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An application of the Macro-Institutional Social Enterprise framework to identify the influence of institutions on social entrepreneurship in the Netherlands
Preprints and early-stage research may not have been peer reviewed yet.
Abstract
The question of how institutions shape social entrepreneurship is becoming increasingly relevant in
academic research. In this thesis, I explore how the institutional context in the Netherlands shapes the social
enterprise landscape, and assess to what extent the Macro-Institutional Social Enterprise (MISE) framework
of Kerlin can explain this interaction. Drawing on the historical institutionalist approach, I follow the MISE
framework in identifying the main institutions in the Netherlands, including culture, government, civil
society and economy. I show how the unique interaction between them has contributed to a surging,
autonomous yet relatively small social enterprise sector in the Netherlands, which differs from predictions
made by the MISE framework. Finally, it is argued that this discrepancy can be explained by a lack of
political will of the incumbent government, a notion that should be used complementary to the historical
institutionalist approach that undergirds the MISE framework.
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Social enterprises demonstrate how sustainability can be embedded into business. This often implies selecting a legal form and a business model dedicated to serving social and environmental (societal) objectives. Tailor‐made legal frameworks for social enterprises in European Union (EU) Member States require that the social enterprise include a “societal purpose” in its constitutional documents. These legal frameworks refer to “societal purpose” in a general way; the wording is similar but not identical. The EU Regulation on Social Impact Funds and the EU Procurement Directive contain provisions that relate to social enterprises and they also refer to “societal purpose,” although neither of them defines the term. Some EU countries have not (yet) adopted tailor‐made legislation. Their legislators have indicated that they struggle with demarcating the notion of “societal purpose". This article aims to support them as well as EU legislators by testing the concept of “societal purpose” in two ways. A doctrinal research was conducted in order to find a legal basis for explaining what “societal purpose” entails in the United Kingdom (UK) and the Netherlands. In the UK, the legal framework concerning the “Community Interest Company” was examined. In the Netherlands, which jurisdiction has not introduced a tailor‐made legal framework for social enterprises, the existing tax legal framework for organisations with a “public benefit purpose” was analysed in the evaluation. Second, an empirical study was conducted into the societal purpose of 400 randomly selected UK and Dutch social enterprises. The results were categorised, compared with each other, and evaluated on the basis of existing legal frameworks.
Wat is het doel van een bedrijf: zoveel mogelijk winst maken, of helpen maatschappelijke problemen op te lossen? Steeds meer bedrijven gaan voor de tweede optie. Deze zogeheten sociale ondernemingen zien het oplossen van maatschappelijke problemen als kern van hun bedrijf en houden tegelijk zelfstandig het hoofd boven water. Sociaal ondernemerschap is in korte tijd uitgegroeid tot een ongekend populair fenomeen. Dat leidt ook tot lastige vragen. Wanneer gaat ‘regulier’ ondernemerschap over in ‘sociaal’ ondernemerschap? Mag je als sociale onderneming wel winst maken? Moet je per se mensen met een kwetsbare arbeidsmarktpositie in dienst hebben om je een sociale onderneming te mogen noemen? En hoe kun je de meerwaarde van een sociale onderneming aantonen?
In Sociaal ondernemerschap: grip op het begrip komen de belangrijkste definities, inzichten en invalshoeken aan de orde. We plaatsen sociaal ondernemerschap in de kaders van de participatiesamenleving en nieuwe visies op de economie. De verschillen met verwante begrippen worden geanalyseerd. En we bespreken de actuele stand van
zaken in de sector in Nederland. Zo helpen we studenten, docenten, ondernemers en andere belangstellenden om meer grip te krijgen op dit fascinerende begrip én er zelf mee aan de slag te gaan.
Effectuation theory invests agency—intention and purposeful enactment—for new venture creation in the entrepreneurial actor(s). Based on the results of a 15-month in-depth longitudinal case study of Amsterdam-based social enterprise Fairphone, we argue that effectual entrepreneurial agency is co-constituted by distributed agency, the proactive conferral of material resources and legitimacy to an eventual entrepreneur by heterogeneous actors external to the new venture. We show how, in the context of social movement activism, an effectual network pre-committed resources to an inchoate social enterprise to produce a material artefact because it embodied the moral values of network members. We develop a model of social enterprise emergence based on these findings. We theorise the role of material artefacts in effectuation and suggest that, in the case, the artefact served as a boundary object, present in multiple social words and triggering commitment from actors not governed by hierarchical arrangements.
This article illustrates the development of government-nonprofit collaboration in The Netherlands. It first gives an overview of scope and structure of the non-profit sector and voluntary work and then explains the crucial steps in the evolution of partnership arrangement between the public sector and nonprofit institutions. The article describes the past significance of so-called pillarization on the development of the nonprofit sector and its collaboration with the state. In accommodating a broad diversity of nonprofit organizations with different religious and societal background, The Netherlands created an elaborate mechanism for government-nonprofit collaboration in which nonprofit organizations fulfil functions in service delivery and policy formation. However, the sector is now fundamentally fragmented and now has little shared identity left. Paradoxically, its past success also makes it less likely that the Dutch nonprofit sector will be regarded as a solution to current social problems.
This study deals with the prevalence and drivers of social entrepreneurship across countries. Unique large-scale and internationally comparable data from the Global Entrepreneurship Monitor (GEM) 2009 covering 49 countries at different stages of development are used as our main data source. Hypotheses are generated from a multitude of theoretical perspectives including the failure thesis, interdependence theory, welfare state theory and supply-side theory. As regards the antecedents of the occurrence of social entrepreneurship, our findings suggest above all that social entrepreneurship is a phenomenon driven by wealth. In addition, we find a positive association between government expenditure on welfare and the prevalence of social entrepreneurship which assumes a relation of interdependence and partnership between government and social organizations. This finding supports the interdependence theory. With respect to cultural values, we postulate that a society’s level of individualism can be considered to be a driver of social entrepreneurship. This suggests that in societies where ties between individuals are loose, social entrepreneurship is more widespread.
In 1971 it was hypothesised that intergenerational value changes were taking place. More than a generation has passed since then, and today it seems clear that the predicted changes have occurred. A large body of evidence, analysed using three different approaches – (1) cohort analysis; (2) comparisons of rich and poor countries; (3) examination of actual trends observed over the past 35 years – all points to the conclusion that major cultural changes are occurring, and that they reflect a process of intergenerational change linked with rising levels of existential security.
Confirming Inglehart's prediction (1971) of an intergenerational shift toward postmaterialist values, a time series analysis controlling for the joint effects of inflation and unemployment demonstrates that there is a statistically significant trend toward postmaterialism in all eight West European countries for which data are available over the past two decades. Evidence from the 1981–83 and 1990–91 World Values Surveys indicates that this value shift occurs in any society that has experienced sufficient economic growth in recent decades so that the preadult experiences of younger birth cohorts were significantly more secure than those of older cohorts. Large intergenerational differences tend to be found in societies that have experienced rapid growth in gross national product per capita, and are negligible in societies that have had little or no growth. Accordingly, postmaterialism increased in 18 of the 20 societies on five continents for which we have comparable data over the past decade.
We model and test the relationship between social and commercial entrepreneurship drawing on social capital theory. We propose that the country prevalence rate of social entrepreneurship is an indicator of constructible nation-level social capital and enhances the likelihood of individual commercial entry. We further posit that both social and commercial entrepreneurial entry is facilitated by certain formal institutions, namely strong property rights and (low) government activism, albeit the latter impacts each of these types of entrepreneurship differently. We apply bivariate discrete choice multilevel modeling to population-representative samples in 47 countries and find support for these hypotheses.
The newest new institutionalism, discursive institutionalism, lends insight into the role of ideas and discourse in politics while providing a more dynamic approach to institutional change than the older three new institutionalisms. Ideas are the substantive content of discourse. They exist at three levels - policies, programs, and philosophies - and can be categorized into two types, cognitive and normative. Discourse is the interactive process of conveying ideas. It comes in two forms: the coordinative discourse among policy actors and the communicative discourse between political actors and the public. These forms differ in two formal institutional contexts; simple polities have a stronger communicative discourse and compound polities a stronger coordinative discourse. The institutions of discursive institutionalism, moreover, are not external-rule-following structures but rather are simultaneously structures and constructs internal to agents whose "background ideational abilities" within a given "meaning context" explain how institutions are created and exist and whose foreground discursive abilities, following a logic of communication, explain how institutions change or persist. Interests are subjective ideas, which, though real, are neither objective nor material. Norms are dynamic, intersubjective constructs rather than static structures.
Using institutional theory, the Heritage Foundation/Wall Street Journal 2003 Index of Economic Freedom, and the 2002 Global Entrepreneurship Monitor, we regress opportunity-motivated entrepreneurial activity (OME) and necessity-motivated entrepreneurial activity (NME) on 10 factors of economic freedom and gross domestic product (GDP) per capita for 37 nations. We find that both OME and NME are negatively associated with GDP per capita and positively associated with labor freedom, but that various other factors of economic freedom are uniquely related to either OME or NME. Specifically, we find that OME, but not NME, is positively associated with property rights, while NME, but not OME, is positively associated with fiscal freedom and monetary freedom. Thus, governmental restrictions of economic freedom appear to impact entrepreneurial activity differently depending on the particular freedom restricted by government and the entrepreneur's motive for engaging in entrepreneurial action.
We explore the country-specific institutional characteristics likely to influence an individual’s decision to become an entrepreneur.
We focus on the size of the government, on freedom from corruption and on “market freedom” defined as a cluster of variables
related to protection of property rights and regulation. We test these relationships by combining country-level institutional
indicators for 47 countries with working-age population survey data taken from the Global Entrepreneurship Monitor. Our results
indicate that entrepreneurial entry is inversely related to the size of the government, and more weakly to the extent of corruption.
A cluster of institutional indicators representing “market freedom” is only significant in some specifications. Freedom from
corruption is significantly related to entrepreneurial entry, especially when the richest countries are removed from the sample,
but unlike the size of government, the results on corruption are not confirmed by country-level fixed-effects models.
KeywordsEntrepreneurship-Government-Market freedom-Corruption
JEL ClassificationsL26-P14-P51-P37
This article compares the emerging concept, practice, and context of social enterprise across seven regions and countries of the world. Broadly defined as the use of market-based approaches to address social issues, social enterprise provides a "business" source of revenue for civil society organizations. However, within these broad parameters, world regions have come to identify different concepts and contexts with the social enterprise movement in their areas. Largely lacking in the social enterprise literature are explanations of what these regional differences are, and whether and how socioeconomic context may play a role in these variations. Drawing on social origins theory, recent social enterprise comparative research, and socioeconomic data, this article examines the different factors shaping social enterprise in seven regions and countries. It finds that variations in socioeconomic contexts appear to account for international differences in social enterprise. These findings have practical implications for the development and transfer of social enterprise internationally.
This paper summarizes the methodology of the Worldwide Governance Indicators (WGI) project, and related analytical issues. The WGI cover over 200 countries and territories, measuring six dimensions of governance starting in 1996: Voice and Accountability, Political Stability and Absence of Violence/Terrorism, Government Effectiveness, Regulatory Quality, Rule of Law, and Control of Corruption. The aggregate indicators are based on several hundred individual underlying variables, taken from a wide variety of existing data sources. The data reflect the views on governance of survey respondents and public, private, and NGO sector experts worldwide. The WGI also explicitly report margins of error accompanying each country estimate. These reflect the inherent difficulties in measuring governance using any kind of data. Even after taking these margins of error into account, the WGI permit meaningful cross-country and over-time comparisons.
The civil society sector-made up of millions of nonprofit organizations, associations, charitable institutions, and the volunteers and resources they mobilize-has long been the invisible subcontinent on the landscape of contemporary society. For the past twenty years, however, scholars under the umbrella of the Johns Hopkins Comparative Nonprofit Sector Project have worked with statisticians to assemble the first comprehensive, empirical picture of the size, structure, financing, and role of this increasingly important part of modern life. What accounts for the enormous cross-national variations in the size and contours of the civil society sector around the world? Drawing on the project's data, Lester M. Salamon, S. Wojciech Sokolowski, Megan A. Haddock, and their colleagues raise serious questions about the ability of the field's currently dominant preference and sentiment theories to account for these variations in civil society development. Instead, using statistical and comparative historical materials, the authors posit a novel social origins theory that roots the variations in civil society strength and composition in the relative power of different social groupings and institutions during the transition to modernity. Drawing on the work of Barrington Moore, Dietrich Rueschemeyer, and others, Explaining Civil Society Development provides insight into the nonprofit sector's ability to thrive and perform its distinctive roles. Combining solid data and analytical clarity, this pioneering volume offers a critically needed lens for viewing the evolution of civil society and the nonprofit sector throughout the world.
THE SUNDAY TIMES BESTSELLER'I see [Raworth] as the John Maynard Keynes of the 21st Century: by reframing the economy, she allows us to change our view of who we are, where we stand, and what we want to be.' George Monbiot, Guardian'This is sharp, significant scholarship . . . Thrilling.' Times Higher Education'[A] really important economic and political thinker.' Andrew MarrEconomics is broken. It has failed to predict, let alone prevent, financial crises that have shaken the foundations of our societies. Its outdated theories have permitted a world in which extreme poverty persists while the wealth of the super-rich grows year on year. And its blind spots have led to policies that are degrading the living world on a scale that threatens all of our futures.Can it be fixed? In Doughnut Economics, Oxford academic Kate Raworth identifies seven critical ways in which mainstream economics has led us astray, and sets out a roadmap for bringing humanity into a sweet spot that meets the needs of all within the means of the planet. En route, she deconstructs the character of ‘rational economic man’ and explains what really makes us tick. She reveals how an obsession with equilibrium has left economists helpless when facing the boom and bust of the real-world economy. She highlights the dangers of ignoring the role of energy and nature’s resources – and the far-reaching implications for economic growth when we take them into account. And in the process, she creates a new, cutting-edge economic model that is fit for the 21st century – one in which a doughnut-shaped compass points the way to human progress.Ambitious, radical and rigorously argued, Doughnut Economics promises to reframe and redraw the future of economics for a new generation.'An innovative vision about how we could refocus away from growth to thriving.' Daily Mail'Doughnut Economics shows how to ensure dignity and prosperity for all people.' Huffington Post
An element that policymakers and academics often believe to be constitutive in the governance of a social enterprise is the use of inclusive and responsible decision-making processes. This entails the involvement of various categories of stakeholders. In this paper, a case study is used to explore how a work integration social enterprise based in the Netherlands, AutiTalent BV, has organized its governance. The Netherlands has not developed legislation specifically dealing with social enterprises, in contrast to many other EU Member States (16 out of 28), and it does not require, although it allows for, the establishment of inclusive governance. By examining how (national Dutch) law affects the governance of a work-integration-oriented social enterprise, the authors aim to contribute to emerging theory on participatory and inclusive governance of social enterprises – as a legal concept but also as an organizational concept – shaped by (tailor-made and/or ordinary) law. The case study reveals that the investigated work integration social enterprise has not set up formal inclusive governance, suggesting that a social enterprise may not be stimulated by legislation which allows but not requires the participation of stakeholders in decision making. At the same time, informal direct communication channels exist between the people who influence the decision-making processes and people from various stakeholder categories.
'Shaping Social Enterprise' offers the first tested framework that helps identify institutional influences affecting social enterprise. For well over a decade, scholars and practitioners have known that social enterprise looks different in different contexts but few have attempted to understand why. Kerlin's work in this area is the first to consider the influence of large institutions such as government, economy, civil society, and culture on the development of social enterprise. This book provides an in-depth assessment of Kerlin's theoretically-based framework for understanding these institutional and other influences by means of quantitative analysis as well as qualitative critiques from eight countries that help validate and refine it. The concluding chapter offers a revision of the framework based on the critiques. New features include more attention to culture and micro- and meso-level forces as well as the introduction of optional framework components that address rarely occurring country situations. Two new social enterprise country models are also added and new applications of the framework are detailed
Over the past several decades the concept of social enterprise has grown dramatically in many regions of the world. Defined as the use of nongovernmental, market-based approaches to address social issues, social enterprise often provides a ‘business’ source of revenue for many types of socially oriented organizations and activities.1 However, within these broad parameters, world regions have come to identify different definitions and concepts with the social enterprise movement in their areas (Kerlin, 2006). This variation has also resulted in considerable debate among researchers and practitioners on how to define the concept (Mair et al., 2006; Light, 2008). To address these difficulties, this research draws on the theory of historical institutionalism to advance understanding of how context influences the development of social enterprise as well as to propose a preliminary conceptual framework for social enterprise that spans regional differences in the term.
This article discusses the postmaterialist values, as well as the shift from survival to self-expression. It looks at controversies over the value change thesis and discusses changing political arguments. One section covers intergenerational value change in economically advanced and low-income societies. This article concludes that intergenerational value changes actually reflect historic changes in a society's existential conditions. Although these changes are far from universal, they can be found only in societies where the younger generations have experienced rather different formative conditions from those that had shaped the older generations.
Solidarity economy (SE) initiatives constitute a worldwide phenomenon that is today at the heart of numerous economic and social debates. They are active in very diverse economic sectors, aiming for example to create employment for poor and low-qualified workers. We begin with presenting a Polanyian framework for the analysis of such economic activities, which enables us to develop a plural and integral conception of a productive organisation. We draw on Polanyi's thesis that economy is a political and institutionalised process and present a historic overview of the construction of the SE ‘sector’ in Brazil. We put forward the hypothesis that the SE today in Brazil represents a social movement. Then, we ask ourselves if the SE movement led to a change in grassroots economic initiatives, such as ‘people's cooperatives’. We present the results of exploratory research undertaken on 15 people's cooperatives in the State of Rio de Janeiro and its conclusions. Copyright © 2012 John Wiley & Sons, Ltd.
Typologies categorize welfare regimes either on the basis of their history or of their program characteristics or of their policy outputs. These three approaches often converge; but they do not always lead to the same conclusions. Reanalyzing data from Esping-Andersen's THREE WORLDS OF WELFARE CAPITALISM and elsewhere, we show that the Dutch welfare regime looks very different depending upon which basis for classification is used.
The past twenty‐five years have witnessed a spectacular expansion of philanthropy, volunteering, and civil society organizations throughout the world. Indeed, we seem to be in the midst of a ‘global associational revolution,’ a worldwide upsurge of organized private voluntary activity. Despite the promise that this development holds, however, the nonprofit or civil society sector remains the invisible subcontinent on the social landscape of most countries, poorly understood by policymakers and the public at large, often encumbered by legal limitations, and inadequately utilized as a mechanism for addressing public problems. One reason for this is the lack of basic information on its scope, structure, financing, and contributions in most parts of the world. This lack of information is due in part to the fact that significant components of the nonprofit sector fall within the non‐observed, or informal, economy, and in part to the way even the observed parts of this sector have historically been treated in the prevailing System of National Accounts (SNA).
This paper provides an overview of a series of steps that have been taken over the past 20 years by researchers at the Johns Hopkins University in cooperation with colleagues around the world and, more recently, with officials in the United Nations Statistics Division and the International Labour Organization to remedy this situation, culminating in the issuance and initial implementation of a new United Nations Handbook on Nonprofit Institutions in the System of National Accounts and the forthcoming publication of a new International Labour Organization Manual on the Measurement of Volunteer Work. Taken together, these efforts point the way toward putting the civil society sector on the economic map of the world for the first time in a systematically comparative way.
This paper aims to clarify the meaning, and explain the utility, of the case study method, a method j often practiced but little understood. A "case study," I argue, is best defined as an intensive study of a single unit with an aim to generalize across a larger set of units. Case studies rely on the same sort of covariational evidence utilized in non-case study research. Thus, the case study method is correctly understood as a particular way of defining cases, not a way of analyzing cases or a way of modeling causal relations. I show that this understanding of the subject illuminates some of the persistent ambiguities of case study work, ambiguities that are, to some extent, intrinsic to the enterprise. The travails of the case study within the discipline of political science are also rooted in an insufficient appreciation of the methodological tradeoffs that this method calls forth. This paper presents the familiar contrast between case study and non-case study work as a series of characteristic strengths and weaknesses - affinities -rather than as antagonistic approaches to the empirical world. In the end, the perceived hostility between case study and non-case study research is largely unjustified and, perhaps, deserves to be regarded as a misconception. Indeed, the strongest conclusion to arise from this methodological examination concerns the complementarity of single-unit and cross-unit research designs.
This article presents a theoretical framework and seven related propositions linking national culture—specifically individualist and collectivist orientations—to entrepreneurship. The framework identifies how both orientations affect the functions of entrepreneurship. This perspective casts new light on cross-cultural research that, while generally confirming individualism-entrepreneurship ties, has had less success accounting for the entrepreneurial vitality of largely “collectivist” nations—especially Japan.
The concept of embeddedness has general applicability in the study of economic life and can alter theoretical and empirical approaches to the study of economic behaviors. Argues that in modern industrial societies, most economic action is embedded in structures of social relations. The author challenges the traditional economic theories that have both under- and oversocialized views of the conception of economic action and decisions that merge in their conception of economic actors atomized (separated) from their social context. Social relations are assumed to play on frictional and disruptive, not central, roles in market processes. There is, hence, a place and need for sociology in the study of economic life. Productive analysis of human action requires avoiding the atomization in the extremes of the over- and undersocialized concepts. Economic actors are neither atoms outside a social context nor slavish adherents to social scripts. The markets and hierarchies problem of Oliver Williamson (with a focus on the question of trust and malfeasance) is used to illustrate the use of embeddedness in explicating the proximate causes of patterns of macro-level interest. Answers to the problem of how economic life is not riddled with mistrust and malfeasance are linked to over- and undersocialized conceptions of human nature. The embeddedness argument, on the contrary, stresses the role of concrete personal relations and networks (or structures) in generating trust and discouraging malfeasance in economic life. It finds a middle way between the oversocialized (generalized morality) and undersocialized (impersonal institutional arrangements) approaches. The embeddedness approach opens the way for analysis of the influence of social structures on market behavior, specifically showing how business relations are intertwined with social and personal relations and networks. The approach can easily explain what looks otherwise like irrational behavior. (TNM)
Development economists should stop acting as categorical advocates (or detractors) for specific approaches to development. They should instead be diagnosticians, helping decisionmakers choose the right model (and remedy) for their specific realities, among many contending models (and remedies). In this spirit, Ricardo Hausmann, Andres Velasco, and I have developed a "growth diagnostics" framework that sketches a systematic process for identifying binding constraints and prioritizing policy reforms in multilateral agencies and bilateral donors. Growth diagnostics is based on the idea that not all constraints bind equally and that a sensible and practical strategy consists of identifying the most serious constraint(s) at work. The practitioner works with a decision tree to do this. The second step in growth diagnostics is to identify remedies for relaxing the constraint that are appropriate to the context and take cognizance of potential second-best complications. Successful countries are those that have implemented these two steps in an ongoing manner: identify sequentially the most binding constraints and remove them with locally suited remedies. Diagnostics requires pragmatism and eclecticism, in the use of both theory and evidence. It has no room for dogmatism, imported blueprints, or empirical purism.
The project of twentieth-century sociology and political science--to create predictive scientific theory--resulted in few full-scale theories that can be taken off the shelf and successfully applied to empirical puzzles. Yet focused "theory frames" that formulate problems and point to relevant causal factors and conditions have produced vibrant, insightful, and analytically oriented empirical research. While theory frames alone cannot offer explanation or prediction, they guide empirical theory formation and give direction to inferences from empirical evidence. They are also responsible for much of the progress in the social sciences. InUsable Theory, distinguished sociologist Dietrich Rueschemeyer shows graduate students and researchers how to construct theory frames and use them to develop valid empirical hypotheses in the course of empirical social and political research. Combining new ideas as well as analytic tools derived from classic and recent theoretical traditions, the book enlarges the rationalist model of action by focusing on knowledge, norms, preferences, and emotions, and it discusses larger social formations that shape elementary forms of action. Throughout,Usable Theoryseeks to mobilize the implicit theoretical social knowledge used in everyday life. Offers tools for theory building in social and political researchComplements the rationalist model of action with discussions of knowledge, norms, preferences, and emotionsRelates theoretical ideas to problems of methodologySituates elementary forms of action in relation to larger formationsCombines new ideas with themes from classic and more recent theories.
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