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The Growth of Organizational Variety in Market Economies: The Case of Social Enterprises

Author

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  • Carlo Borzaga
  • Sara Depedri
  • Ermanno Tortia
Abstract
Institutional and organizational variety is increasingly characterising advanced economic systems. While traditional economic theories have focussed almost exclusively on profit-maximizing (i.e. for-profit) enterprises and on publicly-owned organizations, the increasing relevance of non-profit organizations, and especially of social enterprises, requires scientists to reflect on a new comprehensive economic approach for explaining this organizational variety. The paper examines the main limitations of the orthodox and institutional theories and comes to assert the need for creating and testing a new theoretical framework, which considers the way in which diverse enterprises pursue their goals, the diverse motivations driving actors and organizations, and the different learning patterns and routines within organizations. The new framework of analysis proposed in the paper draws upon recent developments in the theories of the firm, institutional evolution, and motivational complexity to explain the presence of diverse types of organizations on a continuum ranging from purely for-profit and commercial forms to socially-oriented entrepreneurial ones. (La variet istituzionale ed organizzativa sta sempre pi caratterizzando le economie avanzate. Mentre le teorie economiche tradizionali hanno tuttavia focalizzato l attenzione esclusivamente sulle imprese che massimizzano il profitto (tipicamente le for-profit) e sulle organizzazioni pubbliche, la crescente importanza, in questi ultimi anni, delle organizzazioni nonprofit e specialmente delle imprese sociali sta richiedendo agli studiosi di ripensare un approccio economico capace di spiegare questa variet organizzativa. Il presente articolo spiega i principali limiti della teoria ortodossa e delle teoria neo-istitizionalista e giunge ad affermare la necessit di creare e testare una nuova teoria economica che consideri le diversit negli obiettivi delle organizzazioni, le differenze nelle motivazioni degli attori economici e delle organizzazioni stesse, le differenti modalit di apprendimento e di generazione di routine all interno delle organizzazioni. Il nuovo contesto di analisi proposto attinge ad alcuni recenti sviluppi delle analisi economiche dell impresa ed in particolare all evoluzione delle istituzioni e alla complessit motivazionale, giungendo a delineare la presenza di diverse tipologie organizzative lungo un continuum che va dalle organizzazioni interessate esclusivamente alla massimizzazione del profitto (for-profit) alle organizzazione orientate al benessere sociale.)

Suggested Citation

  • Carlo Borzaga & Sara Depedri & Ermanno Tortia, 2010. "The Growth of Organizational Variety in Market Economies: The Case of Social Enterprises," Euricse Working Papers 1003, Euricse (European Research Institute on Cooperative and Social Enterprises).
    • Handle: RePEc:trn:utwpeu:1003
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    File URL: https://www.euricse.eu/publications/986/
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    References listed on IDEAS

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    1. Avner BEN-NER & Theresa VAN HOOMISSEN, 1991. "Nonprofit Organizations In The Mixed Economy," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 62(4), pages 519-550, October.
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    Cited by:

    1. Maria Bastida & Alberto Vaquero García & Luisa Helena Pinto & Ana Olveira Blanco, 2022. "Motivational drivers to choose worker cooperatives as an entrepreneurial alternative: evidence from Spain," Small Business Economics, Springer, vol. 58(3), pages 1609-1626, March.
    2. Francesco Sarracino & Luca Fumarco, 2020. "Assessing the Non-financial Outcomes of Social Enterprises in Luxembourg," Journal of Business Ethics, Springer, vol. 165(3), pages 425-451, September.
    3. Sarracino, Francesco & Gosset, Andrea, 2015. "The non-economic outcomes of social entrepreneurship in Luxembourg," MPRA Paper 69347, University Library of Munich, Germany.
    4. Panu Kalmi, 2013. "Catching a wave: the formation of co-operatives in Finnish regions," Small Business Economics, Springer, vol. 41(1), pages 295-313, June.
    5. Alessandro Fedele & Raffaele Miniaci, 2012. "Stakeholder Orientation and Capital Structure: Social Enterprises Versus For-profit Firms in the Italian Social Residential Service Sector," Euricse Working Papers 1233, Euricse (European Research Institute on Cooperative and Social Enterprises).
    6. Alessandro FEDELE & Sara DE PEDRI, 2016. "In Medio Stat Virtus: Does A Mixed Economy Increase Welfare?," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 87(3), pages 345-363, December.
    7. Carías Vega, Dora E. & Keenan, Rodney J., 2016. "Situating community forestry enterprises within New Institutional Economic theory: What are the implications for their organization?," Journal of Forest Economics, Elsevier, vol. 25(C), pages 1-13.
    8. Teresa Savall Morera & Carmen Guzmán & Francisco J. Santos, 2022. "Measuring the impact of sheltered workshops through the SROI: A case analysis in southern Spain," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(2), pages 381-415, June.

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    More about this item

    Keywords

    Social enterprises; organizational pluralism; neo-institutional economics; behavioral economics; organizational continuum;
    All these keywords.

    JEL classification:

    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship
    • P50 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - General

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