Form and function

Posted: July 16, 2010 in Bubba & Cleetus

We apologize for being absent but we do have to study even during the summer. Entrepreneurship Theory and Practice latest issue is on social entrepreneurship and there are both good and not so good articles to look into. In particular we like Kistruck and Beamish discussion on organizational form

“Unfortunately, at present, very little is known about how the initial organizational form, whether for-profit or nonprofit, may impact the ability of the organization to successfully engage in new activities in which social and financial goals are much more balanced. Are nonprofit forms more or less successful than for-profit forms at engaging in social intrapreneurship? What role does embeddedness play in the process of organizational change? Are certain structural configurations more successful than others at navigating this change?”

What is interesting is that the authors look at intrapreneurial activities and come to the conclusion “organizations that were historically for-profit in form will be more successful than those that were nonprofit in form at engaging in social intrapreneurship” due to institutional differences facing nonprofits and businesses. This is a very promising track and will hopefully help the discussion about “best practice” to move away from mimicking to actually start talking about the specific conditions under which nonprofits can engage in entrepreneurial activity.

B & C

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