Corporate governance practices and outcomes in social enterprises in the UK

Walter Mswaka · Olu Aluko

31 citations0/0 files storedInternational Journal of Public Sector Management

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Entrepreneurship Studies and Influences Social Sciences and Governance Community Development and Social Impact

Abstract

Purpose – The purpose of this paper is to explore the growth of social enterprise in the UK in the context of the renewed interest in the creative use of organisations with a social mission to complement public service delivery. Given the impact of globalisation and increased demands for effective social welfare interventions, this paper specifically focuses on the nature and type of social enterprise governance models and how they influence their outcomes. Design/methodology/approach – The study utilises a mixed method approach involving the complementary use of quantitative and qualitative data collection methods. Findings – The paper finds that the way in which the social enterprise governance structure is designed ultimately influences its outcomes. In particular, those with stewardship governance models tend to perform better than those with democratic models of governance. This leads to a conclusion that in the social context of the UK, social enterprise should aim for a paradigm shift in the design and selection of governance models. Research limitations/implications – Comparative regional experiences in other regions or social contexts could enrich our understanding of whether these results are applicable across the board. Practical implications – This paper is of potential benefit to researchers and particularly those designing policies for the governance of social enterprise. Originality/value – The study employs innovative analytical theoretical lenses not normally associated with the social economy, namely agency, stewardship and resource dependency theories to provide a more in-depth analysis of the governance of contemporary social enterprise.

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References

1983Separation of Ownership and Control 2011External Control of Organizations: Resource Dependence Perspective 1989Agency Theory: An Assessment and Review 2008Basics of Qualitative Research (3rd ed.): Techniques and Procedures for Developing Grounded Theory 2022Business Research Methods 1993Applications of case study research 1998The Good Research Guide: For Small-Scale Social Research Projects 1991Stewardship Theory or Agency Theory: CEO Governance and Shareholder Returns

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2018Social entrepreneurs in challenging places: A Delphi study of experiences and perspectives 2019Social entrepreneurship, stakeholder management, and the multiple fitness elements of sustainability: where cash is no longer king 2023Does social performance contribute to economic performance of social enterprises? The role of social enterprise reputation building 2017Social enterprises operating in the South Wales valleys: a Delphi study of persistent tensions 2023The strategy of promoting effective management and accountability in village-owned enterprises through governance

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