The challenge of building a favourable reputation for social businesses
Purpose: The purpose of this study is to better understand the challenge of building and managing a favourable organisational reputation for social businesses in light of the complex relations between organisational identity, paradoxical tensions and organisational reputation.Design/Methodology/Approach: This paper combines deductive and inductive approaches. Deductively, the categorisation of Smith and Lewis (2011) was used to identify various types of paradoxical tensions in social businesses. An inductive bottom-up research strategy was also applied, collecting data from a 90-minute ‘open fishbowl’ with six managers and advisers of Israeli social businesses (and approximately 40 undergraduate and graduate students serving as ‘observers’), and 8 interviews with managers and communication professionals of social businesses.Findings: Managers of social businesses that are hybrid-identity organisations face a challenge when trying to build a consistent hybrid identity, thus managing reputation and paradoxical tensions using holistic and dynamic ‘both-and’ or ‘more-than’ approaches.Limitations: The small sample used in this study (an open fishbowl method consisting of only six participants, in addition to 8 interviews) doesn’t enable generalisability, and therefore should be seen as a benchmark for future studies that are larger and include additional methods. In addition, this study might well be culturally biased, because it takes place in only one country.Implications and Contribution: Referring to the theoretical model of Huang-Horowitz (2015) that stresses the importance of achieving consistency in identity in order for an organisation to succeed and have a favourable reputation, the findings reveal that social businesses experience a more complex process of identity formation when trying to build a consistent hybrid identity, using various holistic and dynamic approaches. From a practical perspective managers of hybrid-identity organisations might find it useful to explore how various holistic and dynamic approaches might help them to overcome internal and external paradoxical tensions and manage organisational reputation.