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As organizational scholars, we are accustomed to using theoretical lenses to understand organizational practices and outcomes. That is, we conceptualize what people do, feel and think in their everyday organizational interactions through the use of theoretical language and models to uncover individual and/or social antecedents and outcomes. We tend to ignore, however, how our own day-to-day work as scholars - doing research - is subjected to the same pressures, affected by similar factors, and should be accounted for through similar modes of analyses. We treat our studies and theories as solid anchor points and as objective truths rather than as constructions embedded within individual, organizational, field and societal contexts.
This volume is a must read for all researchers interested in understanding our own craft. Building on established traditions in the sociology of knowledge, we direct a reflective and critical gaze towards the structures, practices and meaning systems that ground and shape how we produce and consume managerial knowledge and organization theory. The volume includes both empirically-based papers and reflective essays that explore theoretical concepts and analytical reasoning to explain, critique and advance the ways in which we write about, produce, and consume theory.
Integrated hybrid organizations, for instance social enterprises that pursue both social and economic goals through a single activity, are seen by many as promising vehicles to create social value while remaining economically sustainable. At the same time, they are said to run the risk of mission drift—losing sight of their social mission while navigating market and political pressures. While organizational governance mechanisms that ensure the overall direction, control and accountability of the organization are considered key to avoiding mission drift, scholars have argued that traditional governance mechanisms may not work in the context of social enterprises. Drawing on the legacy of old institutional theory, this article proposes a proactive approach to governance in social enterprises. We complement and go beyond control and compliance approaches and introduce a governance approach focused on purpose, commitment and coordinating around small wins. We propose that these three interlocking governance mechanisms allow social enterprises to mitigate the risk of mission drift in a proactive rather than reactive manner.
Services that are especially suited to being offered via online labor platforms, such as cleaning, driving and tutoring, are frequently performed in an informal way, especially in emerging-market countries. The informal economy is thus important for recruiting workers for labor platforms. Platform use, however, requires formal service provision, which workers in the informal economy often resist. Thus, labor platforms have to promote workers’ transition from informal to formal service provision. While recent studies have hinted at labor platforms’ fostering of formal economic activity, we know little about how such intermediation unfolds. We use a process lens and comprehensive qualitative data on labor platforms in Panama and Mexico to study how labor platforms steer workers to formal service provision. Detailing the interactive process of workers transitioning to formal service provision as triggered by labor platforms, we add to platform research and literature on intermediation between informal and formal economic activity.
How firms strategically navigate informal and formal copyright practices: insights from Nollywood
(2021)
Purpose
The purpose of this study is to explain how and why firms configure copyright practices when confronted with state-sanctioned laws and informal customs projected by local ethnic or religious communities.
Design/methodology/approach
A multi-case inductive study of four film-producing organizations within the Nigerian film industry (i.e. Nollywood) was conducted. Specifically considered were firms that started their operations around the same time with similar founding conditions, experiences, resources and technical competencies. Field observations and multiple rounds of in-depth interviews were conducted to achieve the research objectives.
Findings
The study found that firms adopted dominant or hybrid configurations when interacting with informality and formality. Dominant configurations represent the exclusive adoption of informal copyright practices while hybrid configurations refer to the blended use of informal and formal copyright practices. The second set of findings revealed that each firm’s strategic intent affected the type of interactional configuration that unfolded in the firm. Specifically, firms with social intents tended to adopt dominant configurations, whereas firms with socio-economic intents tended to adopt hybrid configurations.
Practical implications
The study implies that firms may profit from strategically focusing on when and in what circumstances to adopt informality. Strategic intents that blend social and economic rationales may secure more positive interactive outcomes from internal and external stakeholders promoting formality and informality.
Social implications
This study highlights the fact that firms embedded in local religious and ethnic communities use organizational practices to solve social and institutional problems of their members. The copyright practices of these organizations encourage apprenticeship, youth empowerment and entrepreneurship in Nigeria.
Originality/value
To the best of the authors’ knowledge, this is the first study that goes beyond macro-level analysis to investigate the interactional dynamics between formality and informality at the firm, community, and state levels. The study is also first of its kind to use copyright practices as an analytical lens to explore the interaction between informality and formality.
This article explains how relational activities affect the design of seemingly paradoxical contractual arrangements among groups of channel intermediaries in Nigeria. The study used a grounded theory approach to investigate and analyze the contractual processes of three groups of channel intermediaries representing three diverse industries. Findings reveal that social relational activities trigger a higher prevalence of word-of-mouth agreements among channel intermediaries, whereas a blend of commercial and social relational activities trigger a higher prevalence of written agreements. Furthermore, we find that negotiation domains moderate the relationship between relational activities and the design of contractual arrangements. Insights from our work offer contributions to the literature on paradoxes, relational embeddedness, and international business.
How informality affects habitual improvisation in firms: insights from the Nigerian movie industry
(2021)
Research has often underestimated the pervasive and global occurrence of informality because studies largely define informality as illegal economic practices. This study adopts a multidimensional view of informality to explain how and why firms habitually improvise even when they do not experience unexpected or extreme eventualities. We addressed this concern through a comparative ethnographic study of three film production crews in the Nigerian movie industry. Our findings unravel the multiple dimensions of informality and define habitual improvization. We build a theoretical model that traces the organizing principles of informality and how they affect the modes of implementation and outcomes of habitual improvization. Finally, we offer an agenda for future theoretical and empirical research on informality and organizational improvization.
We extend research on informal economic activity and investigate why organizations adopt informal rules when formal ones exist and how and why patterns of defiance vary across organizations. We build on data from an in-depth study of four organizations operating in the Nigerian movie industry. We identify ambiguity of formal institutions as a major source of organizational defiance. We also find that the organization's domain of embeddedness mediates the relationship between institutional ambiguity and organizational defiance. According to our analysis, the rationale for organizing propelled by the dominant domain of embeddedness affects whether organizations consistently or selectively defy ambiguous formal rules. Our findings highlight the importance of the interplay between institutional and organizational dynamics in understanding informality within an economy.
This study illustrates how entrepreneurship may catalyze prosperity as well as peace in entrenched poverty–conflict zones. We bring to life a conceptualization of transformative entrepreneuring by assessing interrelationships between poverty and conflict indicators from the perspective of rural dwellers in Rwanda's entrepreneurial coffee sector. Our findings suggest that individuals' perceptions of poverty alleviation and conflict reduction are sequentially linked, notably via increased quality of life. This enables us to advance theory on entrepreneuring by unpacking the mechanisms through which entrepreneurial processes may transform the lives of such ‘ordinary’ entrepreneurs in settings where economic and social value creation are desperately needed.
In this chapter, we assess the link between scaling, control and organizational achievements. We argue that control is essential to coordinate organizational members towards a common and shared goal and to provide guardrails for scaling. We use the experience of the Aravind Eye Care System, a non-profit organization based in India providing eye care services to poor people to specify the mechanisms employed by Aravind underpinning three popular organizational scaling modes—branching, affiliation and dissemination. Our objective is to show how control and scaling can be combined in order to protect the value base of a social enterprise and at the same time ensure growth.
Editorial notes in leading management journals have urged scholars to address Grand Challenges (GC) as an opportunity for producing knowledge that matters for society. This review explores whether current conceptualizations of GC support a productive path for management and organizational scholarship by guiding empirical inquiry, facilitating cumulative theory development, and informing practice. We systematically examine scholarly articles, calls for papers, and editorial notes published in management journals for consistency in how researchers use and define the concept of GC and the scope of associated phenomena and attributes. We find three prominent conceptual architectures in use: discursive, family resemblance, and phenomenon driven. The variety and incoherence of current uses of the GC concept and the lack of efforts to improve its analytical competence lead us to suggest its retirement. Instead, we propose building on the enthusiasm around GC research and using GC as a term to define research principles that collectively help align research efforts and improve theoretical development and practice. The principles we propose capture a genuine origin story for management research on GC.
The embeddedness of social entrepreneurship: Understanding variation across geographic communities
(2011)
Social enterprise organizations (SEOs) arise from entrepreneurial activities with the aim of achieving social goals. SEOs have been identified as alternative and/or complementary to the actions of governments and international organizations to address poverty and poverty-related social needs. Using a number of illustrative cases, we explore how variation of local institutional mechanisms shapes the local “face of poverty” in different communities and how this relates to variations in the emergence and strategic orientations of SEOs. We develop a model of the productive opportunity space for SEOs as a basis of and an inspiration for further scholarly inquiry.
Organizational closure competencies and scaling: A realist approach to theorizing social enterprise
(2014)
Purpose
Social entrepreneurs create novel approaches to social problems such as poverty. But scaling these approaches to the dimension of the problem can be a difficult task. In the social enterprise sector, the subject of scaling has become a key dimension of organizational performance. This chapter advances the scholarly literature on the scaling of social enterprises, a literature which is currently in an embryonic stage and characterized by conceptual ambiguity and fragmented perspectives.
Methodology/Approach
We engage realist philosophy of science to develop mechanism-based causal explanations of the scaling performance of social enterprises. We also develop a coding scheme to guide systematic empirical analysis and highlight the explanatory power of counterfactuals. Counterfactuals have been largely neglected in empirical research as they represent mechanisms that are enabled but remain unobservable – in a state of suppression or neutralization of their effects.
Findings
We question the ability of organizations to “socially engineer” desired outcomes and introduce a new construct – organizational closure competence. Anchored in realism, this construct provides a basis for productive approaches to social engineering. We elaborate on the importance of organizational closure competencies for scaling, derive a series of propositions, and develop ideas for future research and for practice.
Research, Practical and Social Implications
Applying a realist lens allows us to add empirical rigor to research on social enterprises and scaling. Our approach constitutes a move from rich narratives to causal models and informs the way we design and evaluate efforts to address important societal challenges.
Originality/Value of Chapter
This chapter demonstrates how to operationalize realist philosophy of science for causal explanations of complex social phenomena and better utilize its theoretical and practical value.
Social entrepreneurship. The contribution of individual entrepreneurs to sustainable development
(2004)
Social entrepreneurship is a phenomenon that has resisted attempts to establish a clear definition. A focus on organizational structures and/or what constitutes a worthy social cause has created a diverse set of terminology. Observing the positive social impact of entrepreneurs catering to basic needs, this paper recognizes their unique role in efficiently contributing to the achievement of sustainable development goals. From this perspective, the term social can be much better defined. The frameworks proposed in this paper should guide much-needed further research and facilitate decision making about more focused support from a financial as well as a learning perspective.
Mastering System Change
(2018)
Outlining both historical foundations and the latest research trends, this Research Handbook offers a unique and cutting-edge overview of the numerous avenues to responsible management.
Opening with a conceptual mapping of the field, thought leaders such as Henry Mintzberg and Archie Carroll present foundational and controversial views. Frameworks such as sustainability management, responsible leadership, humanistic and biomimetic management are introduced. Glocal approaches include responsible management with Chinese characteristics, West African Yoruba, and American Pragmatism. Exploring frameworks for the responsible management process, such as theories of practice, and for responsible management learning and innovation, readers are introduced to key methods responsible management research, such as participatory action research.
Groundbreaking in scope and depth, this Handbook caters to the responsible management research community, particularly to the Academy of Management and to United Nations PRME signatory business schools. Policymakers and practitioners will benefit from its insight into the latest advances in responsible management research.
We are currently witnessing a new wave of the digital economy. A prime example is the sharing economy where an organization operates a platform for its online community, the sum of individuals who interact to exchange goods and services. The sharing economy blurs several boundaries of economic life – a fact that extant theory on platform organizing has yet paid little attention. We argue to consider two aspects of the sharing economy and revisit related theory to address this lacuna. First, we revive the concept of hybrid community to denote a variant of an online community that mirrors the boundary-blurring nature of the sharing economy. In a hybrid community, individuals interact both online and offline (instead of only online) and consume as well as produce. Second, we revisit the range of strategic responses suggested by extant literature to minimize the dependence of a platform organization on its hybrid community and show that the sharing economy requires management research to adapt and potentially recast existing claims.
Developing innovative, eco-friendlier products that gain traction in the mass market remains a persistent challenge for many firms. To bring consumers to choose “greener” alternatives over conventional products, firms need to overcome prevailing product evaluations that favor traditional solutions. Research on valuation entrepreneurship examines the strategies that actors apply to induce changes in established evaluations. Adding to the emerging literature on valuation entrepreneurship, our study analyzes how the car maker Tesla, Inc. used product design—material artifacts' properties of form and function—to advance the public perception of battery electric vehicles (BEVs). When Tesla entered the market, several firms had tried to promote BEVs as a way of making private mobility more environmentally friendly, but with limited success. In contrast, Tesla produced well-received BEVs that generated enormous consumer interest and led to a more favorable assessment of BEVs as a whole. Drawing on 54 interviews and nearly 2000 pages of archival data, our abductive study identifies three product design strategies that increased the appeal of Tesla's initial models: (1) incorporating discontinuous technological solutions; (2) optimizing the products on traditional evaluation criteria (e.g., driving performance, comfort, space, status); and (3) creating an ecosystem of complementary products. Since some design choices came at the expense of a minimal environmental footprint, they risked attracting blame for compromising on the environmental performance of potentially eco-friendly cars and for committing “greenwashing.” To minimize this risk, Tesla complemented its design strategies by employing three strategies of reputational politics to avoid such blame. After Tesla's initial, lavish models had improved the public perception of electric cars, Tesla and other car makers were able to sell less excessive and more sustainable BEVs in much greater quantities than ever before. Our findings contribute to three literature streams and generate valuable insights for management practice.
Although most existing literature has focused on the motives and consequences of divestitures, we have little more than anecdotal evidence illustrating their design and implementation. Even less is known about the evolution of divestitures, especially when parent companies retain a relationship with the divested unit. Using a multi-method approach that blends quantitative analysis with insights from field research, this study analyzes how and why companies structure and implement divestitures. The resulting framework provides new insights for strategy scholars on how divestitures can be used to shape corporate strategies and our understanding of multi-business companies.
Existing literature argues that divested units are unwanted and poor performers – yet evidence suggests that companies do divest well performing units, and often retain a relationship with them, especially in the quest for innovation. This article presents an exploratory case study to examine how a company structures the divestiture of an innovative unit and how it can benefit from the innovation the unit generates. The analysis focuses on how an established company can use divestiture as a strategy to enhance the innovation of its units, and capture its value, by structuring, maintaining and nurturing a special relationship with the unbundled unit. Under new organizational arrangement, resources can be transferred from the parent to the unit, while the parent retains access to the innovation developed within the unit. This study proposes a framework that offers corporate change agents and strategists a new perspective on how to integrate innovation and corporate strategy.
Variety and Trajectories of New Forms of Organizing in the Sharing Economy: A Research Agenda
(2020)
The sharing economy is one of the most influential developments of the last decade. The emergence of new forms of organizing it brings with it has affected modern (business) life at multiple levels: Sharing organizations have blurred the distinction between the individual roles of provider, user, and employee; they have introduced organizational practices of coordinating members and communities; and they have sparked societal, political, and economic debates in multiple fields. These dynamics at the individual, organizational, and field level provide an opportunity for organization scholars to take stock of and theorize the sharing economy.
This volume takes advantage of this opportunity by presenting a collection of empirical and conceptual work that explores the variety and the trajectories of new forms of organizing in the sharing economy, and in doing so builds on, rejuvenates, and refines existing organization theories.
Together, the chapters included in this volume offer a comprehensive overview of theoretically grounded research that deepens our understanding of new forms of organizing and indicates future avenues for research.
The sharing economy is one of the most influential developments of the last decade. The emergence of new forms of organizing it brings with it has affected modern (business) life at multiple levels: Sharing organizations have blurred the distinction between the individual roles of provider, user, and employee; they have introduced organizational practices of coordinating members and communities; and they have sparked societal, political, and economic debates in multiple fields. These dynamics at the individual, organizational, and field level provide an opportunity for organization scholars to take stock of and theorize the sharing economy.
This volume takes advantage of this opportunity by presenting a collection of empirical and conceptual work that explores the variety and the trajectories of new forms of organizing in the sharing economy, and in doing so builds on, rejuvenates, and refines existing organization theories.
Together, the chapters included in this volume offer a comprehensive overview of theoretically grounded research that deepens our understanding of new forms of organizing and indicates future avenues for research.
This study advances research on organizational efforts to tackle multidimensional, complex, and interlinked societal challenges. We examine how social inequality manifests in small-scale societies, and illustrate how it inheres in entrenched patterns of behavior and interaction. Asking how development programs can be organizing tools to transform these patterns of inequality, we use a program sponsored by an Indian non-governmental organization as our empirical window and leverage data that we collected over a decade. We identify “scaffolding” as a process that enables and organizes the transformation of behavior and interaction patterns. Three interrelated mechanisms make the transformation processes adaptive and emerging alternative social orders robust: (1) mobilizing institutional, social organizational, and economic resources; (2) stabilizing new patterns of interaction that reflect an alternative social order; and (3) concealing goals that are neither anticipated nor desired by some groups. Through this analysis, we move beyond conventional thinking on unintended consequences proposed in classic studies on organizations, complement contemporary research about how organizations effect positive social change by pursuing multiple goals, and develop portable insights for organizational efforts in tackling inequality. This study provides a first link between the study of organizational efforts to alleviate social problems and the transformation of social systems.
Social enterprises are organisations that pursue a social mission using market mechanisms. From a policy perspective, they are promising vehicles to create both social and economic value for society in times when public funds are shrinking and the financial viability of charities and non-profit organisations (NPOs) is increasingly at stake. From a civil society perspective, they are an important organisational form to ensure longevity, financial viability, and sustainability of mission-driven organisations. Social enterprises are neither typical charities nor typical businesses but combine aspects of both, using commercial activities as means toward social ends. They are often small or medium-sized1 and do not draw on highly elaborated governance arrangements as do larger for- or non-profit organisations. Governance often resembles a grey zone for these organisations, and the approach social enterprises adopt ranges from formal, legally binding arrangements to more flexible and context-based ones.
In this chapter we argue that hybrid organizations, i.e., organizations pursuing dual goals, are an important site for rethinking and potentially recasting our perspective on organizational governance. We give an overview of the specific governance challenges hybrid organizations face and probe conventional and more novel approaches and their potential to understand governance in hybrid organizations. Introducing empirical findings from a large-scale qualitative and quantitative study about governance in social enterprises, we propose to complement the reactive approach dominant in the governance literature with a more proactive approach: drawing on the work of Philip Selznick, we introduce a governance approach focused on purpose, commitment and new ways of coordination. We propose that these three interlocking governance mechanisms allow hybrid organizations such as social enterprises to mitigate governance challenges such as the risk of mission drift in a proactive rather than reactive manner.
We investigate how an intermediary organization, PRADAN, introduces and promotes market-based activities in tribal villages as a means to improve the social and economic conditions of rural women and their families in two districts in India. We draw from the literature on institutional logics and focus on the strategies and activities of PRADAN – an NGO working in poor rural areas in Northern India – to show how PRADAN instrumentally used a market logic and a community logic to develop new social structures in these rural communities. Moreover, we show what effect this had on beneficiaries and their families and how difficult it has been to convince rural communities and gain their trust. On the basis of these findings we show how logics can be deployed as a means to alter institutional arrangements. We find that the simultaneous enactment of both community and market logics was critical in the development of new social structures (Self-Help Groups). Finally, we show how the introduction of market-based activities by PRADAN is best understood as an ongoing and staged process that strongly builds on a continuous interplay of multiple logics.
Prior research has emphasized middle managers' important role in the strategy process and the benefits of their involvement, but little is known about their role in medium-sized firms and their participation in the internationalization strategy process (ISP). This article aims to fill these gaps.
Our analysis of interviews conducted with the complete layer of middle managers at a medium-sized firm is intended to shed light on these issues by examining the extent and effect of middle managers' involvement in the strategy formulation phase of the ISP. The medium-sized Italian firm chosen for our sample was going through a period of radical change as it expanded its international activities beyond its cultural boundaries.
We found that not all the firm's middle managers perceived themselves to be involved in formulating the internationalization strategy. The perception of involvement was dependent on ownership of the outcome of internationalization. Middle managers with revenue accountability perceived themselves to be involved in strategy formulation. Furthermore, this perception of increased involvement was tightly linked to a more opportunity-oriented attitude toward internationalization.
We suggest that medium-sized firms can actively manage middle managers' attitudes and behavior toward internationalization by managing perceptions.
The view from the middle
(2006)
Academic and practitioner interest in how market-based organizations can drive positive social change (PSC) is steadily growing. This paper helps to recast how organizations relate to society. It integrates research on projects stimulating PSC—the transformational processes to advance societal well-being—that is fragmented across different streams of research in management and related disciplines. Focusing on the mechanisms at play in how organizations and their projects affect change in targets outside of organizational boundaries, we (1) clarify the nature of PSC as a process, (2) develop an integrative framework that specifies two distinct PSC strategies, (3) take stock of and offer a categorization scheme for change mechanisms and enabling organizational practices, and (4) outline opportunities for future research. Our conceptual framework differentiates between surface- and deep-level PSC strategies understood as distinct combinations of change mechanisms and enabling organizational practices. These strategies differ in the nature and speed of transformation experienced by the targets of change projects and the resulting quality (pervasiveness and durability), timing, and reach of social impact. Our findings provide a solid base for integrating and advancing knowledge across the largely disparate streams of management research on corporate social responsibility, social entrepreneurship, and base of the pyramid and open up important new avenues for future research on organizing for PSC and on unpacking PSC processes.
Over the last few years many business schools have been active in developing courses on social entrepreneurship. The case studies used are typically based on non-profit initiatives aimed at alleviating social problems in the community. Yet social entrepreneurship is not limited in scope and structure. It is neither geographically nor culturally centered. To avoid the dilemma of defining what social entrepreneurship is or what it is not, we argue that the most fruitful approach is to adopt a specific perspective that illuminates the role and the unique contribution of social entrepreneurship. The perspective we propose is 'sustainable development'. This approach also permits the positioning of social entrepreneurship alongside existing organizations that participate in the global efforts to achieve sustainable development. We describe initiatives by social entrepreneurs and established corporations, highlight the social, economic and environmental impact, and draw out commonalities from the examples given.
The Sekem Initiative
(2005)
La Iniciativa Sekem
(2005)
This case documents the circumstances of managing the growth phase of a start-up company. Entropy International faces the unique challenges and opportunities of social entrepreneurship but also entrepreneurship in general. Founded by a visionary environmental activist in 1996 as an environmental consulting boutique in the United Kingdom, Entropy grew with the emerging needs of large multinational corporations to publicly report on and minimise the environmental and social impacts of their operations. Entropy started out as a two-person consultancy to become the market leader in Europe, selling an integrated environmental, health and safety, quality control and reporting suite. At the time of the case (March 2003), Entropy employed 30 people and expected revenues of 1.6 million pounds for fiscal year 2003.
This case portrays a complex set of circumstances that frames Sekem's decisions to further grow and develop the initiative along its historical path of holistic development in the social, economic and cultural spheres. The case documents the history of the initiative and lays out the major constituents and their internal and external relations. Sekem was founded by Ibrahim Abouleish, an Egyptian who had been living, studying and working in Austria prior to his return to Egypt in 1977, the year he established Sekem. Literally starting from nothing, ie, a piece of desert land north of Cairo, Abouleish showed tremendous resourcefulness, creativity, and perseverance. Driven by a strong belief in his personal mission, Abouleish built up the Sekem initiative that in 2003 consisted of three main parts: the Sekem group of companies, the Egyptian Society for Cultural Development and the Co-operative of Sekem Employees, together employing more than 2,000 people. Sekem was also a hub managing a large network of associated farmers and companies within Egypt and abroad. It also ran a medical centre for the local community, a kindergarten, primary and secondary schools, an adult training centre, special needs education programmes, and an academy for applied arts and sciences. In 2003, Abouleish won the Right Livelihood Award, also known as the 'Alternative Nobel Prize', in recognition of Sekem being the blueprint of the organisation of the 21st century. Abouleish has also received an award as an 'outstanding social entrepreneur' from the Schwab Foundation of the World Economic Forum. Abouleish's objective was to heal Egyptian society from the wounds of the past and to initiate holistic development able to create economic, social and cultural value in a sustainable manner.
Organizations across sectors appear to be shifting their ambitions from solving social problems to changing entire social systems. This phenomenon offers a timely opportunity to revisit what came to be known as the third mandate of organizational theory. In this paper we interrogate how organizational scholarship can productively explore and theorize the relationship between organizations and social systems in organized system change – an effort by organizations to alter the conditions that generate the characteristics of social problems and their dynamics of change. As a basis for theorizing organized system change, we develop an analytical scaffold that helps researchers to attend to fundamental aspects of the phenomenon and to achieve parsimony without blanking out complexity. Grounded in realist metatheory and principles, the scaffold reduces ambiguity, provides a backbone for empirical analysis, and favours mechanism-based explanation. We suggest that generating theoretically interesting and practically adequate knowledge on organized system change requires attention to three system realms: First, the subjectively constructed problem realm of systems concerned with processes of evaluating and problematizing situations. Second, the objectively constituted situational realm that attends to factual characteristics of situations and their dynamics of change. And third, the realm of causality understood as the mechanisms that generate both the objective characteristics of situations and the subjective criteria by which situations are evaluated as problems. In concluding, we reflect on the topics of boundaries and power as two promising areas for theorizing organized system change.
Water is Power
(2017)
Innovation and Scaling for Impact forces us to reassess how social sector organizations create value. Drawing on a decade of research, Christian Seelos and Johanna Mair transcend widely held misconceptions, getting to the core of what a sound impact strategy entails in the nonprofit world. They reveal an overlooked nexus between investments that might not pan out (innovation) and expansion based on existing strengths (scaling). In the process, it becomes clear that managing this tension is a difficult balancing act that fundamentally defines an organization and its impact.
The authors examine innovation pathologies that can derail organizations by thwarting their efforts to juggle these imperatives. Then, through four rich case studies, they detail innovation archetypes that effectively sidestep these pathologies and blend innovation with scaling. Readers will come away with conceptual models to drive progress in the social sector and tools for defining the future of their organizations.
Profitable business models and market creation in the context of deep poverty: A strategic view
(2007)
The bottom of the pyramid (BOP) in the global distribution of income has been promoted as a significant opportunity for companies to grow profitably. Under the BOP approach, poor people are identified as potential customers who can be served if companies learn to fundamentally rethink their existing strategies and business models. This involves acquiring and building new resources and capabilities and forging a multitude of local partnerships. However, current BOP literature remains relatively silent about how to actually implement such a step into the unknown. We use two BOP cases to illustrate a strategic framework that reduces managerial complexity. In our view, existing capabilities and existing local BOP models can be leveraged to build new markets that include the poor and generate sufficient financial returns for companies to justify investments.
Digital democracy
(2006)
Comite para Democratizacao da Informatica (CDI) is a non-political, non-profit, and non-governmental organization founded in Brazil in 1995. It aims to promote the social inclusion of less-privileged people, using information and communication technologies to teach them the basic concepts of self-esteem, citizenship and their rights as individuals. CDI executive director and founder Rodrigo Baggio's first step was to launch a campaign called "Computers for All", where companies were contacted and asked to donate used computers to the favelas. The next step was to create computer schools in the slums. In response to demand for new schools in other Brazilian states and beyond, CDI designed a "social franchise" model. The idea was to set up regional CDI offices to create new schools. Students are motivated to develop ideas that generate income and give them better employment prospects. The challenge now is for Baggio and his team to manage growth without losing the original vision of CDI.
Social entrepreneurship can be a powerful tool for corporations to gain entry and build loyalty in developing markets. While economic growth has led to tremendous improvements in personal freedoms and well-being for people in industrialised societies, it has left too many behind. The images of hunger, disease and human misery refuse to disappear from our television screens. How can growth be made more sustainable while at the same time including and benefiting all of society? The paradox is painful: while traditional markets are saturated, billions of people are desperately waiting for companies to cater to their most basic needs and wants. Social entrepreneurs act as change agents that enable the poor to participate in economic life. Entrepreneurs invent business models that can be scaled up and possibly repeated elsewhere: the Grameen Bank model has been replicated all over the world, with huge success. Social entrepreneurship initiatives also constitute local resources that lend themselves to new configurations for novel forms of value creation.
The term “social entrepreneurship” (SE) is used to refer to the rapidly growing number of organizations that have created models for efficiently catering to basic human needs that existing markets and institutions have failed to satisfy. Social entrepreneurship combines the resourcefulness of traditional entrepreneurship with a mission to change society. One social entrepreneur, Ibrahim Abouleish, recently received the “Alternative Nobel Prize” for his Sekem initiative; in 2004, e-Bay founder Jeff Skoll donated 4.4 million pounds to set up a social entrepreneurship research center; and many social entrepreneurs have mingled with their business counterparts at the World Economic Forum in Davos. Social entrepreneurship offers insights that may stimulate ideas for more socially acceptable and sustainable business strategies and organizational forms. Because it contributes directly to internationally recognized sustainable development (SD) goals, social entrepreneurship may also encourage established corporations to take on greater social responsibility.
When Innovation Goes Wrong
(2016)
Efforts by social enterprises to develop novel interventions receive a great deal of attention. Yet these organizations often stumble when it comes to turning innovation into impact. As a result, they fail to achieve their full potential. Here’s a guide to diagnosing and preventing several “pathologies” that underlie this failure.
À l’heure où tout nouveau débouché est un enjeu stratégique de taille, peut-on ignorer à la masse de consommateurs des pays du Sud ? Focus réalisé d’après « Profitable Business Models and Market Creation in the Context of Deep Poverty: A Strategic View », de Christian Seelos et Johanna Mair, Academy of Management Perspectives, novembre 2007, et l’interview d’Iqbal Quadir, fondateur et directeur du Legatum Center for Development and Entrepreneurship (US), février 2009.
Can we continue to categorically dismiss consumers in Southern countries at a time when companies are struggling to find new markets? Based on « Profitable Business Models and Market Creation in the Context of Deep Poverty: A Strategic View », by Christian Seelos and Johanna Mair, Academy of Management Perspectives, November 2007, and the interviews of Iqbal Quadir, founder and director of the Legatum Center for Development and Entrepreneurship at MIT (USA), February 2009.
Purpose
– Social entrepreneurial organizations have gained in awareness and interest among researchers, yet we know relatively little about how these organizations are able to create social and economic value. This paper seeks to understand how such organizations have managed to achieve scale and sustainability in developing economies – often lacking the institutions, networks and resources required to support their growth – whilst also maintaining their focus on a social mission.
Design/methodology/approach
– The paper presents a comparative case analysis of three social entrepreneurial organizations based in Bangladesh, Egypt and Spain that have been widely recognized as successful. It utilizes an explorative research approach with data gathered from many sources including published and unpublished articles, existing case studies, personal interviews and internet sources.
Findings
– Analysis of these three business models reveals common patterns in the use of strategic resources, in their value networks, and in customer interface. The findings suggest that successful social entrepreneurial organizations: proactively create their own value networks of companies that share their social vision; develop resource strategies as an integral part of the business model; and integrate their target groups into the social value network.
Research limitations/implications
– There are limitations in the sampling and data analysis approach, however, this study provides a first step towards a more inclusive empirical research agenda in the future.
Practical implications
– The paper offers interesting insights for existing for‐profit multi‐business companies to rethink their business models, particularly for developing country contexts.
Originality/value
– This paper encourages managers to think beyond the creation of economic value and demonstrates how social entrepreneurs achieve sustainable growth based on building complementary networks of stakeholders and resources integrated into the value chain. It provides propositions regarding the business models of successful social entrepreneurial organizations and hopes to stimulate managerial interest in alternative business models and future empirical research which builds on these qualitative findings.
This case introduces the Institute of OneWorld Health (IOWH), a company dedicated to producing drugs for neglected diseases and the first non-profit pharmaceutical company in the world. Founded in 2000 by Dr Victoria Hale, IOWH took expired and donated patent compounds and developed them through all the stages of clinical testing and approval into drugs to fight the world's most destructive diseases, usually occurring in Third World countries where perceived profitable markets did not yet exist. By 2004 IOWH was at the stage of presenting its first Phase 3 Clinical Trial results for Paromomycin, a drug developed for Visceral Leishmaniasis, which kills as many as 200,000 people each year in India, Bangladesh, Sudan, Brazil, and Nepal. Its next task was to form partnerships with other organisations to manufacture and distribute the drug; the case focuses on Dr Hale's strategy for IOWH going forward, with particular reference to its core competencies and mission. The case encourages students to consider other models with similar aims and to observe how social entrepreneurs such as Dr Hale endeavour to overcome the market failures that exist for basic health care in the world's least developed countries.
Social Entrepreneurship
(2006)
Social Entrepreneurship is a global phenomenon that impacts the lives of citizens by using innovative approaches to solving social problems. This book offers a comprehensive examination of this growing area of research and provides an excellent introduction to social entrepreneurship theory and a framework for future research.
Sharing Economy
(2020)
The sharing economy can be understood as a web of markets in which individuals exchange goods and services. Market exchange is typically based on transactions mediated by a digital platform operated by an organization (Mair and Reischauer 2017). The multiple legal forms, orientations, and modes of compensation these organizations adopt combined with the broad range of markets including food, tool, and ride-sharing exemplify the potential of the sharing economy to nurture alternative forms of organizing with social purpose (Mair and Rathert forthcoming) to affect the economy, society, and the environment in new ways (Frenken and Schor 2017).
To date, management research has paid little attention to dynamics of the sharing economy: how markets for sharing resources emerge and change, and the intended and unintended consequences of resource sharing. We propose a definition of the sharing economy that brings the role of organizations as infrastructure providers to the fore and helps us to assess the culturally rooted pluralism of forms and practices in these organizations. We introduce two perspectives in research on organizational institutionalism that focus on culture and pluralism – institutional complexity and institutional work – and argue that unpacking the pluralism of organizational forms and practices is critical to examine the dynamics of the sharing economy. We propose an agenda for research to capture the dynamics of the sharing economy at the organizational, field, and inter-field level. Such an agenda helps to document and analyze how the sharing economy manifests and evolves across various economic systems and has the potential to refine and recast existing management theory.
Sozialunternehmertum
(2020)
Sozialunternehmertum bezieht sich auf die innovative Nutzung wie Kombination von Ressourcen zur Bewältigung sozialer Probleme und Bedürfnisse. Wir zeichnen Debatten um die Definition von Sozialunternehmertum nach und stellen institutionellen Wandel und die Verfolgung vielfältiger Ziele als Schlüsselmerkmale von Sozialunternehmertum heraus. Auf Basis einer Diskussion verschiedener Arbeiten der Management-, Organisations- und Unternehmertumsforschung eröffnen wir eine prägnante und generative Perspektive auf Sozialunternehmertum. Sie soll helfen, die Erforschung sozialer Innovationen voran zu treiben.
Social enterprises have long been considered ideal settings for studying hybrid organizing due to their combination of social and economic goals and activities. In this chapter, the authors argue that the current research focus on hybrid organizing foregrounds the paradox, conflicting logics, and multiple identities associated with the pursuit of multiple goals but underappreciates the relationship between hybrid organizing and its institutional context. Recognizing that the primary objective of social enterprises is to tackle social problems, the authors introduce the social problem domain as an analytically useful and theoretically interesting meso-level to examine the role of context for hybrid organizing and to advance conversations on hybridity in organizational theory. Social problem domains offer insights into the political, cultural, and material differences in how various societies deal with social problems, which in turn affects hybrid organizing. The authors provide empirical insights derived from an analysis of social enterprises across three countries and social problem domains. The authors show how the institutional arrangements of social enterprises differ considerably across contexts, and how these arrangements affect how social enterprises become more or less similar compared to traditional ways of organizing in these problem domains. Based on these findings, the authors outline a research agenda on social enterprises that focuses on examining the nature, antecedents, and outcomes of hybrid organizing around social problems across multiple levels of analysis. With this chapter, the authors move the focus of social enterprise research in organizational theory from studying how these organizations cope with multiple logics and goals toward studying how they engage in markets for public purpose.
Given rampant economic inequality, social exclusion and overconsumption, organizing in markets increasingly focuses on leveraging commercial activity for a social purpose. Alternative forms of organizing have developed to overcome the deficiencies of contemporary capitalism. They have become prevalent in numerous institutional contexts through types of organizations such as social enterprises, cooperatives and platform-based sharing economy organizations. Our objective is to ignite research on alternative organizing. We build on two important institutional perspectives, Neo-institutionalism and Comparative Capitalism, to investigate how these organizations diverge from the archetypal corporation. In addition, we develop a framework to guide institutional analysis of the origins, enabling conditions and consequences of alternative organizing in contemporary markets and society. We conclude by laying out pathways for future research.
Corporate social responsibility (CSR) continues to grow as an area of interest in academia and business. Encompassing broad topics such as the relationship between business, society, and government, environmental issues, globalization, and the social and ethical dimensions of management and corporate operation, CSR has become an increasingly interdisciplinary subject relevant to areas of economics, sociology, and psychology, among others.
New directions in CSR research include advanced 'micro' based investigations in organizational behaviour and human resource management, additional studies of environmental social responsibility and sustainability, further research on 'strategic' CSR, connections between social responsibility and entrepreneurship, and improvements in methods and data analysis as the field matures. Through authoritative contributions from international scholars across the social sciences, this Handbook provides a cohesive overview of this recent expansion. It introduces new perspectives, new methodologies, and new evidence from a range of disciplines to encourage and facilitate interdisciplinary research and global implementation of corporate social responsibility.
A new kind of company
(2004)
Scholars in strategy and entrepreneurship have discussed the benefits and difficulties of keeping ventures inside the firm versus separating them through divestitures and the balance between control and autonomy. Using an in-depth analysis of cases of partial divestitures, this study examines the organizational arrangement that arises from divestitures with a retained parent-unit relationship. The emerging framework connects the parent-unit relationship and its modifications along the divestiture's objective – specifically, the exploration carried out by the unit. Partial divestitures are designed as real options, for firms to manage corporate venturing, taking advantage of the flexibility that such arrangement may grant.
Divestitures, understood as the parent company’s disposal and sale of assets, facilities, product lines, subsidiaries, divisions and business units, are emerging as a central topic of research in several areas. Yet our understanding of these operations is still limited. For
example, it is still not clear whether divestitures are merely a reflection of the economic cycle, a means to correct or reverse previous strategic decisions, or a proactive strategic option. Integrating literature in finance, strategy, and organizational behavior, this paper
offers a comprehensive picture of divesting modes, antecedents, mechanisms and outcomes of divestitures. It integrates empirical findings and theoretical contributions into a researchable whole, in order to identify common themes and gaps in existing research. The final objective of this analysis and review is to propose meaningful avenues for future research to improve knowledge on divestitures.
As of September 2005, the co-founders of Waste Concern, an organisation dedicated to improving waste recycling in Bangladesh, are considering making a change to their model in order to get approval from the municipal government for a large-scale composting site. Since its inception in 1995, Waste Concern has followed a decentralised composting model whereby each composting site is a small-scale operation processing 3 tons of organic waste per day. In this model, they have relied on land and waste supply from the Dhaka City Council (DCC) municipal government. Now, they are working with Dutch-based World Wide Recycling BV (WWR) to set up a 700-ton per day composting plant, which will enable them to earn tradable certificates for US$11 per ton of reduced methane gas, making it the first in the world to garner credits through composting waste under the United Nations Clean Development Mechanism (CDM). To launch the composting site, they face the hurdle of getting DCC's approval. They have three alternatives: (1) follow through with the original plan whereby the municipality would supply both the land and waste, which entails waiting for DCC's approval; (2) purchase the land for the composting site and rely on the municipality for a waste supply; or, (3) purchase the land and take on the responsibility of waste collection themselves. In their considerations, they need to weigh the financial and social aspects and determine an appropriate structure for their organisation.
Hybrid organizations operate in a context of institutional plurality and enact elements of multiple, often conflicting institutional logics. Governance is highly relevant in navigating such an environment. This study examines how hybrid organizations set up their governance structures and practices. Building on survey data from 70 social enterprises, a subset of hybrid organizations, we identify two types of hybrid organization: conforming hybrids rely on the prioritization of a single institutional logic and dissenting hybrids use defiance, selective coupling and innovation as mechanisms to combine and balance the prescriptions of several institutional logics. We illustrate these mechanisms by drawing on the qualitative analysis of selected cases. This study refines current debates on social enterprises as hybrid organizations. Based on our findings, we speculate that some social enterprises might assume hybridity for symbolic reasons while others – genuine hybrids – do so for substantive reasons.
Much effort goes into building markets as a tool for economic and social development; those pursuing or promoting market building, however, often overlook that in too many places social exclusion and poverty prevent many, especially women, from participating in and accessing markets. Building on data from rural Bangladesh and analyzing the work of a prominent intermediary organization, we uncover institutional voids as the source of market exclusion and identify two sets of activities—redefining market architecture and legitimating new actors—as critical for building inclusive markets. We expose voids as analytical spaces and illustrate how they result from conflict and contradiction among institutional bits and pieces from local political, community, and religious spheres. Our findings put forward a perspective on market building that highlights the on-the-ground dynamics and attends to the institutions at play, to their consequences, and to a more diverse set of inhabitants of institutions.
The article discusses how institutional voids can be spaces of opportunity for companies. Institutional void refers to the absence of supporting institutions in certain economy. Institutions are shared conceptions and constraints that shape human interaction. They constitute the rules of the game, for doing business, for social interaction, and for human behavior in general. For motivated entrepreneurs, institutional voids is perceived as opportunities. Two examples are presented to illustrate the nature of institutional voids in Bangladesh and India.
In many developing countries those living in poverty are unable to participate in markets due to the weakness or complete absence of supportive institutions. This study examines in microcosm such institutional voids and illustrates the activities of an entrepreneurial actor in rural Bangladesh aimed at addressing them. The findings enable us to better understand why institutional voids originate and to unpack institutional processes in a setting characterized by extreme resource constraints and an institutional fabric that is rich but often at odds with market development. We depict the crafting of new institutional arrangements as an ongoing process of bricolage and unveil its political nature as well as its potentially negative consequences.
Purpose – In many developing countries those living in poverty are unable to participate in markets due to the weakness or complete absence of supportive institutions. This study aims to examine, in microcosm, such an institutional void and to illustrate the strategy and activities employed by an entrepreneurial actor in rural Bangladesh in addressing it.
Design/methodology/approach – The paper is based on an in-depth case study. Data were gathered
over two years from field interviews, archives, and secondary sources.
Findings – The data illustrate how market access for the poorest of the poor is facilitated through the creation of platforms for participation in the economy and broader society. The authors conceptualize this process as the crafting of new institutional arrangements and as resource and institutional bricolage occurring in parallel.
Practical implications – The study offers insights for development agencies, policy makers and
companies on how to combat poverty, fight corruption, and stimulate social and economic change.
Originality/value – The paper enriches current thinking on institutions and entrepreneurship as well as strategies for social impact.
Social entrepreneurship, as a practice and a field for scholarly investigation, provides a unique opportunity to challenge, question, and rethink concepts and assumptions from different fields of management and business research. This article puts forward a view of social entrepreneurship as a process that catalyzes social change and addresses important social needs in a way that is not dominated by direct financial benefits for the entrepreneurs. Social entrepreneurship is seen as differing from other forms of entrepreneurship in the relatively higher priority given to promoting social value and development versus capturing economic value. To stimulate future research the authors introduce the concept of embeddedness as a nexus between theoretical perspectives for the study of social entrepreneurship.
The powerful imagery of entrepreneurship as a means to induce and explain institutional change is gaining momentum (Greenwood & Suddaby, 2006; Lawrence & Suddaby, 2006). In response to criticisms that institutional theory was chiefly being used to explain homogeneity and persistence, important efforts have been devoted to restoring human agency in explanations of endogenous institutional change (DiMaggio, 1988; Sewell, 1992; Emirbayer & Mische, 1998). However, the image of the entrepreneur as institutional change agent has also been a source of controversy among institutional theorists, especially when accompanied by voluntarist, un-embedded conceptions of individual action (Holm, 1995; Leca & Naccache, 2006). As a result we observe vivid scholarly discussions on how to solve the “paradox of embedded agency”– i.e. on explaining how institutional change is possible if actors are fully conditioned by the institutions that they wish to change (Holm, 1995; Seo & Creed, 2002; Greenwood & Suddaby, 2006). The current debate is important and we welcome more agent-oriented views on institutions. The purpose of this chapter is to advance institutional theory by rethinking various aspects of institutional work (Lawrence & Suddaby, 2006; DiMaggio, 1988) and thereby to contribute new insights into the paradox of embedded agency. We do so by challenging and breaking dominant patterns in current empirical research. While previous research on institutional entrepreneurship has predominantly looked at elite and/or powerful actors (DiMaggio, 1988; Fligstein & Mara-Drita, 1996) who assume either peripheral (Leblebici, Salancik, Copay & King, 1991) or central (Greenwood & Suddaby, 2006) positions, we focus instead on institutional work carried out by actors with limited power and very few resources.
The great challenge of sustainability is addressed by firms with varying levels of social and environmental responsibility and performance. Though traditionally, firms sought a balance, we argue that this is not enough. Rather, we advocate that the natural environment be the foundation on which society resides and the economy operates. Sustainable, ethical, entrepreneurial (SEE) enterprises are moving in this direction, seeking to regenerate the environment and drive positive societal changes rather than only minimizing harm. We also note that sustainability is justified and motivated by ethical considerations and pioneered by entrepreneurial engagement. The eight articles included in this Special Issue draw from cross-disciplinary scholarship to elaborate how SEE enterprises approach sustainability through new organizational forms, business models and innovation, and new governance mechanisms. They also emphasize the roles of institutional forces and logics, government policies and social movements for promoting or impeding sustainable practices. Collectively, they reveal new and compelling insights while spotlighting the great questions for SEE enterprise that await study.
At the end of 1997 Allianz, the German insurance group, acquired AGF, a key player in the French market. With this move Allianz not only reinforced its strategy of multilocality, but also added momentum to the ongoing consolidation process in the European and global insurance sector. In the course of the merger implementation process several issues appeared; among the most prominent, the integration of existing businesses (subsidiaries) in other than the domestic markets. This case series focuses on the Spanish market and illustrates Allianz's endeavor to integrate 3 previously autonomous and organizationally and strategically distinct subsidiaries (Allianz-Ras, AGF-Union Fénix, Athena).