Hybrid governance and organizational sustainability: a case study

Introduction Effectively governing former collective enterprises and building sustainable organizational models has become a critical issue in the reform of state-owned enterprises. As hybrid organizations embedded in both market and social logics, these enterprises face the challenge of balancing multiple missions while ensuring long-term viability. However, the internal governance logic and evolutionary mechanisms underlying this transformation remain insufficiently understood. Methods The study adopts a longitudinal single-case research design, focusing on the hybrid governance practices of Aether Grid Company. Drawing on organizational attention theory and mission-based perspectives, the research analyzes how governance logic evolves over time through shifts in mission orientation, attention allocation, and coordination mechanisms. Results The findings show that governance in former collective enterprises evolves through a mission-oriented process in which attention allocation shapes governance actions and outcomes. In the mission-compliance stage, a security-driven orientation prioritizes the core business and internal coordination, forming a stability-centered anchor-style governance pattern. In the mission-driven stage, a growth-oriented mission reallocates attention, strengthens internal and external coordination, and promotes comprehensive value creation, establishing compass-style governance. A loosely coupled relationship between core and support functions further enables hybrid value creation and sustainable development. Conclusion The study clarifies the internal logic and dynamic evolution of governance in former collective enterprises. By revealing how hybrid governance adapts across stages to support sustainability, it offers both theoretical contributions to the study of hybrid organizations and practical implications for advancing high-quality development in China’s state-owned enterprise reform.