Organisational Identity of Social Enterprises: A Taxonomic Approach
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RESEARCH PAPERS
Organisational Identity of Social Enterprises: A Taxonomic Approach ´ vila1 Liliana A
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Marlene Amorim2
International Society for Third-Sector Research 2020
Abstract This paper describes an exploratory study aiming to investigate the existence of distinct groups of social enterprises according to organisational identity dimensions. A taxonomy was developed with a two-step cluster analysis based on the importance attached to both social and market identity by 111 social enterprises acting in Portugal. ANOVA and Chi-square analyses were employed to investigate differences between groups. The taxonomy provides a parsimonious description of four groups of social enterprises and suggests the existence of a trade-off between the involvement and participation of clients/beneficiaries and the geographical scope. The combination of high levels of social identity and market identity is associated with more satisfactory levels of social and financial performance. However, giving prevalence to the social or the market identity seems to lead to lower levels of financial and social performance, respectively. Keywords Social enterprises Taxonomy Organisational identity Mission Performance
´ vila & Liliana A [email protected] Marlene Amorim [email protected] 1
Department of Economics, Management, Industrial Engineering and Tourism, University of Aveiro, Campus Universita´rio de Santiago, 3810-193 Aveiro, Portugal
2
Research Unit on Governance, Competitiveness and Public Policies (GOVCOPP) and Department of Economics, Management, Industrial Engineering and Tourism, University of Aveiro, Campus Universita´rio de Santiago, 3810-193 Aveiro, Portugal
Introduction In recent years, there was a substantial increase in research on social enterprise, resulting from the proliferation in the organisational landscape of such organisations combining social and economic concerns (Battilana and Lee 2014; Pache and Santos 2012). Social enterprises are introduced by several authors as hybrid organisational forms, i.e. structures and practices that allow the coexistence of values and artefacts from several sectors (Doherty et al. 2014). Their emergence has been driven by several contextual forces. In some countries, especially in Europe, substantial cuts have been made in the financial support provided by the State to non-profit organisations due to the economic context, fuelled by the economic crisis. Consequently, nonprofit organisations that meet social needs (e.g. elderly care, support and social inclusion of disadvantaged groups, etc.) are increasingly pressed to find alternative ways to fund their activities in order to pursue their social mission and ensure the financial sustainability (Battilana and Lee 2014; Smith et al. 2013). At the same time, companies are dealing with increasingly demanding customers and are pushed to look at the social impact, in which the environmental impact is included, as a new form of value ´ lvarez et al. 2010). Thus, more and creation (Gallego-A more organisations are integratin
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