Redesigning Meso-Institutions in the Social Economy to Deal with Uncertainty: The Case of CGM Network

Abstract

How can institutions in the social economy adapt to become more effective in dealing with the uncertainty of system transformation? This article focuses on “meso-institutions”, which we define as those that originated neither from a bottom-up (grassroots) approach nor from a top-down mandate (bureaucracy). In particular, it examines the case of CGM, a network of 600 social enterprises in Italy, to investigate how it is renewing its institutional configuration and mandate to better respond to both external and internal changes. CGM has the ambition to be a “reconfigurator” of multi-local systems that can establish new rules of the game in front of the main societal challenges. This entails adopting an innovative approach to define its strategy (from a classic “five-year plan” to a “compass”), reconfiguring its role (from a solution provider to a backbone organisation) and encouraging its members to embrace digitalisation, open innovation and a new business model (platform-based). The article will focus on the tensions and opportunities that this process is surfacing while pointing to broader lessons for institutional innovation.

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