Author

  • Gift Dafuleya

    • University of Venda, Thohoyandou, South Africa
    • South Africa

Abstract

This paper attempts to answer the question: who creates social value in an economy, for whom and how? By examining the focal institutions that operate in a three sector economy, the paper, at the risk of oversimplifying and over narrowing the scope, develops an institution-entrepreneurial matrix that categorise institutions and provides clarity on the field of play. Coupling this with an institutions-actions model, the paper creates two scenarios of institution-entrepreneurial dynamics within the context of social value creation. The analysis demonstrate that mission drifts that adjust the realm of organizations are inevitable, but need to be carefully managed to avoid mix-up on who does what, for whom and how. At the heart of the discussion is the role of social entrepreneurs whose creation of social value to the segment of humanity in an unjust equilibrium is slightly distinct from the rest. Their unique realm lies in the realisation of nuanced pare to improvements.

Keywords

References

  • Acs, Z. J., Boardman, M. C. & McNeely, C. L. (2011). The social value of productive entrepreneurship. Small Business Economics , 40, 785-795.
  • Ahmad, N. & Hoffmann, A. N. (2008). A framework for addressing and measuring entrepreneurship. Paris: OECD.
  • Alter, K. (2007). Social enterprise typology. Virtue Ventures LLC.
  • Alston, L. J. (2008). New institutional economics. The New Palgrave Dictionary of Economics, 2nd Edition.
  • Auerswald, P. (2009). Creating social value. Stanford Social Innovation Review, 7(2), 50-55.
  • Austin, J., Stevenson, H. & Wei-Skillern, J. (2006). Social and commercial entrepreneurship: same, different, or both? Entrepreneurship: Theory and Practice , 30(1), 1-22.
  • Barley, S. R. & Tolbert, P. S. (1997). Institutionalisation and structuration: studying the Links between action and institution. Organisational Studies, 18(1), 93-117.
  • Barr, A., Fafchamps, M. & Owens, T. (2005). The governance of non-governmental organizations in Uganda. World development , 33(4), 657-679.
  • Barro, R. (2007). Bill Gate’s charitable Vistas. The Wall Street Journal, June 19, A17.
  • Baumol, W. J. (1990). Entrepreneurship: productive, unproductive and destructive. The Journal of Political Economy, 98(5), 893-921.
  • Bennett, J. A., Lossa, E. & Legrenzi, G. (2003). The role of commercial non-profit organizations in the provision of public services. Oxford Review of Economic Policy , 19(2), 335–347.
  • Besley, T. & Ghatak, M. (1999). Public–private partnerships for the provisions of public goods: Theory and an application to NGOs. STICERD Development Economics Discussion Paper: DEDPS/17, London School of Economics and Political Science.
  • Bhave, M. (1994). A process model of entrepreneurial venture creation. Journal of Business Venturing , 9, 223-242.
  • Billis, D. (1993). Organizing Public and Voluntary Agencies. Routledge, London.
  • Bourdieu, P. (1993). The field of cultural production: essays on art and literature. Cambridge, UK: Polity.
  • Bowman, C. & Ambrosini, V. (2000). Value creation versus value capture: towards a coherent definition of value in strategy. British Journal of Management, 11, 1-15.
  • Bozeman, B. (1987). All organisations are public: bridging public and private organisational theories. San Francis-co: Jossey-Bass Publications.
  • Bruyat, C. & Julien, P. A. (2001). Defining the field of research in entrepreneurship. Journal of Business Venturing , 16(2), 165-180.
  • Burgelman, R. A. (1983). Corporate entrepreneurship and strategic management: insights from a process study. Management Sciences, 29, 1349-1364.
  • Burgelman, R. A. (1984). Designs for corporate entrepreneurship in established firms. California Management Review, 26, 154-166.
  • Burns, T. & Helena, F. (1987). The shaping of social organisation: Social rule system theory application. London: Sage.
  • Calabresi, G. (1968). Transaction costs, resource allocation, and liability rules. Journal of Law and Economics, 11, 25-45.
  • Cannon, C. (2000). NGOs and the state: A case study from Uganda. In Development, NGOs, and civil society , ed. J. Pearce, 109-114. Oxford: Oxfam.
  • Casson, M. (1982). The entrepreneur: an economic theory. Barnes and Noble, Totowa, NJ.
  • Claude, M. & Shirley eds, M. M. (2005). Handbook of New Institutional Economics. Springer, Preview.
  • Coase, R. (1960). The problem of social cost. Journal of Law and Economics , 1, 1-44.
  • Collins, O. F. & Moore, D. G. (1964). The enterprising man, East Lansing, MI: Michigan State University.
  • Cunningham, B. & Lischeron, J. (1991). Defining entrepreneurship. Journal of Small Business Management , 29, 45-61.
  • Dees, J. G. & Anderson, B. B. (2006). Framing a theory of social entrepreneurship: building on two schools of practice and thought. Research on social entrepreneurship , ARNOVA Occasional Paper Series , 1(3), 39–66.
  • Dees, J. G. & Anderson, B. B. (2003). For-profit social ventures. International Journal of Entrepreneurship Education (special issue on social entrepreneurship), 2, 1-26.
  • Dees, J. G., Anderson, B. B. & Wei-skillern, J. (2004). Scaling social impact: strategies for spreading social innovations. Stanford Social Innovation review . Leland Stanford Jr. University.
  • Defourny, J. & Nyssens, M. (2010a). Social enterprise in Europe: at the crossroads of markets, public policies and third sector. Policy and Society , 29, 231-242.
  • Defourny, J. & Nyssens, M. (2010). Conceptions of social enterprise and social entrepreneurship in Europe and the United States: convergences and divergences. Journal of Social Entrepreneurship , 1(1), 32–53.
  • Desai, S. & Acs, Z. J. (2009). A theory of destructive entrepreneurship. Max Planck Institute of Economics, Working paper.
  • Dixit, A. & Olson, M. (1997). Does voluntary participation undermine the Coase theorem? Princeton: Princeton University.
  • Drucker, P. F. (1995). Innovation and entrepreneurship. New York: Harper Business: 28.
  • Eggertsson, T. (2005). Imperfect institutions: opportunities and limits of reform. Michigan: University of Michigan.
  • Emerson, J. & Twersky, F. (1996). New school entrepreneurs: The success, challenge and lessons of nonprofit enterprise creation. San Francisco: Roberts Foundation, Homeless Economic Development Fund.
  • Evers, A. & Laville, J. L. (2004). The third sector in Europe. Cheltenham: Edward Elgar.
  • Farrell, J. (1987). Information and the Coase theorem. Journal of Economic Perspective, 1(2), 113-29.
  • Furubotn, E. G. & Rudolf, R. (2005). Institutions and economic theory: the contribution of the New Institutional Economics (Economics, Cognition, and Society). University of Michigan Press.
  • Gartner, W. B. (1985). A conceptual framework for describing the phenomenon of new venture creation. Academy of Management Review , 10, 696-706.
  • Glaeser, E. L. (2003). The governance of not-for-profit organizations. NBER Conference Report Series, University of Chicago Press, Chicago, London.
  • Gidden, A. (1976). New rules of sociological method. London: Hutchinson.
  • Gidden, A. (1979). Central problems in social theory. Berkeley, CA: University of California Press.
  • Gidden, A. (1984). The constitution of society. Berkeley, CA: University of California Press.
  • Godelier, M. (1999). The enigma of the gift . Cambridge, UK: Polity Press.
  • Greenwald, B. & Stiglitz, J. E. (1986). Externalities in markets with imperfect information and incomplete markets. Quarterly Journal of Economics, 101, 229-64.
  • Haugh, H. & Tracey, P. (2004). The role of social enterprise in regional development. In Social enterprise and regional development conference, ed. Cambridge-MIT Institute, 16 September 2004. University of Cambridge, UK, Cambridge: Cambridge-MIT Institute.
  • Hamilton, W. H. (1919). The institutional approach to economic theory. American Economic Review, 9(1), 309-318.
  • Henrekson, M. & Sanandaji, T. (2011). The interaction of entrepreneurship and institutions. Journal of Institutional Economics, 01, 47-75.
  • Hughes, E. C. (1939). Institutions. In R. E. Park ed. An outline of the principles of sociology, 283-346. New York: Barnes and Noble.
  • Jagannathan, S. (2003). The role of non-governmental organizations in primary education: a study of six NGOs in India. Washington: World Bank Working Paper 2530.
  • Johannisson, B., Ramirez-Pasillas, M. & Karlsson, G. (2002). The institutional embeddedness of local interfirm networks: a leverage for business creation. Entrepreneurship and Regional Development, 14, 297-315.
  • Kerlon, J. (2006). Social enterprise in the United States and Europe: understanding and learning from the differences. Voluntas , 17(3), 247–263.
  • Kilkenny, M., Nalbarte, L. & Besser, T. (1999). Reciprocated community support and small-town small business success. Entrepreneurship and Regional Development , 11, 231-246.
  • Kirzner, I. M. (1973). Competition and entrepreneurship. Chicago: University of Chicago Press.
  • Learned, K. E. (1992). What happened before the organization? A model of organization formation. Entrepreneurship Theory and Practice , 17(1), 39-48.
  • Leonard, K. L. (2002). When both states and markets fail: asymmetric information and the role of NGOs in African health care. International Review of Law and Economics , 22(1), 61–80.
  • Light, P. (2006). Reshaping social entrepreneurship. Stanford Social Innovation Review, 2, 46-51.
  • Mair, J. & Marti, I. (2006). Social entrepreneurship research: a source of explanation, prediction, and delight. Journal of World Business, 41(1), 36-44.
  • Marshak, J. (1954). Towards an Economic Theory of Organisation and information. In Thrall et al. eds. Decision Processes.
  • Marshak, J. (1955). Elements for a theory of teams. Management Sciences , 1(2), 127-137.
  • Martin, R. L. & Osberg, S. (2007). Social entrepreneurship: the case for definition. Stanford Social Innovation Review , 3, 27-39.
  • Masahiko, A. (2001). Toward a comparative institutional analysis. MIT Press. http://mitpress.mit.edu/catalog/item/default.asp?tid=8628&ttype=2.
  • McClelland, D. C. (1961). The achieving story. Princeton, NJ: D. Van Nostrand.
  • Mendell, M. (2010). Reflections on the evolving landscape of social enterprise in North America. Policy and Society , 29, 243-256.
  • Meyer, J. W. & Rowan, B. (1977). Institutionalised organisations: formal structure as myth and ceremony. American Journal of Sociology , 83, 340-363.
  • Moe, R. C. (1987). Exploring the limits of privatisation. Public Administration Review, 47, 453-460.
  • Moe, R. C. & Stanton, T. H. (1989). Government-sponsored enterprises as Federal instrumentalities: reconciling management with public accountability. Public Administration Review, 49(4), 321329.
  • Morduch, J. (1999). The microfinance promise. Journal of Economic Literature , 37(4), 1569–1614.
  • Mort, G. S., Weerawardena, J. & Carnegie, K. (2003). Social entrepreneurship: towards conceptualization. International Journal of Nonprofit and Voluntary Sector Marketing , 8(1), 76–88.
  • Morrison, R. (1991). We build the road as we travel. USA: New Society Publishers.
  • Musolf, L. & Seidman, H. (1980). The blurred lines of public administration. Public Administration Review, 40, 124-130.
  • Nicholls, A. (2006). Social entrepreneurship: new models of sustainable social change. Oxford: Oxford University Press.
  • Olson, M. (1971). The logic of collection action. Cambridge, Massachusetts: Harvard University Press.
  • Ormiston, J. & Seymour, R. (2011). Understanding value creation in social entrepreneurship: the importance of aligning mission, strategy and impact measurement. Journal of Social Entrepreneurship , 2(2), 125-150.
  • Oxfam America. (2011). Exploring the links between international business and poverty reduction. www.sabmiller.com/files/reports/oxfarm_poverty_footprint_report.pdf
  • Pearce, J. (2003). Development, NGOs, and civil society. Oxford: Oxfam.
  • Peltzman, S. (1971). Pricing in public and private enterprises: electric utilities in the United States. Journal of Law and Economics, 14(1), 109-147.
  • Peredo, A. M. & Chrisman, J. J. (2006). Toward a theory of community-based enterprise. Academy of Management Review , 31(2), 309-328.
  • Peredo, A. M. & McLean, M. (2006). Social entrepreneurship: a critical review of the concept. Journal of Business Venturing , 21(1), 1-26.
  • Perrini, F. & Vurro, C. (2006). Social entrepreneurship: innovation and social change across theory and practice. In J. Mair, J. Robinson and K. Hockerts, eds. Social entrepreneurship. Basingstoke: Palgrave Macmillan, 57-85.
  • Phills, J. A., Deiglmeier, K. & Miller, D. T. (2008). Rediscovering social innovation. Stanford Social Innovation Review , 1, 34-43.
  • Powell, W. & DiMaggio, P. (1991). The new institutionalism in organisational analysis. Chicago: University of Chicago.
  • Prahalad, C. K. & Hammond, A. (2006). What works: Serving the poor. Markle Foundation, World Resource Institute.
  • Putnam, R. D. (2001). Social capital: measurement and consequences. Canadian Journal of Policy Research , 2(1), 72-81.
  • Quinn, R. E. & Cameron, K. (1983). Organisational life cycles and shifting criteria of effectiveness. Management Sciences, 29, 33-51.
  • Reinikka, R. & Svensson, J. (2003). Working for God? Evaluating service delivery of religious not-for-profit health care providers in Uganda. Technical Report. World Bank Working Paper No. 3058, Washington.
  • Ridly-Duff, R. & Bull, M. (2011). Understanding Social Enterprise: Theory and Practice. Sage Publications Ltd.
  • Rothschild, J. & Whitt, J. A. (1986). The cooperative workplace. Cambridge University Press, Cambridge.
  • Sahlman, W. A. (1996). Some thoughts on business plans. In W. A. Sahlman, H. Stevenson, M. J. Roberts and A. V. Bhide eds. The entrepreneurial venture. Boston: Harvard Business School Press, 138-176.
  • Salamon, L. & Anheier, H. (1996). The emerging nonprofit sector: an overview. Manchester: Manchester University Press.
  • Schumpeter, J. A. (1911). The theory of economic growth . New York: Oxford University Press.
  • Schumpeter, J. A. (1934). The theory of economic development: an inquiry into profits, capital, credit, interest, and the business cycle. Cambridge, MA: Harvard University Press.
  • Scott, C. & Hopkins, R. (1999). The economics of nongovernmental organisations. STICERD Development Economics Discussion Paper: DEDPS/15, London School of Economics and Political Science.
  • Seelos, C. & Mair, J. (2005). Social entrepreneurship: Creating new business models to serve the poor. Business Horizon, 48, 241-246.
  • Selznick, P. (1949). TVA and the grass roots. Berkeley, CA: University of California Press.
  • Selznick, P. (1957). Leadership in administration. New York: Harper and Row.
  • Singh, R. P. (2001). A comment on developing the field of entrepreneurship through the study of opportunity recognition and exploitation. Academy of Management Review , 26(1), 10-12.
  • Smith, A. (1976). The Theory of Moral Sentiments. New York: Oxford University Press.
  • Smith, A. (1776/1976). An inquiry into the nature and causes of the wealth of nations. Oxford: Clarendon Press.
  • Stevenson, H. H. (1983). A perspective on entrepreneurship. Harvard Business School Working Paper No. 9-384-131. Boston: Harvard Business School.
  • Stevenson, H. H. (1985). The heart of entrepreneurship. Harvard Business Review, 63, 85-94.
  • Stevenson, H. H. & Jarillo, J. C. (1991). A new entrepreneurial paradigm. In A. Etzioni and P. Lawrence, eds. Socio-economics: toward a new synthesis (pp. 185-208). Armonk, NY: M.E. Sharpe.
  • Stiglitz, J. E. (1994). Whither socialism. Cambridge, MA: MIT Press.
  • Stiglitz, J. E. (1998). Distinguished lecture on economics in government: the private uses of public interests: incentives and institutions. The Journal of Economic Perspectives, 12(2), 3-22.
  • Taylor, M. (1999). The small firm as a temporary coalition. Entrepreneurship and Regional Development , 11, 1-19.
  • Thompson, J. (2002). The world of the social entrepreneur. International Journal of Public Sector Management , 15(5), 412–431.
  • Timmons, J. A. & Bygrave, W. D. (1986). Venture capital’s role in financing innovation for economic growth. Journal of Business Venturing, 1, 161-173.
  • Turnbull, S. (1995). Innovations in corporate governance: the Mondragon experience. Corporate Governance: An International Review , 3(3), 167-80.
  • U.K. Department of Trade and Industry. (2002). A progress report on social enterprise: a strategy for success. http://www.edsols.org/SocialEntStrategyforSuccess.pdf. [Accessed on 2 March 2012].
  • United Nations. (1968). A system of National Accounts. Series F, No. 2, Rev. 3, United Nations, New York.
  • Weitzel, U., Urbig, D., Desai, S., & Sanders, M. (2010). The good the bad and the talented: entrepreneurial talented and selfish behaviour. Journal of Economic Behaviour and Organisation, 76(1), 64-81.
  • Whittington, R. (1992). Putting Giddens into action: social system and managerial agency. Journal of Management Studies , 29, 693-712.
  • Whyte, W. F. & Whyte, K. K. (1991). Making Mondragon. ILR Press, Ithaca, New York.
  • Williamson, O. E. (1975). Markets and hierarchies, analysis and antitrust implications: a study in the economics of internal organisation.
  • Woolcock, M. (2001). The place of social capital in understanding social and economic outcomes. ISUMA Canadian Journal of Policy Research , 2(1), 11-17.
  • Zadek, S. & Thake, S. (1997). Send in the social entrepreneurs. New Statesman 26-31.

Downloads

No downloads have been recorded for this article yet. Figures appear here once readers begin downloading the full text.

How to Cite

Dafuleya, G. (2014). Social Value Creation and Institution-Entrepreneurial Dynamics in a Three Sector Economy. Journal of Economics and Behavioral Studies, 6(10), 795-809. https://doi.org/10.22610/jebs.v6i10.539

Share this article

License

Copyright (c) 2014 Gift Dafuleya (Author)

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of revised paper in the light of suggestions of the reviewers, the editorial team  edits and formats manuscripts to bring uniformity and standardization in published material.

This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.

Keywords

Section

Research Paper

Published in

Vol. 6 No. 10 (2014) Construction, Employment & Social Value View issue contents

Published

2014-10-30

Submissions

Have research to publish? Journal of Economics and Behavioral Studies welcomes submissions.

Make a Submission