Business & Society

Margolis, Anna

doi: 10.1177/00076503241289929pmid: N/A

Cross-sector partnerships (CSPs) offer much-needed collaborative spaces to address socio-ecological problems. Yet it is unclear if and how CSPs activities contribute to transformative innovation (TI) that addresses these problems and creates socio-ecological impact. Understanding how CSPs can contribute to TI is essential for CSP practitioners and researchers in order to address pressing socio-ecological problems. To better understand how CSPs can contribute to TI and socio-ecological impact, I conducted a multiple case-study of eight CSPs in the field of sustainable, circular packaging. The findings—based on the novel Transformative Innovation Process framework this article introduces—reveal three innovation pathways with different potentials for contributing to socio-ecological impact. Of the three, the complementary pioneering and adapting pathways have the greatest potential for contributing to socio-ecological impact, and the consolidating pathway has the least potential. This article makes theoretical contributions to the CSP literature as well as practical contributions for CSPs.

Bartezzaghi, Giulia; Garrone, Paola; Rizzuni, Andrea; Melacini, Marco; Perego, Alessandro

doi: 10.1177/00076503241306293pmid: N/A

Cross-sector partnerships (CSPs) can play a prominent role in tackling wicked sustainability problems. In particular, cities are critical venues for testing the potential of CSPs as agents of systemic change. However, the effectiveness of CSPs in orchestrating resources to drive systemic change in urban contexts is still not fully understood. We fill this gap through the longitudinal study of an action research case of a CSP offering urban food assistance. Our process model synthesizes how the resource orchestration activities put in place by the CSP spur phases of systemic change in the urban food system through different yet interrelated lifecycle stages of the initiative. Our results extend the literature on CSPs and systemic change showing the relationship between resource orchestration and the delivery of systemic change in urban contexts by CSPs, with significant implications for the design and management of CSPs dealing with wicked sustainability problems in cities.

Hausdorf, Michaela; Timm, Jana-Michaela

doi: 10.1177/00076503241271277pmid: N/A

Scholars are increasingly exploring community-supported businesses (CSBs) as promising alternatives to conventional ones. However, researchers are so far overlooking that CSBs vary in their underlying business models, that is, how they propose, create, and capture value. We apply a multi-staged qualitative research process to carve out the differences between community-supported business models (CSBMs) that exist in practice. Our research shows that transactional and relational CSBMs differ in how they propose, create, and capture value which, in turn, has implications for the resources required to thrive.

Baudoin, Lucie; Collet, Francois; Arenas, Daniel

doi: 10.1177/00076503241306615pmid: N/A

Collaborative Governance Organizations (CGOs) are commonly established to manage Socio-Ecological Systems (SESs). Collaborative processes are designed to gather information relevant to SESs from a diverse set of actors and to foster shared learning in the face of ecological adversity. Little is known, however, about how CGOs develop attention to emerging ecological adversity, which is critical for providing effective and timely responses that enhance SES resilience. The biophysical mechanisms driving emerging ecological adversity cut across a wide range of spatial and temporal scales. Developing attention to these mechanisms requires identifying cross-scale interdependencies and allocating limited attentional resources between local vs. global concerns, and short-term vs. long-term issues. This study explores the process of developing organizational attention to climate change in French river basins. We propose a model in which CGOs’ systemic attention develops through key interactions with the State, scientific councils, and their biophysical environment.

Bhawe, Nachiket; Jha, Srivardhini K.

doi: 10.1177/00076503241286321pmid: N/A

Recent work has emphasized the role of context in shaping the diversification strategies of social enterprises (SEs), but our understanding remains superficial. We identify two types of context-driven diversification strategies—market development diversification (MDD) and market functioning diversification (MFD)—depending on the type of voids being addressed. We then empirically test how these diversification strategies impact the performance of SEs on the twin dimensions of financial growth and social impact. Using a mixed-method approach of qualitative interviews and a longitudinal database of Indian microfinance firms (MFIs), we find that while MFD positively impacts financial growth, MDD has a positive effect on social impact. Furthermore, we find that the strategic fit (or lack of it) between the SE’s legal form and the type of diversification enhances (undermines) financial growth. However, the strategic fit between the legal form and diversification choice does not amplify social impact. The study contributes to product diversification literature, which has paid limited attention to the role of context.

Titus, Varkey K.; O’Brien, Jonathan P.; Parker, Owen; Aumueller, Christopher

doi: 10.1177/00076503241255512pmid: N/A

We examine the interface of entrepreneurship and society by considering a novel source of gender bias (public opinion) and a novel expression of it (affective evaluations). We posit that women-led teams displaying success will trigger a “penalty for success” bias, and this will be inhibited if the team receives a “stamp of approval” from a gender congruent individual (i.e., an investor who is a man). Analysis from our first study, based on archival data, indicated that other mechanisms might be at play that we could not tease apart in our archival data, so we conducted a follow-up experimental study to further examine our initial findings. Results jointly indicate that women are viewed unfavorably unless either (a) they are validated by success or endorsement from a man, or (b) they fail but are “warm and accommodating” about it. We also find that while men benefit from being validated by success or endorsement of an opposite-gender investor, they do not face a similarly steep penalty absent that validation.

Kannothra, Chacko G.; Manning, Stephan; Cotterlaz-Rannard, Gaëlle; Kundu, Sumit K.

doi: 10.1177/00076503241277675pmid: N/A

Social enterprises that operate in business-to-business contexts, often out of emerging economies, typically face high expectations from business clients, mainstream competition, and the challenge of operating across distances. In these contexts, social enterprises need to carefully choose which market segments to serve and how to organize their social mission accordingly. Based on the case of impact sourcing—hiring and training of disadvantaged staff for global business services—we seek to better understand this interplay. In general, we find that social enterprises in this context focus on serving either domestic clients with an implicit social mission and an integrated social enterprise model or international clients with a more explicit social mission and a decoupled model. We discuss why both main configurations represent viable social enterprise models in the outsourcing industry, and why, in particular, the professional background of founders plays a key role in these strategic choices. Our findings contribute to a more nuanced and context-sensitive understanding of social enterprise model adoption in emerging economies.

Lee, Jegoo; Kruse, Douglas L.; Blasi, Joseph R.

doi: 10.1177/00076503241254532pmid: N/A

This research proposes that broad-based employee share ownership (ESO) affects corporate environmental performance (CEP). Drawing upon corporate governance literature, social exchange theory, and stakeholder utility theory, we propose that employees as owners adopt more favorable attitudes toward beneficial outcomes for CEP, and that the broad-based impact of ESO overwhelms the impact of CEO ownership. Also, we propose that these relationships are contingent upon trade union presence as a form of worker voice that amplifies the ESO influence on CEP. The empirical results from U.S. publicly traded companies from 2009 to 2016 indicate that broad-based ESO is linked to positive CEP by companies, and provides some support for all proposed hypotheses. This study provides scholarly and practical implications for the effects of shared capitalist modes of ownership and employee engagement on corporate sustainability.

Fu, Jiawei Sophia; Yan, Shipeng

doi: 10.1177/00076503241274029pmid: N/A

This study draws on institutional theory to provide insights into how new forms of organizations gain legitimacy under institutional voids. Based on interviews with leaders of 42 Chinese social enterprises (SEs), we find that dominant stakeholders—the state—are ambivalent about new ventures’ agendas and practices, which is displayed in their being sometimes supportive and other times skeptical, even hostile. SEs favor the contingent engagement political strategy to develop mutually beneficial relationships with the state while keeping a healthy distance. This enables them to gain sociopolitical legitimacy in a nonthreatening and acceptable way for survival and growth. The findings further highlighted the individual, organizational, and environmental factors that condition SE legitimation approaches, including the form of state control, leaders’ political capital, organizational social mission, and regional political environment. This study makes theoretical contributions to the institutional and SE literatures, highlighting stakeholder ambivalence as an essential characteristic of an institutional context fraught with institutional voids.

Jayasinghe, Mevan; Cao, Yinyin

doi: 10.1177/00076503241235311pmid: N/A

Prior work shows limited success in retail firms’ efforts to create socially responsible supply chains by enforcing suppliers’ compliance with labor standards, partly due to conflicting sourcing demands exerted on the supplier by siloed functional units within the retail firm. To ensure the substantive adoption of labor standards throughout its supply chain, we argue that the retail firm must improve their degree of “supply chain labor compliance integration” by minimizing cross-functional tensions in human capital, identities, processes and goals. We define supply chain labor compliance integration, identify its determinant organizational practices that reduce cross-functional tensions, and explain the mechanisms by which it improves the retail firm’s supply chain labor standards performance. This work offers theoretical and practical insights on the retail firm’s capacity for managing socially responsible supply chains, and more broadly, on how systematically minimizing intra-organizational tensions arising in the pursuit of competing organizational priorities is a prerequisite for their simultaneous execution in inter-organizational business exchanges.