Implementation of a balanced scorecard for hybrid business models: An application for citizen renewable energy companies in Germany

Purpose
This paper aims to introduce strategic management tools for companies with hybrid business models, for example, those with citizen participation. These models are often used of citizen renewable energy companies that have become a main pillar of the energy sector in Germany in recent years. The strategic management tools proposed here could help to achieve most of their objectives.

Design/methodology/approach
In the first step, a definition of hybrid businesses is derived by literature review, and the importance of strategic management in companies with citizen participation is discussed. In the next step, a new construct of a balanced scorecard (BSC) model is applied to citizen renewable energy companies by using survey data and previous studies.

Findings
Companies with citizen participation differ from profit-seeking companies and nonprofit organizations, and they are described by new hybrid business models. This study shows with a modification of the BSC that social or environmental aims are as important as financial ones to companies with citizen participation, which follow a double bottom line approach.

Practical implications
Hybrid businesses are important for the German energy sector, and strategic management tools are needed for their continued success and competitiveness. This paper can be a starting point for the management who want to implement these tools.

Originality/value
The paper addresses a gap in the strategic management literature on companies with citizen participation. The tools developed here can be modified for other hybrid businesses.