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There is still no universal definition of the third sector in Europe, but it can be seen as including all types of non-governmental not-for-profit entities such as non-profit organizations, mutuals, cooperatives, social enterprises and foundations. This article attempts to make sense of the current shifting conceptualization of the third sector in Europe. It is based on short country summaries of the images and concepts of the third sector in 13 European countries by EMES Network’s members, first presented in 2008 (Defourny and Pestoff, 2008; nine of them were recently revised and are found in the appendix to this article.). The perception and development of the third sector in Europe is closely related to the other major social governance institutions/mechanisms, like the market, state and community and through the third sector’s interaction with them. Moreover, many third sector organizations (TSOs) overlap with these other social institutions, resulting in varying degrees of hybridity and internal tensions experienced by them. TSOs can generate resources from their activities on the market, by providing services in partnership with the state and/or by promoting the interests of a given community or group. The country overviews document a growing professionalization of TSOs in most countries and a growing dependency of public funds to provide services. This has important theoretical and practical implications for orienting the articles included in this book. Thus, it can provide a key for better understanding the discussion and analysis in the remainder of this volume.

Milkerie¹ worker cooperative was created after a yearlong labor fight against a factory closure announcement. By creating the coop, Milkerie’s workers set out to prove that if workers were given more decision-making power in the economy, it would be possible to create a more inclusive economy that values worker labor and provides them wage-based livelihoods. This chapter describes the historical conditions that the cooperative emerge, shaped its business model and governance structure. If cooperatives are believed to propose an alternative to capitalist enterprises, the case of Milkerie shows how the market pressure turns activism, that is, various types of unpaid voluntary labor, into simple jobs, that is, activities codified by task description and time frame, limiting the possibility to re-imagine the economy collectively.

The purpose of this paper is to investigate the extent to which social cooperatives in Italy followed and managed to preserve their core values and principles while withstanding multiple pressures during the great recession. Attention is paid to two key issues. First, the concept of political agency is used to understand whether social cooperatives have been sensitive and committed to their role as key political players in the sustainable development of the community in which they operate. A further issue addressed is the impact of the post-2008 crisis on the quality of work and employment in social cooperatives.

This paper adopts a mixed-method social research approach. It integrates quantitative analysis of administrative data on business life cycle drawn from the Italian business registers with empirical evidence collected via in-depth interviews and focus groups on a sample of managers of social cooperatives and representatives of social cooperative associations and consortia.

Findings suggest that the great recession and welfare state retrenchment have worsened the quality of work and employment. Nonetheless, evidence produced through qualitative research also shows that social cooperatives have proved to be well suited to displaying political agency and acting as a key political player at local level.

Results of field research are not generalizable.

Comparatively higher resilience of cooperatives, which is very much attributable to their specific rationale and mission, may come at a cost. The literature has largely missed investigating this cost, which can also be measured in terms of consistency with core values. Indeed, the sustainability of cooperatives relates to economic indicators, such as employment and economic performance, but also to the social, cultural and political dimension of the enterprise. In this regard, this paper investigates the extent to which, during the post-2008 crisis, cooperative enterprises managed to preserve the quality of work and employment and play a political role in the welfare system.

The economic growth and women’s empowerment nexus features prominently within United Nation’s sustainable development goals (SDGs). While the gendered view of inclusive economic opportunities has received significant attention in recent years, the gap between men and women in developing countries remains significant. Under the assumption that there are fertile prospects to bridge social responsibility and SDGs judiciously, this chapter explores the question: ‘what insights into women’s employment and empowerment can be generated from the state of cooperative enterprises in Nepal?’ The focus is on aspects of women’s employment and empowerment under goal 8, which promotes inclusive and sustainable economic growth, employment and decent work for all. Learning from the Nepalese experiences, the chapter contends that cooperative enterprise social responsibility (CESR) needs to be approached as the vital link between the internal and the external interests of cooperatives to achieve SDGs.

Enterprise growth drives competitiveness, innovations, employment creation, income generation and social inclusion in societies. The purpose of this paper is to examine the mediating effect of networking on the relationship between dynamic capabilities and enterprise growth of financial cooperatives.

This is a cross-sectional survey and quantitative study of 269 financial cooperatives based on structural equation modelling and bootstrapping techniques analysis.

The results reveal that dynamic capabilities are vital in promoting the growth of financial cooperatives. In addition, networking partially enhances the contribution of dynamic capabilities to the growth of financial cooperatives. Therefore, dynamic capabilities and networking play a key role in promoting the growth of financial cooperative enterprises.

This was a cross-sectional survey. It did not trace the changes in behavioural and attitudinal aspects of enterprise growth over time. A longitudinal approach is recommended.

It is imperative that managers of financial cooperatives enhance their coordination, learning and competitive response capabilities through consultation, exchange and sharing of information among staff and other stakeholders, to increase the membership, capital and income volumes, depicting growth of financial cooperatives.

This study provides an insight on the mediating effect of networking on the enterprise growth of financial cooperatives in developing countries founded on networks theoretical framework. Unlike previous studies that modelled direct relationship of enterprise growth.

The purpose of this paper is to analyze the evolution of the social enterprise concept at an international level. It provides a comprehensive overview of the existing literature in this subject area and focuses on the legal implementation of social enterprises.

The paper is an analytic review, building on previous work. Conclusions are on how the social enterprise concept has been legally implemented in a number of representative European countries.

The lack of a common understanding of social enterprise should not be regarded as a limitation as such debate encourages a rethinking of the theoretical definition of enterprise and its legal structure. The legal recognition of social enterprise contributes to conceptual clarification in the countries concerned.

This is a conceptual discussion paper, which stimulates further research on the most interesting mechanisms and consistent models of social enterprise that are developing at an international level.

The paper synthesises existing conceptual studies on social enterprise. It contributes to enrich the current debate on social enterprise and aids in focusing future research.

Alternative enterprises – organizations that operate as a business while still also being driven by a social purpose – are sometimes owned by workers or other stakeholders, rather than shareholders. What role does ownership play in enabling alternative enterprises to prioritize substantively rational organizational values, like environmental sustainability and social equity, over instrumentally rational ones, like profit maximization? We situate this question at the intersection of research on: (1) stakeholder governance and mission drift in both hybrid and collectivist-democratic organizations; and (2) varieties of ownership of enterprise. Though these literatures suggest that ownership affects the ability of alternative enterprises to maintain their social missions, the precise nature of this relationship remains under-theorized. Using the case of a global, social, and environmental values-based banking network, we suggest that alternative ownership is likely a necessary, but not sufficient, condition to combat mission drift in enterprises that have a legal owner. A supermajority of this network’s banks deploy alternative ownership structures; those operating with these structures are disproportionately associated with social movements, which imprint their values onto the banks. We show how alternative ownership acts through specific mechanisms to sustain enterprises’ missions, and we also trace how many of these mechanisms are endogenous to alternative ownership models. Finally, we find that ownership models vary in how well they enable the expression and maintenance of these social values. A ladder of mission-sustaining ownership models exists, whereby the dominance of substantive, non-instrumental values over operations and investment becomes increasingly robust as one moves up the rungs from mission-driven investor ownership to special shareholder and member-ownership models.

The purpose of this paper is to explore that relational capability plays a mediator role in the relationship between focal enterprises' control on knowledge transfer risks in R&D network.

The paper reviews the related literature from which it proposes a theoretical hypothesis and conceptual framework which is tested empirically adopting regression methodology by mathematical statistics software.

The results reveal that focal enterprises' control (core technological capability and network position) have a positive effect on knowledge transfer risks without the mediation of relational capability. Moreover, relational capability mediates the positive relationship between core technological capability and knowledge transfer risks.

The cross-sectional data of this research has difficult in testing causality between the variables, and future research should take account of the potential factors that can impact on knowledge transfer risks.

The results provide more valuable information to managers in alleviating knowledge transfer risks in R&D networks. For one thing, the study indicates how focal firms' control (core technological capability and network position) can be taken advantage of improving R&D efficiency and reducing the knowledge transfer risks. For another, the results emphasize that relational capability plays an important role in interacting with cooperative enterprises in the process of R&D activities.

Few studies present a theoretical discussion on focal firms control as the important determinants of knowledge transfer risks especially in the R&D network. Moreover it expands the related risk management theory by relational capability that mediates the relationship between focal firms control and knowledge transfer risks.

From a perspective of ‘critical performativity’, John Lewis is of special interest since it is celebrated as a successful organization and heralded as an alternative to more typical forms of capitalist enterprise.

Our analysis uses secondary empirical material (e.g. JLP documents in the public domain, histories of John Lewis and recent empirical research). Our assumption is that engagement and interrogation of existing empirical work can be at least as illuminating and challenging as undertaking new studies. In addition to generating fresh insights, stimulating reflection and fostering debate, our analysis is intended to contribute to an appreciation of how structures of ownership and governance are significant in enabling and constraining practices of organizing and managing.

The structures of ownership and governance at John Lewis, a major UK employee-owned retailer, have been commended by those who wish to recuperate capitalism and by those who seek to transform it.

JLP can be read as a ‘subversive intervention’ insofar as it denies absentee investors access to, and control of, its assets. Currently, however, even the critical performative potential of the Partnership model is impeded by its paternalist structures. Exclusion of Partners’ participation in the market for corporate control is reflected in, and compounded by, a weak form of ‘democratic’ governance, where managers are accountable to Partners but not controlled by them.

Our contention is that JLP’s ownership and governance structures offer a practical demonstration, albeit flawed, of how an alternative form of organization is sufficiently ‘efficient’ and durable to be able to ‘compete’ against joint-stock companies.

By examining the cooperative elements of the John Lewis structures of ownership and governance, we illuminate a number of issues faced in realizing the principles ascribed to employee-owned cooperatives – notably, with regard to ‘democratic member control’, ‘member economic participation’ and ‘autonomy and independence’.