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Economic Analysis: Theory and Practice
 

Hybrid organizations on industry's life cycle curve

Vol. 15, Iss. 5, MAY 2016

PDF  Article PDF Version

Received: 2 December 2015

Received in revised form: 4 February 2016

Accepted: 22 March 2016

Available online: 18 May 2016

Subject Heading: THEORY OF ECONOMIC ANALYSIS

JEL Classification: D21, L22

Pages: 4-15

Popov E.V. Institute of Economics, Ural Branch of Russian Academy of Sciences, Yekaterinburg, Russian Federation
epopov@mail.ru

Kalmykova O.N. Institute of Economics, Ural Branch of Russian Academy of Sciences, Yekaterinburg, Russian Federation o.n.kalmykova@yandex.ru

Simonova V.L. Institute of Economics, Ural Branch of Russian Academy of Sciences, Yekaterinburg, Russian Federation
simonova4@yandex.ru

Importance In economic literature, hybrid organizations are viewed mainly from the perspectives of the methodology of the institutional economic theory. It focuses on transaction costs characteristics as one of parameters of selecting the organizational form. However, external characteristics of the market are outside the analysis.
Objectives The study aims to provide an analytical justification to the genesis of hybrid forms of economic activity organization at various stages of industry's life cycle, which are described by certain external characteristics of the market.
Methods We employ the tools of the institutional economic theory developed by Oliver E. Williamson, Claude Menard, and others to describe hybrid organizations and their determinant factors, as well as methods developed by Charles W. Hill and Gareth R. Jones to describe external market environment factors.
Results The paper demonstrates different hybrid forms of business organization and stages of industry' life cycle. It shows that hybrid forms of governance appear at certain stages of the industry's life cycle and require higher level of adaptability from the company. Hybrid organizations with less formalized relations, requiring a lower level of coordination and lower transaction costs (subcontracting, franchising, branded retail chains), emerge at earlier stages of industry's life cycle. However, those with more formalized relations, requiring a higher level of coordination and higher transaction costs (alliances, collective trademarks), emerge at later stages of industry's life cycle.
Conclusions The findings enable to forecast the evolution of hybrid forms of organization in industrial markets on the basis of the analysis of these markets' development.

Keywords: hybrid organization, industry life cycle, firm network

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