Ahead of different paths

: how social enterprises manage their objectives

Abstract

This study investigates how social enterprises manage their social and financial objectives and the key reasons behind this process. Relying on case studies based on 12 semi-structured in depth interviews, I found 4 different trajectories that depended on the leaders’ understanding of the relationship between the two objectives and their satisfaction with those. First, where the social and financial objectives were considered conflicting, social enterprises changed the latter. Second, where this relationship was hierarchical, they manipulated the social mission. Third, when the objectives were described as paradoxical and leaders at some point were dissatisfied with them, the investigated social enterprises changed both of their objectives. Finally, under the same paradoxical understanding, if leaders were satisfied with their organization’s objectives, they did not change any. My work is unique as I introduce a new, hierarchical frame between the objectives, show two different paths of managing them under paradoxical understanding, give examples of maintaining the social mission while being under financial pressure, and show the unique role of performance measurement in managing and defining the dual objectives. The study contributes to the existing literature on social enterprises and more broadly to the literature that investigates how organizations can pursue a social mission while aiming to maximize their wealth.

Date of Award	28 Jun 2022
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Tommaso Ramus (Supervisor)