Toward a Sustainable Community-based Enterprise: Organizational Architecture and Performance

Abstract

Responding to the lack of understanding of community-based enterprise (CBE), this paper aims to pursue a sustainable CBE-model by identifying the organizational architecture and performance of existing CBEs, as well as finding out aspects that influence the CBEs' success. A case-survey of 34 cases is conducted to bridge the gap between the individuality of case-study reports and a better generalization of knowledge. Ten hypotheses are developed and tested using Partial Least Square and Ordered Logistic Regression methods. Descriptive statistics show that the contextual situation, organizational architecture, and performance of CBEs are far from uniform. The CBEs' performance is sustainable since generally they indeed bring economic, social, as well as environmental improvements. Nevertheless, the sustainability of organizational architecture is rather fragile since almost all CBEs' activities are not free from outsiders' intervention and in many cases 'smaller group of individuals on behalf of the people' still becomes the driver of CBEs.

Cooperative, Social Enterprise, and Community-Based Enterprise: Competing, Substituting, or Complementing?

“…The community is typically under-represented in providing financial capital (Soviana, 2015). Full-capital-provision by the community is observed in the case of Karnataka India (Handy et al, 2011) and Santa-Catarina Mexico (Fonseca, 2007).…”

“…An assessment of CBE's blueprint is impossible since a comprehensive understanding of CBE's organizational architecture is still rather immature (Soviana, 2015). Consequently, supported with relevant examples, this paper looks at the architectural varieties available under this CBE terminology and attempts to generate a blueprint of CBE.…”

“…Meanwhile, Namibian tourism CBE is externally financed by outsiders' grants (Lapreye, 2010). Nevertheless, communities' role in providing materials is dominant; it is fathomable since they are likely having ownership or user-rights over local natural resources (Soviana, 2015).…”

“…Two fundamental aspects are anyway important to classify an organization, namely organizational goals and architecture. Following Soviana (2015), this paper analyzes organizational architecture based on its stakeholders' participation in performing tasks, providing resources, and decision-making.…”

“…Ugandan CBEs cover only a few members of a village (FAO, 2005), while Karnataka in India covers 6 villages (Handy et al, 2011). Besides, following Soviana (2015), this paper categorizes the stakeholders into community and outsiders (government, private actors, international and local NGOs/donor agencies). These terms will be used consistently in this paper.…”