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Relationship OfOrganizational Identityto OrganizationalPerformance in SocialEntrepreneurial.OrganizationsAngela French G Tyge What is social entrepreneurship andwhy does social entrepreneurship Organizational identity. Organizational performance Performance in socialentrepreneurship Implications Social entrepreneurship.Why is it important Social entrepreneurship impacts theglobal community by providingservices that cannot be effectivelyoffered by government or.commercial entities Sqauzzoni 2009 In 2007 public charities reportedover 1 4 trillion in total revenuesand 2 6 trillion in total assets NCCS CoreFiles 2007 . 26 4 of Americans over 16volunteered for an organization in Social entrepreneurshipWhat is it Nonprofit organizations that have.characteristics business Lasprota Cotton 2003 Organizations that exploit opportunitiesand pursue innovation to tackle socialproblems Zahra et al 2009 Individual or organizations that perform.entrepreneurial action to reach a socialgoal Certo Miller 2008 Organizations that focus on creating socialwealth over economic wealth Mair Marti 2006 Organizational identity. The characteristics of anorganization that Define the organization Make it distinctive from otherorganizations. Endure over time Albert Whetten 1985 Organizational identity insocial entrepreneurialorganizations. Has both normative and utilitarianidentities Albert Whetten 1985 Moss et al 2010 Each identity has its own set ofconventions and beliefs Foreman Whetten 2002 Multiple organizational identities may be.problematic when the identities are inconflict or one identity is emphasized over Foreman Whetten 2002 Glynn 2000 The organization s identity influences theway the organization interprets issues .resolves conflict establish competitiveadvantage frames strategies and setsgoals Dutton Dukerich 1991 Foreman Whetten 2002 Organizational identity insocial entrepreneurial.organizations Multiple identities impact performance andresources Foreman Whetten 2002 Golden Biddle Rao 1997 Whetten Organizational goals performancemeasures and actions shape and are.shaped by organizational identity Fox Wolfgramm Boal Hunt 1998 Scott Lane 2000 Organizational performance Organizations need financial andnonfinancial performance measures.that are aligned with theorganization s strategy or valuedrivers Ittner Larcker Randall 2003 Kaplan Norton 1992 Venkatraman Ramanujam 1996 Organizational performance consists.of three categories Financial performance Operational performance Organizational effectiveness Venkatraman Ramanujam 1996 . Organizational performancein social entrepreneurship Organizations with normative identitiesstruggle to measure organizationaleffectiveness because it is impossible to.measure ideological goal fulfillment Albert Whetten 1985 Social entrepreneurial organizations definetheir goals as they align to theirorganizational mission as opposed to.defining operational or financial goals There is not a standardized way tocalculate social value creation Patton 2003 Organizational performancein social entrepreneurship. Organizations like the Better BusinessBureau Wise Giving Alliance attempt toquantify the relationship betweendonations and social impact by measuringthe percentage of administrative costs to.total expenses and other ratios The validity of these measures as indicators oforganizational performance is questionable Bhattacharya Tinkelman 2009 Performance is from the perspective of.stakeholders and social entrepreneurialorganizations have multiple stakeholderswith dissimilar needs Herman Renz 1998 Relationship betweenorganizational identity and.organizational performance Relationship betweenorganizational identity andorganizational performance Proposition 1 Since organizational identity impacts.organizational goals and strategies the degree towhich an organization identifies with its normativeversus its utilization identity will impact the goalsand organizational performance measures theorganization sets . Proposition 1A The stronger the normative identityof an organization the more difficult it will be forthe organization to measure organizationalperformance Proposition 2 An organization s social impact is.influenced by the organization s financial andoperational performance Proposition 3 An organization s financialperformance will be influenced by the Implications. If social entrepreneurship is aboutbuilding social wealth over economicwealth then social ventures needboth a strong normative and strongutilitarian identity that impacts their.goals and strategies in order to Social entrepreneurs need to havebusiness savvy to fulfill their social goals Vega Kidwell 2007 Implications. Social entrepreneurial organizationsneed to have both identities manifestin their organizational goals andstrategies which are then translatedinto measureable performance goals. Scholars and practitioners haveintroduced multi dimensionalperformance indicators to socialentrepreneurship like the balancedscore card and social return on.investment Kaplan 2001 Nicholls 2009 Implications Operational performance andfinancial performance areantecedents for social impact so.financial and operational measurescould be effective though onlypartial methods to measureorganizational performance in socialentrepreneurship. Implications Further research is necessary tounderstand the unique organizationalstructures of social entrepreneurialorganizations. Understanding and possibly generalizingkey performance characteristics of socialentrepreneurial organizations could lead todetermining key performance referents which could lead to ways to improving way.social ventures operate This type of model could be adapted toother organizations that exhibit multipleidentities Questions. Comments ReferencesREFERENCES Albert S Whetten D 1985 Organizational identity In B M Staw L L Cummings Eds Research in Organizational Behavior 263 295 Greenwich JAI Press .Austin J Stevenson H Wei Skillern J 2006 Social and commercial entrepreneurship Same different or both Entrepreneurship Theory and Practice 30 1 22 Barney J B Bundrson J S Foreman P Gustafson L T Huff A S Martins L L Reger R K Sarason Y Stimpert J L 1998 A strategy conversation on the topic oforganizational identity In D A Whetten P C Godfrey Eds Identity in.organizations Building theory through conversations 99 168 Thousand Oaks CA SAGE Publications Bhattacharya R Tinkleman D How tough are Better Business Bureau Wise GivingAlliance financial standards Nonprofit and Voluntary Sector Quarterly 38 467 Carmen J G The accountability movement What s wrong with this theory of change .Nonprofit and Voluntary Sector Quarterly 39 256 274 Corley K G Harquail C V Pratt M G Glynn M A Fiol C M Hatch M J 2006 Guiding organizational identity through aged adolescence Journal of ManagementInquiry 15 85 99 Cooney K 2006 The institutional and technical structuring of nonprofit ventures Case.study of a U S hybrid organization caught between two fields Voluntas International Journal of Voluntary and Nonprofit Organizations 17 2 137 155 Deephouse D L Suchman M 2008 Legitimacy in Organizational Institutionalism In R Greenwood C Oliver K Sahlin and R Suddaby Eds The Sage Handbook ofOrganizational Institutionalism 49 77 Los Angeles Sage Publications . ReferencesDees J G Elias J 1998 The challenges of combining social and commercial enterprise Business Ethics Quarterly 8 1 165 178 Dutton J E Dukerich J M 1991 Keeping an eye in the mirror Image and identity inOrganizational adaptation Academy of Management Journal 34 517 554 .Foreman P Whetten D A 2002 Members identification with multiple identityorganizations Organization Science 13 6 618 635 Fox Wolfgramm S J Boal K B Hunt J G 1998 Adaption to institutional change Acomparative study of first order change in prospector and defender banks Administrative Science Quarterly 43 87 126 .Glynn M A 2000 When cymbals become symbols Conflict over organizational identitywithin a symphony orchestra Organization Science 11 3 285 298 Golden Biddle Rao 1997 Breaches in the boardroom Organizational identity andconflicts of commitment in a nonprofit organization Organization Science 8 593 Herman R D Renz D O 1998 Nonprofit organizational effectiveness contrasts.between especially effective and less effective organizations NonprofitManagement Leadership 9 23 38 Internal Revenue Service Exempt Organizations Business Master File 2003 Nov TheUrban Institute National Center for Charitable Statistics 2010Ittner C D Larcker D F Randall T 2003 Performance implications of strategic.performance measures in financial services firms Accounting Organizations andSociety 28 715 741 Kaplan R S 2001 Strategic performance measurement and management in nonprofitorganizations Nonprofit Management Leadership 11 353 370 References.Kaplan R S Norton D P 1992 The balanced scorecard Measures that driveperformance Harvard Business Review January February Kendall J Knapp M 2000 Measuring the performance of voluntary organizations Public Management 2 105 132 Mair J Marti I 2006 Social entrepreneurship research a source of explanation .prediction and delight Journal of World Business 41 36 44 Mitchell R K Agle B R Wood D J 1997 Toward a theory of stakeholder identification and salience Defining the principle of who or what really counts Academy of Management Review 22 853 886 .Moss T Short J C Payne G T Lumpkin G T 2010 Dual identities in social ventures An Exploratory Study Entrepreneurship Theory and Practice Nicholls A 2009 We do good things don t we Blended value accounting in socialentrepreneurship Accounting Organizations and Society 34 755 769 Peredo A M McLean M 2006 Social entrepreneurship A critical review of the.concept Journal of World Business 41 56 65 Pratt M G Foreman P O 2000 Classifying managerial responses to multipleorganizational identities Academy of Management Review 25 18 42 Rose Ackerman S 1996 Altruism nonprofits and economic theory Journal of EconomicLiterature 34 701 728 .Sawhill J C Williamson D 2001 Mission Impossible Measuring success in nonprofitorganizations Nonprofit Management Leadership 11 371 386 Scott S G Lane V R 2000 A stakeholder approach to organizational identity ReferencesScott C R Corman S Cheney G 1998 Development if a structural model of.identification in the organization Communication Theory 8 298 336 Short J C Moss T W Lumpkin G T 2009 Research in social entrepreneurship Recentchallenges and future opportunities Strategic Entrepreneurship Journal 3 161 Short J C Palmer T B 2008 The application of DICTION to content analysis researchin strategic management Organizational Research Methods 11 727 752 .Short J C Palmer T B 2003 Organizational performance referents An empiricalexaminiation of their content and influences Organizational Behavior and HumanDecision Processes 90 209 224 Speckbacher G 2003 The economics of performance management in nonprofitorganizations Nonprofit Management Leadership 13 267 281 .Squazzoni F 2009 Social entrepreneurship and economic development in Silicon Valley A case study on The Joint Venture Silicon Valley Network Nonprofit and VoluntarySector Quarterly 38 869 883 Tan W L Williams J Tan T M 2005 Defining the social in social entrepreneurship Altruism and entrepreneurship International Entrepreneurship and Management.Journal 1 353 365 Tracey P Jarvis O 2007 Toward a theory of social venture franchising Entrepreneurship Theory and Practice 31 5 667 685 Venkatraman N Ramanujam V 1986 Measurement of business performance instrategy research A comparison of approaches Academy of Management Review .11 801 814 Weerawardena J Mort G S 2006 Investigating social entrepreneurship A ReferencesWhetten D A 2006 Albert and Whetten Revisited Strengthening the concept oforganizational identity Journal of Management Inquiry 15 219 234 .Zahra S Gedajlovic E Neubaum D Shulman J 2009 A typology of socialRelationship between organizational identity and organizational performance. Proposition 1: Since organizational identity impacts organizational goals and strategies, the degree to which an organization identifies with its normative versus its utilization identity will impact the goals and organizational performance measures the organization sets.