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Book part
Publication date: 24 November 2021

Michelle Ouimette, Imran Chowdhury and Jill R. Kickul

Nonprofit organizations (NPOs) increasingly view social entrepreneurship as means to expand their mission scope while simultaneously diversifying revenue streams and…

Abstract

Nonprofit organizations (NPOs) increasingly view social entrepreneurship as means to expand their mission scope while simultaneously diversifying revenue streams and strengthening financial foundations. However, the pursuit of social entrepreneurial ventures often incites a tug-of-war phenomenon between the deep-rooted social welfare logic of the parent NPO and a newly evolving commercial logic at the subsidiary social enterprise (SSE). The present study seeks to understand how NPOs navigate such logic conflicts as they strive to become more entrepreneurial. Based upon case studies of two NPOs, we found divergence in organizational identity, legitimacy, and mission/vision between parent nonprofits and their SSEs as they struggled with a defining question: Are we a program or are we a business? Our research indicates that organizations reconcile such cognitive dissonance through four distinct processes: connecting, variegating, separating, and augmenting social welfare and commercial logic spheres. We, thus, contribute to the social entrepreneurship and nonprofit management literatures by illustrating ways in which noncommercial organizations may address issues of logic divergence when engaging in revenue-generating commercial activities.

Abstract

Subject area

Strategic management of nonprofit organizations.

Study level/applicability

This case is appropriate for graduate level program/executive education courses; advanced topics in nonprofit management or strategic management of nonprofit organizations.

Case overview

This case focuses on the central dilemma faced by arteBA Foundation in 2008. arteBA Foundation's chairman, Facundo Gómez Minujín, received an offer from a foreign company to purchase the art fair launched 17 years before – and by then acknowledged as the most prestigious fair in Latin America. Leading art fairs around the world were managed by for-profit companies that could view arteBA as a strategic asset to tap into new markets. Gómez Minujín called for an urgent board meeting. The young chairman had his qualms about selling the fair. In addition to corroborating arteBA's brand positioning in the region and rewarding the organization's efforts over the years, this purchasing offer afforded the possibility to undertake several projects to further develop and promote Argentine art – the true driver for most arteBA's members. The case describes the foundation's background and the fair's growth until the crossroads in November 2008. They include several accounts of instances in which the foundation took financial risks to enhance the fair's positioning, such as granting subsidized space to emerging galleries at its Young Neighborhood Program, expanding to include aesthetically risky offerings at its Open Space section, and financially supporting Brazilian galleries to attend the fair in order to enhance its Latin American scope and regional consolidation. Similarly, the case depicts how the foundation chose to uphold fair continuity in critical years (2001) amidst a dismal domestic setting. The dilemma presented by this case hinges on an organization's ability to build a market-based venture while preserving and pursuing its mission. To promote Argentine artists and art, arteBA Foundation had to help art galleries – for-profit businesses – to adopt more professional practices. Another challenge described in this case revolves around the need to “manage quality” in detriment of greater, immediate revenues. The last section revisits the central dilemma faced by arteBA Foundation. The mixed reactions of board members on the fair's purchase offer described in the introduction unfolded in a passionate debate at the board meeting. Two prevailing positions emerged in reference to the future of the organization. For some board members selling the fair afforded arteBA a chance to finally undertake new challenges, such as launching a grant program, offering financial support to artists, consolidating a new venture (South Limit), etc. Opposing board members contended that, without the fair, the foundation made no sense and that no other initiative could have such an impact on its field of choice. Finally, the board found it impossible to reach a decision on this matter in just one meeting and decided to resume its discussion after a recess.

Expected learning outcomes

This case has been designed to advance the following teaching objectives: gaining a better understanding of market-based ventures carried out by social organizations; discussing the alignment of market-based ventures to social missions at social organizations; adequately interpreting market trends to try to align them to a nonprofit's mission; identifying the primary capabilities needed by social organizations to manage profitable market-based ventures; developing a positive market orientation as a source of opportunities for a nonprofit; appreciating the significance of an active, committed board for market-based venture development; and highlighting the primary role of entrepreneurship and innovation when it comes to launching market-based ventures that add value to a nonprofit's brand.

Supplementary materials

Teaching notes are available.

Details

Emerald Emerging Markets Case Studies, vol. 2 no. 6
Type: Case Study
ISSN: 2045-0621

Keywords

Book part
Publication date: 31 July 2014

Matthew Lee, Julie Battilana and Ting Wang

Despite the increase in empirical studies of social enterprise in management and organization research, the lack of a cohesive knowledge base in this area is concerning…

Abstract

Purpose

Despite the increase in empirical studies of social enterprise in management and organization research, the lack of a cohesive knowledge base in this area is concerning. In this chapter, we propose that the underdevelopment of the attendant research infrastructure is an important, but oft-overlooked, barrier to the development of this body of empirical research.

Design/methodology

We explore this proposition through a review of 55 empirical studies of social enterprises published in the last fifteen years, in which we examine the mix and trajectory of research methods used and the research infrastructure on which these studies depend.

Findings

We find that empirical research has used social enterprise largely as a context for theory development, rather than deductively testing, and thus building upon, existing theories. The latter pattern is due largely to the absence of two key dimensions of infrastructure: well-defined samples, and consistent, operational measures of social enterprise success. Finally, we identify present trends along both dimensions that contribute to changing the research infrastructure for empirical social enterprise research.

Originality/value

Our analysis highlights the critical need for research infrastructure to advance empirical research on social enterprise. From this perspective, research infrastructure-building provides an important opportunity for researchers interested in social enterprise and others interested in enabling high-quality empirical research in this setting.

Details

Social Entrepreneurship and Research Methods
Type: Book
ISBN: 978-1-78441-141-1

Keywords

Article
Publication date: 8 August 2013

Kate Cooney

Work integration social enterprises (WISEs) create jobs through business ventures that function as locations for training and employment of disadvantaged workers. A key…

Abstract

Purpose

Work integration social enterprises (WISEs) create jobs through business ventures that function as locations for training and employment of disadvantaged workers. A key challenge for US WISEs is that the businesses that are easiest to launch and best suited to absorb large numbers of unskilled workers may be located in the same low wage labor market sectors out of which these interventions are designed to catapult workers. This paper aims to present data on an understudied aspect of WISEs: the labor market niches where they are active, the occupations associated with these labor market positions, and the work conditions offered through their WISE businesses.

Design/methodology/approach

Data presented in this paper are from a national WISE database developed by the author that includes 254 businesses associated with 123 WISEs, and a pilot study of 15 WISEs testing an instrument for use in a national survey of US WISEs. Each business associated with the WISEs in the national database was coded for industry, occupation and wage data using categories developed by the US Bureau of Labor Statistics. Each WISE business was further coded as preparing its workers for either low or middle skill jobs. These data were analyzed using frequency counts, chi square tests of association and a two‐step cluster analysis. To explore employment conditions inside WISE businesses, the pilot study data were analyzed using a multiple case study analysis approach. Through focused coding techniques, descriptions of the employment conditions associated with the WISE jobs are reviewed.

Findings

Analysis at the level of occupation category reveals that about 72 percent of the jobs that WISEs train clients to perform exist in low skill occupations. Chi‐square tests of association between NTEE code (a proxy for target population) and job skill level are not significant suggesting that low skill training is utilized by organizations serving clients facing a range of disadvantage. Cluster analyses indicate that for WISEs targeting disabled populations and for newer organizations targeting the general unemployed populations, low skill job training pervades but for education organization and for older employment organizations, middle skill job training is more prevalent. The pilot data analyses show that the WISEs offer minimum wage or higher wage positions but many without guaranteed hours or a clear pathway out of WISE employment.

Practical implications

These data suggest WISEs in the USA have grown well beyond their earlier, narrower niche working with the disabled to employ a much broader portfolio of client populations, many higher functioning. However, the findings that many WISEs are positioned in the low skill labor market and on some dimensions can mirror the low skill labor market employment conditions suggest that additional aspects of WISE workforce development strategy should be taken into account.

Originality/value

The paper focuses on the labor market niches where WISEs are active, the occupations associated with these labor market positions, and the work conditions offered.

Article
Publication date: 21 September 2012

Dianne H.B. Welsh and Norris Krueger

If there is one thing that truly characterizes entrepreneurship and especially social entrepreneurship, it is the “engaged scholarship” at their very heart. That is…

3145

Abstract

Purpose

If there is one thing that truly characterizes entrepreneurship and especially social entrepreneurship, it is the “engaged scholarship” at their very heart. That is, teaching, outreach/service and research are connected, often tightly. The purpose of this paper therefore is to discuss the evolution of social entrepreneurship and the lessons learned.

Design/methodology/approach

The paper reports on the results of a multi‐country survey dealing with social entrepreneurship.

Findings

It is found that a lot of maturing needs to be done in the area of social entrepreneurship work.

Originality/value

This paper provides real value to the literature by showing what is actually done in the teaching of social entrepreneurship.

Details

Journal of Technology Management in China, vol. 7 no. 3
Type: Research Article
ISSN: 1746-8779

Keywords

Article
Publication date: 25 October 2013

Mary Ann Hofmann and Dwayne McSwain

This paper provides a review and synthesis of past research regarding financial disclosure management by nongovernmental nonprofit organizations and suggests directions…

Abstract

This paper provides a review and synthesis of past research regarding financial disclosure management by nongovernmental nonprofit organizations and suggests directions for future study. The primary purpose of this review is to summarize the evidence on financial disclosure management to help regulators and other stakeholders understand why, how, and to what extent nonprofits engage in this behavior. The paper begins by defining disclosure management in nonprofit organizations and exploring the motivations for why it might occur. Next is a survey of the nongovernmental nonprofit financial reporting environment: objectives, common practices, and the informational needs of users of nonprofit financial reports. Research exploring the motives, methods, and consequences of disclosure management is summarized. The evidence suggests that nongovernmental nonprofit managers have a variety of incentives to manage reported numbers and that they do in fact alter spending decisions, choose accounting methods, and design cost allocations to achieve certain performance benchmarks. Furthermore, this review sheds light on the consequences of disclosure management and what can or should be done to limit it.

Details

Journal of Accounting Literature, vol. 32 no. 1
Type: Research Article
ISSN: 0737-4607

Keywords

Article
Publication date: 5 February 2018

Sarah J. Woodside

Work integration social enterprises (WISEs) address the chronic unemployment of disadvantaged populations. However, WISEs face challenges, in part, because they embody…

Abstract

Purpose

Work integration social enterprises (WISEs) address the chronic unemployment of disadvantaged populations. However, WISEs face challenges, in part, because they embody both social mission and market logics which potentially contradict one another. The purpose of this paper is to investigate how the founders of WISEs perceive the relationship between logics and how they manage any resulting tensions, to help determine if they are effective vehicles for alleviating unemployment.

Design/methodology/approach

This study used in-depth interviews with social entrepreneurs in nationally recognized WISEs to assess how they perceived and managed logic tensions.

Findings

A total of eight out of the ten WISEs emphasized one dominant logic and did not perceive significant internal conflict. Only two cases experienced prolonged and ultimately irreconcilable tensions between their social mission and market goals, when social entrepreneurs were guided by the blended logics of providing training and services to disadvantaged populations within a for-profit legal form.

Research limitations/implications

Future research is required to determine the generalizability of these findings due to small sample size, an exclusive focus on the founder’s perspective and an exclusive focus on WISEs.

Practical implications

Findings contribute to greater understanding of logic tensions in WISEs and the opportunities and limitations that result from aligning dominant logic(s) and organizational form.

Originality/value

This research suggests that the founders of WISEs perceive market and social mission logics as options to be selected, and that WISEs struggle to succeed as organizations with two dominant logics. The market appears as yet unprepared to support singlehandedly organizations with a social mission of work integration.

Details

Social Enterprise Journal, vol. 14 no. 1
Type: Research Article
ISSN: 1750-8614

Keywords

Book part
Publication date: 11 July 2014

Michael H. Morris and Donald F. Kuratko

At its essence, entrepreneurship has the potential to empower and to transform. The key to both individual and organizational prosperity in a dynamic, threatening and…

Abstract

At its essence, entrepreneurship has the potential to empower and to transform. The key to both individual and organizational prosperity in a dynamic, threatening and complex world is the ability to think and act in more entrepreneurial ways. A new wave of economic development is sweeping the world, with entrepreneurship and innovation as the primary catalysts. Within the world of education, it can be argued that the at-risk student is the one not prepared for this entrepreneurial age. While every student has the potential, most lack the knowledge, attitudes, skills, and capabilities that define entrepreneurial competence. Over these past four decades, entrepreneurship has grown within universities faster than virtually any other area of intellectual pursuit. And it appears that the pace is accelerating with more universities seeking to develop programs and centers focused on entrepreneurship. Yet, understanding how to build entrepreneurship programs that empower and transform has remained challenging for some institutions. In this chapter, we investigate the development of entrepreneurship programs in universities. More specifically we contend that they should be created for empowerment and transformation across the campus. We describe some of the most common structural forms, outline the different degree programs, and emphasize the empowering and transforming effects of these programs for all the stakeholders of a university.

Details

Innovative Pathways for University Entrepreneurship in the 21st Century
Type: Book
ISBN: 978-1-78350-497-8

Keywords

Content available
Book part
Publication date: 7 December 2020

Abstract

Details

Organizational Hybridity: Perspectives, Processes, Promises
Type: Book
ISBN: 978-1-83909-355-5

Article
Publication date: 7 January 2019

Irene Bengo and Marika Arena

The purpose of this paper is to perform a critical analysis of the relationship between small- and medium-sized social enterprises (SMSEs) and banks. Based on the…

Abstract

Purpose

The purpose of this paper is to perform a critical analysis of the relationship between small- and medium-sized social enterprises (SMSEs) and banks. Based on the conceptual framework for the analysis of SME’s credit availability developed by Berger and Udell (2006), this study aims to contribute to the current debate in two ways: first, outlining the characteristics of the lending technologies currently used by banks and financial institutions to evaluate SMSEs when they apply for credit; and second, discussing, based on the results of the empirical analysis, the coherence of these systems from the social ecosystem perspective and identifying areas for possible improvement.

Design/methodology/approach

The paper develops a conceptual framework based on the model proposed by Berger and Udell (2006), which defines the characteristics of lending technologies that banks use to evaluate SMEs, and applies it to the case of SMSEs. To study the interplay of these lending technologies, the empirical analysis is based on a case study of five Italian banks. Data are collected from multiple sources to capture key dimensions of the problems analyzed.

Findings

The paper provides empirical insight about the relationship between SMSEs and banks. The Italian case shows that the current lending infrastructure must be revised to support SMSE credit availability, and government policies affect the national financial institution structure. The relationship between SMSEs and Italian banks remains underdeveloped.

Social implications

The research supports the scaling up of social business.

Originality/value

This paper fulfills an identified need to study how social enterprises credit access can be enabled.

Details

International Journal of Productivity and Performance Management, vol. 68 no. 2
Type: Research Article
ISSN: 1741-0401

Keywords

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