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The Implications of Schumpeter’s Theories of Innovation for the Role, Organisation and Impact of Community-Based Social Enterprise in Three European Countries

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  • Nick Bailey

    (Faculty of Architecture & the Built Environment University of Westminster (London, England))

  • Reinout Kleinhans

    (Faculty of Architecture and the Built Environment Delft University of Technology (Delft, the Netherlands))

  • Jessica Lindbergh

    (School of Business Stockholms Universitet (Stockholm, Sweden))

Abstract

Social enterprises, with strong ties to local areas and communities, have been a growing phenomenon in many European countries at least since the financial crisis of 2007-2008 and the resulting retrenchment of state involvement in welfare provision. The paper draws on the empirical findings from nine case studies of community-based social enterprises (CBSE) in three countries which were investigated in depth in our study. Our objective is to use Schumpeter’s work as a lens to assess the effects of social innovation on different aspects of this type of social organisation. Thus, we aim to address the questions: (i) to what extent can CBSEs be considered as a form of social innovation and how does this innovation arise in terms of role, organisation and impact of CBSEs? (ii) What are the similarities and differences between CBSEs in the three selected European countries? And (iii) how far does Schumpeter’s conceptual framework of “creative destruction” provide insights into the process of organisational change in this form of social enterprise? In doing so we identify and discuss a series of innovations in organisation, project selection and delivery and conclude with insights relating to Schumpeter’s theory of “creative destruction”.

Suggested Citation

  • Nick Bailey & Reinout Kleinhans & Jessica Lindbergh, 2018. "The Implications of Schumpeter’s Theories of Innovation for the Role, Organisation and Impact of Community-Based Social Enterprise in Three European Countries," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 7(1), pages 14-36.
    • Handle: RePEc:trn:csnjrn:v:7:i:1:p:14-36
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    References listed on IDEAS

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    1. Silvia Sacchetti & Colin Campbell, 2015. "Creating Space for Communities: Social Enterprise and the Bright Side of Social Capital," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 3(2), pages 32-48, February.
    2. Johnston Birchall, 2013. "The potential of co-operatives during the current recession; theorizing comparative advantage," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 2(1), pages 1-22, May.
    3. Pestoff, 2014. "Collective Action and the Sustainability of Co-Production," Public Management Review, Taylor & Francis Journals, vol. 16(3), pages 383-401, April.
    4. Peter Somerville & Gerard McElwee, 2011. "Situating community enterprise: A theoretical exploration," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 23(5-6), pages 317-330, June.
    5. Reinout Kleinhans, 2017. "False promises of co-production in neighbourhood regeneration: the case of Dutch community enterprises," Public Management Review, Taylor & Francis Journals, vol. 19(10), pages 1500-1518, November.
    6. Victor Pestoff, 2013. "The Role of Participatory Governance in the EMES Approach to Social Enterprise," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 2(2), pages 48-60, June.
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    Cited by:

    1. Michele Bianchi, 2019. "Renewing the City through Public Participation and Cultural Activities. The Case Study of Gillet Square, a Community-Led Urban Regeneration Project," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 8(1), pages 1-21.

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    More about this item

    Keywords

    Social innovation; Enterprise; Community-based social enterprise; Schumpeter; Creative destruction;
    All these keywords.

    JEL classification:

    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship
    • L38 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Policy
    • L39 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Other

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