Value creation approaches of hybrid organizations and case studies in Japan : Network-formation function and trust-building mechanisms

Hybridity explores the policymaking system with another logic, business or civil society, and the community endorses the proceedings. Japanese Community-based corporations（CBCs）develop business models that meet the multiple needs of various sectors. They have supported economies by providing products with reliable and manageable supply chains to ensure the sustainability of their operations. The Green Fund Group has implemented 31 wind power generation projects with NPOs for-profit management structures. Its success factors include 1) a business model for social change, 2) a management system combining non-profit and forprofit activities, and 3) an integrated function of policymaking and business. The process that has integrated the renewable energy policies and projects formed a cross-sectoral network. The network formation function has four characteristics, five conditions for establishment, and four roles. CBCs respond to the needs of governments and residents by providing advocacy, products and services to build "trust" among all sectors' stakeholders. This trust-building mechanism has the function of strengthening the compromising and promoting the legitimating. It was found that although the CBCs share mixing, compromising, and legitimating concepts, the functions are not lined up chronologically but appear in areas where elements from multiple sectors overlap, encompassing multiple factors. A trust-building mechanism is at the heart of this complex social activity and business. The Japanese case study makes explicit the process of trust-building and suggests meaningful approaches in clarifying the value creation mechanism of hybrid organizations.IRSPM (International Research Society in Public Management) Conference 2022, 19 to 22 April 202