The development of commercial revenue streams allows traditional nonprofit organizations to increase financial certainty in response to the reduction of traditional funding sources and increased competition. In order to capture commercial revenue-generating opportunities, traditional nonprofit organizations need to deliberately transform themselves into social enterprises. Through the theoretical lens of institutional entrepreneurship, we explore the institutional work that supports this transformation by analyzing field interviews with 64 institutional entrepreneurs from UK-based social enterprises. We find that the route to incorporate commercial processes (...) and convert traditional nonprofit organizations into social enterprises requires six distinct kinds of institutional work at three different domains; these are—“engaging commercial revenue strategies”, “creating a professionalized organizational form”, and “legitimating a socio-commercial business model”. In elaborating on social entrepreneurship research and practice, we offer a comprehensive framework delineating the key practices contributing to the transformation from traditional nonprofit organizations to social enterprises. This extends our understanding of the ex-ante strategy of incorporating commercial processes within social organizations. Furthermore, the identification of these practices also offers an important tool for scholars in this field to examine the connection of each practice with different ethical concerns of social entrepreneurship in greater depth. (shrink)

Codes of governance have mushroomed in contexts operating under a single, dominant institutional logic, such as publicly listed corporations. These codes act as institutional prescriptions that help spread best practices throughout industries. More recently, in some countries, specific codes have been developed for hybrid organizations that integrate multiple, conflicting institutional logics simultaneously, such as cooperative enterprises. Drawing on an extensive set of qualitative data, we ask how such institutional prescriptions may (fail to) address governance challenges in organizations with multiple, conflicting (...) institutional demands. In doing so, we extend current literature on governance of hybrid organizations, which has so far focused on individual and organizational levels, to include institutional-level strategies. While governance codes are often inspired by deontological ethics to solve issues in a single institutional logic, we find that governance codes for hybrid organizations should not prioritize a single institutional logic, nor follow a deontological approach to improving governance, but should, on a more pragmatist take, remain open to continuous learning. (shrink)