Econocare: from social enterprise to social entrepreneurship group. Exploring institutional trajectories that fosters SE resilience in accomplishing its social goals

Jégou, Olivier
(2023) 9th EMES International Research Conference on Social Enterprise — Location: Frankfurt University of Applied Sciences, Frankfurt am Main, Allemagne (11.September.2023)

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Social enterprises (SEs) are increasingly recognized as key actors in addressing contemporary social and environmental challenges, offering innovative responses to rising inequalities and ecological transitions (Ben-Ner, 2018). However, their long-term sustainability is often threatened by degeneration dynamics, where SEs deviate from their core social missions, adopting either capitalist or public-sector logics (Webb & Webb, 1921; Meister, 1984). This study contributes to the ongoing discussion on SE resilience, particularly how SEs can maintain their democratic identity and overcome degeneration (Bretos et al., 2020a; Diefenbach, 2019; Pek, 2019). Building on the concept of resilience, defined as an organization’s ability to adapt and transform under duress (Linnenluecke, 2017), we examine the institutional trajectory of Econocare, one of the largest social enterprises in Belgium. Over its 85-year history, Econocare has evolved from a faith-based initiative into a social enterprise and, more recently, into a social entrepreneurship group. The organization operates thrift stores across Brussels and Wallonia, using revenue from large-scale collection and sorting activities to fund social programs supporting homeless individuals and marginalized workers. As a hybrid model combining associative entrepreneurship (Defourny & Nyssens, 2019) and work-integration social enterprise (Defourny & Nyssens, 2006), Econocare integrates its beneficiaries directly into its economic activities, offering training and employment opportunities to long-term unemployed individuals. This research is based on an ethnographic case study conducted in partnership with Econocare (Emerson et al., 1995; Van Maanen, 1979). Our methodology includes an extensive historical analysis of organizational archives (internal journals, newspapers, and administrative records), complemented by interviews with key historical figures. Additionally, participant observation and semi-structured interviews with current employees, managers, and board members allow us to capture recent organizational transformations. Preliminary findings highlight Econocare’s capacity to navigate institutional changes by strategically mobilizing diverse resource streams, aligning with Polanyi’s (1983) framework of market, redistributive, and reciprocal resources. This ability to alternate between funding sources has enabled the organization to invest in critical moments, ensuring long-term stability. Furthermore, our analysis reveals a governance shift: while management historically held a dominant position (Cornforth, 2004), recent years have seen an increased role for the board of governors, strengthening internal checks and balances. This study contributes to the literature on SE resilience by illustrating how resource interdependence and governance evolution can sustain a social enterprise’s mission over time.
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Jégou, O. (2023). Econocare: from social enterprise to social entrepreneurship group. Exploring institutional trajectories that fosters SE resilience in accomplishing its social goals. 9th EMES International Research Conference on Social Enterprise, Frankfurt University of Applied Sciences, Frankfurt am Main, Allemagne. https://hdl.handle.net/2078.5/239791