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Measuring to Improve Versus Measuring to Prove: Understanding the Adoption of Social Performance Measurement Practices in Nascent Social Enterprises

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  • Lall, Saurabh Ajay

Abstract

Social enterprises are described as organizations with dual objectives— social and commercial. While the measurement of commercial performance is relatively straightforward and well understood, our understanding of the factors related to measuring social performance is more ambiguous. Is the adoption of social performance measurement (SPM) practices more related to external pressures, such as the need to demonstrate legitimacy to funders and peers, or is it more closely related to the growing rationalization within the social sector? We examine the relationship between external and internal factors and the adoption of SPM using a novel dataset of 1864 nascent social enterprises from around the world. Our findings suggest support for the argument that the adoption of SPM in social enterprise is related to the growing rationalization of the social sector, which challenges some of the past research on this topic, and provides a more nuanced perspective of SPM in social enterprise.

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  • Lall, Saurabh Ajay, 2017. "Measuring to Improve Versus Measuring to Prove: Understanding the Adoption of Social Performance Measurement Practices in Nascent Social Enterprises," SocArXiv 8wa5c, Center for Open Science.
    • Handle: RePEc:osf:socarx:8wa5c
    DOI: 10.31219/osf.io/8wa5c
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    1. Norraini Nordin & Ali Khatibi & S. M. Ferdous Azam, 2024. "Nonprofit capacity and social performance: mapping the field and future directions," Management Review Quarterly, Springer, vol. 74(1), pages 171-225, February.
    2. Belen Lopez & Alfonso Torres & Alberto Ruozzi & Jose Antonio Vicente, 2020. "Main Factors for Understanding High Impacts on CSR Dimensions in the Finance Industry," Sustainability, MDPI, vol. 12(6), pages 1-17, March.
    3. Kato, Shoko, 2021. "Social performance measurement adoption in nascent social enterprises: Refining the institutional model," Journal of Business Venturing Insights, Elsevier, vol. 15(C).
    4. Florentine Maier & Wenjuan Zheng & Christof Brandtner & Leila Cornips, 2025. "The Many Indicators of Nonprofit Success as Seen by Nonprofit Leaders," Post-Print hal-04862387, HAL.
    5. Bryan Dufour & Francesca Petrella & Nadine Richez‐Battesti, 2022. "Understanding social impact assessment through Public Value Theory: A comparative analysis on WISEs in France and Denmark," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(2), pages 417-434, June.
    6. Bryan DUFOUR & Francesca PETRELLA & Nadine RICHEZ-BATTESTI, 2020. "Understanding social impact assessment through public value theory: A comparative analysis on work integration social enterprises (WISEs) in France and Denmark," CIRIEC Working Papers 2012, CIRIEC - Université de Liège.
    7. Chen, Suwen & Harrison, Richard, 2020. "Beyond profit vs. purpose: Transactional-relational practices in impact investing," Journal of Business Venturing Insights, Elsevier, vol. 14(C).
    8. 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.
    9. Lall, Saurabh Ajay, 2019. "From Legitimacy to Learning – How Impact Measurement Perceptions and Practices Evolve in Social Enterprise – Social Finance Organization Relationships," SocArXiv 7z8nc, Center for Open Science.
    10. Marta Solórzano-García & Julio Navío-Marco & Luis Manuel Ruiz-Gómez, 2019. "Ambiguity in the Attribution of Social Impact: A Study of the Difficulties of Calculating Filter Coefficients in the SROI Method," Sustainability, MDPI, vol. 11(2), pages 1-19, January.
    11. Kumudu Jayawardhana & Imali Fernando & Janaka Siyambalapitiya, 2022. "Sustainability in Social Enterprise Research: A Systematic Literature Review," SAGE Open, , vol. 12(3), pages 21582440221, September.
    12. Bryan Dufour & Francesca Petrella & Nadine Richez-Battesti, 2020. "Understanding social impact assessment through public value theory: A comparative analysis on work integration social enterprises (WISEs) in France and Denmark," Working Papers halshs-03216401, HAL.
    13. Dufour, Bryan, 2019. "Social impact measurement: What can impact investment practices and the policy evaluation paradigm learn from each other?," Research in International Business and Finance, Elsevier, vol. 47(C), pages 18-30.
    14. repec:osf:osfxxx:6ft2p_v1 is not listed on IDEAS
    15. Rouault, Julie & Albertini, Elisabeth, 2022. "Reconciling the social sector with external accountability requirements: Lessons from stewardship theory," Journal of Business Research, Elsevier, vol. 142(C), pages 485-498.
    16. Calderini, Mario & Fia, Magali & Gerli, Francesco, 2023. "Organizing for transformative innovation policies: The role of social enterprises. Theoretical insights and evidence from Italy," Research Policy, Elsevier, vol. 52(7).
    17. Meike Siefkes & Anton Lohne Hamer & Gustav Haaland & Øyvind Bjørgum, 2024. "Profit first, environmental impact second? Investigating hybrid institutional logics in venture capital investment approaches," Business Strategy and the Environment, Wiley Blackwell, vol. 33(8), pages 7922-7941, December.

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