PurposeThe purpose of this paper is to explore the notion, and dynamics, of trust between social enterprises and the public sector in two different cultural contexts. The strategy was to ask very simple and broad questions of a number of people in the social enterprise/public sector nexus, and allow them to talk. This talk was recorded and analysed for patterns and insights. This paper looks in detail at one of the insights derived from this wealth of data and makes a startling claim, one that needs further investigation and thought, that in social enterprises, trust precedes performance.Design/methodology/approachThe research is based on grounded theory and comprises a series of semi‐structured interviews based on a common framework undertaken in two countries – the UK and Poland. The interviews were transcribed and then coded by the two teams independently and key insights recorded.FindingsThe research indicated an unsolicited pre‐occupation with trust relationships between the social enterprises and the public sector organisations. The research suggests that trust precedes performance, in that the public sector partner extended a trust relationship before the organisation was able to demonstrate their track record. This challenges EU public procurement rules which require that an organisation demonstrates competency and track record before a contract is let.Research limitations/implicationsGrounded theory by necessity provides insights on which to build theory rather than to prove theory. This research project did not have the resources to develop a questionnaire that could indicate whether the findings are wide spread and therefore robust.Practical implicationsTrust is an under‐theorised resource in the literature on social capital. This research begins to conceptualise trust as an essential resource for social enterprises in the startup, and may prompt social enterprise practitioners to consider trust as a non‐financial resource in their business planning. The insights derived from this field provide some notes of guidance to public sector agents working with social entrepreneurs to understand the trust resources required, and the limits to that trust, and the impact of bureaucratisation on the socially entrepreneurial startup.Originality/valueThis paper builds on existing literature on social capital and inter‐organisational trust but extends it in a unique manner to the body of social entrepreneurship literature.
PurposeThe paper seeks to explore the implications of a critical approach to theory and method in the study of social enterprises and social entrepreneurship.Design/methodology/approachThe paper presents a re‐reading of the findings in a major case‐study based research programme. The author reflexively re‐evaluates the findings and compares them to different theoretical traditions to identify whether these theoretical lenses shed further insight on the raw findings.FindingsThe analysis indicates that the theoretical perspectives of “contractualism”, “managerialism” and “agencification” are good explanatory frameworks for the data produced in the research but so too are “militant decency”, “social movements” and “post‐liberal” theories. As well as illustrating the limits of knowledge, the exercise also indicates that the apparent weakness and failure identified in the case studies are evidence of a “recalcitrance and resistance” that is essential to the emerging identity of the social enterprises.Practical implicationsThe paper highlights the importance of being honest to the complexity and ambiguity of data produced in field research and that some important findings can be missed when “outlier” data are ignored. The re‐evaluation of data on this basis also indicates that weakness and failure in social enterprises should not be avoided and worked out of the system. Rather, operating in the context of weakness, failure, recalcitrance and passivity are the grit in the pearl that make social enterprise so valuable.Originality/valueThe paper contributes, in its critical theory approach, to method and analysis in the field of social enterprise research. The paper indicates that no single theoretical structure fully explains social enterprise and that existing critical management theories shed significant new light on the field. The paper, in applying an experimental approach to theory, also highlights the small amount of work that has been done in the field on failure, doubt, weakness and humility.
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