Matthew Lee, Jason Jay
How do established companies respond to the entry of hybrid social ventures in their industries? Hybrid social ventures-new companies that combine business and social missions-use sustainability-oriented strategies to compete with established companies for some of their most desirable customers and employees. Yet hybrid social ventures also benefit when established companies advance their own sustainability strategies. This unusual competitive dynamic creates opportunities for collaboration. This article presents a framework for established companies responding to hybrid social ventures based on analysis of eight established consumer-facing companies. Our findings suggest that the responses of established companies differ based on opportunities they perceive for sustainabilityoriented value creation with their own customers and employees.
Department of Strategy, INSEAD, Singapore, Singapore; Sustainability Initiative, MIT Sloan, United States
