scholarly journals Measuring to Improve Versus Measuring to Prove: Understanding the Adoption of Social Performance Measurement Practices in Nascent Social Enterprises

2019 ◽  
Author(s):  
Saurabh Ajay Lall
Keyword(s):  
Performance Measurement ◽  
Social Performance ◽  
Past Research ◽  
Social Enterprises ◽  
Social Sector ◽  
Internal Factors ◽  
External Pressures ◽  
The Social ◽  
Dual Objectives ◽  
Measurement Practices

Social enterprises are described as organizations with dual objectives—social and commercial. While the measurement of commercial performance isrelatively straightforward and well understood, our understanding of the factorsrelated to measuring social performance is more ambiguous. Is the adoption ofsocial performance measurement (SPM) practices more related to external pressures, such as the need to demonstrate legitimacy to funders and peers, or is it more closely related to the growing rationalization within the social sector? We examine the relationship between external and internal factors and the adoption of SPM using a novel dataset of 1864 nascent social enterprises from around the world. Our findings suggest support for the argument that the adoption of SPM in socialenterprise is related to the growing rationalization of the social sector, whichchallenges some of the past research on this topic, and provides a more nuancedperspective of SPM in social enterprise.

scholarly journals How Social Entrepreneurs Affect Performance of Social Enterprises in Korea: The Mediating Effect of Innovativeness

2018 ◽  
Vol 10 (8) ◽  
pp. 2643 ◽  
Author(s):  
Changhwan Shin
Keyword(s):  
Economic Performance ◽  
Social Enterprise ◽  
Social Performance ◽  
Social Enterprises ◽  
Mediating Effect ◽  
Government Support ◽  
Policy Implications ◽  
Social Entrepreneurs ◽  
The Social ◽  
Positive Direct

Schumpeter argued that entrepreneurship brings about creative destruction in capitalist economies. South Korea enacted the Social Enterprise Promotion Act in 2007 to promote corporate social enterprise. However, despite government support, social enterprises in Korea are not successful, especially in social and economic performance, which is defined as the social and economic value that social enterprises should pursue. A questionnaire survey was conducted among 100 social entrepreneurs, and the structural equation model was used as the research method. The results of the analysis are as follows. Openness and innovativeness have a positive direct impact on economic as well as social performance. In addition, openness and innovativeness play a mediating role not only in social performance, but also in economic performance. This paper suggests theoretical and policy implications based on the above analysis.

scholarly journals Know Your Counterparts: The Importance of Wording for Stakeholder Communication in Social Franchise Enterprises

2020 ◽  
Author(s):  
Arne Bergfeld ◽  
Carolin Plagmann ◽  
Eva Lutz
Keyword(s):  
Social Welfare ◽  
Institutional Logics ◽  
Social Enterprises ◽  
Research Approach ◽  
Social Sector ◽  
Structured Interviews ◽  
External Stakeholder ◽  
Stakeholder Groups ◽  
Social Franchise ◽  
The Social

Abstract Social enterprises pursue a dual mission: on the one hand, they strive for social purpose, while on the other, they try to achieve economic stability despite scarce resources. To achieve the dual mission, social enterprises avail themselves of both for-profit and non-profit institutional logics. Due to this combination of multiple institutional logics, such enterprises can be classified as hybrid organizations. This study focuses on these organizations and investigates tensions between social enterprises and various stakeholder groups caused by the use of commercial logics within the social sector. In particular, we examine the perception of commercial versus social welfare logics by various stakeholder groups, and investigate the effects on organizational communication. Our study is centered on social franchise enterprises. We use an exploratory qualitative research approach based on semi-structured interviews with 21 social franchisors and social franchisees of seven social franchise enterprises. Our main results suggest that the use of commercial logics in the social sector tends to decrease the legitimacy of social franchise enterprises in the eyes of internal stakeholders, the general public, and various (but not all) external stakeholder groups. Many stakeholders of social franchise enterprises show a strong aversion to commercial logics, and particularly to commercial terminology. Overall, we conclude that social franchise enterprises very consciously apply commercial and social welfare logics and use alternative terminology where necessary to retain legitimacy and prevent tensions.

Pure and hybrid strategies in social enterprises: an empirical investigation

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Helen Salavou ◽  
Dimitris Manolopoulos
Keyword(s):  
Competitive Advantage ◽  
Low Cost ◽  
Third Sector ◽  
Social Enterprises ◽  
Social Sector ◽  
Exploratory Research ◽  
Content Type ◽  
Quantitative Evidence ◽  
The Social ◽  
Strategic Options

Purpose The purpose of this paper is to shift the idea of competitive strategy from the for-profit to the non-profit context and to explain how social enterprises (SEs) get advantages over competitors within and outside the social sector. Design/methodology/approach Based upon a sample of 63 SEs located in Greece, the exploratory research employs factor analysis to answer which strategic options they have to compete. Subsequent analysis of variance and correlation analysis were performed to answer if competitive strategic options relate to impact SEs generate. Findings The empirical findings identify and empirically validate a variety of strategic options based on four pure (low cost, low cost sustainability, low cost focus and differentiation focus) and one hybrid (efficient differentiation) types of competitive advantage. Additional evidence shows that hybrid compared to pure strategic options link more influentially to impact in terms of positive environmental, social and economic contributions. Research limitations/implications Apart from providing some explanations of how mission-driven businesses compete, it helps widening the debate of pure vs hybrid strategies beyond the commercial sector. Contrary to what the authors already know, the evidence presented here shows that strategic purity and hybridization co-exist in the social sector. Originality/value This is the first study with empirical evidence on competitive strategies from businesses in the third sector emphasizing how SEs ensure competitive advantage along with impact potential. Consequently, the authors respond to recent calls for more survey-based, quantitative evidence in the social entrepreneurship field.

An assessment approach for enhancing the organizational performance of social enterprises in India

2015 ◽  
Vol 7 (1) ◽  
pp. 35-54 ◽  
Author(s):  
Sonia Mehrotra ◽  
Smriti Verma
Keyword(s):  
Social Development ◽  
Organizational Performance ◽  
Indian Subcontinent ◽  
Two Dimensions ◽  
Social Enterprises ◽  
Social Sector ◽  
Donor Pool ◽  
Content Type ◽  
The Past ◽  
The Social

Purpose – This paper aims to analyze the activities of Indian social enterprises, identify the reasons/causes for their shortcomings and suggest a networked model of donor and beneficiary pool so as to enhance the performance efficiencies of these social enterprises to result in a larger social development impact. Non-governmental organizations (NGOs) and social ventures together termed as social enterprises are perceived to be a panacea for all kinds of development in the social sector in the underdeveloped economies. In the past decade, the social enterprises in India have mushroomed and yet the sanctity of their operations and ability to deliver to expectations is questionable. Design/methodology/approach – The research design for pilot study was exploratory followed by descriptive design for the full study. The research adopted a two-phase approach. In Phase I, a loosely structured interview schedule was used to collate the insights from the social enterprises, developed as a survey questionnaire and administered to a sample of 300 social enterprises in Phase II. The part A of the questionnaire had 25 statements to evaluate the criticality of issues faced by social enterprises on a scale of 1-4. The part B of the questionnaire was designed to evaluate the level to which the social enterprises are adjudging themselves to have achieved on the various issues on a scale of 1-4. Out of the total, 236 valid questionnaires as received were analyzed. Findings – The findings of the research indicate six factors under which the major activities of NGOs can be classified. The factors in their order of importance are establishing strategic and operational capabilities, workforce management, establishing functional scaling up, identifying and fulfilling beneficiary pool, identifying and fulfilling donor pool and promotional efforts. A cluster analysis resulted in three clusters, and the criticality of the identified factors under each of the clusters was evaluated. A second-order factor analysis resulted in two dimensions of survival facets and growth facets, wherein a solution for each of the components has been suggested. Research limitations/implications – The results of the study suggest a prototype model with the three operational pillars of the social enterprise as workforce, donor pool and beneficiary pool. The operational execution of this model can help the social enterprises achieve synergistic working as well as enhance the social development. The limitation of the study is the suggestive nature of the model which needs to be executed for duration of time to gauge its effectiveness. Based on the observations of the implemented model, in future research, a final model could be evolved for implementation. Practical implications – The outcome of this study is a networked model which could be implemented as a pilot project in one of the regions of the country and later improved based on the recorded observations for implementation across the country. Social implications – This research has been carried out on the social enterprises operating in the Indian subcontinent, so as to provide solutions for a systemic change across the social enterprises’ operations and make them capable of producing larger reach and developmental impact. Originality/value – The study is a unique attempt in itself for the Indian subcontinent. No study in the past identifies and maps the activities of the Indian social enterprises under major heads and their ability to perform them effectively. The mapping of social enterprises' activities allows for a discussion platform for the social sector experts to assimilate and synergize the efforts of these enterprises in a wired networked. The resultant model of this study can be implemented and evaluated to prove its worthiness. The effort has been to offer best practices and organized solutions to the unorganized sector of Indian social enterprises.

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