Transcript Chapter 2
Chapter 10 Boundary Spanning and Social Entrepreneurship Opening Discussion • Read the case of the New Baldwin Corridor Coalition and answer the following questions: Why was it important for the Coalition to have a wide representation? How was the Coalition able to foster agreement among these diverse participants? Chapter Outline • Working across organizational boundaries • Collaboration between organizations • Engagement in networks • Working across sectors • New legal forms Working across Organizational Boundaries • Complex social problems are embedded in larger social systems. • Social entrepreneurs must understand and make changes in these larger social systems. • They are composed of all the stakeholders involved in a problem area as well as the larger environment (laws, economic conditions, etc.). • All can be conceptualized as a social ecosystem. • This helps us understand the larger patterns that influence a problem. Social Ecosystem • A variety of organizations and relationships are involved in an ecosystem. Collaboration Between Organizations • Social-mission organizations collaborate for a number of reasons: Social responsibility: more mission accomplishment Operational efficiency, such as economies of scale Resource interdependence: need resources from each other Environmental validity: collaboration is expected Domain influence: collaboration gives partners power Strategic enhancement: can increase strategic advantages of partners Collaboration Between Organizations • Collaboration varies along seven dimensions. Collaboration between Organizations • Variation along dimensions yields three types of collaboration: Simple: minimal interaction in limited, welldefined areas Transactional: involves a partnering mind-set, greater range of interaction and overlap Integrative: extensive, multidimensional interaction, strategic significance, mission mesh, shared values Collaboration and Innovation • Organizations gain access to information, technical assistance, clients. • Partners can transfer knowledge, enhance legitimacy, leverage resources, share learning, exchange resources. • Knowledge and information can be about unmet needs, new approaches and services, new resources to fund innovation. • More frequent contacts enhance dispersion of innovations among partners. Engagement in Networks • An interorganizational network is a set of organizations that come together to reach goals that they could not reach individually: Develop shared understandings of problems Develop shared vision, purpose, goals • Membership is voluntary. • Members control the network and its activities. Engagement in Networks • For-profits and nonprofit use networks to gain access to information and resources, share risk, address complex markets or social environments. • Public agencies use networks to avoid duplication of services and make better use of resources. • The newest and most innovative are used to address complex problems that span sector boundaries. Engagement in Networks • Governance of the network can vary: Participant-governed: members govern themselves, are flexible but inefficient. Lead organization–governed: one organization governs; can be efficient and handle disagreement, but is less flexible. Network-administrator-governed: separate organization serves as network coordinator; can be efficient and flexible, but need agreement on and resources for administrator. Engagement in Networks • Several factors are key to the success of cross-sector networks: Understanding prior initiatives and overall network environment Effective process, structures, governance Understanding the role of key players Demonstrating leadership and competencies Creating outcome-oriented accountability system Engagement in Networks • Several recent examples of problemsolving networks: Community of practice: Learning environments; participants connect, interact, share ideas, build tools, and so on. Collective impact: Community response to complex problem; involves organizations related in a centralized configuration to provide structure and direction to the effort; decentralized configurations to provide services. Working across Sectors: Hybrids • Boundaries between public, business, and nonprofit sectors have been blurring as organizations try to tackle complex problems. • For-profits are more socially concerned, nonprofits more businesslike, government more privatized. • Hybrid organizations belong primarily to one sector but have some characteristics of another sector. Nonprofit–For-profit Hybrids • Emergence of hybrids that combine income and social benefit Nonprofit–For-profit Hybrids • Characteristics of nonprofit–for-profit hybrids Nonprofit–For-profit Hybrids • Spectrum of hybrid types Social Enterprise Models • A social enterprise is any business venture created for a social purpose and to generate social value while operating with the characteristics of a private sector business. • It can be carried out in a nonprofit, forprofit, or government agency. • Embedded model: the social mission is the central purpose of the business. • Integrated model: business activity is a funding mechanism for the mission. New For-profit Legal Forms • Low-profit limited liability company (L3C): Held to furthering the accomplishment of charitable purposes Designed to facilitate foundation investments (PRIs) • Benefit corporation: Corporate purpose to create positive social and environmental impact Directors must consider nonfinancial stakeholders as well as stockholders Obligation to report on social and environmental performance Discussion • Consider the various possible types of cross-boundary arrangements and answer the following questions: Why might a network relationship be more useful than an interorganizational one? What might be some of the strains in a nonprofit–for-profit hybrid? How might a nonprofit social enterprise differ from a for-profit one?