Innovation by Design: The Hybrid Organization
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The past 20 years has seen the rapid rise of hybrid organizations that blend traditional organizational elements with market-like elements. Over the same time period, there has also been a global explosion in innovation. In this paper we examine the relationship between elements of hybrid organization forms and innovation outcomes. We use meta-analysis to summarize data on 16,605 firms across industries and geographies. Our results show that robust relationships exist between innovation and three key elements of hybrid organizations – autonomy, rewards and ownership. Further analyses reveal that organizational support provides a critical link between innovation and the hybrid organizational levers.
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