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. (shrink)

Impact sourcing is the practice of employing socio-economically disadvantaged individuals at business process outsourcing centres to reduce poverty and create secure jobs. One of the pioneers of impact sourcing is Sama, a training-data company that focuses on annotating data for artificial intelligence (AI) systems and claims to support an ethical AI supply chain through its business operations. Drawing on fieldwork undertaken at three of Sama’s East African delivery centres in Kenya and Uganda and follow-up online interviews, this article interrogates Sama’s (...) claims regarding the benefits of its impact sourcing model. Our analysis reveals alarming accounts of low wages, insecure work, a tightly disciplined labour management process, gender-based exploitation and harassment and a system designed to extract value from low-paid workers to produce profits for investors. We argue that competitive market-based dynamics generate a powerful force that pushes such companies towards limiting the actual social impact of their business model in favour of ensuring higher profit margins. This force can be resisted, but only through countervailing measures such as pressure from organised workers, civil society, or regulation. These findings have broad implications related to working conditions for low-wage data annotators across the sector and cast doubt on the ethical nature of AI products that rely on this form of AI data work. (shrink)

Increasing evidence suggests that corporate sustainability is paradoxical in nature, as corporates and managers have to achieve economic, social, and environmental goals, simultaneously. While a paradox perspective has been broadly incorporated into sustainability research for more than a decade, it has resulted in limited improvement in our understanding of corporate sustainability paradox management. In this study, the authors conduct a systematic review of the literature of corporate sustainability paradox management by adopting the Smith–Lewis three-stage model of dynamic equilibrium. The results (...) reveal the following: Both environmental and cognitive factors manifest tensions arising from the sustainability paradox. While both proactive and defensive strategies are adopted to manage the tensions embedded in the corporate sustainability, the proactive strategy is more extensively studied in the current literature. Management strategies of corporate sustainability paradox are characterized as multi-level, multi-stage, and dealing with multiple paradoxes. Proactive strategies enable organizations to enjoy short-term and long-term sustainability benefits. The authors call for further research explicitly addressing the following areas: the paradoxical nature of corporate sustainability management; corporate sustainability paradox management of for-profit organizations; the micro-foundations of corporate sustainability paradox management; defensive strategies and new proactive strategies; and a unified standard of sustainability outcomes. The practical implications of this review are then elaborated. In practice, the results imply that organizations would best manage the corporate sustainability paradox by understanding the paradox and its equilibrium stages. This review and proposed research agenda are expected to deepen interdisciplinary knowledge and set the stage for interested scholars to undertake in their future inquiries. (shrink)

The last decade has witnessed the emergence of a paradox perspective on corporate sustainability. By explicitly acknowledging tensions between different desirable, yet interdependent and conflicting sustainability objectives, a paradox perspective enables decision makers to achieve competing sustainability objectives simultaneously and creates leeway for superior business contributions to sustainable development. In stark contrast to the business case logic, a paradox perspective does not establish emphasize business considerations over concerns for environmental protection and social well-being at the societal level. In order to (...) contribute to the consolidation of this emergent field of research, we offer a definition of the paradox perspective on corporate sustainability and a framework to delineate its descriptive, instrumental, and normative aspects. This framework clarifies the paradox perspective’s contents and its implications for research and practice. We use the framework to map the contributions to this thematic symposium on paradoxes in sustainability and to propose questions for future research. (shrink)

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. (shrink)

Sufism has two main dimensions: vertical (God’s pleasure) and horizontal (harmony with nature, society and local wisdom). In reality, many Sufis are considered less concerned about the balancing between vertical and horizontal dimensions. The research explores the concepts and practices of hybrid Sufism undertaken by Kyais (religious leaders) and their followers in improving quality of life. Ethnography was used for exploring the mindset and activities of Kyai and his followers. This study involved four Kyais in Java and Kalimantan, Indonesia. Research (...) data were obtained through participant observations, in-depth interviews and documentation. The data were analysed by Spadley’s ethnographic steps as follows: (1) domain analysis, (2) taxonomy analysis, (3) componential analysis and (4) cultural-thematic analysis. The results showed that hybrid Sufism could improve quality of life. Hybrid Sufism can better appreciate and interpret local wisdom with an attitude of preserving nature and a positive understanding of worldly wealth, increasing the hard work ethos to achieve material–spiritual qualities. Contribution: This article shows that hybrid Sufism encourages the life of Sufis in harmony between vertical and horizontal aspects. This understanding and lifestyle give rise to respect for others, being friendly to the environment and interpreting life and local wisdom. (shrink)

In recent years, researchers and practitioners have increasingly paid attention to food waste, which is seen as highly unethical given its negative environmental and societal implications. Waste recovery is dependent on the creation of connections along the supply chain, so that actors with goods at risk of becoming waste can transfer them to those who may be able to use them as inputs or for their own consumption. Such waste recovery is, however, often hampered by what we call ‘circularity holes’, (...) i.e., missing linkages between waste generators and potential receivers. A new type of actor, the digital platform organization, has recently taken on a brokerage function to bridge circularity holes, particularly in the food supply chain. Yet, extant literature has overlooked this novel type of brokerage that exploits digital technology for the transfer and recovery of discarded resources between supply chain actors. Our study investigates this actor, conceptualized as a ‘circularity broker’, and thus unites network research and circular supply chain research. Focusing on the food supply chain, we adopt an interpretive inductive theory-building approach to uncover how platform organizations foster the recovery of waste by bridging circularity holes. We identify and explicate six brokerage roles, i.e., connecting, informing, protecting, mobilizing, integrating and measuring, and discuss them in relation to extant literature, highlighting novelties compared to earlier studies. The final section reflects on contributions, implications, limitations and areas for further research. (shrink)

The Covid-19 pandemic posed a serious threat to small and medium-sized enterprises (SMEs). This explorative qualitative study of 100 SMEs from 20 industries and 21 countries investigates how entrepreneurs responded to the Covid-19 pandemic and which cognitive frames guided their actions. Observed cognitive frames prioritize either business survival, conversion of business and stakeholder interest, or acceptance of conflicting social and financial goals. These cognitive frames influence the choice of crisis response without determining it. Four response patterns were found: weathering the (...) storm, bricolage, solidarity and support, and social innovation. Strategic innovation creating access to new markets is the most successful response. The findings support a more encompassing definition of the concept of organizational resilience and shed light on motivations for acts of solidarity and social innovation as crisis responses. (shrink)

Sufism has two main dimensions: vertical (God’s pleasure) and horizontal (harmony with nature, society and local wisdom). In reality, many Sufis are considered less concerned about the balancing between vertical and horizontal dimensions. The research explores the concepts and practices of hybrid Sufism undertaken by Kyais (religious leaders) and their followers in improving quality of life. Ethnography was used for exploring the mindset and activities of Kyai and his followers. This study involved four Kyais in Java and Kalimantan, Indonesia. Research (...) data were obtained through participant observations, in-depth interviews and documentation. The data were analysed by Spadley’s ethnographic steps as follows: (1) domain analysis, (2) taxonomy analysis, (3) componential analysis and (4) cultural-thematic analysis. The results showed that hybrid Sufism could improve quality of life. Hybrid Sufism can better appreciate and interpret local wisdom with an attitude of preserving nature and a positive understanding of worldly wealth, increasing the hard work ethos to achieve material–spiritual qualities. Contribution: This article shows that hybrid Sufism encourages the life of Sufis in harmony between vertical and horizontal aspects. This understanding and lifestyle give rise to respect for others, being friendly to the environment and interpreting life and local wisdom. (shrink)

The United Nations (UN) 2030 Agenda for Sustainable Development has considerable potential for achieving a more sustainable future. However, the concrete realisation of Sustainable Development Goals (SDGs) is impeded by how they are implemented by a diverse set of competent agents. This conceptual paper draws on social impact theory to investigate how businesses can utilise the SDG framework to achieve positive social outcomes. We identify two pathways that can guide businesses to improve their SDGs interventions, which entail considering the _interconnections_ (...) between the goals that are directly or indirectly affected by the initiative at stake and the _inclusiveness_ of the actors affected by the SDGs. Building on the literature on hybrid organising (to frame interconnectedness) and the literature on multi-stakeholder partnerships and deliberative governance (to frame inclusiveness), we discuss a set of organisational mechanisms and transformations that can help businesses ensure that their SDGs interventions are more socially impactful. By doing so, this paper extends the literature on the role of companies for sustainable development and provides some practical implications. (shrink)

The implementation of sustainable development goals forces the leaders of organizations to develop cognitive and behavioural capacities to manage the resulting complexity. These abilities can be associated with authentic leadership. Reflective approaches are recognized as showing promise for developing this type of leadership. However, they are rarely used in the context of university training. This article compares two learning approaches that target leadership development in master’s level students. It emerges that experiential learning through collaborative action games would help to develop (...) certain components of authentic leadership more than coaching. (shrink)

Understanding how hybrid organizations resist mission drift and sustain the joint pursuit of their plural goals over time remains a central theoretical and practical concern in the business and society literature. In this article, we mobilize an organizational politics approach to elucidate how hybrid organizations react to mission drift and strive to rebalance the relationship between their conflicting missions. Drawing on an in-depth longitudinal analysis of a project developed within a multinational worker co-op to reverse mission drift, we elaborate a (...) process model showing how shifting patterns in the mobilization of episodic and systemic forms of power provoke critical changes in the way that plural missions are construed and enacted within hybrid organizations. This study also contributes to the field of co-operative organization and management studies by revealing that the transfer of organizational practices within multinational co-ops is more critically shaped by power relations and conflicting interests rather than, as much of the previous literature has argued, by host country institutions. (shrink)