Understanding and combating mission drift in social enterprises

Abstract

Purpose: – The aim of this paper is to develop a better understanding of the pressures that can cause mission drift among social enterprises and some of the steps that social enterprises can take to combat these pressures. Design/methodology/approach: – The paper is conceptual in nature. It draws on resource dependency theory, institutional theory and various extant empirical studies to develop an understanding of the causes of mission drift. This analysis is then used to examine the practical steps that social enterprises can take to combat mission drift. Findings: – The paper highlights how high dependence on a resource provider and the demands of “competing” institutional environments can lead to mission drift. Based on this analysis, the paper sets out various governance mechanisms and management strategies that can be used to combat mission drift. Practical implications: – The paper sets out practical steps social enterprises can take to try to prevent mission drift. While governance mechanisms provide important safeguards, there is still a danger of mission drift unless active steps are taken to manage the tensions that arise from trying to achieve both commercial and social goals. These strategies can be divided into two broad types. Those that seek to compartmentalise the different activities into separate parts of the organization and those that seek to integrate them. Integrative strategies include careful selection and socialization, compromise and “selective coupling”. Originality/value: – The paper will be of value to other researchers attempting to understand the dynamics of social enterprises and, in particular, the processes that can lead to mission drift and to managers of social enterprises keen to combat these processes.