What and How Hybrid Forms of Christian Social Enterprises Are Created and Sustained in Cambodia? A Critical Realist Institutional Logics Perspective
Abstract
:1. Introduction
2. The Cambodian Context
2.1. Social Enterprises in Cambodia
2.2. Relevance of the Study to Other Contexts
3. Theoretical Framework
4. Methodology
4.1. Analytic Approach
4.2. Research Ethics
5. Findings and Discussion
5.1. Balanced Entrepreneurs
Researcher: ...initially it is difficult to hire somebody from the disadvantaged background. But have you ever thought about stopping hiring disadvantaged people because it is difficult…
SE4’s Entrepreneur: We don’t think we’ll stop, we still want to continue [hiring the disadvantaged] even if it’s difficult. You can train them for six months. We still support [them] because most of the people are from very poor backgrounds. They need jobs.(14 March 2019, comments in brackets added)
Additionally, because of their strong Christian identities, they also mobilize Biblical principles, which are conducive to helping the disadvantaged, thereby having complementary effects on social mission logic. SE5’s entrepreneur used Biblical leadership reflecting Christ’s love and forgiveness so that the disadvantaged who are prone to making mistakes—because of their lack of, for example, education, skills, and confidence—can pull themselves together and carry on:Taking root means making my home where God has called me to. I submitted to God and came back to [one of the rural districts in Cambodia] in September 2002. I sold my houses [in her home country] and made my home in this land... I came first as a missionary… and later as a full time “bussionary” (businessperson missionary)…, developing and building business ventures for profit among the villagers.(comments in brackets added)
…the leadership model that I tried to provide for them was one that was the opposite of the normal Khmer [Cambodian] leadership model, which is very hierarchal, powerful, and strong. So, I really tried to model Christ’s love and model the idea of forgiveness. And I think I used the word “second chances,” and that was something that I did a lot.(Interview with SE5’s entrepreneur, 23 March 2017, comments in brackets added)
To ease this, she was agile in bringing in necessary human resources—an expatriate intern from an undergraduate business program, an expatriate volunteer with a background in restaurant business, and four Cambodian chefs who graduated from a French cooking school (ibid.). Mandinyenya and Douglas (2011) found that expatriate founders of social enterprises in Cambodia mobilized their international network to bring the necessary human resources for their enterprises. After the launch, the entrepreneur was vigilant about the prices and quality of services in face of the increasingly fierce market competition; consequently, SE5 has provided various quality foods that are not too expensive to keep their customers (Interview with SE5’s entrepreneur, 23 March 2017). Unlike Wry and York’s (2017) theorization, although she did not have a role identity as a businesswoman (a restaurant manager, more specifically) per se, she made do with whatever resources and network was available and her hard work, agility, and vigilance. Hence, she virtually developed and enacted her business role identity in the face of the external accountability pressures from its mother NGO to make SE5 profitable while being socially and spiritually impactful.I’ll tell you the first year was brutal because when you were starting an enterprise, the hours were long. I would unlock the door at six o’clock, working with staff, training staff, and we deliberately hired people who hadn’t had jobs before… So I had to train them for everything; things that you would think would be common sense but is not common sense to them because they don’t know it, they don’t come from that kind of background. And work was, so it was like at six in the morning to almost ten-thirty at night, so it entailed really long days.(Interview, 23 March 2017)
5.2. Mixed Commercial Entrepreneurs
Servant leadership, which focuses on followers (Patterson 2003) and Biblical values (e.g., kindness, gentleness, and love) against the Southeast Asian context where the authoritarian and harsh leadership style is dominant, the business imperative of keeping up the standard, and the social mission of helping staff grow—in particular, to become responsible—converge on the core values. Similarly, SE6’s entrepreneur incorporated Biblical values into their organizational structure, culture, and practices.…one of the core phrases is “Gentle but firm”, and that’s something that we use everywhere in our company culture because we find that in the Southeast Asian context, there’s a very strong authoritative, top-down, harsh leadership, which isn’t what we do at all. So we have something that we call, “Gentle but firm”… it is very much just our own take on servant leadership, and it’s our take on kindness, gentleness, and being reasonable people. But at the same time, this is where I think some not-for-profit businesses or Christian businesses can miss it a little bit. In the “gentle but firm” value, very clearly, here are the rules, here are the expectations, here’s how we expect you to behave. We’ll be here for you, we’ll help you, we’ll help you learn and be trained and grow. But if you break those rules, there’re consequences. And sometimes there are people who are trying to make businesses very social. Their hearts are too big, and they don’t want to say, “No, sorry, I gave you three chances. You’re out”. Because they say, “Oh, that person doesn’t have a job, they have a family, I can’t fire them” or whatever. But then what happens is your whole corporate culture doesn’t have consequences; in the end, I don’t think it’s helping the person. So if we can come alongside them and love them but also hold them accountable, very much like good parenting, then I think we’re better preparing them for the next job that they go to, whatever their career will be.(Interview, 22 March 2017)
Thus, although SE6’s entrepreneur had achieved the triple bottom line, he leaned toward the implicit expressions of spirituality, such as social missions as the manifestation of spirituality and the organizational culture reflecting Christian values. The encompassing view of God’s Kingdom does not distinguish the sacred from the secular, unlike Christian Gnosticism that dichotomizes human activities into the secular and the sacred (Miller 2001). The notion that captures this is Coram Deo, a Latin phrase that means “in the presence of God”, implying that whatever we do “in the presence of God” can be an act of worshiping God (ibid.). Thus, whatever we do or any human activities done “in the presence of God” have spiritual significance. This position does not necessarily consider Christian spirituality in the traditional and explicit senses—such as Bible studies, prayers, and worship services—as the primary logic of Christian social enterprises because whatever we do, including business and social mission activities, can be spiritual acts. This, in addition to external accountability pressures to be profitable, changed SE6’s entrepreneur from a balanced entrepreneur to a mixed commercial one to some degree (Table 4).If we think about the Kingdom of God, rather than think of church, if we think of the Kingdom of God as being the whole expanse of God’s realm, it’s a huge place, and I always say that nothing is worthless in the big picture of the Kingdom. So sometimes, when I was doing secular work back in my home country, and when I was on a management training course, I would think, “Why am I doing this? What has this got to do with my faith?,” and years later, I would realize, especially when I came to Cambodia and started SE6, that some skills that I learned then were absolutely valuable at that point. So nothing is wasted in God’s economy. And so I just see it as everything being intertwined.(Interview with the SE6’s entrepreneur, 17 March 2017)
This illustrates that the co-entrepreneurs preferred the idea of two percent revenue because of their commitment to social missions, but had to choose the option of ten percent of profits because as a business entity, business sustainability needed to come before giving to community work. Because of the co-entrepreneurs’ business role identity and the social investors’ interest in the financial bottom line as external accountability pressures, their priority has further shifted from social missions to a business (Table 4).That was a very hard decision for us. And basically, it came down to ten percent of profits. Well, it works very well, if you’re an established business in an established market; then that’s okay. But if you’re constantly looking at growing, for instance [the original country in which SE7 was launched] and then [Country B, into which SE7 first expanded its operation], then country B doesn’t make any money for three years or more. Then all those years that it’s losing money, but it’s also getting revenue. We were taking two percent of its revenue before you have positive cash flow… But then you opened up in Cambodia, and now the Cambodian branch has revenue, but it is nowhere near cash positive. So you’re taking money off the top before you have enough cash. It’s hard when you’re constantly investing heavily because it’s an expensive model of capital expenses to start up, and then you’re always kind of doing a new thing and nothing’s ever really quite sustainable. So it was okay. I like two percent of revenue because it was very clean, you know, very clean cut, like no fancy accounting needed, it’s just what revenue is. But it proved more and more difficult, especially when it’s taking longer for the company to become profitable. Some of our investors said, “We can’t give money if we’re losing money. We need to get [business] sustainability as the first step toward generosity”. In other words, you can’t be generous if you’re not sustainable.(9 March 2017, comments in brackets added)
5.3. Single-Minded Commercial and Social Welfare Entrepreneurs
Researcher: Is a part of the reason why the NGO did not impose the spiritual part on the NGO’s social enterprises because they’re for business, they create jobs, so that’s their mission, that’s the measures that they have to meet?
In his internal negotiation, he had to form a reasonable tradeoff of letting spirituality go (Wry and York 2017).Director: I think it also became just expedient and practical, you know? Even like Christian MFI C7, there’s always a limit to their growth potential because we have to hire Christians and do this or that. We have to integrate all these sorts of things with development. So, with SE9, it was like we’d like to get some more income, we’d like to create some more jobs, let’s grow it, we need some outside people, and, yeah, practicality.(8 March 2017)
The expatriate director did advocacy work for the government as part of the holistic Christian mission, of which the transformation of government institutions is a part, as he states, “For me, the manifestation of Christian values is important. Profits are a stepping-stone to influence governments, NGOs, and universities” (Interview, 21 March 2016). Like SE6’s entrepreneur, who is a mixed commercial entrepreneur, the expatriate entrepreneur of SE10 had the encompassing view of God’s Kingdom, which does not distinguish the sacred from the secular. In other words, God is at work in all spheres of society, trying to bring about shalom, the idea from the Old Testament, whose root meaning is “to be whole, sound, safe” (Gort and Tunehag 2018; Snyder 2001, pp. 18–19). Many BAM advocates, including Johnson (2009) and Gort and Tunehag (2018), consider such social transformation as an integral part of BAM. Here, one can observe a complementary relationship between (implicit yet encompassing) spirituality logic and social mission logic (to transform governments to be sound).I have been invited onto a Governmental Working Forum (Ministry of Industry and Energy) “Reducing the Business Burdens of SMEs [small and medium enterprise] in Cambodia”. This working forum is working to increase the number of small and medium enterprises which will in turn, provide employment opportunities for Cambodians.(comments in brackets added)
5.4. Single-Minded Social Welfare and Spiritual Entrepreneurs
…many wealthy people donated to SE11, they even bought them [the entrepreneur and his wife] houses, you know, because they have no retirement savings. And they bought them two or three houses, and they sell it every time, and they give it to the work that is going on here.(Interview, 14 March 2017, comments in brackets added)
She has been praying to God for the financial needs of SE12 and witnessed that God has provided necessary resources (ibid.). Her biography as a born-again Christian and a former church leader, and the sense of God’s calling for her to come to Cambodia, all influenced her to select faith as the most important logic for running SE12. In particular, her dramatic conversion transformed her perspective completely from business-oriented-ness (as a former businesswoman) to God-focused-ness (Interview with SE12’s entrepreneur, 11 March 2019). As aforementioned, her business identity regressed to be personal and secondary given her enhanced spiritual and social mission role identities (Wry and York 2017).We haven’t done much advertising at all. Our weakness here probably is our advertising skills… I haven’t actually believed in advertisement, to tell you the truth. I sort of believe that if God wants people to come here, they’ll come, and I pray a lot. But in saying that I’m wondering if God wants us to go on a different way now and use advertisement. So we’re looking at that now, about the advertising, because it’s a very small business, and it should be a good business because the cooking is good, and the food is good, and the environment is beautiful, so it should be a good business, but it’s not. However, there’s something wrong with what we’re doing. Not the food, not the environment, there’s something wrong that we haven’t advertised enough, or I don’t know yet. We are just actually praying and asking God what to do here because we are not well known; see, it should be more known than it already is. But then, there are many cafés here anyway, there are thousands of them, you know. Oh goodness, it’s so hard to compete.(Interview with SE12’s entrepreneur, 6 March 2017)
5.5. Comparison between Christian Social Enterprises in the Same Sectors
5.6. Return to Theoretical Framework
6. Conclusions
6.1. Theoretical Implications
6.2. Practical Implications
6.3. Further Research
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Acknowledgments
Conflicts of Interest
1 | Christian social enterprises refer to, for example, Colossians 1: 20, when they discuss holistic missions. |
2 | When I say “structures” in this paper, I am referring to “structures” of society, that is, “[t]he most basic, enduring and determinative patterns” (Calhoun 2002, p. 451) of society. |
3 | I used Nolan’s (2002) multi-layered project context model to categorize organizational contexts. The inner context is the part of the organization that can be regulated by its organizational leaders. The proximate context lies outside the organization itself, but in contiguity with it, exerting an important influence on it. The outer context exists far outside the organization but affects it. |
4 | From the critical realist perspective, Bhaskar (2008) frames the “empirical” as the layer where people can observe and experience events, the “actual” as the layer where events happen whether we can experience them or not, and the “real” as the layer of structures or generative mechanisms whether they generate events or not. |
5 | SE8 was launched by the Christian international NGO and subsequently became an MFI. |
6 | The general trend is that MFIs have been transformed into commercial banks in Cambodia (Hirohata 2016). |
7 | A Christian MFI C is an MFI under the umbrella of another Christian international NGO in Cambodia. Like the NGO, it has a strong adherence to Christian missions besides business sustainability and social missions. |
8 |
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Industry | Social Impacts | Inner Context (Legal Status) | Salient Proximate Context | Salient Outer Context | Biographical Background of Entrepreneur(s) | |
---|---|---|---|---|---|---|
SE1 | Catering | *Employment of university students from provinces (WISE), Purchasing produces from rural farmers to sell and use for catering | Business | Christian accountability partners | Competitive market | Cambodian, Business experiences, Christian NGO experiences, Social enterprise experiences, Committed Christian, Distressing personal experiences, Rural origin |
SE2 | Café | *Employment of disadvantaged women (WISE), Giving back to community work | Business | Christian board that emphasizes the triple bottom line | Competitive market, “First mover” into the market | Cambodian from the disadvantaged background (i.e., distressing personal experiences), Genuine conversion and transformative spiritual experience |
SE3 | Tourism (Homestay), Restaurant | *Employment of the disadvantaged (WISE), Giving back to community work | Business | Christian accountability partners | Located in a rural province, Increasing numbers of tourists | Expatriate, Sense of calling to be a missionary, Exposure to own family’s business, Business experiences, Social work experiences, Prior exposure to the disadvantaged, Distressing personal experiences |
SE4 | Handicraft | *Employment of the disadvantaged (WISE), Giving back to community work | Association (Financially independent) | Christian board that emphasized the triple bottom line | Competitive market | Cambodian, Solid conversion experience, Distressing personal experiences |
SE5 | Café | *Employment of the disadvantaged (WISE), Cross-subsidizing a mother NGO (i.e., Giving back to community work) | NGO (Financially independent) | A mother Christian NGO that emphasizes the triple bottom line | Competitive market, “First mover” into the market, Located in a provincial capital | Expatriate, Sense of calling to be a missionary, Missionary experiences with social missions, Theological education |
SE6 | Café | *Employment of the disadvantaged (WISE) | Business | Christian board that increasingly emphasized business and social missions, Social investors | Competitive market, “First mover” into the market | Expatriate, Strong Christian background, Missionary experience with social missions, Solid business experiences relevant to SE6’s business, Theological education, including the encompassing view of God’s Kingdom |
SE7 | Café | *Employment of the disadvantaged (WISE), Giving back to community work | Business | Social investors | Competitive market, Socialist regime | Expatriate, Strong Christian background, Short-term business experiences |
SE8 | Microfinance | *Access to credit for the poor, Giving back to community work | Business | Shifting from Christian board that emphasized the triple bottom line to an investor | Competitive market, Buddhist society, due to which there have been the increased number of non-Christian employees | Multi-biographical (shifting from a missionary-oriented expatriate founder to a Cambodian Christian CEO) |
SE9 | Catering, Canteen | *Employment of disadvantaged women (WISE), Providing lunch to factory workers | Business | Shifting from a mother Christian NGO that deemphasized spirituality to social investors | Competitive market | Multi-biographical (shifting from missionaries to a professional), Current CEO: Returnee Cambodian, Non-Christian background, Business experiences |
SE10 | Nutritional products | *Employment of the disadvantaged (WISE), Providing nutritional products to the Cambodian population, Purchasing raw materials from local producers, Advocacy work toward government | Business | A mother Christian NGO that deemphasized spirituality | Competitive market | Expatriate, Long-term business experience relevant to SE10’s business, NGO experience, Exposure to the encompassing view of God’s Kingdom |
SE11 | Apparel | *Rescuing and reintegrating sex workers (WISE) | NGO (Financially dependent on donors) | Christian board, Christian donors | Competitive market | Expatriate, Solid conversion experience, Theological education, Church ministry experiences, Sense of calling to be a missionary, Social work experience, Prior contact with the disadvantaged, Long-term and solid business experiences, including business education |
SE12 | Café, Beauty salon | *Employment of disadvantaged women (WISE), *Sheltering sex workers, Giving back to community work | NGO (Financially dependent on donors) | Christian accountability partners, NGO board | Competitive market, “First mover” into the market (beauty salon) | Expatriate, Dramatic conversion, Sense of calling to be a missionary, Church ministry experiences, Social work experiences, Prior exposure to the disadvantaged, Distressing personal experiences, Long-term business experiences |
Compatibility (Competing or Complementary) | Centrality (Single-minded, Mixed, or Balanced Entrepreneurs) | |
---|---|---|
SE1 |
| Balanced entrepreneur
|
SE2 |
| Balanced entrepreneur
|
SE3 |
| Balanced entrepreneur
|
SE4 |
| Balanced entrepreneur
|
SE5 |
| Balanced entrepreneur
|
SE6 |
| Shifting from balanced entrepreneur
|
SE7 |
| Mixed commercial entrepreneur
|
SE8 |
| Multi-biographical: Shifting from balanced entrepreneur
|
SE9 |
| Multi-biographical: Shifting from mixed social welfare and spiritual entrepreneur
|
SE10 |
| Mixed commercial and social welfare entrepreneur
|
SE11 |
| Single-minded social welfare and spiritual entrepreneur
|
SE12 |
| Single-minded social welfare and spiritual entrepreneur
|
Timing | Social Mission | Spirituality | Business | Entrepreneur Type | |
---|---|---|---|---|---|
SE1 | During fieldwork | +++++ * | +++++ | +++++ | Balanced |
SE2 | During fieldwork | +++++ | ++++ (Stopped having daily Bible study because of busyness) | +++++ | Balanced |
SE3 | During fieldwork | +++++ | +++++ | +++++ | Balanced |
SE4 | During fieldwork | +++++ | +++++ | ++++ (Not paying tax as an association) | Balanced |
SE5 | During fieldwork | +++++ | +++++ | ++++ (Not paying tax as an NGO) | Balanced |
Timing | Social Mission | Spirituality | Business | Entrepreneur Type | |
---|---|---|---|---|---|
SE6 | Early stage when the entrepreneur owned SE6 | +++++ | +++++ | +++++ | Balanced |
Later stage when the entrepreneur owned SE6 | +++ (40% cap on the ratio of the disadvantaged) | +++ (More implicit expressions of spirituality adopted) | +++++ | Mixed commercial | |
SE7 | During fieldwork | + (10% cap on the ratio of the disadvantaged; 10% of profits [instead of previously 2% of revenue] given back to community work) | + (Only implicit expressions of spirituality adopted) | +++++ | Mixed commercial |
SE8 | Previously | ++++ | ++++ | +++++ | Balanced |
During fieldwork | +++ | ++ | +++++ | Mixed commercial |
Timing | Social Mission | Spirituality | Business | Entrepreneur Type | |
---|---|---|---|---|---|
SE9 | Previously | +++ | ++++ | ++ | Mixed social welfare and spiritual |
During fieldwork | ++++ | +++++ | Single-minded commercial and social welfare | ||
SE10 | During fieldwork | +++++ | ++ | +++++ | Single-minded commercial and social welfare |
Timing | Social Mission | Spirituality | Business | Entrepreneur Type | |
---|---|---|---|---|---|
SE11 | During fieldwork | +++++ | +++++ | + (No vigorous business) | Single-minded social welfare and spiritual |
SE12 | During fieldwork | +++++ | +++++ | ++ | Single-minded social welfare and spiritual |
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Kimura, R. What and How Hybrid Forms of Christian Social Enterprises Are Created and Sustained in Cambodia? A Critical Realist Institutional Logics Perspective. Religions 2021, 12, 604. https://doi.org/10.3390/rel12080604
Kimura R. What and How Hybrid Forms of Christian Social Enterprises Are Created and Sustained in Cambodia? A Critical Realist Institutional Logics Perspective. Religions. 2021; 12(8):604. https://doi.org/10.3390/rel12080604
Chicago/Turabian StyleKimura, Rikio. 2021. "What and How Hybrid Forms of Christian Social Enterprises Are Created and Sustained in Cambodia? A Critical Realist Institutional Logics Perspective" Religions 12, no. 8: 604. https://doi.org/10.3390/rel12080604
APA StyleKimura, R. (2021). What and How Hybrid Forms of Christian Social Enterprises Are Created and Sustained in Cambodia? A Critical Realist Institutional Logics Perspective. Religions, 12(8), 604. https://doi.org/10.3390/rel12080604