected has been considered in our coding and analyses, represented a category that lacks first-hand experience of
only a few sources are referred to in the narrative of the the organizational legacy. Comparing the accounts of long-
case, to illustrate patterns interpreted as representative for term employees with those of the more recently employed,
the material as a whole. proved fruitful to pinpoint differing views on the hybrid’s
Translating this into triangulation strategies to validate identity as well as differences in ideas on its ideal future
our data (Johnson 1997), we thus used (a) data triangula- development (e.g., as concerns the managerialization of
tion where we analyzed verbatim transcripts of interviews, environmentalism). Over all, gathering and comparing data

13

Content courtesy of Springer Nature, terms of use apply. Rights reserved.

Enabling Sustainable Transformation: Hybrid Organizations in Early Phases of Path Generation 553

from different periods of the full lifecycle of TNS, from its scientists. As Robèrt recalls in his autobiographical book, he
foundation in 1988 until its bankruptcy in 2017, enabled us took the feedback into account without delving too deeply
to compare how TNS management and staff related differ- into the details (Robèrt 2002, p. 28):
ently to the institutional environment in different phases of
I sent out the manuscript, took heed of comments,
its development. As a next step, we “enfolded literature”
wrote additional drafts, and expanded the circle of sci-
(Eisenhardt 1989), both the results of previous field studies
entists to include physicists, medical doctors, chemists,
of the Swedish context and general theory of path generation
biologists, and so on. As we proceeded with the ardu-
and hybrid organization—to build internal validity and raise
ous work of correcting, altering, and proofreading the
the theoretical level of our analysis. This resulted in a case
manuscript, more and more participants were drawn
narrative that is organized chronologically so as to provide
in—people from the major educational associations,
insights on the different phases of path generation (assimila-
a growing number of scientists, and researchers and
tion, coalescence, cooptation and recombination) as defined
teachers from schools and universities.
by Bothello and Salles-Djelic (2018).
In December 1988, the scientifically based, cross-discipli-
The Case of The Natural Step Sweden (TNS) nary collaboration manifested in a final framework describ-
ing “fundamental conditions for life.” As evidence of the
Bridging Actors for Assimilation: Scientization process, Robèrt (2002) notes that 21 drafts were circulated
of Environmental Debates in the Late 1980s and input was gained from over 50 scientists—mainly ecolo-
gists, chemists, physicists and medical doctors. The ethi-
In Sweden in the 1980s, a range of actors addressed the cal motivation throughout the process had been to bring to
need for more serious consideration of environmental issues the fore the fundamental issues where consensus between
(Boström 2001). The public debate, however, was frag- scientific disciplines and between different interest groups
mented and conflict-ridden. There was confusion about what in society could be found, and to do so in a “neutral way
was meant by a “sustainable society” and how it could pos- that doesn’t push your personal spiritual beliefs onto others”
sibly be realized. There was political polarization between (Robèrt 2002, p. 16).
activists claiming to be “world saviors” but who proved The resulting manifesto was named The Natural Step
unable to stand united, and corporations who were caught Framework and was organized according to four system
off-guard and responded by defending their traditional conditions: (1) Change the energy systems; (2) Phase out
“money makers” position (Windell 2006). In this sensitive the use of chemicals and metals that cannot be broken down;
political climate, politicians were reluctant to take action, (3) Manage and support ecosystems—fresh water, forests,
afraid of becoming trapped between the two opposing camps meadows and fisheries—in a sustainable life-supporting
(Boström 2001). manner; (4) Work to heal the battered and broken cultures
Robèrt, the founder of TNS, was ethically motivated to around the world (Robèrt 2002). The four principles were
mission the need to cooperate to sustain life on Earth, based used to order and systematize the detailed yet fragmented
on his experience of how families, care providers and the knowledge of different experts, and gather all the relevant
community came together to attentively and efficiently help knowledge into a single comprehensive framework (Inter-
children with cancer. Inspired by the Brundtland Report of view 1).
1987 and the polarized debate on the state of the environ- In The Natural Step Story, it is evident that Robèrt sym-
ment in the world at the time, Robèrt brought his personal pathized with the idea of catalyzing and reinforcing global
experiences from bridging different categories of actors and environmental concerns by way of scientization. In this
blending their expertise for the cause of treating sick chil- book (Robèrt 2002) he describes how the strategy used was
dren, to the cause of sustainability (Interview 1). to combine a cross-disciplinary scientific approach with a
To do so, he initiated multi-disciplinary collaborations “missionary” approach. As noted by Boström (2001) in his
with the ethical objective of writing a joint scientific con- analysis of the different actors and sub-paths of the Swedish
sensus-based manifesto on fundamental conditions needed environmental movement at the time, many actors referred to
for a sustainable life. Robèrt first presented his idea to close science in their ambitions to generate a path to sustainability,
colleagues in oncology science, and later introduced it to a but TNS, perhaps thanks to its outspoken missionary ambi-
group of Swedish experts outside his discipline as well as tion, was outstanding in its reach. As Boström concludes
a number of peers in other scientific disciplines. His idea (2001, p. 76):
was to mail the resulting manifesto to all Swedish house-
A common method of influence for environmental
holds once a scientific cross-disciplinary consensus had been
organizations is to pursue specific issues/campaigns.
established. Work began and draft versions of the mani-
This may be the decommissioning of nuclear power
festo were actively discussed in the network of experts and

13

Content courtesy of Springer Nature, terms of use apply. Rights reserved.

554 S. Alexius, S. Furusten

stations or the use of chlorine or to mission for sustain- and I…” and, to his surprise, he received an invitation to
able forestry. TNS pursues actors, rather than specific meet with the King and Queen at the royal palace to present
issues. It all comes down to conveying knowledge and the project (Interview 1).
meaning to the environmental work of different actors, All in all, driven by a strong ethical, “world savior” ambi-
and to co-ordinating and uniting actors. tion (Windell 2006), TNS managed to reach out to represent-
atives from a wide range of organizations, to either engage
In an ambition to reach out beyond the scientific communi-
them in a network or possibly enroll them as funders. In
ties, Robèrt vividly describes (in books and retrospective
the case of the latter, a diverse set of organizations were
interviews) how he approached a number of Swedish celeb-
approached, including private corporations like IKEA and
rities—musicians, media managers, politicians, and eventu-
the state-owned companies of Nordbanken (since privat-
ally also the King of Sweden, Carl XVI Gustaf, to spread
ized and now Nordea Bank) and SJ (Swedish Railways),
the word about the scientific framework about to be finalized
as well as civil-society organizations such as the Swed-
and to ask them to join and support the movement (Inter-
ish Cancer Foundation, the Lions Club and the Church of
view 1; Robèrt 2002; Boström 2001). These “missionary”
Sweden, as well as other hybrid organizations such as the
ambitions were widely welcomed, and the notion of The
mutually owned insurance company Folksam and coopera-
Natural Step soon expanded beyond Robèrt as an individual
tively owned retailer KF (Sweden’s then-largest supermarket
and TNS’s founder, and beyond the manifesto framework
chain), along with three labor unions—Metall, Fabriks and
document itself.
TCO (Interview 1). The board chairs of these organizations
The consensus approach was important in attracting
were invited to join an ad hoc sponsoring group and to sit
stakeholders, as was the strive for dialogue and bridging of
on the prospective board of the new organization envisaged
“unnecessary polarity.” TNS’s internal documents and bro-
to take on the role of coordinating the missionary project.
chures from the time describes how it wanted to be a part-
While the response was supportive and invigorating,
ner rather than a rival, and to guide rather than to confront
no-one wanted to be the first to promise to help cover the
actors. This approach, together with the holistic ethical view,
substantial cost (of 40 million SEK—about 4 million EUR)
made it easier to create a sense of consensus on fundamental
of the planned mail-out and related projects (Interview 1).
issues, which in turn enabled further communication and
But Robèrt pressed on, calling all of the potential spon-
translation. As Boström put it (2001, pp. 87–88):
sors to a general meeting to be held in November 1988 at
If everyone – politicians, public servants, CEOs, pro- Arlanda Airport. He did not ask for confirmation, however,
fessionals and consumers – all depart from the same but simply wrote a letter of gratitude, thanking them all for
framework, this creates conditions for people with dif- agreeing to attend. As it turned out, everyone invited actu-
ferent competencies to have a more efficient dialogue ally did show up and it was finally decided that the soon
with one another. to-be-founded foundation, The Natural Step, would receive
funding (Interview 1).1 With funding secured, in April 1989,
TNS came to be seen as a “node” to which different actors
Robèrt was able to present the foundation and its framework
both could and wanted to connect. TNS soon experienced a
in a SVT Channel 1 broadcast, after which the initiative
range of different types of actors willing to let their differ-
received congratulations and public support from several
ent sub-paths cross at the new national node for sustainable
celebrities and other notable sources, including King Carl
cooperation, TNS. For example, in September 1988, while
XVI Gustaf, then-UN Secretary-General Javier Pèrez de
the network of scientists had still not ratified the scientific
Cuèllar, and famed Swedish author Astrid Lindgren. One
manifesto, Robèrt pitched the idea of the framework to Swe-
week later, the booklet and audiocassette were mailed out
den’s public television broadcaster (SVT). His idea was to
to all schools and households in Sweden (Interview 1; Inter-
celebrate the launch of the manifesto with a national TV
view 9).
broadcast including famous music artists. The head of SVT
Thus, it was at this point in time that TNS and all it
Channel 1 first laughed at the idea (Interview 1) but eventu-
stood for became legitimized as an innovative blend of
ally agreed, under the condition that Robèrt could find the
the logics of science and missionary work. It was seen as
funding for his endeavor. He then approached the Ministry
an innovation also for its outspoken ambition to bridge
of Education, asking if they would be interested in a booklet
and audiocassette of the scientifically agreed-upon knowl-
edge to be mailed free of charge to all the schools. They 1
The “foundation,” The Natural Step International, is a registered
were, again provided that Robèrt was able to find the neces- non-profit association in Sweden made up of organizations that share
sary funding. He also went to the King of Sweden’s personal TNSi values and have signed a license agreement permitting them to
assistant with the same offer noting the involvement of “the use the TNS brand and related materials. http://www.thena​tural​step.
government and Channel 1 and all these artists and scientists org/www/wp-conte​nt/uploa​ds/2017/10/SIGNE​D_TNSiA​r ticl​esofA​
ssoci​ation​_Final​_17052​4.pdf.

13

Content courtesy of Springer Nature, terms of use apply. Rights reserved.

Enabling Sustainable Transformation: Hybrid Organizations in Early Phases of Path Generation 555

policy-making, activism, business and science, a contrast TNS also benefited from its ability to communicate in a mul-
to “normal” organizational life where individuals spend tivocal way. As expressed by Boström (2001, p. 89):
much of their time in separate “silos,” at times criticiz-
The Framework is the connection but the cognitive
ing one another for making the wrong priorities based on
work of TNS is more nuanced. In the interaction with
their respective institutional logics (Boström 2001; Win-
municipalities and larger corporations, specific “frame
dell 2006).
bridges” were used to enable an increased response.
The node for connecting stakeholders and their different
sub-paths into a common broader path had been created and Thus, initially, there was a focus in TNS’s activities of
legitimized in a very short time (9 months), and the spirit assimilating actors from different separated paths in order
was entrepreneurial, innovative and professional, a blend to initiate interactions among them and the paths they came
that was also easy to support because it was not seen as a from. Retrospectively, and as shown above, it has been
threat to any of the supporting actors. TNS was something noted that TNS was successful in its attempts (Boström
new, a hybrid that embraced a bit of everything and had 2001; Windell 2006; Frostenson 2010; Alexius et al. 2017),
the ambition of helping to make the world a better place. which means that TNS contributed significantly to establish
As an idea and initiative, TNS was attractive to many, and a new path in the Swedish environmental discourse, about
around 1990 an organization was established to help fulfill the same time that “the sustainable development regime”
its mission. emerged transnationally (Bothello and Salles-Djelic 2018).
It is fair to define the early 1990s as the heydays of The Consequently, in a short period of time, The Natural Step
Natural Step. It was more or less a name on everyone’s lips had managed to facilitate a space for assimilation of different
then, at least in Swedish industry, in the media landscape interests and earlier separated actors.
and in the political debate (Boström 2001). At that time,
when TNS started, it had a first-mover advantage and was Coalescence: Conceptualizing and Organizing
able to connect actors and their sub-paths in the sparsely for Further Missioning
populated emerging field of sustainability in Sweden. The
environmental movement was already operating, and green After the initial phase of constituting TNS as a space and
parties had become established in a number of countries, node for assimilation, managers of large respected corpora-
but the dominating view of industry was that it was popu- tions like IKEA and Electrolux began to call the small TNS
lated by capitalists with nothing but profit on their minds office in Stockholm, often wanting to meet Robèrt in person
(Windell 2006). In this context, TNS’s politically neutral to learn more about the peculiar new hybrid approach (Inter-
ambition to bridge science and society was seen by many in view 1). TNS responded to these calls and gradually began
the business world as novel—an inspiring and much-needed to take on assignments instead of acting mainly proactively
addition to the emerging field. As recalled by the TNS co- by providing knowledge and information. This also meant
workers recruited in the early days, the reference to “neutral” that, as an organization, it had to recruit new people to meet
science helped to initiate many constructive conversations the demand of organizations that wanted to hire TNS to help
(Interview 7): them implement the framework. In a way, the new recruits
were hired to serve as disciples to the founder and to help
It was completely value-neutral. We didn’t attempt to
to share and spread the established framework to as many
taint anyone with our values, and that offer of value
organizations and policy-makers as possible. At the same
neutrality seemed to open things up and motivate those
time, TNS also had to handle the increased demand for ser-
concerned to start questioning their own views and
vices (Interviews 3, 5–8).
values.
As time progressed, TNS incrementally developed and
Established environmental movement activists, however, delivered services designed to contribute to orienting deci-
saw TNS as not having enough distance to the “evil villains” sion-makers from a wide range of organizations (public
of the business community, but, as Boström (2001) notes, and private companies, municipalities, NGOs, and others)
the comparative closeness in TNS’s approach to different to the sustainability issue and its translation into various
stakeholders enabled it to actually reach and involve them institutional elements such as written materials, training
in fruitful dialogue. The common way for TNS to describe programs and advice (Furusten 2013). In some ways, this
its position was to say that: “We are your critical friend— helped to shape the organizations into potential buyers
not only critical, but first and foremost friend” (Interview with a demand for products and services not yet offered by
1 and Participant Observation of 2-day client course). And anyone. Because it had now become possible to envision a
this applied not only to industry. As a hybrid, TNS’s ability future market for such products and services, aimed at help-
to persuade a range of different actors to join the widening ing to address and solve sustainability issues, more potential
common path did not only stem from its perceived neutrality. buyers turned to TNS, looking to purchase services beyond

13

Content courtesy of Springer Nature, terms of use apply. Rights reserved.

556 S. Alexius, S. Furusten

the scientific framework and enlightenment workshops first both the left and the right that his beloved framework was
offered by the organization (Robèrt 1992, 1995, 2002; Inter- in fact not scientifically solid nor neutral (Boström 2001),
view 1; Boström 2001). Still, the advisors at TNS struggled Robèrt took every opportunity to defend it. In seminars,
to combine their roles of scientific missionary and sellers, pamphlets, books and academic papers. The meta-study by
and began, somewhat reluctantly, to charge clients market Robert et al. (2002) is an interesting example of this defense
prices for their services (Interviews 1, 3, 5–8). This, in turn, strategy and resistance as it claims that all the novel sustain-
meant that the funding model of the organization gradu- ability applications flooding the market at the time should be
ally changed. From being financed in the first years of the seen as mere translations of the TNS framework.
1990s mainly through the foundation, donations and sponsor Thus, starting in the early 1990s when the phase of
arrangements, toward the end of the decade TNS became a assimilation of actors representing different interests through
mainly fees-based organization (Interview 9). This develop- the establishment of a platform, or a space for interaction
ment also came about as a response to a changing interest among those actors and the paths they represented, a phase
from TNS’s initial donators. Having already helped to fund of coalescence had begun, where general frameworks of a
TNS’s start-up, they were anxious about committing to a need for an environmental turn in society were replaced by
second round of donations to support an unbiased knowl- concepts such as sustainability and corporate responsibil-
edge development and information distribution. This shift ity. TNS was early in using and promoting the sustainabil-
in income sources for TNS may also be seen as a sign of an ity concept. However, it also held onto its ambition to be a
ongoing market contraction. Besides TNS, a range of sell- forum for assimilation, which led to it not fully giving in
ers had gathered to meet the growing demand for sustain- to coalescence. In retrospect, it is clear that TNS played a
ability services (Windell 2006; Frostenson 2010; Alexius considerable role in both the assimilation of actors and the
et al. 2017). coalescence for sustainability until the mid-1990s. However,
This development highlights the importance of the financ- when the field started to get crowded and more complemen-
ing of hybrid organizations. As long as the hybrid ambitions tary but also competing inspirational nodes and frameworks
were funded by donations, financing was not an issue of saw the light of day (Windell 2006; Alexius et al. 2017), the
conflict. The inflow of resources could be used to realize the missionary hybrid became uneasy.
initial mission. However, along with a decrease in organiza-
tions’ will to donate to the cause, doing business gradually Cooptation: Managerialization and Mission Drift
replaced doing missionary work as the dominating logic for
organizing activities in TNS, although the scientific logic of By the year 2000, the field of sustainability service provid-
neutrality remained a selling point. In the rhetoric, however, ers had become crowded (Interview 5). Compared to TNS’s
“science” was still the basis for the services sold. But as holistic solutions, those of its new competitors were more
recalled by the TNS advisors, fewer clients asked for science hands-on, though TNS still aspired to offer a more concep-
(Interview 3, 5–8). tual and academically based system (Alexius et al. 2017). As
Consequently, from about the mid-1990s, it is fair to stated by the new secretary-general, recruited in 2012 (Inter-
describe the supply and demand of sustainability-related view 2): “The academic connection is both our strength
actions as an emerging field where sets of actors produce and and our weakness.” One of the senior advisors describes
demand recognizable services (DiMaggio and Powell 1983). a change in how the clients responded to the framework—
This brought about a turn and a new balance in the hybridity from seeing it as a respected and inspiring basis for interac-
of TNS, from having mainly represented science and mis- tion to almost a disappointment, spawning comments like:
sionary civic logics, the mission gradually drifted towards “So you’re still clinging to the same old framework are you?
a market logic as TNS’s consultancy role gradually became Isn’t it time to move on?” (Interview 3).
more important in its daily practice (Interviews 1, 3, 5–8). In the late 1990s and onward, determining how to man-
To handle the emerging field, a limited corporation called age the organization’s hybrid identity became an internal
Det Naturliga Steget AB (TNS Limited) was founded in struggle. One significant example was the launch, in May
1997. The idea was to separate the commercial side of TNS 2008, of a new network for applied research, the Alliance
from the scientific and missionary side, in an aim to de- for Strategic Sustainable Development (ASSD). ASSD was
hybridize and adapt to the developing structure in the field established by TNS, Lund University and Blekinge Insti-
where different categories of actors, such as consultancies, tute of Technology, and was initially funded by five Swedish
research units and more activist organizations, could now be research agencies—the Swedish Environmental Protection
recognized (Interview 9). Unhappy with this mission drift, Agency, the Swedish Energy Agency, Formas, VINNOVA
founder Robèrt toned down his role as a TNS manager and and NUTEK. It was based on the TNS scientific framework
took a part-time position as a professor of sustainability at and, in some respects, it represented an attempted restart
Blekinge Institute of Technology. Faced with criticism from of the scientific dimension. But at this point the field of

13

Content courtesy of Springer Nature, terms of use apply. Rights reserved.

Enabling Sustainable Transformation: Hybrid Organizations in Early Phases of Path Generation 557

sustainability had seen the birth of a number of research consultancy” (Interview 2, Interview 4, Observation of inter-
initiatives, such as the influential Stockholm Resilience Cen- nal staff meetings).
tre,2 and TNS was no longer unique in its scientific profile.
The secretary-general of TNS Limited later described this Recombination: Bankruptcy of the Consultancy
development as TNS having “outsourced research” to other and Internationalization of the Hybrid
organizations (Interview 2). In the 2010s, external pressure
to adapt its “product and service portfolio” to the field norm Although TNS’s management team had struggled from
intensified internal discussion about what road to take, a dis- about 2015 to embrace managerialization, even given the
cussion in which the commercial consultancy logic gradu- re-orientation towards a management consultancy, its finan-
ally won out (Interview 6, Observation of internal staff meet- cial situation was uncertain and the internal conflicts about
ings at TNS in 2013). whether or not to sustain the organization’s hybrid iden-
Still, the new management struggled to find ways to sim- tity continued. These internal conflicts eventually led the
plify the communication of what TNS had to offer, without founder, Karl-Henrik Robèrt, to leave TNS. Robèrt’s exit
completely losing sight of its holistic ethical outlook and should be seen as a protest against recent phases of re-con-
detailed scientific basis (Interview 4). In the mid-2010s, ceptualization and re-labeling in the field and in “his own”
when asked how TNS presents what it does, one of the sen- organization, developments he saw little value in. Ever since
ior advisors interviewed replied: the path of sustainability had been co-opted (transnationally
as well as nationally) by business interests and manageriali-
[Long silence] It depends on how… erhm… how inter-
zation, Robèrt had missioned the need for a holistic outlook,
ested they really are. Because to understand what I
the value of staying true to and going back to the fundamen-
do, kind of requires lengthy discussions. So, in that
tal conditions for life and not let oneself get all excited and
situation, I have to decide whether I feel like having
caught up in the new talk and incremental development of
that discussion, and if I don’t, I simply say that I’m
sustainability-related tools and services, most of which he
a consultant, or perhaps a sustainability consultant…
saw little value in (Interview 1).
If I said that I work in an idea-based organization of
The meta-article written with nine other scientists in 2002
advisors that accelerate the transition towards sustain-
(Robèrt et al. 2002) is an example of this tireless missioning,
ability, and that we are “critical friends,” then no-one
wherein Robèrt and his co-authors defended the concept of
would really understand me. (Interview 5).
“strategic development” and argued for apparent synergies
And she was not alone in this observation. A similar reflec- of the various tools available in the developing market. To
tion was made by one of her colleagues, also a senior advisor them, these tools were mere variations on the same theme.
(Interview 7): However, as Robèrt proved genuinely unwilling to use the
“new market talk on sustainability and resilience” and chose
We take pride in being part of an organization where
to stay true to the “same old” scientific framework (Inter-
surplus is used to develop our purposeful operations…
view 1), fewer people listened and even fewer seemed to
But if someone asks me what I do for a living, I say:
understand his point, which caused frustration in the TNS
“I’m a management consultant.”
board and management (Interviews 1, 2, 4, 9). What had
TNS’s newly employed board and management struggled started as a successful external ambition to unite and inspire
to put their trust in policies like a new salary policy, and a range of different interests in society had gradually become
in evaluation. Managerialization had gained a substantial an internal identity struggle within the hybrid itself, which
impact on the hybrid. This increased the internal conflicts the organization had failed to manage and solve.
about how to maintain a hybrid identity, however, since In the spring of 2017, shortly after Robèrt’s exit, TNS
emphasizing commercial efficiency and professionalism in filed for bankruptcy (Robèrt 2017). However, reflecting the
consulting meant a step further along the trajectory towards internal identify struggles, in October of the same year a
the commercial logic of the consultancy. Nevertheless, the new benefit corporation (B Corp) called Sustain in Time
decision made was to adopt and implement the structures was founded by former TNS co-workers and was taken up as
of a “proper” professional service firm, to find ways to Sweden’s new member in the TNS International foundation
define and transform TNS into a “normal,” “comprehensive (TNSi), comprising companies from eleven other countries
from around the globe.3 Although initially very positive to

3
Although not in focus empirically in this paper, TNSi is a global
2
A Swedish think-tank founded in 2007 that promoted social- network inspired by Robèrt and TNS Sweden. Formally it is an
ecological resilience policy-making to state and intergovernmental association composed of one member from each of the 11 countries
organizations (see Walker and Cooper 2011; Bothello and Salles- (Sweden, Finland, Israel, Italy, China, New Zealand, Canada, Portu-
Djelic 2018). gal, the Netherlands, Switzerland and Germany) together aiming to

13

Content courtesy of Springer Nature, terms of use apply. Rights reserved.

558 S. Alexius, S. Furusten

the framework spreading around the globe (when TNS had path stabilized, the hybrid organization had played out its
been contacted by foreign consultancies across the globe and role. Or, to put it differently, perhaps its mission as facilitator
TNS International (TNSi) had been set up as a global associ- had been completed?
ation in the 1990s), Robèrt now disagreed with the direction
TNSi’s new policy was taking. The changes decided on hap-
pened to correspond with the market direction taken by TNS Discussion
Sweden Limited and later by its successor Sustain in Time.
Only a few days after the new status of Sustain in Time was Our overarching theoretical interest in this paper concerns
announced, came the announcement on the TNSi website the role of different organizational forms in processes of
that Robèrt had decided to withdraw all engagements and to societal change and, more specifically, the role of hybrid
cancel all associations also with TNS International (http:// organizations in processes of sustainable transformation.
www.thena​tural​step.org/news/). As acknowledged in the literature review earlier in the
Thus, along with the decisions to tone down its activ- paper, societal change should not be seen as a linear, path-
ist missionary role and scientific profile, and to tone up its dependent evolution dominated by particular institutional
consulting identity, TNS had suffered from mission drift and entrepreneurs with a clear agency. Rather, theory grounded
lost track of both its holistic world savior mission and its rel- in empirical evidence has demonstrated that it is more rea-
evance as a path-generating hybrid. This was due in part to, sonable to understand the generation of new paths as a con-
following de-hybridizing, TNS was no longer a hybrid in the sequence of ongoing construction work involving different
same sense. Instead of remaining a significant contributing actors over longer periods of time.
actor in changing trajectories for environmentalism, TNS’s Bothello and Salles-Djelic (2018) make a contribu-
successor, the new corporate initiative Sustain in Time, had tion regarding the generation of paths at the transnational
chosen to adjust to the expectations of the field and its dis- macro-level. However, further theorizing is necessary in
course by stepping onto the now beaten path, which had order to understand how such transnationally institutional-
stabilized substantially in recent years. While his former ized conceptualizations of environmentalism are translated
co-workers proved more pragmatically willing to adjust to into something tangible and meaningful at the national and
the new lingo of the increasingly marketized path, this was local levels. In order for our theories to better account for
a point of no return, a matter of personal ethical principle how macro, meso- and micro-development are related, as
for Robèrt (Interview 1). is repeatedly called for, more local case studies are needed,
When TNS was first established, there was no sustain- including the micro-level, to explain what roles differ-
ability field in Sweden (Windell 2006; Frostenson 2010; ent organizations can play in generating paths for societal
Boström 2001; Alexius et al. 2017). Less than a decade transformation.
later, the common holistic and comprehensive path of sus- This paper responds to this call with a local case study on
tainability, which TNS had helped to generate, had taken how a hybrid organization can enable societal transforma-
a different trajectory than the one suggested by the TNS tion towards sustainability thanks to its form and position at
framework, and broadened substantially. TNS had made the crossroads of institutional logics. The three-decade life
continued efforts to maintain its position as an organizer story of TNS illustrates that hybrid organizations can play a
and influencer of the development but, as many different significant path-generating role during early stages of market
categories of actors had already moved on along the co- orientation, culture shaping and path emergence. In the fol-
opted and recombined environmental path, its ambitions to lowing, we discuss when and how hybrid organizations may
open the way for continued processes of assimilation and or may not enable the path-generating mechanisms discussed
coalescence did not stir much interest. It seemed that as the above, i.e., assimilation, coalescence, cooptation and recom-
bination (Bothello and Salles-Djelic 2018), with a summary
of this analysis shown in Table 1. Through applying Bothello
and Salles-Djelic (2018) phases to our local case, we have
identified typical actions, conditions and consequences for
the organization, as well as for the generation of a national
Footnote 3 (continued)
(in our case, Swedish) path towards CSR and sustainability.
“accelerate the transition towards a truly sustainable global society”
and “actively contribute to the development of The Natural Step as Our narrative starts at a time that Bothello and Salles-Djelic
a global organization.” (thenaturalstep.org, retrieved 20 June 2018.) (2018) define as the phase of cooptation in the transnational
Although the TNSi association has existed for over 25 years at the development. However, seen from the perspective of our
time of writing, it has not managed to scale up and grow enough to local case, when the transnationally conceptualized agenda
have a substantial impact on the transnational discourse and path
development. The members are mainly very small consultancies and of environmentalism is translated to national levels, a new
most work in the local/national market.

13

Content courtesy of Springer Nature, terms of use apply. Rights reserved.

Enabling Sustainable Transformation: Hybrid Organizations in Early Phases of Path Generation 559

Table 1  Hybrid organizations in local processes of path generation

Hybrids in the assimilation Hybrids in the coalescence Hybrids in the cooptation Hybrids in the recombination
phase phase phase phase

Actions Connecting sub-paths Nurturing neutrality De-hybridizing Organizational survival

Conditions Transnational trajectory Institutional pluralism and Multivocal and institutional Institutional consolidation
established support from actors repre- pluralist positions are Reduced understanding and
senting different logics fragile and only temporally demand for hybridity
legitimate
Consequences
Organizational Multivocal position Neutral node Mission drift Synchronized identity
Path generation Opportunity space for orien- Dialogue Contraction and diffusion Path re-orientation
tation

round of path generation starts – one that may also be struc- cause, TNS earned trust through its multivocal skills and
tured into these analytical phases. position at the crossroads that likely helped open the way
for continued scientific dialogue and interaction. This in turn
Connecting Scientific Sub‑Paths: Hybrid made it attractive for other scholars to become loosely con-
Organizations in the Phase of Assimilation nected to the TNS network, which also opened a broader
opportunity space for TNS to become a central node for
In the early days, the hybrid in our study enabled assimila- coalescence of other paths and actors.
tion in the environmental field by offering a space (Holt and
Littlewood 2015) for orientation and interaction between Nurturing a Neutral Node for Translation: Hybrid
earlier separated sub-paths. Thanks to its multivocal abili- Organizations in the Phase of Coalescence
ties and perceived neutrality at the crossroads of societal
logics, the hybrid organization gained the trust of both rep- Once connection between sub-paths has been established,
resentatives for scientific disciplines and those with practi- interaction triggers mechanisms of coalescence. The hybrid
cally and politically oriented sub-paths. This, in turn allowed in our study provided actions such as training programs,
the hybrid to contribute to resolving deadlocks and bridg- written materials and advice in order to communicate and
ing value conflicts with authority. In practical terms, the share its framework with as many as possible. Such activities
hybrid offered former rivals a neutral space where they could can be seen as attempts to nurture the already-established
meet and orient towards one another and the novel topic of connections in order to trigger further interaction and con-
sustainability. structive path-breaking dialogues.
The established transnational trajectory towards sustain- Since the hybrid is not formed according to any single
ability in the wake of the Brundtland Report (1987) was institutional logic (Thornton et al. 2012; Skelcher and Rath-
an important condition. Yet, without the initial spaces for geb Smith 2015), it does not sort under a single scientific
orientation offered by the hybrid, the deadlock may very discipline, nor solely under one of the institutional logics
well have continued. Hence, we suggest that the active pres- for research institutes in academia, activist organizations in
ence of hybrids may not only enable but also affect the pace civil society, or consultancies in the business sector. Rather,
and timing of local path generation. Although studies of the hybrid represents a little of all of these logics, but at
path generation acknowledge the impact of entrepreneurs, the same time – and this is crucial—may be perceived as
the argument is that it is the sum of all attempts made by understanding all but representing none of them. Thus, a
many different actors that create new trajectories (Djelic hybrid organization’s perceived status as a neutral node in
and Quack 2007). Still, in our case, for the transnational a polarized field makes it attractive for a range of different
trajectory to materialize at the national level, the entrepre- stakeholders to connect to, as well as to seek out a forum
neurship of the TNS founder cannot be overlooked. Due to for interaction. And they are able to do so with little risk
personal properties such as being a recognized scholar and a of being criticized, since their engagement with the hybrid
dedicated world savior with an outspoken ethical approach, is something that takes place outside these stakeholders’
the founder’s aim was to connect the different scientific sub- respective paths and professional communities and hence
paths for the sake of a higher ethical cause rather than to does not interfere with what is comme il faut there. Thus,
make money or spend time in the limelight (cf. Greenwood the hybridity of an organization grants it a neutral status that
and Freeman 2017). When succeeding to connect and unite allows it to enable coalescence of different paths in science,
scholars from different scientific paths toward a common business, politics and activism (in this case, for example

13

Content courtesy of Springer Nature, terms of use apply. Rights reserved.

560 S. Alexius, S. Furusten

environmentally engaged artists). Thus, in line with what but in practice, it had drifted– from building and sustaining
Hockerts (2015) argues, hybrids are often open and eager a hybrid organization to spread the word (the mission), to
to sharing lessons and encouraging others, and by doing so the aim of organizational survival of TNS itself. The hybrid
enable coalescence to take place between actors from differ- responded to the changed institutional conditions by gradu-
ent “normally” separated paths. ally de-hybridizing, synchronizing and adjusting its identity
towards the logic of a more standardized professional service
De‑Hybridizing Struggles: Hybrid Organizations firm. Although more research is due, this suggests that, as
in Phases of Cooptation and Recombination a path stabilizes in cooptation and re-combination phases,
it is likely that hybrid organizations have played out their
Although hybridity may enforce path emergence in pro- role as path-creating enablers of sustainable transformation.
cesses of assimilation and coalescence, a hybrid’s multivocal Summing up, our analysis suggests that in the phases
path-generating position can be both fragile and temporary of cooptation and recombination, hybrids are no longer as
(cf. Santos et al. 2015). When fields mature and become understood and hence, the space for them to play any sig-
professionalized and the emerging market contracts (which nificant role in further path generation shrinks. One strategic
began to happen in the Swedish sustainability context start- option aimed to sustain or regain momentum as a hybrid
ing in the mid-1990s), the legitimate opportunity space for path generator could be for the organization to change insti-
hybrid organizations in path generation gradually erodes. tutional environments (Alexius 2007), for example by engag-
When our studied hybrid was established, there was no sus- ing in another path yet to be developed, or by taking its
tainability field in Sweden (Windell 2006; Frostenson 2010; operations abroad, as indeed TNS attempted to do via the
Boström 2001; Alexius et al. 2017). Less than a decade later, TNSi network of consultants around the globe. Re-combi-
the common holistic and comprehensive path of sustain- nation of the own framework with frameworks developed
ability, which TNS had contributed to generate, had been in other paths could also be an option to sustain or re-con-
coopted by the paths of managerialism, neoliberalism and struct a hybrid identity. However, in the case studied, at the
the risk society. Instead of adapting to the changed condi- local national level (in this case Sweden), TNS saw no other
tions, however, TNS made continued efforts to maintain its option but to de-hybridize and struggle to compete with the
position as a facilitator and influencer of the development. many newly established sellers of sustainability concepts
However, when the path matured into a field with clearer that had emerged on the market. By doing so, the de-hybrid-
structures for different categories of actors, TNS’s earlier ized organization did take part in further transformation of
achieved legitimacy as a hybrid between science, activism society towards sustainability, but not in the catalyst role of a
and consulting, and a leading actor in all of these three insti- path generator and not with the same transformative strength
tutional spheres, was questioned. TNS faced competition in and pace. The further development of the path from this
two of its core arenas: science and consulting. It increasingly institutionally consolidated stage onwards was consequently
became perceived as a problem that the hybrid was not spe- characterized more by patterns of path dependency, where
cializing in anything; but rather did a little of everything and most actors now acted as followers on the established path,
had a generalist profile (Alexius et al. 2017). offering standard products and services.
As many different categories of actors had already moved
on along the co-opted environmental path, the hybrid’s
ambitions for re-combination with paths for sustainabil- Conclusion
ity developed elsewhere, and to open the way for contin-
ued processes of assimilation and coalescence stirred little Our findings suggest that in early phases of path generation
interest. Although TNS made several attempts to counteract hybrid organizations may play a significant role in facilitat-
this development, these attempts fell on deaf ears. As time ing processes of social transformation. In later phases such
passed, TNS’s framework was no longer seen as a fruitful as cooptation and recombination, however, and when pro-
point of departure for cross-sectoral dialogue and develop- cesses of early market formation have turned to a phase of
ment. Rather, the framework became another old product on market contraction, the hybrid is likely to have played out
the market. Consequently, the role of TNS changed from a its role as an enabling path generator.
path-generating hybrid to a somewhat exotic actor offering Our findings suggest that hybrid organizations are better
services based on what the field considered to be yesterday’s adapted than other organizational forms to facilitating con-
knowledge and models. nections between “locked-in” organizations situated in sepa-
Depending on how the management of a hybrid organiza- rated sub-paths, which are core mechanisms of assimilation.
tion responds to such changes in institutional conditions, the Hybrids may also nurture connections to further prolong
hybrid identity of the organization can either be sustained and intensify interaction and dialogue among other actors,
or change. In the TNS case, officially its mission remained, and thus trigger the mechanisms of coalescence. Positioned

13

Content courtesy of Springer Nature, terms of use apply. Rights reserved.

Enabling Sustainable Transformation: Hybrid Organizations in Early Phases of Path Generation 561

at the intersection of institutional logics, and thanks to values and contribution hybrids bring to society, not least in
their multivocality, hybrid organizations may also be better their role of path generators enabling sustainable change.
adapted than other organizational forms to becoming (and
being seen as) trusted neutral nodes. Moreover, in estab-
lished markets (beyond the contraction phase), there may be Funding The study was funded by the independent public Swedish
research council for Health, Working life and Welfare (Forte), Grant
little acceptance for hybrids with a path-creating identity. In 2010-0068 `Sustainability in action’.
this phase, path generation may still take place, but mainly in
the form of diffusion of already-achieved knowledge. OpenAccess This article is distributed under the terms of the Crea-
Generalizing from a single case is difficult, but further tive Commons Attribution 4.0 International License (http://creat​iveco​
research on the roles of different types of organizations in mmons​.org/licen​ses/by/4.0/), which permits unrestricted use, distribu-
tion, and reproduction in any medium, provided you give appropriate
path generation may actively study cases where hybrids have credit to the original author(s) and the source, provide a link to the
engaged successfully also in cooptation and recombination Creative Commons license, and indicate if changes were made.
of a path. Such cases would be valuable in order to con-
firm or perhaps rule out the tentative hypothesis that hybrid
organizations may be most prominent as path generators in
the early phases of assimilation and coalescence. We wel- References
come more thick case studies of hybrid organizations, as
well as studies on the role of other organizational forms in Ahrne, G., & Brunsson, N. (2011). Organization outside organiza-
processes of path generation towards sustainable transfor- tions: The significance of partial organization. Organization,
18(1), 83–104.
mation. Our study offers one piece of this puzzle, and high- Aiken, M. (2006). Towards market or state: Tensions and opportunities
lights the conditions and nested actions that allowed a hybrid in the evolutionary path of three UK social enterprises. In M. Nys-
organization to enable local path generation and market for- sens (Ed.), Social Enterprise (pp. 259–271). London: Routledge.
mation with respect to sustainability and CSR in Sweden. Alexius, S. (2007). Regelmotståndarna: Om konsten att undkomma
regler. [Rule resisters: On the Art of Escaping Rules]. Doctoral
However, this study also highlights conditions when hybrids thesis in Business Administration. The Stockholm School of Eco-
cannot play this role, when institutional pluralism is reduced nomics. Stockholm: EFI publishing house.
and the legitimacy space for hybrids shrinks. Alexius, S., & Furusten, S. (2019). Managing Hybrid Organizations.
We conclude that different forms of organizations are London: Palgrave Macmillan.
Alexius, S., Furusten, S., & Werr, A. (2017). As flies around the good-
likely to play different roles in path generation, at different ies – Popular management ideas and emerging fields of expertise.
times. This has methodological implications. If most studies The case of CSR. In S. Furusten & A. Werr (Eds.), Expert Society
on the role of hybrids in CSR and sustainability development and Organization. London: Routledge.
are performed on already-established paths and markets, we Alexius, S., & Grossi, G. (2017). Decoupling in the age of market-
embedded morality: Responsible gambling in a hybrid organi-
miss out on an important piece of the puzzle, that of the zation. Journal of Management and Governance. https​://doi.
hybrid’s potentially powerful role in early phases of soci- org/10.1007/s1099​7-017-9387-3.
etal transformation. Future research should therefore sys- Alexius, S., Gustavsson, M., & Sardiello, T. (2017). Profit-making for
tematically study the prevalence of hybrids across paths and mutual benefit: The case of Folksam 1945–2015. Score Working
Paper Series, 2017:2.
nations to see whether differences in the timing and pacing Alvesson, M., & Deetz, S. (2000). Doing critical management research.
of local path generation may, at least partly, be explained London: Sage.
by the prevalence of enabling hybrids. Although this paper Alvesson, M., & Sköldberg, K. (1994). Tolkning och reflektion: Veten-
deals with the role of a hybrid in a local field, focusing on skapsfilosofi och kvalitativ metod. Lund: Studentlitteratur.
Aspers, P. (2011). Markets. Cambridge: Polity Press.
a single nation, future studies should also look at hybrids Battilana, J., & Dorado, S. (2010). Building sustainable hybrid organ-
contributing at the transnational and global levels. izations: The case of commercial microfinance organizations.
As we read the literature on hybrid organizations, one of Academy of Management Journal, 53(6), 1419–1440.
its main conclusions concerns the difficulty for hybrids to Battilana, J., & Lee, M. (2014). Advancing research on hybrid organ-
izing–Insights from the study of social enterprises. Academy of
survive and thrive in established fields. Although hybrids are Management Annals, 8, 397–441.
designed to handle institutional crossroads, a hybrid’s legiti- Billis, D. (2010). Towards a theory of hybrid organizations. In D. Bil-
macy cannot be taken for granted. It needs to be cultivated lis (Ed.), Hybrid organizations and the third sector: Challenges
and nurtured by its management and staff, and it needs an for practice, theory and policy (pp. 46–69). New York: Palgrave
Macmillan.
accepting environment. We believe that our ability to per- Boström, M. (2001). Miljörörelsens mångfald. Stockholm: Stockholm
ceive hybrids as either odd and problematic, or complex University.
and challenging in an inspiring way, is fundamental to the Bothello, J., & Salles-Djelic, M.-L. (2018). Evolving conceptualiza-
mindset of its leaders as well as to other stakeholders in and tions of organizational environmentalism: A path generation
account. Organization Studies. https​://doi.org/10.1177/01708​
around hybrids, including scholars of the business ethics 40617​69327​2.
community. It is high time to seek out and cherish the special

13

Content courtesy of Springer Nature, terms of use apply. Rights reserved.

562 S. Alexius, S. Furusten

Bromley, P., & Meyer, J. (2015). Hyper-organization: Global organi- Geertz, C. (1973). The interpretation of cultures: Selected essays. New
zational expansion. Oxford: Oxford University Press. York: Basic Books.
Brundtland Report (1987). Report of the World Commission on Envi- Grassl, W. (2011). Hybrid forms of business: The logic of gift in the
ronment and Development: Our Common Future. UN Documents. commercial world. Journal of Business Ethics, 100(1), 109–123.
Brunsson, N. (1994). Politicization and “company-ization” – On insti- Greenwood, M., & Freeman, R. E. (2017). Focusing on ethics and
tutional affiliation and confusion in the organizational world. broadening our intellectual base. Journal of Business Ethics, 140,
Management Accounting Research, 5(3–4), 323–335. 1–3.
Brunsson, N., & Olsen, J. P. (1993). The reforming organization. Lon- Grossi, G., & Thomasson, A. (2015). Bridging the accountability gap
don and New York: Routledge. in hybrid organizations: The case of Malmö-Copenhagen Port.
Chapple, W., & Moon, J. (2005). Corporate social responsibility (CSR) International Review of Administrative Sciences, 81(3), 604–620.
in Asia: A seven country study of CSR website reporting. Busi- Haigh, N., Walker, J., Bacq, S., & Kickul, J. (2015). Hybrid organiza-
ness and Society, 44(4), 415–441. tions: Origins, strategies, impacts, and implications. California
Cyert, R., & March, J. (1963). A behavior theory of the firm. Hoboken: Management Review, 57(3), 5–12.
Wiley. Hockerts, K. (2015). How hybrid organizations turn antagonistic
Czarniawska, B. (2013). Organizations as obstacles to organizing. In asserts into complementarities. California Management Review,
D. Robichaud, & F. Cooren (Eds.) Organizations and organiz- 57(3), 83–106.
ing. Materiality, agency, and discourse (pp. 3–22). New York: Holt, D., & Littlewood, D. (2015). Identifying, mapping, and monitor-
Routledge. ing the impact of hybrid firms. California Management Review,
Czarniawska, B., & Joerges, B. (1996). Travels of ideas. In B. Czar- 57(3), 107–125.
niawska & G. Sevòn (Eds.), Translating organizational change Hwang, H., & Powell, W. (2005). Institutions and entrepreneurship.
(pp. 13–48). Berlin: deGreuyter. Handbook of entrepreneurship research. Dordrecht: Kluwer
Davies, B., & Harré, R. (2001). Positioning: The discursive produc- Publishers.
tion of selves. In M. M. Wetherell, S. Taylor & S. J. Yates (Eds.), Jancsary, D., Meyer, R. E., Höllerer, M., & Vitaliano, B. (2017).
Discursive theory and practice: A reader (pp. 261–271). London: Toward a structural model of organizational-level institutional
Sage. pluralism and logic interconnectedness. Organization Science,
Czarniawska, B., & Sevón, (Eds). (1996). Translating organizational 28(6), 1150–1167.
change. Berlin: Walter de Gruyter. Johnson, R. R. (1997). Examining the validity structure of qualitative
den Hond, F., & de Bakker, F. G. A. (2007). Ideologically motivated research. Education, 118(2), 282–292.
activism. How activist groups influence corporate social change. Kirk, J., & Miller, M. (1986). Reliability and validity in qualitative
Academy of Management Review, 32(3), 901–924. research. London: Sage.
Denis, J.-L., Ferlie, E., & Van Gestel, N. (2015). Understanding hybrid- Kodeih, F., & Greenwood, R. (2014). Responding to institutional com-
ity in public organizations. Public Administration, 93, 273–289. plexity: The role of identity. Organization Studies, 35(1), 7–39.
DiMaggio, P., & Powell, W. (1983). The iron cage revisited: Institu- Kraatz, M. S., & Block, E. S. (2008). Organizational implications of
tional isomorphism and collective rationality in organizational institutional pluralism. In R. Greenwood, C. Oliver, K. Sahlin &
fields. American Sociological Review, 48(2), 147–160. R. Suddaby (Eds.), The sage handbook of organizational institu-
Djelic, M.-L., & Quack, S. (2007). Overcoming path dependency: Path tionalism (pp. 243–275). London: Sage.
generation in open systems. Theory and Society, 36, 161–188. Lincoln, Y., & Guba, E. (1985). Naturalistic inquiry. London: Sage.
Dorado, S., & Ventresca, M. J. (2013). Crescive entrepreneurship in Mair, J., Mayer, J., & Lutz, E. (2015). Navigating institutional plurality:
complex social problems: Institutional conditions for entrepre- Organizational governance in hybrid organizations. Organization
neurial engagement. Journal of Business Venturing, 28(1), 69–82. Studies, 36(6), 713–739.
Dunn, M., & Jones, C. (2010). Institutional logics and institutional March, J. (1962). The business firm as a political coalition. Journal of
pluralism: The contestation of care and science logics in medi- Politics, 24(4), 662–678.
cal education, 1967–2005. Administrative Science Quarterly, 55, March, J., & Simon, H. (1958). Organizations. Cambridge: Blackwell.
114–149. Mars, M. M., & Lounsbury, M. (2009). Raging against or with the
Ebrahim, A., Battilana, J., & Mair, J. (2014). The governance of social private marketplace? Logic hybridity and eco-entrepreneurship?
enterprises: Mission drift and accountability challenges in hybrid Journal of Management Inquiry, 18(4), 4–13.
organizations. Research in Organizational Behavior, 34, 81–100. Maxwell, J. (1996). Qualitative research design – An interactive
Eisenhardt, K. M. (1989). Building theories from case study research. approach. London: Sage.
Academy of Management Review, 14(4), 532–550. Meyer, R., & Höllerer, M. (2010). Meaning structures in a contested
Frostenson, M. (2010). How consultants contribute to CSR innovation. issue field: A topographic map of shareholder value in Austria.
Combining competencies and modifying standards. In C. Louche, Academy of Management Journal, 53(6), 1241–1262.
O. Idowu & W. Leal Filho (Eds.), Innovative CSR – From risk Otely, D. T., & Berry, A. J. (1994). Case study research in manage-
management to value creation (pp. 352–373). Sheffield: Greenleaf ment accounting and control. Management Accounting Research,
Publishing. 5, 45–65.
Furusten, S. (1999). Popular management books: How they are made Pache, A.C. and Santos, F. (2010). When worlds collide: The internal
and what they mean for organizations. London and New York: dynamics of organizational responses to conflicting institutional
Routledge. demands. Academy of Management Review, 35: 455–476.
Furusten, S., & Werr, A. (Eds). (2017). The organization of the expert Pache, A.-C., & Santos, F. (2013). Inside the hybrid organization:
society. London and New York: Routledge. Selective coupling as a response to competing institutional log-
Furusten, S. (2013). Institutional theory and organizational change. ics. Academy of Management Journal, 56, 972–1001.
Cheltenham: Edward Elgar. Padgett, J., & Powell, W. (2012). The emergence of organizations and
Garud, R. Kumaraswary, A., & Karnøe, P. (2010). Path dependence or markets. Princeton: Princeton University Press.
path creation? Journal of Management Studies, 47(4). https​://doi. Purdy, J., & Gray, B. (2009). Conflicting logics, mechanisms of dif-
org/10.1111/j.1467-6486.2009.00914​.x. fusion, and multilevel dynamics in emerging institutional fields.
Academy of Management Journal, 52(2), 355–380.

13

Content courtesy of Springer Nature, terms of use apply. Rights reserved.

Enabling Sustainable Transformation: Hybrid Organizations in Early Phases of Path Generation 563

Rasche, A., de Bakker, F., & Moon, J. (2013). Complete and partial Entrepreneurship Theory and Practice. https​://doi.org/10.1111/
organizing for corporate social responsibility. Journal of Business etap.12218​.
Ethics, 115, 651–663. Thornton, P. H., & Ocasio, W. (2008). Institutional logics. In R. Green-
Reay, T., & Hinings, C. R. (2009). Managing the rivalry of competing wood, C. Oliver, R. Suddaby & K. Sahlin-Andersson (Eds.), The
institutional logics. Organization Studies, 30(6), 629–652. SAGE handbook of organizational institutionalism. London: Sage.
Rehn, A. (2006). The scholar’s progress – Essays on academic life and Thornton, P. H., Ocasio, W., & Lounsbury, M. (2012). The institutional
survival. Bloomington Indiana: iUniverse Inc. logics perspective – A new approach to culture, structure and
Robèrt, K.-H. (1992). Det nödvändiga steget. (The Necessary Step). process. Oxford: Oxford University Press.
Kristianstad: Affärsförlaget mediautveckling. Vigneau, L., Humphreys, M., & Moon, J. (2015). How do firms comply
Robèrt, K.-H. (1995). Den naturliga utmaningen. (The Natural Chal- with international sustainability standards? Processes and con-
lenge). Falun: Ekerlids Förlag. sequences of adopting the global reporting initiative. Journal of
Robèrt, K.-H. (2002). The natural step story – Seeding a quiet revolu- Business Ethics, 131(2), 469–486.
tion. Gabriola Island: New Catalyst Books. Walker, J., & Cooper, M. (2011). Genealogies of resilience: From
Robèrt, K.-H. (2017). Ledarskapskonflikt bakom Naturliga Stegets systems ecology to the political economy of crisis adaptation.
konkurs. Aktuell Hållbarhet, Retrieved 2 March, 2017 from http:// Security Dialogue, 42, 143–160.
www.aktue​llhal​lbarh​et.se/det-natur​liga-stege​t-lagge​r-ner-verks​ Windell, K. (2006). Corporate social responsibility under construc-
amhet​en/. tion: Ideas, translations and institutional change. Uppsala: Upp-
Robèrt, K.-H., Schmidt-Bleek, B., Aloisi de Larderel, J., Basile, G., sala University.
Jansen, J. L., Kuehr, R., Thomas, P., Suzuki, P., Hawken, M.,
P. and Wackernagel, M. (2002). Strategic sustainable develop-
ment: Selection, design and synergies of applied tools. Journal
Interviews
of Cleaner Production, 10, 197–214.
Røvik, K.-A. (2000). Moderna organisationer. Lund: Liber. Interview 1. Founder of TNS. Interview conducted 18 April 2013.
Santos, F., Pache, A.-C., & Birkholz, C. (2015). Making hybrids work: Interview 2. Secretary-general of TNS. Interview conducted 19 April
Aligning business models and organizational design for social 2013.
enterprises. California Management Review, 57(3), 36–58. Interview 3. Advisor at TNS. Interview conducted 19 April 2013.
Schatzman, L., & Strauss, A. L. (1973). Field research – Strategies for Interview 4. Communication manager at TNS. Interview conducted
a natural sociology. Englewood Cliffs: Prentice-Hall. 22 April 2013.
Sahlin-Andersson, K. (1996). Imitating by editing success: The con- Interview 5. Advisor at TNS. Interview conducted 22 April 2013.
struction of organizational fields and identities. In B. Czarniaw- Interview 6. Advisor at TNS. Interview conducted 29 April 2013.
ska, & Sevón (Eds.), Translating organizational change (pp. Interview 7. Advisor at TNS. Interview conducted 13 May 2013.
69–92). Berlin: Walter de Gruyter. Interview 8. Advisor at TNS. Interview conducted 13 May 2013.
Skelcher, C., & Rathgeb Smith, S. (2015). Theorizing hybridity: Insti- Interview 9. Chair of the TNS board. Interview conducted 14 May
tutional logics, complex organizations and actor identities: The 2013.
case of non-profits. Public Administration, 93, 433–448. The nine interviews drawn from in this paper were conducted in 2013
Stebbins, R. (2001). Exploratory research in the social sciences. Lon- and are listed below in chronological order, with the informant’s
don: Sage. title at the time of the interview. Each informant was interviewed
Strand, R., Freeman, R. E., & Hockerts, K. (2015). Corporate social once.
responsibility and sustainability in Scandinavia: An overview.
Journal of Business Ethics, 127, 1–15. https​://doi.org/10.1007/ Publisher’s Note Springer Nature remains neutral with regard to
s1055​1-014-2224-6. jurisdictional claims in published maps and institutional affiliations.
Su, J., Zhai, Q., & Karlsson, T. (July 2017). Beyond red tape and fools:
Institutional theory in entrepreneurship research, 1992–2014.

13

Content courtesy of Springer Nature, terms of use apply. Rights reserved.

Terms and Conditions
Springer Nature journal content, brought to you courtesy of Springer Nature Customer Service Center GmbH (“Springer Nature”).
Springer Nature supports a reasonable amount of sharing of research papers by authors, subscribers and authorised users (“Users”), for small-
scale personal, non-commercial use provided that all copyright, trade and service marks and other proprietary notices are maintained. By
accessing, sharing, receiving or otherwise using the Springer Nature journal content you agree to these terms of use (“Terms”). For these
purposes, Springer Nature considers academic use (by researchers and students) to be non-commercial.
These Terms are supplementary and will apply in addition to any applicable website terms and conditions, a relevant site licence or a personal
subscription. These Terms will prevail over any conflict or ambiguity with regards to the relevant terms, a site licence or a personal subscription
(to the extent of the conflict or ambiguity only). For Creative Commons-licensed articles, the terms of the Creative Commons license used will
apply.
We collect and use personal data to provide access to the Springer Nature journal content. We may also use these personal data internally within
ResearchGate and Springer Nature and as agreed share it, in an anonymised way, for purposes of tracking, analysis and reporting. We will not
otherwise disclose your personal data outside the ResearchGate or the Springer Nature group of companies unless we have your permission as
detailed in the Privacy Policy.
While Users may use the Springer Nature journal content for small scale, personal non-commercial use, it is important to note that Users may
not:

1. use such content for the purpose of providing other users with access on a regular or large scale basis or as a means to circumvent access
control;
2. use such content where to do so would be considered a criminal or statutory offence in any jurisdiction, or gives rise to civil liability, or is
otherwise unlawful;
3. falsely or misleadingly imply or suggest endorsement, approval , sponsorship, or association unless explicitly agreed to by Springer Nature in
writing;
4. use bots or other automated methods to access the content or redirect messages
5. override any security feature or exclusionary protocol; or
6. share the content in order to create substitute for Springer Nature products or services or a systematic database of Springer Nature journal
content.
In line with the restriction against commercial use, Springer Nature does not permit the creation of a product or service that creates revenue,
royalties, rent or income from our content or its inclusion as part of a paid for service or for other commercial gain. Springer Nature journal
content cannot be used for inter-library loans and librarians may not upload Springer Nature journal content on a large scale into their, or any
other, institutional repository.
These terms of use are reviewed regularly and may be amended at any time. Springer Nature is not obligated to publish any information or
content on this website and may remove it or features or functionality at our sole discretion, at any time with or without notice. Springer Nature
may revoke this licence to you at any time and remove access to any copies of the Springer Nature journal content which have been saved.
To the fullest extent permitted by law, Springer Nature makes no warranties, representations or guarantees to Users, either express or implied
with respect to the Springer nature journal content and all parties disclaim and waive any implied warranties or warranties imposed by law,
including merchantability or fitness for any particular purpose.
Please note that these rights do not automatically extend to content, data or other material published by Springer Nature that may be licensed
from third parties.
If you would like to use or distribute our Springer Nature journal content to a wider audience or on a regular basis or in any other manner not
expressly permitted by these Terms, please contact Springer Nature at

[email protected]