IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v8y2016i2p161-d63634.html
   My bibliography  Save this article

The Development of a Measurement Instrument for the Organizational Performance of Social Enterprises

Author

Listed:
  • Saskia Crucke

    (Ghent University, Faculty of Economics and Business Administration, Tweekerkenstraat 2, 9000 Ghent, Belgium)

  • Adelien Decramer

    (Ghent University, Faculty of Economics and Business Administration, Tweekerkenstraat 2, 9000 Ghent, Belgium)

Abstract

There is a growing consensus that the adoption of performance measurement tools are of particular interest for social enterprises in order to support internal decision‐making and to answer the demands of accountability toward their stakeholders. As a result, different methodologies to assess the non‐financial performance of social enterprises are developed by academics and practitioners. Many of these methodologies are on the one hand discussions of general guidelines or, on the other hand, very case specific. As such, these methodologies do not offer a functional tool for a broad range of social enterprises. The goal of this article is to fill this gap by developing an instrument suitable for the internal assessment and the external reporting of the non‐financial performance of a diverse group of social enterprises. To reach this goal, we used qualitative (focus groups and a Delphi panel) and quantitative research methods (exploratory and confirmatory factor analysis), involving multiple actors in the field of social entrepreneurship. Focusing on five dimensions of organizational performance (economic, environmental, community, human and governance performance), we offer a set of indicators and an assessment tool for social enterprises.

Suggested Citation

  • Saskia Crucke & Adelien Decramer, 2016. "The Development of a Measurement Instrument for the Organizational Performance of Social Enterprises," Sustainability, MDPI, vol. 8(2), pages 1-30, February.
    • Handle: RePEc:gam:jsusta:v:8:y:2016:i:2:p:161-:d:63634
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/8/2/161/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/8/2/161/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rüdiger Hahn & Regina Lülfs, 2014. "Legitimizing Negative Aspects in GRI-Oriented Sustainability Reporting: A Qualitative Analysis of Corporate Disclosure Strategies," Journal of Business Ethics, Springer, vol. 123(3), pages 401-420, September.
    2. Amy J. Hillman & Albert A. Cannella & Ramona L. Paetzold, 2000. "The Resource Dependence Role of Corporate Directors: Strategic Adaptation of Board Composition in Response to Environmental Change," Journal of Management Studies, Wiley Blackwell, vol. 37(2), pages 235-256, March.
    3. Roger Spear & Chris Cornforth & Mike Aiken, 2009. "The Governance Challenges Of Social Enterprises: Evidence From A Uk Empirical Study," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 80(2), pages 247-273, June.
    4. Huang, Chi-Jui, 2010. "Corporate governance, corporate social responsibility and corporate performance," Journal of Management & Organization, Cambridge University Press, vol. 16(5), pages 641-655, November.
    5. Costanza Consolandi & Ameeta Jaiswal-Dale & Elisa Poggiani & Alessandro Vercelli, 2009. "Global Standards and Ethical Stock Indexes: The Case of the Dow Jones Sustainability Stoxx Index," Journal of Business Ethics, Springer, vol. 87(1), pages 185-197, April.
    6. Supriti Mishra & Damodar Suar, 2010. "Does Corporate Social Responsibility Influence Firm Performance of Indian Companies?," Journal of Business Ethics, Springer, vol. 95(4), pages 571-601, September.
    7. Johanna Mair & Ignasi Marti, 2006. "Social Entrepreneurship Research: A Source of Explanation, Prediction, and Delight," Post-Print hal-02311880, HAL.
    8. Filipe Santos, 2012. "A Positive Theory of Social Entrepreneurship," Journal of Business Ethics, Springer, vol. 111(3), pages 335-351, December.
    9. Graafland, J.J. & Eijffinger, S.C.W. & Smid, H., 2004. "Benchmarking of corporate social responsibility: Methodological problems and robustness," MPRA Paper 20771, University Library of Munich, Germany.
    10. Michael Robinson & Anne Kleffner & Stephanie Bertels, 2011. "Signaling Sustainability Leadership: Empirical Evidence of the Value of DJSI Membership," Journal of Business Ethics, Springer, vol. 101(3), pages 493-505, July.
    11. Michaela Balzarova & Pavel Castka, 2012. "Stakeholders’ Influence and Contribution to Social Standards Development: The Case of Multiple Stakeholder Approach to ISO 26000 Development," Journal of Business Ethics, Springer, vol. 111(2), pages 265-279, December.
    12. Anonymous, 2013. "Introduction to the Issue," Journal of Wine Economics, Cambridge University Press, vol. 8(3), pages 243-243, December.
    13. Jennifer C. Chen & Dennis M. Patten & Robin Roberts, 2008. "Corporate Charitable Contributions: A Corporate Social Performance or Legitimacy Strategy?," Journal of Business Ethics, Springer, vol. 82(1), pages 131-144, September.
    14. Jacques Defourny & Marthe Nyssens, 2010. "Conceptions of Social Enterprise and Social Entrepreneurship in Europe and the United States: Convergences and Divergences," Journal of Social Entrepreneurship, Taylor & Francis Journals, vol. 1(1), pages 32-53, March.
    15. Todd W. Moss & Jeremy C. Short & G. Tyge Payne & G.T. Lumpkin, 2011. "Dual Identities in Social Ventures: An Exploratory Study," Entrepreneurship Theory and Practice, , vol. 35(4), pages 805-830, July.
    16. John Dumay & James Guthrie & Federica Farneti, 2010. "Gri Sustainability Reporting Guidelines For Public And Third Sector Organizations," Public Management Review, Taylor & Francis Journals, vol. 12(4), pages 531-548, July.
    17. Wiklund, Johan & Shepherd, Dean, 2005. "Entrepreneurial orientation and small business performance: a configurational approach," Journal of Business Venturing, Elsevier, vol. 20(1), pages 71-91, January.
    18. Donald C. Hambrick & Axel v. Werder & Edward J. Zajac, 2008. "New Directions in Corporate Governance Research," Organization Science, INFORMS, vol. 19(3), pages 381-385, June.
    19. Nicholls, Alex, 2009. "'We do good things, don't we?': 'Blended Value Accounting' in social entrepreneurship," Accounting, Organizations and Society, Elsevier, vol. 34(6-7), pages 755-769, August.
    20. Worrell, James L. & Di Gangi, Paul M. & Bush, Ashley A., 2013. "Exploring the use of the Delphi method in accounting information systems research," International Journal of Accounting Information Systems, Elsevier, vol. 14(3), pages 193-208.
    21. Claudia Claes & Geert Hove & Jos Loon & Stijn Vandevelde & Robert Schalock, 2010. "Quality of Life Measurement in the Field of Intellectual Disabilities: Eight Principles for Assessing Quality of Life-Related Personal Outcomes," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 98(1), pages 61-72, August.
    22. Anonymous, 2013. "Introduction to the Issue," Journal of Wine Economics, Cambridge University Press, vol. 8(2), pages 129-130, November.
    23. Marco BELLUCCI & Luca BAGNOLI & Mario BIGGERI & Vittorio RINALDI, 2012. "Performance Measurement In Solidarity Economy Organizations: The Case Of Fair Trade Shops In Italy," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 83(1), pages 25-59, March.
    24. Fiona Wilson & James Post, 2013. "Business models for people, planet (& profits): exploring the phenomena of social business, a market-based approach to social value creation," Small Business Economics, Springer, vol. 40(3), pages 715-737, April.
    25. Belaid Rettab & Anis Brik & Kamel Mellahi, 2009. "A Study of Management Perceptions of the Impact of Corporate Social Responsibility on Organisational Performance in Emerging Economies: The Case of Dubai," Journal of Business Ethics, Springer, vol. 89(3), pages 371-390, October.
    26. Rosseel, Yves, 2012. "lavaan: An R Package for Structural Equation Modeling," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 48(i02).
    27. Van Opstal, Wim & Deraedt, Eva & Gijselinckx, Caroline, 2009. "Monitoring Profile Shifts and Differences among Work Integration Social Enterprises in Flanders," MPRA Paper 16398, University Library of Munich, Germany.
    28. Roger Spear, 2004. "Governance in Democratic Member‐Based Organisations," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 75(1), pages 33-60, March.
    29. Katalin Takacs Haynes & Amy Hillman, 2010. "The effect of board capital and CEO power on strategic change," Strategic Management Journal, Wiley Blackwell, vol. 31(11), pages 1145-1163, November.
    30. von der Gracht, Heiko A., 2012. "Consensus measurement in Delphi studies," Technological Forecasting and Social Change, Elsevier, vol. 79(8), pages 1525-1536.
    31. MuiChing Chan & John Watson & David Woodliff, 2014. "Corporate Governance Quality and CSR Disclosures," Journal of Business Ethics, Springer, vol. 125(1), pages 59-73, November.
    32. Smith, Wendy K. & Gonin, Michael & Besharov, Marya L., 2013. "Managing Social-Business Tensions: A Review and Research Agenda for Social Enterprise," Business Ethics Quarterly, Cambridge University Press, vol. 23(3), pages 407-442, July.
    33. van Loon, Jos H.M. & Bonham, Gordon S. & Peterson, Dale D. & Schalock, Robert L. & Claes, Claudia & Decramer, Adelien E.M., 2013. "The use of evidence-based outcomes in systems and organizations providing services and supports to persons with intellectual disability," Evaluation and Program Planning, Elsevier, vol. 36(1), pages 80-87.
    34. Mair, Johanna & Martí, Ignasi, 2006. "Social entrepreneurship research: A source of explanation, prediction, and delight," Journal of World Business, Elsevier, vol. 41(1), pages 36-44, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Augusta Ferreira & Carlos Santos & Helena Inácio & Alberto J. Costa & Ana Maria Bandeira & Brízida Tomé & Carla Joaquim & Cristina Góis & Denise Curi & Deolinda Meira & Graça Azevedo & Mafalda Jesus &, 2022. "Accountability in the Social Economy: The Case of Private Social Solidarity Institutions," Sustainability, MDPI, vol. 14(3), pages 1-27, January.
    2. Maarten Hogenstijn & Martha Meerman & Joop Zinsmeister, 2018. "Developing stereotypes to facilitate dialogue between social entrepreneurs and local government," Journal of Innovation and Entrepreneurship, Springer, vol. 7(1), pages 1-18, December.
    3. Inés Ruiz-Rosa & Desiderio Gutiérrez-Taño & Francisco J. García-Rodríguez, 2020. "Social Entrepreneurial Intention and the Impact of COVID-19 Pandemic: A Structural Model," Sustainability, MDPI, vol. 12(17), pages 1-17, August.
    4. Seokwon Chang & Mugoan Jeong, 2021. "Does Leadership Matter in Performance of Social Enterprises in South Korea?," Sustainability, MDPI, vol. 13(20), pages 1-19, October.
    5. Matthias Staessens & Pieter Jan Kerstens & Johan Bruneel & Laurens Cherchye, 2019. "Data Envelopment Analysis and Social Enterprises: Analysing Performance, Strategic Orientation and Mission Drift," Journal of Business Ethics, Springer, vol. 159(2), pages 325-341, October.
    6. Cosa, Marcello & Urban, Boris, 2023. "A systematic review of performance measurement systems and their relevance to social enterprises," OSF Preprints 6ft2p, Center for Open Science.
    7. Hosung Son & Joosung Lee & Yanghon Chung, 2017. "Value Creation Mechanism of Social Enterprises in Manufacturing Industry: Empirical Evidence from Korea," Sustainability, MDPI, vol. 10(1), pages 1-24, December.
    8. Nath, Sanchayan & Arrawatia, Rakesh, 2022. "Trade-offs or synergies? Hybridity and sustainable performance of dairy cooperatives in India," World Development, Elsevier, vol. 154(C).
    9. Theo Benos & Nikos Kalogeras & Martin Wetzels & Ko De Ruyter & Joost M. E. Pennings, 2018. "Harnessing a ‘Currency Matrix’ for Performance Measurement in Cooperatives: A Multi-Phased Study," Sustainability, MDPI, vol. 10(12), pages 1-38, December.
    10. Xiao-Min Yu & Ke Chen & Jin-Tong Liu, 2022. "Exploring How Organizational Capabilities Contribute to the Performance of Social Enterprises: Insights from China," Sustainability, MDPI, vol. 14(7), pages 1-20, April.
    11. Eggers, Fabian & Niemand, Thomas & Filser, Matthias & Kraus, Sascha & Berchtold, Jennifer, 2020. "To network or not to network – Is that really the question? The impact of networking intensity and strategic orientations on innovation success," Technological Forecasting and Social Change, Elsevier, vol. 155(C).
    12. Helena Inácio & Alberto J. Costa & Ana Maria Bandeira & Augusta Ferreira & Brízida Tomé & Carla Joaquim & Carlos Santos & Cristina Góis & Denise Curi & Deolinda Meira & Graça Azevedo & Mafalda Jesus &, 2022. "Relevant Information for the Accountability of Private Institutions of Social Solidarity: Results from Fieldwork," Economies, MDPI, vol. 10(2), pages 1-24, January.
    13. Katja Zajko & Barbara Bradač Hojnik, 2018. "Social Franchising Model as a Scaling Strategy for ICT Reuse: A Case Study of an International Franchise," Sustainability, MDPI, vol. 10(9), pages 1-28, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pradeep Kumar Hota & Balaji Subramanian & Gopalakrishnan Narayanamurthy, 2020. "Mapping the Intellectual Structure of Social Entrepreneurship Research: A Citation/Co-citation Analysis," Journal of Business Ethics, Springer, vol. 166(1), pages 89-114, September.
    2. Adélie Ranville & Marcos Barros, 2022. "Towards Normative Theories of Social Entrepreneurship. A Review of the Top Publications of the Field," Journal of Business Ethics, Springer, vol. 180(2), pages 407-438, October.
    3. 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.
    4. Lortie, Jason & Cox, Kevin C. & Roundy, Philip T., 2022. "Social impact models, legitimacy perceptions, and consumer responses to social ventures," Journal of Business Research, Elsevier, vol. 144(C), pages 312-321.
    5. Ostertag, Felix & Hahn, Rüdiger & Ince, Inan, 2021. "Blended value co-creation: A qualitative investigation of relationship designs of social enterprises," Journal of Business Research, Elsevier, vol. 129(C), pages 428-445.
    6. Gupta, Parul & Chauhan, Sumedha & Paul, Justin & Jaiswal, M.P., 2020. "Social entrepreneurship research: A review and future research agenda," Journal of Business Research, Elsevier, vol. 113(C), pages 209-229.
    7. Gali, Nazha & Niemand, Thomas & Shaw, Eleanor & Hughes, Mathew & Kraus, Sascha & Brem, Alexander, 2020. "Social entrepreneurship orientation and company success: The mediating role of social performance," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
    8. Hans Rawhouser & Michael Cummings & Scott L. Newbert, 2019. "Social Impact Measurement: Current Approaches and Future Directions for Social Entrepreneurship Research," Entrepreneurship Theory and Practice, , vol. 43(1), pages 82-115, January.
    9. Pradeep Kumar Hota, 2023. "Tracing the Intellectual Evolution of Social Entrepreneurship Research: Past Advances, Current Trends, and Future Directions," Journal of Business Ethics, Springer, vol. 182(3), pages 637-659, January.
    10. Saskia Crucke & Mirjam Knockaert, 2016. "When Stakeholder Representation Leads to Faultlines. A Study of Board Service Performance in Social Enterprises," Journal of Management Studies, Wiley Blackwell, vol. 53(5), pages 768-793, July.
    11. Sahasranamam, Sreevas & Nandakumar, M.K., 2020. "Individual capital and social entrepreneurship: Role of formal institutions," Journal of Business Research, Elsevier, vol. 107(C), pages 104-117.
    12. Chris Mason & Bob Doherty, 2016. "A Fair Trade-off? Paradoxes in the Governance of Fair-trade Social Enterprises," Journal of Business Ethics, Springer, vol. 136(3), pages 451-469, July.
    13. Mariarosa Scarlata & Jennifer Walske & Andrew Zacharakis, 2017. "Ingredients Matter: How the Human Capital of Philanthropic and Traditional Venture Capital Differs," Journal of Business Ethics, Springer, vol. 145(3), pages 623-635, October.
    14. Sauermann, Miklas Pascal, 2023. "Social Entrepreneurship as a Tool to Promoting Sustainable Development in Low-Income Communities: An Empirical Analysis," MPRA Paper 116929, University Library of Munich, Germany.
    15. Patricio Osorio-Vega, 2019. "The Ethics of Entrepreneurial Shared Value," Journal of Business Ethics, Springer, vol. 157(4), pages 981-995, July.
    16. Reeti Kulshrestha & Arunaditya Sahay & Subhanjan Sengupta, 2022. "Constituents and Drivers of Mission Engagement for Social Enterprise Sustainability: A Systematic Review," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 31(1), pages 90-120, March.
    17. Barbara Bradač Hojnik & Katja Crnogaj, 2020. "Social Impact, Innovations, and Market Activity of Social Enterprises: Comparison of European Countries," Sustainability, MDPI, vol. 12(5), pages 1-15, March.
    18. Maria Rosa De Giacomo & Raimund Bleischwitz, 2020. "Business models for environmental sustainability: Contemporary shortcomings and some perspectives," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3352-3369, December.
    19. Elizabeth A. R. Fowler & Betty S. Coffey & Heather R. Dixon-Fowler, 2019. "Transforming Good Intentions into Social Impact: A Case on the Creation and Evolution of a Social Enterprise," Journal of Business Ethics, Springer, vol. 159(3), pages 665-678, October.
    20. Lopez-Cozar, C. & Priede, T. & Rodríguez-Lopez, A., 2015. "Evaluating The Legal Environment For Social Entrepreneurship In America And Europe," Revista Galega de Economía, University of Santiago de Compostela. Faculty of Economics and Business., vol. 24(1), pages 101-110.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:8:y:2016:i:2:p:161-:d:63634. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.