The interaction of macro and micro level factors in hybrid formation: A case study of governance challenges of social enterprise in health and social care

This paper examines hybrid formation. It explores the interaction between the macro level (policy framework) and the micro level (organisational behaviour). A case study is used of a recent hybrid formation. This new social enterprise was the result of a public sector health provider being given the permission to spin out its community health services as an independent organisation. The findings suggest that a permissive policy environment is not sufficient to form a hybrid organisation. There also has to be senior management with the determination to engineer and navigate the organisation’s release from the public sector. An additional finding is that senior management may choose to offer the prospect of democratic participation of staff in the new governance structure while simultaneously denying the staff a democratic role in making the decision to form the hybrid.