The Hidden Voices Impact Assessment from the Perspective of Social Enterprises MASTER THESIS WITHIN: Business Administration PROGRAMME OF STUDY: Strategic Entrepreneurship NUMBER OF CREDITS: 30 ECTS AUTHOR: Kristina Mayr & Sophia Seidel TUTOR: Duncan Levinsohn JÖNKÖPING May 2021 Master Thesis in Business Administration Title: The Hidden Voices: Impact Assessment from the Perspective of Social Enterprises Authors: Kristina Mayr and Sophia Seidel Tutor: Duncan Levinsohn Date: 2021-05-24 Key terms: Social Enterprise, Impact Assessment, Interpretative Phenomenological Analysis, Critical Management Studies, Purposes, Challenges, Experiences Abstract Background: The field of impact assessment in social enterprises is largely influenced by the top-down demands of institutions like the European Union and other resource-giving institutions. This has caused a one-sided exploration of the topic impact assessment as the perspective of the social enterprises is so far under-researched. Therefore, the purposes, challenges and other experiences the social enterprises face when assessing impact were not yet given enough attention. Purpose: By taking a critical perspective, we seek to inspire dialogue and a change in the practical and theoretical field of impact assessment in social enterprises. We explore the enterprise’s perspective on why they assess their impact and what challenges they face. By that, their voices that have been hidden so far are raised and existing assumptions enriched by the social enterprise’s perspective. Method: To highlight the social enterprises’ experiences when assessing impact, the qualitative research approach Interpretative Phenomenological Analysis was chosen. A purposive sampling strategy led to eight in-depth interviews with people from different German- based social enterprises. Five steps were followed to analyze the data, including a two-stage interpretation process where the researcher’s and participant’s interpretations play an essential role. Conclusion: This thesis shows the importance of including all perspectives in a research field. Our study found that social enterprises can have different reasons to assess impact and face challenges differently than assumed with the previous research focus on the funding perspective. At the same time, they experience the process positively. A model was developed to show the interrelations of the different experiences and influencing factors. i Acknowledgments We would like to thank all those who accompanied us in the realization of this thesis. In particular, we want to thank our supervisor Duncan Levinsohn, who supported us throughout our journey and inspired us with creative approaches. We also thank the members of our seminar group (Alina Karola Neuer, Arne Ibo Stein, Eva Medvecová and Rein Te Winkel) who regularly contributed constructive feedback and enhanced our learning beyond the scope of our topic. A special appreciation goes out to the participants of our thesis as well as the social enterprises they work for, for spending their time, openness and dedication to this project. They also enriched us with inspiring insights into their respective fields of work and life. And, needless to say, we express our gratitude to our family and friends who have accompanied us in the process, engaged in discussions and supported us. Jönköping International Business School, Jönköping University May 2021 Kristina Mayr & Sophia Seidel ii Table of Contents 1 Introduction .................................................................................................................. 1 1.1 Background .............................................................................................................. 1 1.2 Research Problem .................................................................................................... 4 1.3 Research Purpose and Research Questions ............................................................ 5 2 Literature Review .......................................................................................................... 6 2.1 Critical Management Studies .................................................................................... 6 2.2 Social Enterprises ..................................................................................................... 8 2.3 Impact and Impact Assessment ................................................................................ 9 2.4 Approaches to Impact Assessment ..........................................................................11 2.5 Historical Development of Impact Assessment ........................................................13 2.5.1 Origins of Impact Assessment ...........................................................................13 2.5.2 Towards a Participatory Approach of Impact Assessment .................................14 2.5.3 Impact Assessment in Development Aid ...........................................................15 2.5.4 Impact Assessment in Impact Investment .........................................................16 2.5.5 How the Development of Impact Assessment informed this Thesis ...................16 2.6 Purposes of Impact Assessment .............................................................................17 2.6.1 Purposes for Impact Assessment: Third Sector Organizations ..........................19 2.6.2 Purposes for Impact Assessment: Social Enterprises .......................................19 2.6.3 Examination of Existing Literature .....................................................................20 2.7 Challenges and other Experiences of Impact Assessment ......................................22 2.8 Conclusion of Literature Review ..............................................................................26 3 Methodology ................................................................................................................27 3.1 Research Approach .................................................................................................27 3.2 Research Design .....................................................................................................28 3.2.1 Data Collection ..................................................................................................28 3.2.2 Data Analysis ....................................................................................................32 3.3 Research Quality .....................................................................................................34 3.4 Research Ethics ......................................................................................................36 iii 4 Empirical Findings and Analysis ................................................................................38 4.1 Profile of the Participants .........................................................................................38 4.2 Purposes of Impact Assessment .............................................................................38 4.2.1 Empirical Findings: Purposes ............................................................................38 4.2.2 Analysis and Interpretation: Purposes ...............................................................44 4.3 Challenges and Other Experiences of Impact Assessment ......................................47 4.3.1 Empirical Findings: Challenges and Other Experiences ....................................48 4.3.2 Analysis and Interpretation: Challenges and Other Experiences .......................58 4.4 Synthesis of the Research .......................................................................................65 5 Discussion ....................................................................................................................67 5.1 Theoretical Implications ...........................................................................................67 5.2 Practical Implications ...............................................................................................69 5.3 Limitations ...............................................................................................................70 5.4 Future Research ......................................................................................................71 6 Conclusion ...................................................................................................................73 7 References ...................................................................................................................75 iv List of Figures Figure 1 Logic Model (adapted from Clifford, 2014) .............................................................. 10 Figure 2 Classification of performance evaluation tools (based on Mouchamps, 2014, p. 734) ............................................................................................................................... 12 Figure 3 Emergent Themes from Empirical Findings and Previous Literature: Purposes in Impact Assessment ................................................................................................ 44 Figure 4 Frequency of Categorized Purposes of Impact Assessment ................................... 47 Figure 5 Emergent Themes from Empirical Findings and Previous Literature: Challenges and Other Experiences .................................................................................................. 59 Figure 6 Model of Experiences and Influencing Factors of Impact Assessment in Social Enterprises ............................................................................................................