The sustainability of solidarity economy organizations: An empirical investigation
2019
Marconatto, Diego | Ladeira, Wagner Junior | Wegner, Douglas
Solidarity economy organizations (SEOs), community-based firms that usually operate in the third sector (nonprofit ventures) and are created by the members of the communities they serve, are believed to have the potential to contribute to a more sustainable world. However, little evidence has been produced so far about the factors that make these organizations more sustainable. In this paper, we analyze the impact of five key factors (source of capital, organization size, gender of leaders, incubation and networking) on the sustainability of more than 6000 Brazilian informal SEOs. We validated the constructs through a set of techniques belonging to the calculations of structural equations. Our study provides four key findings: social incubation and networking have a strong impact on the sustainability of SEOs, organizational size is (surprisingly) not important for the sustainability of these organizations, external sources of capital positively affect the sustainability of SEOs and finally, SEOs with more women leaders are more sustainability-oriented. Taken together, our findings indicate a path towards sustainability within the solidarity economy sector.
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