Valuation in hybrid organizations: a perspective model (Atena Editora)

Abstract

The theoretical efforts of company evaluation models that seek to measure financial performance and economic value, as they present a lack of convergence, are the main motivating factor of this research, specifically in hybrid organizations, whose sustainable finances and objectives are initially axiomatic as they attempt to equalize balance social and sometimes environmental to the detriment of the economic. In this sense, the objective of this research is to analyze the efficiency of “valuation” metrics as a measure of economic performance and value arbitrage in hybrid organizations. The question that guides this research is: to what extent can company valuation models be considered as a determinant for understanding value-based management in hybrid organizations? To achieve this objective, five companies in different sectors were investigated. Nineteen in-depth interviews were carried out with the main “stakeholders” of these organizations on two theoretical axes, differentiating capabilities and financial strategies. The results indicate that the criteria used in the concept of “valuation” cannot fully explain the financial performance of hybrid organizations, and that the organizational tensions of this organizational type are inherent and inseparable. The contribution of this research lies in two dimensions: the first theoretical by understanding the concept of “valuation” specifically in hybrid organizations, and the second of a managerial nature by proposing an explanatory theoretical model through which managers can understand the most appropriate performance metrics for measure the value drivers of this organizational type.