Share:


Development of performance evaluation indicators for social enterprises: the use of Delphi technique

    Petra Taušl Procházková   Affiliation
    ; Marta Nosková   Affiliation
    ; Kristýna Machová   Affiliation
    ; Veronika Velíšková   Affiliation

Abstract

Social enterprises have become a natural part of the economy. Their importance is significantly increasing, as well as the need to evaluate their performance. There are different points of view on the indicators and methods used to evaluate their performance and they often lack simplicity and are costly and time consuming. Thus, this study aims to identify and discuss performance evaluation indicators for social enterprises with particular focus on identifying a set of indicators that might be applied without placing high demands on each social enterprise. A two-phase approach was adopted and applied in the Czech social entrepreneurship environment. First, the Delphi technique was used to get a set of indicators for each of the areas of the triple bottom line principles. Consequently, an empirical examination of these indicators using a set of social enterprises was conducted. Final results were determined using Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS). As a result, a set of twelve indicators that cover social, economic, environmental and local areas are proposed. These indicators reflect the opinions of experts in the field as well as their practical usefulness, which is discussed at the end of the paper.

Keyword : social enterprise, performance indicators, Delphi method, development of indicators, triple bottom line, indicator proposal

How to Cite
Taušl Procházková, P., Nosková, M., Machová, K., & Velíšková, V. (2021). Development of performance evaluation indicators for social enterprises: the use of Delphi technique. Journal of Business Economics and Management, 22(6), 1396-1415. https://doi.org/10.3846/jbem.2021.15629
Published in Issue
Oct 15, 2021
Abstract Views
2026
PDF Downloads
1616
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References

Abu-Saifan, S. (2012). Social entrepreneurship: Definition and boundaries. Technology Innovation Management Review, 2(2), 22–27. https://doi.org/10.22215/timreview/523

Ahmad, S., & Wong, K. Y. (2019). Development of weighted triple-bottom line sustainability indicators for the Malaysian food manufacturing industry using the Delphi method. Journal of Cleaner Production, 229, 1167–1182. https://doi.org/10.1016/j.jclepro.2019.04.399

Alarifi, G., Robson, P., & Kromidha, E. (2019). The manifestation of entrepreneurial orientation in the social entrepreneurship context. Journal of Social Entrepreneurship, 10(3), 307–327. https://doi.org/10.1080/19420676.2018.1541015

Alegre, I., Kislenko, S., & Berbegal-Mirabent, J. (2017). Organized chaos: mapping the definitions of social entrepreneurship. Journal of Social Entrepreneurship, 8(2), 248–264. https://doi.org/10.1080/19420676.2017.1371631

Arena, M., Azzone, G., & Bengo, I. (2015). Performance measurement for social enterprises. VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations, 26(2), 649–672. https://doi.org/10.1007/s11266-013-9436-8

Asmalovskij, A., Sadílek, T., Hinčica, V., & Mizerová, M. (2019). Performance of social enterprises in the Czech Republic. Journal of Social Entrepreneurship, 10(1), 19–29. https://doi.org/10.1080/19420676.2018.1521865

Bacq, S., & Janssen, F. (2011). The multiple faces of social entrepreneurship: A review of definitional issues based geographical and thematic criteria. Entrepreneurship & Regional Development, 23(5–6), 373–403. https://doi.org/10.1080/08985626.2011.577242

Bagnoli, L., & Megali, C. (2011). Measuring performance in social enterprises. Nonprofit and Voluntary Sector Quarterly, 40(1), 149–165. https://doi.org/10.1177/0899764009351111

Bednarikova, D., & Francova, P. (2011). Studie infrastruktury sociální ekonomiky v ČR. Nová ekonomika. https://ceske-socialni-podnikani.cz/images/pdf/Studie_infrastruktury_TESSEA_plna_verze_podzim2011.pdf

Canestrino, R., Ćwiklicki, M., Magliocca, P., & Pawełek, B. (2020). Understanding social entrepreneurship: A cultural perspective in business research. Journal of Business Research, 110, 132–143. https://doi.org/10.1016/j.jbusres.2020.01.006

Chang, A., & Cheng, Y. (2019). Analysis model of the sustainability development of manufacturing small and medium- sized enterprises in Taiwan. Journal of Cleaner Production, 207, 458–473. https://doi.org/10.1016/j.jclepro.2018.10.025

Chmelik, E., Musteen, M., & Ahsan, M. (2015). Measures of performance in the context of international social ventures: An exploratory study. Journal of Social Entrepreneurship, 7(1), 74–100. https://doi.org/10.1080/19420676.2014.997781

Chráska, M. (2017). Metody pedagogického výzkumu. Grada Publishing. https://www.grada.cz/metody-pedagogickeho-vyzkumu-8365/

Collins, J., & Porras, J. I. (2002). Built to last: Successful habits of visionary companies. HarperCollins. http://assets.globalchange.gov/j7f7/05-prof-aracely-kuphal-jr-1/rGpgorDu7-built-to-last-successful-habits-of-visionary-com.pdf

Crucke, S., & Decramer, A. (2016). The development of a measurement instrument for the organizational performance of social enterprises. Sustainability, 8(2), 1–30. https://doi.org/10.3390/su8020161

Czech Social Entrepreneurship. (2020). Principy a definice. http://www.ceske-socialni-podnikani.cz/

Dalkey, N. C., & Helmer, O. (1962). An experimental application of the Delphi method to the use of experts. RAND Corporation. https://www.rand.org/pubs/research_memoranda/RM727z1.html

Delbecq, A. L., Van de Ven, A. H., & Gustafson, D. H. (1975). Group techniques for program planning. Scott Foresman Company.

Ebrahim, A., & Rangan, V. K. (2014). What impact? A framework for measuring the scale and scope of social performance. California Management Review, 56(3), 118–141. https://doi.org/10.1525/cmr.2014.56.3.118

Egerová, D., & Mužík, J. (2010). Aplikace metody Delphi při expertním stanovení faktorů ovlivňujících efektivnost e-learningu ve vzdělávání pracovníků v malých a středních podnicích. E+M. Ekonomie a Management, 13(2), 137–151. http://www.ekonomie-management.cz/download/1331826760_1072/13_egerova.pdf

Elkington, J. (1998). Partnerships from cannibals with forks: The triple bottom line of 21st century business. Environmental Quality Management, 8(1), 37–51. https://doi.org/10.1002/tqem.3310080106

Emerson, J. (2003). The blended value proposition: Integrating social and financial returns. California Management Review, 45(4), 35–51. https://doi.org/10.2307/41166187

European Commission. (2020). Social enterprises and their ecosystems in Europe – Comparative synthesis report. Luxembourg Publications Office of the European Union. Luxembourg. Retrieved May 15, 2020, from https://ec.europa.eu/social/main.jsp?catId=738&langId=en&pubId=8274

Flostrand, A., Pitt, L., & Bridson, S. (2020). The Delphi technique in forecasting – A 42-year bibliographic analysis (1975–2017). Technological Forecasting & Social Change, 150, 1–12.
https://doi.org/10.1016/j.techfore.2019.119773

Fraňková, E. (2019). Social enterprises and their ecosystems in Europe. Ceske socialni podnikani. Retrieved May 15, 2020, from https://ceske-socialni-podnikani.cz/images/pdf/Social_enterprises_and_their-_ecosystems_in_Europe_Updated_country_report_Czech_Republic_final.pdf

García-Uceda, E., Murillo-Luna, J. L., & Asín-Lafuente, J. (2017). Application of the Delphi method for the analysis of the factors determining social entrepreneurship. Journal of Business, Universidad del Pacífico, 9(1), 43–66. https://doi.org/10.21678/jb.2017.823

Gray, R. (2001). Thirty years of social accounting, reporting and auditing: What (if anything) have we learnt? Business Ethics: A European Review, 10(1), 9–15. https://doi.org/10.1111/1467-8608.00207

Gordon, T. J. (1994). The Delphi method. Futures research methodology. Retrieved May 18, 2020, from http://www.gerenciamento.ufba.br/downloads/delphi_method.pdf

Hwang, C. L., Lai, Y. J., & Liu, T. Y. (1993). A new approach for multiple objective decision making. Computers & Operations Research, 20(8), 889–899. https://doi.org/10.1016/0305-0548(93)90109-V

Hwang, C. L., & Yoon, K. (1981). Methods for multiple attribute decision making. In lecture notes in economics and mathematical systems: Vol. 186. Multiple attribute decision making (pp. 58–191). Springer. https://doi.org/10.1007/978-3-642-48318-9_3

Irene, B., Marika, A., Giovanni, A., & Mario, C. (2016). Indicators and metrics for social business: A review of current approaches. Journal of Social Entrepreneurship, 7(1), 1–24. https://doi.org/10.1080/19420676.2015.1049286

Kavoura, A., & Andersson, T. (2016). Applying Delphi method for strategic design of social entrepreneurship. Library Review, 65(3), 185–205. https://doi.org/10.1108/LR-06-2015-0062

Kraus, S., Niemand, T., Halberstadt, J., Shaw, E., & Syrjä, P. (2017). Social entrepreneurship orientation: Development of a measurement scale. International Journal of Entrepreneurial Behaviour and Research, 23(6), 977–997. https://doi.org/10.1108/IJEBR-07-2016-0206

Landeta, J. (2006). Current validity of the Delphi method in social sciences. Technological Forecasting and Social Change, 73(5), 467–482. https://doi.org/10.1016/j.techfore.2005.09.002

Liker, J. K. (2004). The Toyota way. McGraw-Hill Education. https://www.accessengineeringlibrary.com/content/book/9780071392310

Linstone, H. A., & Turoff, M. (Eds.). (1975). Introduction, In Delphi method: Techniques and applications (pp. 3–12). Addison-Wesley. https://www.worldcat.org/title/delphi-method-techniques-and-applications/oclc/1883540

Ludwig, B. (1997). Predicting the future: Have you considered using the Delphi methodology. Journal of Extension, 35(5), 1–4. http://158.132.155.107/posh97/private/research/methods-delphi/future.pdf

Maas, K., & Liket, K. (2011). Social impact measurement: Classification of methods. In R. Burritt, S. Schaltegger, M. Bennett, T. Pohjola, & M. Csutora (Eds.), Eco-efficiency in industry and science: Vol. 27. Environmental management accounting and supply chain management (pp. 171–202). Springer. https://doi.org/10.1007/978-94-007-1390-1_8

McLoughlin, J., Kaminski, J., Sodagar, B., Khan, S., Harris, R., Arnaudo, G., & Mc Brearty, S. (2009). A strategic approach to social impact measurement of social enterprises: The SIMPLE methodology. Social Enterprise Journal, 5(2), 154–178. https://doi.org/10.1108/17508610910981734

Meijering, J. V., Tobi, H., & Kern, K. (2018). Defining and measuring urban sustainability in Europe: A Delphi study on identifying its most relevant components. Ecological Indicators, 90, 38–46. https://doi.org/10.1016/j.ecolind.2018.02.055

Musa, H. D., Yacob, M. R., Abdullah, A. M., & Ishak, M. Y. (2015). Delphi method of developing environmental well-being indicators for the evaluation of urban sustainability in Malaysia. Procedia Environmental Sciences, 30, 244–249. https://doi.org/10.1016/j.proenv.2015.10.044

New Economics Foundation. (2007). Measuring real value: A DIY guide to social return on investment. Retrieved May 21, 2020, from http://www.neweconomics.org

OECD. (2015). Policy brief on social impact measurement for social enterprises. Policies for social entrepreneurship. Luxembourg Publications Office of the European Union. Retrieved May 26, 2020, from https://www.oecd.org/social/PB-SIM-Web_FINAL.pdf

Okoli, C., & Pawlowski, S. D. (2004). The Delphi method as a research tool: An example, design considerations and applications. Information & Management, 42(1), 15–29. https://doi.org/10.1016/j.im.2003.11.002

Pelucha, M., Kourilova, J., & Kveton, V. (2017). Barriers of social entrepreneurship development – A case study of the Czech Republic. Journal of Social Entrepreneurship, 8(2), 129–148. https://doi.org/10.1080/19420676.2017.1313303

Prochazkova, P. T., & Machova, K. (2020). Social enterprises in the Czech Republic: Selected aspects. In Proceedings of the 8th International Conference Innovation Management, Entrepreneurship and Sustainability (pp. 622–633). Oeconomica. https://dspace5.zcu.cz/handle/11025/37046

Prochazkova, P. T., & Noskova, M. (2020). An application of input-output analysis to social enterprises: A case of the Czech Republic. Journal of Entrepreneurship in Emerging Economies, 12(4), 495–522. https://doi.org/10.1108/JEEE-08-2019-0114

Rawhouser, H., Cummings, M., & Newbert, S. L. (2019). Social impact measurement: Current approaches and future directions for social entrepreneurship research. Entrepreneurship Theory and Practice, 43(1), 82–115. https://doi.org/10.1177/1042258717727718

Reeder, N., & Colantonio, A. (2013). Measuring impact and non-financial returns in impact investing: A critical overview of concepts and practice (EIBURS Working Paper 2013/01). London School of Economics and Political Science. European Investment Bank Institute. https://lsecities.net/wp-content/uploads/2013/10/Measuring_Impact-full-length-Oct-2013.pdf

Saebi, T., Foss, N. J., & Linder, S. (2019). Social entrepreneurship research: Past achievements and future promises. Journal of Management, 45(1), 70–95. https://doi.org/10.1177/0149206318793196

Somers, A. B. (2005). Shaping the balanced scorecard for use in UK social enterprises. Social Enterprise Journal, 1(1), 43–56. https://doi.org/10.1108/17508610580000706

Vyskočil, M. (2014). Podklad pro koncepci politiky vlády vůči NNO do roku 2020. Sociální podnikání. Retrieved May 6, 2020, from https://www.vlada.cz/assets/ppov/rnno/dokumenty/studie_vyskocil_pro_web.pdf

Witkin, B. R., & Altschuld, J. W. (1995). Planning and conducting needs assessment: A practical guide. Sage Publications. https://journals.sagepub.com/doi/10.1177/002087289603900316