Exploring the Evolutionary Boundaries of Community Business

Abstract

Community businesses contribute to the economic and social well-being of the communities in which they operate. As a subset of hybrid organizations, community businesses have unique challenges and opportunities related to their community embeddedness. Our study adopts an institutional logic perspective to understand the evolutionary boundaries of community business, which we argue, are shaped by the interplay of tensions between the social, market, and community logics. While existing literature discusses institutional logics from a dichotomous angle, focusing mainly on the social and market logics, we argue that the introduction of a third logic (i.e., community logics) has ramifications for the evolution of hybrid organizations. The different trajectories may have implications for the social, community, and economic impact that organizations can have. We draw on 39 qualitative interviews to provide useful insights for policy and practice on supporting community businesses.