Skip to main content
SpringerLink
Log in

Social Entrepreneurship and Institutional Sustainability: Insights from an Embedded Social Enterprise

  • Original Paper
  • Published:
VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations Aims and scope Submit manuscript

Abstract

Mainstream enterprises function by alleviating the cognitive burdens on their members and hence generating an insensitivity to all those complex environmental factors, in which they critically depend. By focusing on the political, institutional dynamics, the present article dwells on the questions of: How can social enterprises regain the embeddedness to the political, institutional environment and how can this process quest the dominant, institutional closure? To address these questions, the article introduces a synergy between new institutionalism and systems theory, both macro-sociological approaches that can compensate for each other’s deficiencies. In this context, the hybrid concept of institutional entrepreneurship describes the institutionalization of new organizational forms via the embeddedness of the institutional logics that underpin them. An in-depth qualitative research of the OTELO social enterprise and of its institutional framework of Mühlviertel was conducted. Empirical evidence shows that social entrepreneurship can regain the institutionally sustainability by becoming embedded to the fields of legitimacy, politics and discourse, and through this process dispute the broader institutional closeness.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

Notes

  1. For more see theoretical outline.

  2. For more see https://www.leader.at/ueberblick.html.

References

  • Agafonow, A. (2015). Value creation, value capture, and value devolution: Where do social enterprises stand? Administration and Society,47(8), 1038–1060.

    Article  Google Scholar 

  • Bacq, S., & Janssen, F. (2011). The multiple faces of social entrepreneurship: A review of definitional issues based on geographical and thematic criteria. Entrepreneurship & Regional Development,23(5–6), 373–403.

    Article  Google Scholar 

  • Beckert, J. (1999). Agency, entrepreneurs, and institutional change. The role of strategic choice and institutionalized practices in organizations. Organizations Studies,20, 777–799.

    Article  Google Scholar 

  • Bertalanffy, L. V. (1968). General system theory: Foundations, development, applications. New York: George Braziller.

    Google Scholar 

  • Blyth, M. (2001). The transformation of the Swedish model: Economic ideas, distributional conflict, and institutional change. World Politics,54(1), 1–26.

    Article  Google Scholar 

  • Boli, J., & Thomas, G. M. (1997). World culture in the world polity: A century of international non-governmental organization. American Sociological Review,62, 171–190.

    Article  Google Scholar 

  • Carvalho, A., Cunha, S. K., Lima, L. F., & Carstnes, D. D. (2017). The role and contributions of sociological institutional theory to the socio-technical approach to innovation theory. RAI Revista de Administração e Inovação,14(3), 250–259.

    Article  Google Scholar 

  • Catt, H., & Murphy, M. (2003). Sub-state nationalism. A comparative analysis of institutional change. Nations and Nationalism,9(3), 451–452.

    Article  Google Scholar 

  • Cohen, M., March, J. G., & Olsen, J. P. (1972). A garbage can model of organizational choice. Administrative Science Quarterly,17, 1–25.

    Article  Google Scholar 

  • Cortell, A. P., & Peterson, S. (1999). Altered states: Explaining domestic institutional change. British Journal of Political Science,29(1), 177–203.

    Article  Google Scholar 

  • Daft, R. L., & Lewin, A. Y. (1993). Where are the theories for the “new” organizational forms? An editorial essay. Organization Science,2(4), i–iv.

    Google Scholar 

  • Dennis, R. Y., & Choony, K. (2015). Can social enterprises remain sustainable and mission focused? Applying resiliency theory. Social Enterprise Journal,11(3), 233–259.

    Article  Google Scholar 

  • Derma, K. (2018). Mühlviertel region interviews. Interview by Chatzichristos Georgios.

  • Dies, D. (2018). Mühlviertel region interviews. Interview by Chatzichristos Georgios.

  • DiMaggio, P. (1988). Interest and agency in institutional theory. In L. Zucker (Ed.), Institutional patterns and culture (pp. 3–22). Cambridge: Ballinger Publishing Company.

    Google Scholar 

  • Dowding, K. (1994). The compatibility of behaviouralism, rational choice and “new institutionalism”. Journal of Theoretical Politics,6(1), 105–117.

    Article  Google Scholar 

  • Fischler, R. (2000). Communicative planning theory: A Foucauldian assessment. Journal of Planning Education and Research,19, 358–368.

    Article  Google Scholar 

  • Gaglio, C. M. (2004). The role of mental simulations and counterfactual thinking in the opportunity identification process. Entrepreneurship Theory Practice,28, 533–552.

    Article  Google Scholar 

  • Garud, R., Jain, S., & Kumaraswamy, A. (2002). Institutional entrepreneurship in the sponsorship of common technological standards: The case of Sun Microsystems and Java. The Academy of Management Jounal,45, 196–214.

    Google Scholar 

  • González, S., & Healey, P. (2005). A sociological institutionalist approach to the study of innovation in governance capacity. Urban Studies,42(11), 2055–2069.

    Article  Google Scholar 

  • Greenwood, R., Diaz, A., Lin, S., & Lorente, J. C. (2010). The multiplicity of institutional logics and the heterogeneity of organizational responses. Organization Science,21(2), 521–539.

    Article  Google Scholar 

  • Griwern, S. (2018). Mühlviertel region interviews. Interview by Chatzichristos Georgios.

  • Grubinger, N. (2018). Mühlviertel region interviews. Interview by Chatzichristos Georgios.

  • Hajer, M. (1995). The politics of environmental discourse. Oxford: Oxford University Press.

    Google Scholar 

  • Hasse, R. (2005). Luhmann’s systems theory and the new institutionalism. In K. H. Becker & D. Seidl (Eds.), Niklas Luhmann and organization studies (pp. 248–261). Copenhagen: Copenhagen Business School Press.

    Google Scholar 

  • Jenner, P. (2016). Social enterprise sustainability revisited: An international perspective. Social Enterprise Journal,12(1), 42–60.

    Article  Google Scholar 

  • Jensen, O., & Richardson, T. (2000). Discourses of mobility and polycentric development: A contested view of European spatial planning. European Planning Studies,8, 503–520.

    Article  Google Scholar 

  • Jessop, B. (1990). State theory: Putting the capitalist state in its place. Cambridge: Polity Press.

    Google Scholar 

  • Korbe, G. (2018). Mühlviertel region interviews. Interview by Chatzichristos Georgios.

  • Korfer, N. (2018). Mühlviertel region interviews. Interview by Chatzichristos Georgios.

  • Kral, D. (2018). Mühlviertel region interviews. Interview by Chatzichristos Georgios.

  • Lavrakas, P. J. (2008). Encyclopedia of survey research methods. Thousand Oaks: Sage Publications. https://doi.org/10.4135/9781412963947.

    Book  Google Scholar 

  • Levy, D., & Scully, M. (2007). The institutional entrepreneur as modern prince: The strategic face of power in contested fields. Organizations Studies,28, 971–991.

    Article  Google Scholar 

  • Luhmann, N. (1964). Funktionen und folgen formaler organisation. Berlin: Duncker & Humblot.

    Google Scholar 

  • Luhmann, N. (2012). Theory of society. Stanford: Stanford University Press.

    Google Scholar 

  • Maguire, S., Hardy, C., & Lawrence, T. B. (2004). Institutional entrepreneurship in emerging fields: HIV/AIDS treatment advocacy in Canada. The Academy of Management Journal,47, 657–679.

    Google Scholar 

  • Maill, D. (2018). Mühlviertel region interviews. Interview by Chatzichristos Georgios.

  • Meyer, J. W., Boli, J., & Thomas, G. M. (1994). Ontology and rationalization in the western cultural account. In W. R. Scott & J. W. Meyer (Eds.), Institutional environments and organizations: Structural complexity and individualism (pp. 9–26). Thousand Oaks: Sage.

    Google Scholar 

  • Monetz, M. (2018). Mühlviertel region interviews. Interview by Chatzichristos Georgios.

  • Peters, B. G. (2012). Institutional theory in political science. London: Continuum.

    Google Scholar 

  • Pierson, P., & Skocpol, T. (2002). Historical institutionalism in contemporary political science. In I. Katznelson & H. V. Milner (Eds.), Political science: State of the discipline (pp. 693–721). New York: W.W. Norton.

    Google Scholar 

  • Powell, W. W., & DiMaggio, P. J. (1991). The new institutionalism in organizational analysis. Chicago: The University Chicago Press.

    Book  Google Scholar 

  • Romanelli, E. (1991). The evolution of new organizational forms. Annual Review of Sociology,17, 79–103.

    Article  Google Scholar 

  • Roth, S. (2017). Parsons, Luhmann, Spencer Brown. NOR design for double contingency tables. Kybernetes,46(8), 1469–1482.

    Article  Google Scholar 

  • Schneider, L. W. (2009). Grundlagen der soziologischen theorie (p. 2). Wiesbaden: VS Verlag für Sozialwissenschaften.

    Book  Google Scholar 

  • Scott, W. R. (1995). Institutions and organizations. Thousand Oaks: Sage.

    Google Scholar 

  • Seo, M. G., & Creed, W. E. D. (2002). Institutional contradictions, praxis and institutional change: A dialectic perspective. Academy of Management Review,27, 222–248.

    Article  Google Scholar 

  • Simon, H. (1983). Reason in human affairs. Stanford: Stanford University Press.

    Google Scholar 

  • Smith, B. R., & Stevens, C. E. (2010). Different types of social entrepreneurship: The role of geography and embeddedness on the measurement and scaling of social value. Entrepreneurship & Regional Development,22(6), 575–598.

    Article  Google Scholar 

  • Somerville, P., & McElwee, G. (2011). Situating community enterprise: A theoretical exploration. Entrepreneurship & Regional Development,23(5–6), 317–330.

    Article  Google Scholar 

  • Steyaert, C., & Katz, J. (2004). Reclaiming the space of entrepreneurship in society: Geographical, discursive and social dimensions. Entrepreneurship and Regional Development,16(3), 179–196.

    Article  Google Scholar 

  • Strang, D., & Sine, D. W. (2002). Interorganizational institutions. In J. A. C. Baum (Ed.), The Blackwell companion to organizations (pp. 497–519). Oxford: Blackwell.

    Google Scholar 

  • Suchman, M. C. (1995). Managing legitimacy: Strategic and institutional approaches. Academy of Management Review,20, 571–610.

    Article  Google Scholar 

  • Suddaby, R., & Greenwood, R. (2005). Rhetorical strategies of legitimacy. Administrative Science Quarterly,50, 35–67.

    Article  Google Scholar 

  • Tarrow, O. (1994). Power in movement. Cambridge: Cambridge University Press.

    Google Scholar 

  • Thompson, S. P. (2014). Is the Mondragon cooperative experience a cultural exception? The application of the Mondragon model in Valencia and Beyond. Journal of Co-Operative Studies,47(3), 19–33.

    Google Scholar 

  • Thompson, S. P. (2015). Towards a social theory of the firm: Worker cooperatives reconsidered. Journal of Co-Operative Organization and Management,3(1), 3–13.

    Article  Google Scholar 

  • Thompson, S. P. (2016). Worker cooperatives in the theory of the firm: Marx and Veblen on technological determinism. Journal of Economic Issues,50(4), 913–939.

    Article  Google Scholar 

  • Thompson, S. P., & Valentinov, V. (2017). The neglect of society in the theory of the firm: A systems theory perspective. Cambridge Journal of Economics,41(4), 1061–1085.

    Article  Google Scholar 

  • Torning, A. (2018). Mühlviertel region interviews. Interview by Chatzichristos Georgios.

  • Tracey, P., Phillips, N., & Jarvis, O. (2011). Bridging institutional entrepreneurship and the creation of new organizational forms: A multilevel model. Organization Science,22(1), 60–80. https://doi.org/10.1287/orsc.1090.0522.

    Article  Google Scholar 

  • Valentinov, V. (2014). The complexity–sustainability trade-off in Niklas Luhmann’s social systems theory. Systems Research and Behavioral Science,31(1), 14–22.

    Article  Google Scholar 

  • Valentinov, V., & Thompson, S. (2018). The supply and demand of social systems: Towards a systems theory of the firm. Kybernetes. https://doi.org/10.1108/K-04-2018-0178.

    Article  Google Scholar 

  • Weisbrod, B. A. (1998). To profit or not to profit. New York: Cambridge University Press.

    Book  Google Scholar 

  • Wernberg, A. (2018). Mühlviertel region interviews. Interview by Chatzichristos Georgios..

Download references

Acknowledgements

This research has received funding from the European Union’s Horizon 2020 research and innovation program under the Marie Skłodowska Curie Grant Agreement Number 721999.

Author information

Authors and Affiliations

  1. University of the Aegean, Mytilene, Greece

    Georgios Chatzichristos & Nikolaos Nagopoulos

Authors
  1. Georgios Chatzichristos
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Nikolaos Nagopoulos
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Georgios Chatzichristos.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Chatzichristos, G., Nagopoulos, N. Social Entrepreneurship and Institutional Sustainability: Insights from an Embedded Social Enterprise. Voluntas 31, 484–493 (2020). https://doi.org/10.1007/s11266-019-00188-3

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11266-019-00188-3

Keywords

Search

Navigation