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Managing Multiple Logics: The Role of Performance Measurement Systems in Social Enterprises

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  • Janni Grouleff Nielsen

    (Department of Business and Economics University of Southern Denmark, Universitetsparken 1, 6000 Kolding, Denmark)

  • Rainer Lueg

    (Department of Business and Economics University of Southern Denmark, Universitetsparken 1, 6000 Kolding, Denmark
    Institute of Finance and Accounting, Leuphana University, Universitätsallee 1, 21335 Lüneburg, Germany)

  • Dennis van Liempd

    (Department of Business and Economics University of Southern Denmark, Universitetsparken 1, 6000 Kolding, Denmark)

Abstract

This systematic literature review explores the role of performance measurement systems (PMSs) in managing multiple logics in social enterprises. Social enterprises are hybrid organizations that simultaneously pursue a social mission ( social logic ) and financial sustainability ( commercial logic ). Satisfying multiple logics often leads to tensions, which are addressed and managed through PMSs. For this, we conduct a systematic literature review to derive our conclusions. PMSs in social enterprises may assume the roles of mediator, disrupter and symbolizer. The PMS works as a mediator in combination with sincere stakeholder involvement when both logics are represented in the PMS. If a PMS represents only one logic, it increases tensions and the PMS becomes a disrupter . When the PMS is used to enhance legitimacy, the PMS assumes the role of a symbolizer . In particular, we find that PMSs are most useful for monitoring performance and enhancing legitimacy. The role of PMSs in decision-making is limited due to difficulties of integrating social and commercial logics into a single PMS. Several factors—such as decision-makers’ influence—further shape the role of PMSs.

Suggested Citation

  • Janni Grouleff Nielsen & Rainer Lueg & Dennis van Liempd, 2019. "Managing Multiple Logics: The Role of Performance Measurement Systems in Social Enterprises," Sustainability, MDPI, vol. 11(8), pages 1-23, April.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:8:p:2327-:d:223913
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