Hybrid Until the End? Predicting Financial Vulnerability in Hybrid Purpose Organizations

ABSTRACT This study modifies the traditional nonprofit and for‐profit measures of predicting organizational closure to fit the Italian social cooperative. Using logistic regression, we find the hybridity of the corporate form reflected in the ideal predictors of vulnerability. Some of the traditional nonprofit measures prove important (such as operating margin), but others do not; likewise, only some for‐profit predictors (such as the warranty ratio) prove significant. Further, there are several variables that improve the model that are not common in the models for the nonprofit and for‐profit sectors. We consider this evidence that hybrid purpose organizations worldwide should develop hybrid measures and models of financial vulnerability and resilience.