International Expansion of Social Enterprises as a Catalyst for Scaling up Social Impact across Borders
Abstract
:1. Introduction
2. Literature Review
3. Materials and Methods
3.1. Research Approach and Sample
3.2. Data Sources and Analysis
4. Results
4.1. Perception of International Expansion and Rationale beyond the Process
“Achieving scale and improving productivity has enabled us to keep costs down and treat hundreds of thousands of patients each year. It has allowed us to give back to society, to the communities.”[52] (p. 27)
“Something as simple as openly sharing our methods, processes and best practices is helping us to quickly spread our approach across the country (...) This form of expansion allows us to overcome barriers such as seeking funding, recruiting and selecting staff ... that would otherwise require us much more time.”[53] (p. 12)
“Many of the Mondragon cooperatives are in highly globalized competitive sectors. At the end of the day, if we want to survive in these sectors (…) we must follow our customers and be present in the main world markets (…). Internationalization has been fundamental for keeping cooperative employment in our plants and, further, we have also created jobs and wealth abroad.”[54] (p. 37)
“[The goal is] to spread our cooperative principles, which are well-known in France, to the international scale, because that is where we are now. This involves 17 countries, each with their own different cultures, methods and identities.”[55]
“We soon realized that it’s impossible to achieve our social goals by working alone (...). To increase social value we must partner not only with other organizations in the Social Economy ecosystem, but also with other actors such as governments, universities, impact investors, donors and corporations.”[56] (p. 4)
“We constantly had to innovate… innovation was both a need and an inherent motivation to co-create something together worth doing (…). Unlike the [commercial] franchise approach… we were driven by purpose and by the ability to respond to societal goals: we had to seek a form to support that.”[39] (p. 12)
“Entering a new [geographical] market is a long process subject to different, and many times conflicting, perspectives. We hear many voices and consider their input (...). Our employee-members, the management committee, trade unions, the local cooperative movement, local governments... [International expansion] decisions meet very different [stakeholders] interests.”[57]
4.2. Challenges and Innovations to Scale Social Impact across Borders
“The most important factor is aligning with local norms. India is extremely diverse. There are a million different factors that change in rural areas. If you want to successfully scale across all of them, your curriculum needs to be sensitive enough to emanate from each rural area.”[60] (p. 227)
“Our goal is to maintain our economic strength and succeed in all markets where we are present, but always with the marked social aspect that characterizes our way of managing the group’s companies.”.[57]
4.2.1. Control-based International Scaling Strategies
“As we have grown in size, (…) the feeling of co-responsibility among the members has progressively diluted (…), and we have lost the ideological sense of the cooperative as a differentiating element from capitalism. The human factor, which is the most important aspect of cooperativism, has been relegated to the background.”[60]
4.2.2. Altruism-based International Scaling Strategies
“… in consulting, we act as a catalyst, we cannot directly say ‘it is because of me’. Because, once we act as catalyst and they [implementers] receive the ideas, they’ll start doing it. (…) [T]here are hospitals [that] are not done well because of lack of or frequent change of leadership or lack of availability of doctors or they’re not following the processes they should.”[67] (p. 77)
“[The network’s US management] had a very set way of doing things, and we could not adapt that to what works best here (…). I think there was a very real wish to keep very tight control over the organization, rather than let it flourish by the efforts of the volunteers.”[68]
“When the opportunity arose to replicate our model in Mexico, we considered various options, but from our previous experience in India we quickly realized that we would need an intermediary, not only to ensure that our model is correctly replicated by maintaining the quality of our educational programs and our original essence, but also to achieve the necessary adaptation to the Mexican context and to be able to generate a network of trust and closeness with different local actors.”[53] (p. 7)
4.2.3. Hybrid International Scaling Strategies
“There was tension in the network over whether we should pursue nonprofit or for-profit. There were big questions around how much to invest in the core, on what terms, and for what services. And (…) there was growing tension around ownership. The fact that one person owned the brand was not aligned with what we had collectively created.”[70] (p. 22)
“Becoming a Certified B Corp is an important step, not only because it re-affirms our deep commitment to values-led business practices, but also because it affirms how Ben & Jerry’s and Unilever work together to advance our Social Mission.”[74]
“Some internal tensions arose because many did not understand that we were partnering with a multinational company like Hyundai to address the problem of unequal educational opportunities (...). Other partnerships we had in the Social Economy sector came under threat because some social enterprises were not comfortable with this situation.”[56] (p. 11)
“HMC … expanded our CSR activities to create a platform to nurture other young and potential social entrepreneurs. So, we launched a new program called ‘On-Dream’. This expansion in the CSR activities happened because we achieved great results from the partnerships with JUMP.”[76] (p. 13)
5. Discussion
6. Conclusions
Author Contributions
Funding
Acknowledgments
Conflicts of Interest
References
- Bloom, P.N.; Skloot, E. Scaling Social Impact: New Thinking; Palgrave Macmillan: New York, NY, USA, 2010. [Google Scholar]
- Seelos, C.; Mair, J. Innovation and Scaling for Impact; Stanford University Press: Stanford, CA, USA, 2017. [Google Scholar]
- Desa, G.; Koch, J.L. Scaling Social Impact: Building Sustainable Social Ventures at the Base-of-the-Pyramid. J. Soc. Entrep. 2014, 5, 146–174. [Google Scholar] [CrossRef]
- Zhao, M.; Han, J. Tensions and Risks of Social Enterprises’ Scaling Strategies: The Case of Microfinance Institutions in China. J. Soc. Entrep. 2019, 1–21. Available online: https://doi.org/10.1080/19420676.2019.1604404 (accessed on 16 April 2020).
- Yang, Y.-K.; Wu, S.-L. An Exploratory Study to Understand the Internationalization Strategies of Social Enterprises. J. Soc. Entrep. 2014, 6, 31–41. [Google Scholar] [CrossRef]
- Errasti, A.; Nunez, A.; Bretos, I. The Viability of Cooperatives: The Fall of the Mondragon Cooperative Fagor. Rev. Radic. Political Econ. 2017, 49, 181–197. [Google Scholar] [CrossRef]
- Bretos, I.; Errasti, A.; Marcuello, C. Ownership, governance, and the diffusion of HRM practices in multinational worker cooperatives: Case-study evidence from the Mondragon group. Hum. Resour. Manag. J. 2017, 28, 76–91. [Google Scholar] [CrossRef]
- Bretos, I.; Foncea, M.D.; Marcuello, C. Cooperativas e internacionalización: Un análisis de las 300 mayores cooperativas del mundo. CIRIEC-España Rev. Econ. Publica Soc. Coop. 2018, 92, 5–37. [Google Scholar] [CrossRef]
- Bretos, I.; Marcuello, C. Revisiting Globalization Challenges and Opportunities in the Development of Cooperatives. Ann. Public Cooperative Econ. 2016, 88, 47–73. [Google Scholar] [CrossRef] [Green Version]
- Zahra, S.A.; Rawhouser, H.N.; Bhawe, N.; Neubaum, D.O.; Hayton, J.C. Globalization of social entrepreneurship opportunities. Strat. Entrep. J. 2008, 2, 117–131. [Google Scholar] [CrossRef]
- Mozas-Moral, A.; Moral-Pajares, E.; Medina-Viruel, M.J.; Bernal-Jurado, E. Manager’s educational background and ICT use as antecedents of export decisions: A crisp set QCA analysis. J. Bus. Res. 2016, 69, 1333–1335. [Google Scholar] [CrossRef]
- Moreno, A.S.; Sempere, S.P. Análisis de las plataformas de crowdfunding social en el estado español: Un estudio de casos. REVESCO Rev. Estud. Coop. 2019, 130, 149–175. [Google Scholar] [CrossRef] [Green Version]
- Datar, S.M.; Epstein, M.J.; Yuthas, K. Enamored with Scale: Scaling with Limited Impact in the Microfinance Industry. In Scaling Social Impact; Bloom, P.N., Skloot, E., Eds.; Palgrave Macmillan: New York, NY, USA, 2010. [Google Scholar]
- Han, J.; Shah, S. The Ecosystem of Scaling Social Impact: A New Theoretical Framework and Two Case Studies. J. Soc. Entrep. 2019, 1–25. Available online: https://doi.org/10.1080/19420676.2019.1624273 (accessed on 16 April 2020).
- André, K.; Pache, A.-C. From Caring Entrepreneur to Caring Enterprise: Addressing the Ethical Challenges of Scaling up Social Enterprises. J. Bus. Eth. 2014, 133, 659–675. [Google Scholar] [CrossRef]
- Hudon, M.; Huybrechts, B. From Distant Neighbours to Bedmates: Exploring the Synergies between the Social Economy and Sustainable Development. Ann. Public Cooperative Econ. 2017, 88, 141–154. [Google Scholar] [CrossRef] [Green Version]
- Tortia, E.C.; Degavre, F.; Poledrini, S. Why are Social Enterprises Good Candidates for Social Innovation? Looking for Personal and Institutional Drivers of Innovation. 2020, pp. 1–19. Available online: https://doi.org/10.1111/apce.12265 (accessed on 16 April 2020).
- Salustri, A. The UN 2030 Agenda and Social and Solidarity Economy: Toward a structural change? Rev. Appl. Soc.-Econ. Res. 2019, 18, 104–117. [Google Scholar]
- Le Blanc, D. Towards Integration at Last? The Sustainable Development Goals as a Network of Targets. Sustain. Dev. 2015, 23, 176–187. [Google Scholar] [CrossRef]
- Galli, A.; Djurovic, G.; Hanscom, L.; Knezevic, J. Think globally, act locally: Implementing the sustainable development goals in Montenegro. Environ. Sci. Policy 2018, 84, 159–169. [Google Scholar] [CrossRef]
- Salva, A.L.; Filho, W.L.; Brandli, L.; Griebeler, J.S. Assessing research trends related to Sustainable Development Goals: Local and global issues. J. Clean. Prod. 2019, 208, 841–849. [Google Scholar] [CrossRef] [Green Version]
- Lubberink, R. Social Entrepreneurship and Sustainable Development. In Decent Work and Economic Growth; Leal Filho, W., Azul, A., Brandli, L., Özuyar, P., Wall, T., Eds.; Springer: Berlin/Heidelberg, Germany, 2019. [Google Scholar]
- Westley, F.; Antadze, N.; Riddell, D.J.; Robinson, K.; Geobey, S. Five Configurations for Scaling Up Social Innovation. J. Appl. Behav. Sci. 2014, 50, 234–260. [Google Scholar] [CrossRef]
- Doh, J.P.; Tashman, P.; Benischke, M.H. Adapting to Grand Environmental Challenges Through Collective Entrepreneurship. Acad. Manag. Perspect. 2019, 33, 450–468. [Google Scholar] [CrossRef]
- Defourny, J.; Nyssens, M. Fundamentals for an International Typology of Social Enterprise Models. Volunt. Int. J. Volunt. Nonprofit Organ. 2017, 28, 2469–2497. [Google Scholar] [CrossRef]
- Chaves, R.; Monzón, J.L. La economía social ante los paradigmas económicos emergentes: Innovación social, economía colaborativa, economía circular, responsabilidad social empresarial, economía del bien común, empresa social y economía solidaria. CIRIEC-España Rev. Econ. Publica Soc. Coop. 2018, 93, 5–50. [Google Scholar] [CrossRef] [Green Version]
- Bauwens, T.; Huybrechts, B.; Dufays, F. Understanding the Diverse Scaling Strategies of Social Enterprises as Hybrid Organizations: The Case of Renewable Energy Cooperatives. 2019. Available online: https://journals.sagepub.com/doi/full/10.1177/1086026619837126 (accessed on 16 April 2020).
- Blundel, R.; Lyon, F. Towards a Long View: Historical Perspectives on the Scaling and Replication of Social Ventures. J. Soc. Entrep. 2014, 6, 80–102. [Google Scholar] [CrossRef] [Green Version]
- Cannatelli, B.L. Exploring the Contingencies of Scaling Social Impact: A Replication and Extension of the SCALERS Model. Volunt. Int. J. Volunt. Nonprofit Organ. 2016, 28, 2707–2733. [Google Scholar] [CrossRef]
- Dees, J.G.; Anderson, B.B.; Wei-Skillern, J. Scaling social impact. Stanf. Soc. Innov. Rev. 2004, 1, 24–32. [Google Scholar]
- Heinecke, A.; Mayer, J. Strategies for Scaling in Social Entrepreneurship. In Social Entrepreneurship and Social Business; Volkmann, C., Tokarski, K., Ernst, K., Eds.; Gabler Verlag: Wiesbaden, Germany, 2012; pp. 191–209. [Google Scholar]
- Lyon, F.; Fernandez, H. Strategies for scaling up social enterprise: Lessons from early years providers. Soc. Enterp. J. 2012, 8, 63–77. [Google Scholar] [CrossRef]
- Nazarkina, L. How sustainable are the growth strategies of sustainability entrepreneurs? In Balanced Growth; Mennillo, G., Ed.; Springer: Berlin/Heidelberg, Germany, 2012. [Google Scholar]
- Sezgi, F.; Mair, J. To Control or Not Control: A Coordination Perspective to Scaling. In Scaling Social Impact: New Thinking; Bloom, P., Skloot, E., Eds.; Palgrave Macmillan: New York, NY, USA, 2010; pp. 29–44. [Google Scholar]
- Vickers, I.; Lyon, F. Beyond green niches? Growth strategies of environmentally-motivated social enterprises. Int. Small Bus. J. Res. Entrep. 2012, 32, 449–470. [Google Scholar] [CrossRef]
- Berelowitz, D.; Chopra, P.; Coussa, G.; Paren, M.; Towner, M.; Wetherill, H.; Huggett, J. Social Replication Toolkit; Spring Impact: London, UK, 2015. [Google Scholar]
- Aschari-Lincoln, J.; Jacobs, C. Enabling Effective Social Impact: Towards a Model for Impact Scaling Agreements. Sustainability 2018, 10, 4669. [Google Scholar] [CrossRef] [Green Version]
- Tracey, P.; Jarvis, O. Toward a Theory of Social Venture Franchising. Entrep. Theory Pract. 2007, 31, 667–685. [Google Scholar] [CrossRef]
- Giudici, A.; Combs, J.G.; Cannatelli, B.L.; Smith, B.R. Successful Scaling in Social Franchising: The Case of Impact Hub. Entrep. Theory Pract. 2018, 44, 288–314. [Google Scholar] [CrossRef]
- Thompson, J. The diverse world of social enterprise. Int. J. Soc. Econ. 2006, 33, 361–375. [Google Scholar] [CrossRef]
- Horan, D. A New Approach to Partnerships for SDG Transformations. Sustainability 2019, 11, 4947. [Google Scholar] [CrossRef] [Green Version]
- Selsky, J.W.; Parker, B. Cross-Sector Partnerships to Address Social Issues: Challenges to Theory and Practice. J. Manag. 2005, 31, 849–873. [Google Scholar] [CrossRef]
- Islam, S.M. Unintended consequences of scaling social impact through ecosystem growth strategy in social enterprise and social entrepreneurship. J. Bus. Ventur. Insights 2020, in press. [Google Scholar] [CrossRef]
- Davies, I.; Haugh, H.; Chambers, L. Barriers to Social Enterprise Growth. J. Small Bus. Manag. 2018, 57, 1616–1636. [Google Scholar] [CrossRef]
- Eisenhardt, K.M. Building theories from case study research. Acad. Manag. Rev. 1989, 14, 532–550. [Google Scholar] [CrossRef]
- Yin, R.K. Case Study Research, 5th ed.; Sage: London, UK, 2013. [Google Scholar]
- Eisenhardt, K.M.; Graebner, M.E. Theory Building from Cases: Opportunities and Challenges. Acad. Manag. J. 2007, 50, 25–32. [Google Scholar] [CrossRef]
- Beck, C.T. Secondary Qualitative Data Analysis in the Health and Social Sciences; Routledge: London, UK, 2019. [Google Scholar]
- Paranque, B.; Willmott, H. Cooperatives—Saviours or gravediggers of capitalism? Critical performativity and the John Lewis Partnership. Organization 2014, 21, 604–625. [Google Scholar] [CrossRef]
- Long-Sutehall, T.; Sque, M.; Addington-Hall, J. Secondary analysis of qualitative data: A valuable method for exploring sensitive issues with an elusive population? J. Res. Nurs. 2010, 16, 335–344. [Google Scholar] [CrossRef] [Green Version]
- Errasti, A.; Bretos, I.; Etxezarreta, E. What do mondragon coopitalist multinationals look like? The rise and fall of fagor Electrodomésticos S. coop. and its European subsidiaries. Ann. Public Coop. Econ. 2016, 87, 433–456. [Google Scholar] [CrossRef]
- Vickers, T.; Rosen, E. Driving down the cost of high-quality care: Lessons from the Aravind Eye Care System. Health Int. 2011, 11, 18–27. [Google Scholar]
- HLC. Hipocampus Centros de Aprendizaje; Hippocampus: Ciudad de México, Mexico, 2018. [Google Scholar]
- Bretos, I.; Errasti, A. The challenges of managing across borders in worker cooperatives: Insights from the Mondragon cooperative group. J. Coop. Organ. Manag. 2018, 6, 34–42. [Google Scholar] [CrossRef]
- Up, Shared Democratic Cooperative Principles. Available online: https:www.youtube.com/watch?v=m_HymlSL_fg (accessed on 4 February 2019).
- JUMP. JUMP’s Glocalization Model; JUMP: Seoul, Korea, 2018. [Google Scholar]
- Nuestros Productos Crean Vínculos Entre el Trabajador y su Empresa. Available online: https:www.equiposytalento.com/elsector/director-general/up-spain/olivier-bernon/2016-04-03/ (accessed on 12 May 2019).
- How Hippocampus is Transforming Education in Rural India. Available online: https://smartceo.co/how-hippocampus-is-transforming-education-in-rural-india (accessed on 25 May 2019).
- Cronin, M.J. Impact investing at the base of the pyramid: Unitus seed fund. In Managing for Social Impact; Cronin, M.J., Dearing, T.C., Eds.; Springer: New York, NY, USA, 2017; pp. 217–235. [Google Scholar]
- Cuanto Más Grandes Nos Hemos Hecho, Hemos Perdido el Ideario Cooperativista. Available online: https:www.naiz.eus/eu/actualidad/noticia/20131103/cuanto-mas-grandes-nos-hemos-hecho-hemos-perdido-el-ideario-cooperativista (accessed on 19 January 2019).
- Arla Foods Consolidated Annual Report; Arla Foods Amba: Viby, Denmark, 2019.
- Up Coop. 2017 Extra-Financial Report; Up Coop: Gennevilliers, France, 2018. [Google Scholar]
- Bretos, I.; Errasti, A.; Marcuello, C. Is There Life after Degeneration? The Organizational Life Cycle of Cooperatives under a Grow-or-Die Dchotomy. 2019, pp. 1–26. Available online: https://onlinelibrary.wiley.com/doi/abs/10.1111/apce.12258 (accessed on 16 April 2020).
- La Industria Vasca Contra la Pandemia. Available online: https:www.elcorreo.com/economia/industria-vasca-pandemia-20200329030811-nt.html (accessed on 12 April 2019).
- Bretos, I.; Errasti, A. Challenges and Opportunities for the Regeneration of Multinational Worker Cooperatives: Lessons from the Mondragon Corporation—A Case Study of the Fagor Ederlan Group. Organization 2017, 24, 154–173. [Google Scholar] [CrossRef]
- Bretos, I.; Errasti, A.; Marcuello, C. Multinational Expansion of Worker Cooperatives and Their Employment Practices: Markets, Institutions, and Politics in Mondragon. ILR Rev. 2018, 72, 580–605. [Google Scholar] [CrossRef]
- Lehman, T. Scaling Social Impact: The Case of Aravind Eye Hospitals. Master’s Thesis, Witten/Herdecke University, Witten, Germany, 2009. [Google Scholar]
- Accusations of very Tight Control Split UK Recycling Network from US Parent. Available online: https:www.theguardian.com/environment/2009/oct/12/freecycle-freegle-recycling-networks-groups (accessed on 3 June 2019).
- Martin, C.; Upham, P.; Budd, L. Commercial orientation in grassroots social innovation: Insights from the sharing economy. Ecol. Econ. 2015, 118, 240–251. [Google Scholar] [CrossRef]
- Bachmann, M. How the Hub found its center. Stanf. Soc. Innov. Rev. 2014, 12, 22–27. [Google Scholar]
- Huybrechts, B.; Nicholls, A.; Edinger, K. Sacred alliance or pact with the devil? How and why social enterprises collaborate with mainstream businesses in the fair trade sector. Entrep. Reg. Dev. 2017, 29, 586–608. [Google Scholar] [CrossRef]
- Edmondson, B. Ice Cream Social: The Struggle for the Soul of Ben & Jerry’s; Berret-Koehler Publishers, Inc.: San Francisco, CA, USA, 2014. [Google Scholar]
- Haski-Leventhal, D.; Roza, L.; Meijs, L. Congruence in corporate social responsibility: Connecting the identity and behaviour of employers and employees. J. Bus. Eth. 2017, 143, 35–51. [Google Scholar] [CrossRef]
- Ben & Jerry’s Joins the Growing B Corporation Movement. Available online: https:www.businesswire.com/news/home/20121022005170/en/Ben-Jerrys-Joins-Growing-Corporation-Movement (accessed on 13 September 2019).
- Rhee, J.H.; Bohnsack, R.; Lee, S. Hyundai Motor Company Case—Fostering Social Enterprises. In The Role of Corporate Sustainability in Asian Development; Lenssen, G., Rhee, J.H., Martinez, F., Eds.; Springer: Berlin/Heidelberg, Germany, 2017; pp. 119–143. [Google Scholar]
- Park, J.; Hwang, K.; Kim, S.-J. Forming a Social Partnership between a Small Social Enterprise and a Large Corporation: A Case of the Joint Platform, H-JUMP. Sustainability 2018, 10, 3612. [Google Scholar] [CrossRef] [Green Version]
- Battilana, J.; Leca, B.; Boxenbaum, E. How actors change institutions: Towards a theory of institutional entrepreneurship. Acad. Manag. Ann. 2009, 3, 65–107. [Google Scholar] [CrossRef]
- Tykkyläinen, S. Why social enterprises pursue growth? Analysis of threats and opportunities. Soc. Enterp. J. 2019, 15, 376–396. [Google Scholar] [CrossRef]
- Bretos, I.; Errasti, A. La transmisión de los valores y prácticas organizacionales cooperativas en las filiales extranjeras: El caso de la cooperativa multinacional Fagor Ederlan. REVESCO Rev. Estud. Coop. 2018, 127, 45–69. [Google Scholar] [CrossRef] [Green Version]
- Bretos, I.; Morandeira, J. La Economía Social ante la actual Crisis Económica en la Comunidad Autónoma del País Vasco. REVESCO Rev. Estud. Coop. 2016, 122, 7–33. [Google Scholar]
Case | Headquarters | Year of Establishment | Main Activity | Social Mission Statement/Ethos | Main Scaling Strategy | Size | International Presence | Webpage |
---|---|---|---|---|---|---|---|---|
Up Group | France | 1964 | Development of payment methods and management solutions for companies and other social actors | The Up Group combines economic development, social innovation, and respect for the environment. Its mission is twofold: to contribute to social progress and to provide solutions for a better daily life. | Control-based | 3600 workers | Operations and sales in 19 countries | https://up.coop/ |
Arla Foods | Denmark | 2000 | Production and distribution of dairy products | Creating the future of dairy to bring health and inspiration to the world, addressing ethical and quality matters in a sustainable and responsible manner to safeguard the company’s reputation, profitability, and growth. | Control-based | 10,500 farmer-owners | Operations in 12 countries and sales in 105 | https://www.arlafoods.es/ |
Mondragon Group (Industrial Division) | Spain | 1956 | Industrial activities (e.g., household appliances, machine tooling, automotive components, etc.) | Mondragon’s mission combines the core goals of a business organization competing in international markets with the use of democratic methods in its business organization, the creation of jobs, the human and professional development of its workers, and a pledge to development with its social environment. | Control-based | 40,000 workers | Operations in 97 countries and sales in over 150 | https://www.mondragon-corporation.com/ |
Hippocampus Learning Centres (HLC) | India | 2010 | Provision of integrated and comprehensive preschool and primary grade education programs | To provide quality and affordable education opportunities for the children of under-served communities. | Altruism-based | 700 teachers | Centers in 2 countries and several Indian regions | https://hlc.hippocampus.in/ |
The Freecycle Network | United States | 2003 | Exchange and gift of free items for reuse or recycling | To build a worldwide gifting movement that reduces waste, saves precious resources, and eases the burden on landfills, while enabling members to benefit from the strength of a larger community. | Altruism-based | 9.2 million user-members | Freecycle groups in 139 countries | https://www.freecycle.org/ |
Aravind Eye Care System | India | 1976 | Eye care-related activities (e.g., eye surgery, research, production of ophthalmic products, etc.) | To eliminate needless blindness through compassionate and quality eye care affordable to all. | Altruism-based | 5100 employees | Model replicated in hospitals in 30 countries | https://aravind.org/ |
The Impact Hub | United Kingdom | 2005 | Creation of business incubators and co-working spaces for social businesses | To support enterprising initiatives for a better world by growing a locally rooted, globally connected community for measurable positive impact. It seeks to inspire, connect, and enable people to take entrepreneurial action in order to pioneer a just and sustainable world where business and profit are used in service of people and planet. | Hybrid | 16,500 user-members | Impact Hubs in 55 countries | https://impacthub.net/ |
Ben & Jerry’s | United States | 1978 | Production and distribution of ice cream, frozen yogurt, and sorbet | To operate the Company in a way that actively recognizes the central role that business plays in society by initiating innovative ways to improve the quality of life locally, nationally, and internationally. Their social mission compels them to use the Company in innovative ways to make the world a better place. | Hybrid | 800 employees | Operations in 4 countries and sales in 38 countries | https://www.benjerry.com/ |
Join Us to Maximize our Potential (JUMP) | South Korea | 2011 | Provision of high-quality educational services to children at the bottom of the pyramid | To create a society in which everyone can enjoy learning opportunities and can grow without discrimination. | Hybrid | 600 employees | Projects in 5 countries | http://jumpsp.org/en/ |
Scaling Strategy | Rationale behind International Expansion | Main Strengths | Main Challenges | Main Solutions |
---|---|---|---|---|
Altruism-based scaling | Proactive strategy to identify and exploit social entrepreneurship opportunities across borders | Wide and quick dissemination of the social innovation while not requiring a high commitment of financial resources or increasing organizational size | • Potential perversion or distortion of the original approach or innovation when it is replicated by third parties • Difficulties in replicating the social innovation in regions which are institutionally and geographically distant from where it originally sourced. | • Hiring the services of local intermediary organizations specialized in scaling and replicating social ventures • Support from the source organization in the correct replication of the social innovation by third parties (e.g., through training and consultancy) |
Control-based scaling | Defensive strategy to survive in highly competitive and globalized markets | High control over how the approach or social innovation is replicated across borders. | • Preserving stakeholder involvement in decision making, social capital, and local ties as the organization increases in size. • Replication of the parent organization’s characteristic practices and values in institutionally and geographically distant subsidiaries | • Recovery of discourses emphasizing democracy, social transformation, and community development • Reinforcement of social accounting and participatory governance • Updating and institutionalization of education and training in mission-driven values |
Hybrid scaling | Mixed approach that seeks to scale social innovations quickly while maintaining some financial and organizational control | Potential to generate the widest variety of social impact increments | • Alignment of the multiple and often competing goals and logics of the diverse network partners, especially in the case of cross-sector partnerships comprising organizations from institutionally and geographically distant regions • Potential lack of organizational legitimacy from stakeholders if the social enterprise partners with mainstream for-profit corporations | • Practices geared at aligning the network’s partners around a shared social mission, identity, and values • Legitimacy-building activities that clearly make visible an adequate balance between financial performance and social welfare outcomes to stakeholders |
Principles | Commitments |
---|---|
Driving participatory governance | • Regularly inform and exchange information with employees on strategies, objectives, and results for the Group and the subsidiaries. • Encourage employee representation and engagement within the company to foster social dialogue. |
Ensuring full social responsibility | • Take action that benefits the community at large. • Maintain balanced relations with the stakeholders. |
Developing a cooperative management system | • Coordinate, mobilize, and unite the collective to empower and involve the employee. |
Thinking of the company as a source of individual development | • Think of work as a factor for personal development. • Foster equality and diversity and encourage peaceful coexistence. • Organize financial and social protection of the employees and their families. |
Creating wealth to foster development and share it in compliance with Group values | • Spread the wealth produced collectively in accordance with the values of the Group (distribute some of the income: incentives, profit sharing, etc.). • Ensure the sustainability of the company. |
© 2020 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (http://creativecommons.org/licenses/by/4.0/).
Share and Cite
Bretos, I.; Díaz-Foncea, M.; Marcuello, C. International Expansion of Social Enterprises as a Catalyst for Scaling up Social Impact across Borders. Sustainability 2020, 12, 3262. https://doi.org/10.3390/su12083262
Bretos I, Díaz-Foncea M, Marcuello C. International Expansion of Social Enterprises as a Catalyst for Scaling up Social Impact across Borders. Sustainability. 2020; 12(8):3262. https://doi.org/10.3390/su12083262
Chicago/Turabian StyleBretos, Ignacio, Millán Díaz-Foncea, and Carmen Marcuello. 2020. "International Expansion of Social Enterprises as a Catalyst for Scaling up Social Impact across Borders" Sustainability 12, no. 8: 3262. https://doi.org/10.3390/su12083262