Managing Multiple Logics: The Role of Performance Measurement Systems in Social Enterprises

Janni Grouleff Nielsen, Rainer Lueg and Dennis van Liempd
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Janni Grouleff Nielsen: Department of Business and Economics University of Southern Denmark, Universitetsparken 1, 6000 Kolding, Denmark
Dennis van Liempd: Department of Business and Economics University of Southern Denmark, Universitetsparken 1, 6000 Kolding, Denmark

Sustainability, 2019, vol. 11, issue 8, 1-23

Abstract: This systematic literature review explores the role of performance measurement systems (PMSs) in managing multiple logics in social enterprises. Social enterprises are hybrid organizations that simultaneously pursue a social mission ( social logic ) and financial sustainability ( commercial logic ). Satisfying multiple logics often leads to tensions, which are addressed and managed through PMSs. For this, we conduct a systematic literature review to derive our conclusions. PMSs in social enterprises may assume the roles of mediator, disrupter and symbolizer. The PMS works as a mediator in combination with sincere stakeholder involvement when both logics are represented in the PMS. If a PMS represents only one logic, it increases tensions and the PMS becomes a disrupter . When the PMS is used to enhance legitimacy, the PMS assumes the role of a symbolizer . In particular, we find that PMSs are most useful for monitoring performance and enhancing legitimacy. The role of PMSs in decision-making is limited due to difficulties of integrating social and commercial logics into a single PMS. Several factors—such as decision-makers’ influence—further shape the role of PMSs.

Keywords: performance measurement; social enterprise; tensions; stakeholder involvement (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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