K’nife, K'adamawe A.; Haughton, Andre Y.; Dixon, Edward J
Author Affiliation, Ana.
Measuring Sustainability and Effectiveness of Social Value Creation by Social Sector Actors/Social Enterprises Within Developing Countries
Academy of Entrepreneurship Journal
Date of Publication
Paper presented at Las vegas Nevada, October 2012
There has been proliferation of endowments, foundations, NGOs and other organisations operating within many developing countries over the past 20 years as social entrepreneurs/enterprises. These organisations have been supporting and working in developing countries, attempting to transform the quality of lives of their beneficiaries; essentially creating social value. While there is evidence on output and outcome from programmes, there is little evidence of meaningful, sustained impact and hence effectiveness, despite millions of dollars being spent. The lack of this evidence begs the question of the justification for continued funding, state benefits and tax exemptions for the programmes. Additionally, it raises the issue of sustainability of the intervention process, given that the primary source of funding for many of these organisations is grants and/or philanthropic contributions. The paper adopts the Ashoka Foundation's lead, which measures sustainability/vulnerability of supporting organisations and the effectiveness of these entities in creating and sustaining social value. It employs Kushner's Model of 'An Open Systems Model of Organisational Effectiveness' to inform the empirical methodology and develops the instrument used. It furthers the process by employing regression analysis in identifying the significant variables in determining organizational effectiveness. The results show that the organisations 'Ability to Adapt' and 'Resource Adequacy' are significant determinants for organizational effectiveness. The results thus present meaningful insights for funders (foundations, endowments, corporations), policy makers and organizations on how they can improve their effectiveness and justify the financial support they received from their donors.....