This doctoral dissertation has studied the concept of hybrid organizations, i.e. the combining of market and administrative (hierarchical) coordination mechanisms that govern the activities of network members. In addition to the detailed study of hybrid organizational models, the theoretical part has particularly focused on the notion of flexibility as the main characteristic of hybrids. An extensive analysis of secondary data collected from different scientific resources has provided the basis for a conceptual model of the influence of hybrid organizational models on business performance. The following concepts or variables have been studied as determinants of hybrid organizations within the model: Relational Governance, Level of Information Sharing and Subcontractor Network Design. Furthermore, Operational Flexibility of the Enterprise as well as its mediation impact on Business Performance has been studied as a specific model variable. Relationships between the aforementioned variables are also hypotheses of the conceptual model. In order to check the hypotheses, the primary survey was conducted in the construction industry of the Republic of Croatia on 123 construction companies. Empirical research has provided insights detailing the characteristics and differences of the determinants of hybrid organizations as well as the motives and obstacles to their formation in the construction industry of the Republic of Croatia. Also, the model hypotheses were tested, where three of the four suggested hypotheses were confirmed. The research results suggest that construction companies in the Republic of Croatia are inclined to create intensive long-term hybrid organizations with their key subcontractors. By making use of the benefits and expanding the determinants of hybrid organizations, the managers of construction and other companies operating in dynamic and unpredictable business environments could significantly improve their business results.