Innovation and sustainability in the social economy : a case study of organizational change of a social Portuguese organization

Abstract

In Europe, the Social Economy is responsible for about 10% of the European business sector, with a share of about 6% in total employment (about 11 million people), revealing an industry that will be called to give a greater contribution to the current problems of unemployment and social cohesion in Europe due to the ongoing social and economic transformation. However, research on the phenomena of the Social Economy still lacks in many respects, concerning, for example, its role in the development of local, regional and national competitiveness. There is a lack of methodologies, tools and indicators appropriate to the social economy. This could be caused by the complexity and diversity of the organizations, on one hand, which is a barrier to their comparability, and on the other hand, to its late and recent recognition on the production of public services. Changes on public policies, the economic and financial crisis, the spread of unemployment and poverty, brings to the light the importance of these organizations, which are ceasing to be residual in economic terms, and are becoming, alongside the State and the Market, a mainstay of the economy. This article is a case study of a Social Economic Organization, where we will examine, in the light of the literature on strategic management, and innovation, its organizational change, which was critical to ensure its survival. Through this case study we intend to increase the understanding and the knowledge on the main motivations, barriers and facilitating factors leading to the improvement of the quality of the services, and the efficiency of the management of the Social Economy Organizations, which contribute to its competitiveness and sustainability. The case study highlights a number of best practices in the design of structured innovation processes, which were supported by the Portuguese Program Q3‐Qualifying the Third Sector, which may help similar organizations to improve their innovation and organizational processes, which are essential to increase their competitiveness and sustainability.