Measuring Performance in Social Enterprises

• Published in: Nonprofit and voluntary sector quarterly Vol. 40; no. 1; pp. 149 - 165
• Main Authors: Bagnoli, Luca, Megali, Cecilia
• Format: Journal Article
• Language: English
• Published: Los Angeles, CA SAGE Publications 01.02.2011; SAGE PUBLICATIONS, INC
• Subjects: Beneficiaries; Communities; Conformity; Control systems; Economic analysis; Evaluation; Financial performance; Illustrations; Indicators; Italy; Law; Legitimacy; Management; Mathematical analysis; Mission statements; Performance measurement; Production costs; Profits; Social enterprises; Social entrepreneurship; social enterprise; management control; performance measurement
• ISSN: 0899-7640; 1552-7395; 0899-7640
• DOI: 10.1177/0899764009351111

This article addresses the subject of management control and tries to create a performance measurement system for social enterprises, that is, how to measure success. Three reference fields for management are analyzed: (a) economic-financial performance, linked to the determination of general performance (profits, value added, etc.) and analytic results (production-cost of services, efficiency indicators, etc.); (b) social effectiveness, to measure the quantity and quality of work undertaken and to identify its impact on the intended beneficiaries and the community; and (c) institutional legitimacy, verifying conformity with law and mission statement. In integrating these aspects, we propose a multidimensional controlling framework that is appropriate to the management of a social enterprise. We try to demonstrate the validity of the theoretical model through the illustration of an Italian empirical case: the work integration social enterprise “Ulisse.”