Responding to the imprecisions of social enterprise identity: considering the role of participatory governance

Abstract

Purpose – This study aims to understand the importance of participatory governance in the identity of social enterprises (SEs). To this end, this paper provides a framework by means of the value co-creation process and by drawing from the service-dominant logic perspective and the stakeholder theory. An explanation is also provided regarding the opportunity to include fundamental issues in defining SE collective identity, such as those related to an organisation’s participatory nature of involving the stakeholders affected by its activities, the exercise of democratic decision-making and its autonomy from the state and market. Design/methodology/approach – On the statistical exploitation of a large international data set, the authors approach the conceptualisation of SEs by providing an index to measure their social, economic and governance characteristics, thereby enabling these enterprises to be categorised into different groups. Findings – This study found that the inclusion of the governance dimension in the research incorporates the greatest variability between the various models of SE, thereby justifying participatory governance as the raison d’être of the two fundamental schools in SE, namely, Anglo-Saxon and European. Practical implications – This research offers a tool to policymakers to be used as a criterion of classification and hierarchical organisation for public procurement. It enables the various organisations to be ordered and takes social and cultural influence into consideration. This tool would be highly useful as a support of social entrepreneurship from the public environment, especially at the local level. Originality/value – This study justifies the value of incorporating participatory governance as a distinctive dimension for the definition of categories of SEs. Furthermore, an index to craft taxonomies of SEs is developed based on social, economic and governance indicators, which provides a framework that facilitates the empirical research of the SE.