The Challenges of Social Enterprises in Balancing Economic, Social, and Environmental Tradeoffs: Comparative Case Study of Hybrid Organizing- Swedish Context.

Abstract

Purpose -This master thesis is to investigate the challenges of sustainability and to understand how massive effort of collaborative hybrid organizing, involving multiple stakeholders from private, public, and civil societies balance or aligns the activities that generate economic, social, and environmental impacts. And to analyze the effects of competition between the investors interested in the joint collaborative initiatives. So, the author prepared three questions to be answered by engaging in a deep comparative case study. R.Q1 How do private-public partnerships balance economic, social, and environmental tradeoffs?” R.Q2 How does competition between the investors of hybrid organizations affect the decisions of governing boards in aligning social-business goals?” R.Q3 How hybrid organizing enables societal impacts? As a matter of answering the research question - how competition between investors affects societal impacts, the author identified certain insights that can be tested in the future using quantitative methods. The insights are that there is a positive relationship between competition at the investors' level and societal impacts if the investments are done in long-term social sustainability or in initiatives for creating shared values. Design/methodology/approach- A qualitative method of deep single case study and comparative analysis in two Gothenburg-based similar collaborative initiatives between private, public, and civil societies for solving socio-economic problems in the city. The approach for collecting and analyzing the data was inductive. The data is collected from 19 semi-structured interviews with 16 informants of which eight of them are from higher managerial and governance positions which have been selected purposefully depending on their positions and area of expertise. Originality -This master thesis is a deep case study in a unique collaboration-centered hybrid organizing in initiative-based private-public partnerships along with multi-actor collaborations for the purpose of eliminating socioeconomic problems in the vulnerable areas of the city of Gothenburg. The uniqueness of this study is the organizational structure, the collaboration ecosystem, and the hybrid organizing between private, public, and civil society. This unique collaboration-oriented long-term investment in social sustainability combines both the logic of business and societal impacts but there is no legal organizational structure behind it. Findings: According to the interview findings, the collaboration is represented as a unique long-term investment in social sustainability and thereby creating shared values where everyone involved can benefit mutually. For private businesses, it is a strategy of shifting from traditional CSR towards creating shared values (co-creation of values and branding). In Gothenburg city, there are areas known as vulnerable and especially vulnerable as per the definitions of the Police. So, the main mission of the initiative is to meet those Socioeconomic vulnerable and especially vulnerable areas until 2025. The aim of the initiative is to facilitate the process by utilizing and integrating the already existing area-based resources (people, organizations, skills, and knowledge) rather than starting from scratch. “Placemaking” for equality and attractiveness, while all actors involved benefit mutually. So, the main role of the initiatives is to facilitate multi-stakeholder collaborations and contributions as well as to build trust for the future. Insights- If the investments are done in long-term social sustainability for the purpose of creating shared values, then hybrid organizing can have effective results in aligning economic, social, and environmental impacts using circular economy models, inclusive and integrated hybrid models, and agile organizational structures that allow flexibility to respond to the highly dynamic environment. However, the key role of the social business hybrid should be facilitating the activities and integrating multiple stakeholders working for a common good. Challenges -There are full of challenges. Some of the main challenges are monitoring and facilitating the activities that generate mutual benefits, building trust, meeting collaboration challenges, reducing cultural differences, and mobility challenges. Promoting cross-functional collaborations (local challenges, regional challenges, and national challenges), socio-economic challenges, and measuring the long-term societal impacts.