Hybrid Organizations and the Alignment of Interests: The Case of Fannie Mae and Freddie Mac

Abstract

This article explores the political influence of government‐sponsored enterprises (GSEs). Using Congress's overhaul of the regulatory infrastructure for Fannie Mae and Freddie Mac as a case study, the article presents two principal findings: (1) The characteristics that distinguish government‐sponsored enterprises from traditional government agencies and private companies endow Fannie Mae and Freddie Mac with unique political resources; and (2) the alignment of interest groups around Fannie Mae and Freddie Mac is subject to strategic manipulation by the GSEs. A triangular model of this alignment is proposed and employed to analyze the legislative outcome. The case has implications for students of organizational theory as well as policy makers considering the use of GSEs or other hybrid organizations.

The implications of socialization and integration in supply chain management

“…Frohlich and Westbrook (2001) point out that the integration argument has an antecedent in the business process literature, they argue for greater coordination between the manufacturing processes of the firm and the supply chain so that the customer perceives a ‘seamless’ interaction. This approach is also supported by the strategic alignment literature, where authors argue that the effective alignment of business processes can only be realized when there is substantial integration of business policies and strategies between two parties (Kopell, 2001; Leisen et al, 2002).…”

The Essence and Measurement of Organizational Efficiency

“…Categorisations of both public and private sectors Seidman (1975) Government-sponsored Stanton (2002) enterprise Koppell (2001), Joldersma and Winter (2010), Moe and Kosar (2005), Skelcher and Smitch (2014), Bel et al (2014) Hybrid organisations Hogarty (2002) Public authorities Barker (1982) Van Thiel (2001) Quangos Source: Author's own…”

“…Hybrid organisations may involve a conflict of goals, due to multiple societal expectations and business demands (Lindqvist 2013). The majority of examples of hybrid organisations are different types of publicly owned corporations and other companies in the public realm (Koppell 2001).…”

Double Trouble: Sibling Rivalry and Twin Organizations in the 2008 Credit Crisis

“…A second rationale for examining these four cases is that there is by now a substantial body of information on which to base such a study, and an in‐depth examination of the kind offered in this paper is made possible by the wealth of material not previously available. This paper draws on: five books (Gamble, ; Krugman, ; Shiller, , Sorkin, ; Tett, ) and seven scholarly articles (Arnold, ; Hopwood, ; Jain, ; McSweeney, ; Sikka, ; Stein, , ) that examine the various aspects of the credit crisis; two books (Perman, ; Martin, ), two articles (Kerr and Robinson, , ) and the report by the House of Commons Scottish Affairs Committee () specifically concerned with HBOS and RBS; and two books (Acharya et al ., ; Hagerty, ) and eight articles (Frame and White, , , ; Koppell, ; Peterson, ; Thompson, ; Wallison, ; Wallison and Calomiris, ) that examine Fannie Mae and Freddie Mac, as well as the report by the United States Congress House of Representatives Committee on Oversight and Government Reform () on the two American GSEs. Some of these books and articles are based on large numbers of interviews with key players in the events examined in this paper, others are authored by insiders directly involved, while still others provide verbatim records of enquiry testimony into these events.…”