Inclusive governance in non-profit organisations

The study of private non-profit enterprises that offer general interest services is only at the start. The understanding of existing organisations resists an inclusive, public interest view of governance. This contribution aims at providing a reflection on specific features that non-profit enterprises should have, and outlines four main justifications for including stakeholders in production governance: 1) access to knowledge and other resources, 2) trust creation, 3) internal efficiency, 4) external efficiency. Conclusions elaborate on Hansmann’s classic theory of the firm to suggest that governance solutions need to be assessed on the basis of total costs, considering also the lower level of social costs that is created when governance includes relevant stakeholders. Our model highlights that when social costs are high, even an enterprise with costly decisional processes, such as the multi-stakeholder, can be the most efficient solution amongst other possible alternatives

A needs theory of governance

New-institutional economics hypothesizes imperfect rationality, self-seeking preferences, monetary-related needs, and opportunism as fundamental features of human behavior. Consistently, new-institutionalist models of governance highlight the efficiency and transaction costs minimizing features of control rights and governance. Differently, needs theory of governance, as here presented, hypothesizes imperfect rationality, multiple needs, and reciprocity, in which case opportunism is reduced to an exception to individual behavior. Consistently, it presents a theory that links production governance with the wellbeing of those partaking in production. Building on Maslow’s human psychology, the governance model suggested in this paper is aimed at evidencing the self-actualization potential of control rights, organizational structures and practices. The application of Maslow’s theory to the institutional structure of organizations suggests that the deepest organizational layers (control rights and governance) broadly correspond to the most basic needs in Maslow’s theory (survival, security and belonging), while the outer layers (managerial models and employment relations) correspond to the fulfillment of the highest needs (self-esteem and self-actualization). Cooperative firms are used as an illustration of governance solutions consistent with needs theory in human psychology

Dall'organizzazione <i>multi-stakeholder</i> all'impresa reticolare [From the multi-stakeholder organisation to the network enterprise]

Le organizzazioni multi-stakeholder sono a tutt’oggi molto meno diffuse delle organizzazioni mono-stakeholder. Gli approcci più ortodossi allo studio dell’economia quali quello neoclassico e quello neo-istituzionalista tendono a riscontrare in questa evidenza una conferma della capacità delle organizzazioni mono-stakeholder di minimizzare i costi e di raggiungere i più elevati livelli di efficienza. Tuttavia, le teorie dominanti contrastano con altre evidenze secondo le quali le organizzazioni multi-stakeholder, soprattutto quelle non controllate dagli investitori si stanno in realtà diffondendo almeno in alcuni ambiti specifici, quali i settori dei servizi sociali, caratterizzati da pronunciate imperfezioni contrattuali ed asimmetrie informative, oltre che dal carattere relazionale dei servizi off erti. Sembra dunque che, smentendo il teorema di Hansmann, le organizzazioni multi-stakeholder non siano solo colpevoli di aumentare i costi a detrimento dell’efficienza produttiva, ma che sia invece anche in grado di generare maggiore surplus con modalità diverse da quelle tradizionali ed in contesti dove spesso le imprese a scopo di lucro e le organizzazioni a proprietà pubblica non sono in grado di operare. La partecipazione degli stakeholder diversi dagli investitori richiede o suggerisce in molti contesti l’esclusione dello scopo di lucro in quanto essa permette l’internalizzazione di interessi eterogenei ed il superamento all’interno del governo organizzativo delle maggiori imperfezioni contrattuali che si presentano sul mercato. Tuttavia, l’esclusione dello scopo di lucro non è una soluzione necessaria per le organizzazioni multi-stakeholder, che possono ricorrere tanto alla soluzione del governo duale, quanto ad altre forme più blande di partecipazione quali la consultazione ed i flussi informativi. Sembra però di potere affermare che il controllo esercitato dagli investitori sull’organizzazione sia uno degli elementi che più di tutti sfavoriscono la piena internalizzazione di interessi eterogenei all’interno del governo organizzativo a causa del modello di governo tendenzialmente più gerarchico, e dell’instaurarsi di rilevanti contrasti di interesse tra chi controlla l’organizzazione e gli altri soggetti a lei legati. I contrasti di interesse derivano dalla necessità di perseguire prima di tutto gli interessi degli investitori e quindi di massimizzare il valore di mercato dell’organizzazione. Necessità inevitabile quando si consideri che, nell’ipotesi controfattuale di un’impresa di capitale che non massimizza il suo profitto ed il suo valore di mercato, la possibilità di take-over e di scalate ostili verrebbe incrementata. [The article introduces the concept of ‘network enterprise’ as a development of the notion of the multi-stakeholder organization apparently better suited to grasping the structural characteristics and change dynamics of the environmental context in which social enterprises develop.

Satisfaction with creativity: a study of organisational characteristics and individual motivations

In answering the question of what influences satisfaction for creativity in the workplace, this work takes into account the extent to which the organization supports human aspiration to creativity. The empirical model uses survey data encompassing over 4,000 workers in Italian social enterprises. Results show that satisfaction for creativity is supported, at organizational level, by teamwork-oriented action, including the quality of processes, relations and on-the job autonomy. At the individual level, satisfaction for creativity is enhanced by the strength of intrinsic and socially oriented motivations and by competence. The analysis of interaction terms shows that teamwork and workers' intrinsic motivations are complementary in enhancing the perception of creativity-enhancing work settings, while a high degree of required competences appears to substitute good relationships with superiorscreativity, job satisfaction, organizational processes, motivations, teamwork,autonomy, interpersonal relations

A NEW FRAMEWORK FOR THE ECONOMIC ANALYSIS OF COOPERATIVE FIRMS: Self-defined rules, common resources, motivations, and incentives

Cooperatives are characterised by mutual-benefit coordination mechanisms aimed at the fulfilment of individual behaviour and outcomes in cooperatives by bringing together new-institutionalism, behavioural and evolutionary economics. Our framework considers four main dimensions of the governance of cooperative firms: (1) the development and application of self-defined rules by the members of the cooperative; (2) the management, and appropriation of common resources and outcomes; (3) intrinsic motivations and reciprocating behaviours; (4) the implementation of suitable incentive mixes based on inclusion and reciprocity, including both pecuniary and non- pecuniary elements. An example is offered in order to highlight possible problems in the governance of cooperative firms, in particular the processes of distribution and appropriation of surplus. The example aims at introducing the discussion of the new framework of analysis.cooperative firms, common resources, motivations, incentives

Deliberative praxis, creation of public spaces and community welfare: The development model of a small Italian town

We build on the experience of a small Italian town to illustrate how public space entrusted by public administrators has re-casted the spatiality of the town and carries the potential for alimenting further changes at times of crises. We evidence the processes whereby the value-driven creation of public space re-vamps cooperative behaviours and promotes community development

Knowledge caps in industrial development

The recognition of the link between the international division of labour and knowledge diffusion has been somehow disregarded by the economics of innovation and by development and internationalisation theories. Each of these perspectives has, in turn, addressed a specific aspect of the problem: namely, the nature of knowledge and the conditions under which technological change occurs; the importance of human capital formation and educational policies for promoting development; and the role of knowledge assets for the internationalisation of production either to exploit technological advantages abroad or to benefit from localised knowledge in host countries. In this article, these angles are three pieces of the same picture, which are combined together in order to provide a perspective on how the knowledge incorporated in production impacts on the accumulation of localised knowledge. The paper addresses some of the limitations and effects of transnational corporations as a means to facilitate learning and the diffusion of knowledge in developing countries. It then links the results of this analysis to the phenomenon of geographical polarisation of knowledge-creation activities. Our aim is to provide a framework for understanding the direction of industrial development in the light of the international division of labour operated by transnationals. In particular, we focus on those aspects of production that are related to knowledge, its nature and evolution over time. Our contribution emphasises how production decisions influence the evolution of knowledge assets within firms and territories, and determine (sometimes irreversibly) the evolutionary trajectory of localities. Given the cumulative nature of learning and the close links that relate actors’ opportunities with their past experiences, we argue that the technological direction defined by transnationals might not have much to offer to developing countries or, worse, might activate a vicious circle that would hamper the capability of developing countries to discover and develop innovations of their own

Human resource management practices and organizational performance. The mediator role of immaterial satisfaction in Italian Social Cooperatives

The paper deals with the mediating role of immaterial satisfaction between substantive human resources (HR) features and organizational performance. We address this relationship in the Italian social service sector using a survey dataset that includes 4134 workers and 320 not-for-profit social cooperatives. The obtained results show that human resource management (HRM) practices influence immaterial satisfaction and, satisfaction positively impacts on firm performance. However, the impact of the different HRM practices is not the same. In this sense, worker involvement and workload pressure have a positive impact on firm performance; but task autonomy or collaborative teamwork do not have impact on organizational performance

Network di imprese sociali e capital sociale. L’ecosistema scozzese

Questo paper prende in esame le modalità di creazione di network di imprese sociali sulla base di percorsi che ricercano e aggregano valori comuni e atteggiamenti cooperativi tra gli operatori. Lo studio mette in evidenza i motivi per i quali gli elementi cooperativi di questi network e i valori delle imprese sociali vanno poi a beneficio dell’intera comunità. E’ pertanto un lavoro che offre contenuti di interesse sia per gli imprenditori sociali sia per i policy maker. Il nostro intento sarà quello di illustrare i processi tramite i quali in Scozia è stato applicato il modello del capitale sociale per creare network di imprese sociali, di spiegare come attraverso questi network gli imprenditori sociali siano riusciti a delineare i tratti identificativi dell’impresa sociale, nonché di chiarire come attraverso il fare rete le imprese sociali abbiano rilanciato il capitale sociale nelle sue varie forme, al fine di incentivare l’interesse pubblico. Le nostre conclusioni pongono enfasi: sulle sinergie tra i valori sociali dell’impresa e la creazione di capitale sociale, sul ruolo del networking nella costruzione di una massa critica di valori sociali all’interno delle comunità, nonché sulle complementarietà delle imprese sociali con altre tipologie di attori economici e nelle sinergie che la costruzione del welfare di comunità richiede tra pubblico e varie forme di attori privati. This paper focuses on how social aims and cooperative attitudes have been supported in the shaping of networks in Scotland, and why this is relevant for the sustainable development of social enterprise and communities. From this background, our main aim is to evidence the processes whereby cooperation leading to the rise of networks of social enterprises in Scotland, have created a collective identity and revamped social capital, in order to serve their mission for the promotion of public interest. Our conclusions emphasise the centrality of social enterprise aims to the production of social capital, the role of networking in building a critical mass of social values within communities, the complementarities of other typologies of economic actors in the construction of social capital and community welfare

The Institutions of Governance. A Framework for Analysis

Production governance is not detached from the effects it produces. This paper suggests a framework to assess coordination structures and mechanisms in terms of their ability to include the publics and their interests, and to generate socio-economic value consistently with those interests. To this end, the framework considers a combination of resource integration mechanisms (contract, authority, cooperation) and structures (markets, exclusive organisational structures, and inclusive organisational structures). These combinations are analysed along key features: information, knowledge sharing ad co-creation, involvement and empowerment, as well as alongside some specific functions of governance (legitimacy, cognition, interdependence). The value added is in identifying criteria for appreciating diverse ways of integrating and coordinating resources, and the associated effects, thus providing both scholars and practitioners with a tool to discriminate among alternatives