Social enterprises in the EU (IVOR nr. 111) 2018/3.4.2.1:3.4.2.1 The case study approach

Social enterprises in the EU (IVOR nr. 111) 2018/3.4.2.1

3.4.2.1 The case study approach

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This article seeks to investigate empirically in an in-depth manner the involvement of stakeholders in the governance of two Scottish CICs. The examination identifies the effect of the light touch regulatory regime – in relation to the participation of stakeholders – on the governance of the two examined CICs. The effect is examined in relation to the governance challenges encountered by the CICs.

In the following Sub-sections, I developed two case studies regarding the Breadshare CIC and the GTS Solutions CIC. A qualitative research is applied to identify the effect of the law on the governance of these two CICs and the outcomes of its implementation. Accordingly it is the objective of this article to identify how CIC organisations and their decision-makers are influenced by legal and regulatory regimes that encourage stakeholder involvement and how they deal with their complexity and challenges in their implementation.1

The development of the case studies in this article replicates the case study method applied in previous case studies.2 McNulty et al. indicate the lack of qualitative research in the field of corporate governance and note its importance as a research method, which investigates phenomena in a thorough and in-depth way that can lead to new and innovative theoretical and methodological insights to corporate governance.3 With this in mind, I developed a dual (multi) case study to investigate stakeholder involvement as part of participatory governance within its real-life organisational context.4 The dual case study enables the comparison of cases holistically and produces insightful evidence regarding emerging themes and patterns.5

The cases provide relevant and plentiful evidence relevant to the concept of participatory governance and its implications discussed in this case study.6 They constitute two variations of the CIC legal form prescribed by law in the UK legal framework, i.e. a CIC limited by guarantee and a CIC limited by shares. Accordingly, empirical data from multiple sources were collected including:

(i)

Collection of interview data from in-depth and semi-structured interviews with respondents from the selected CICs.7 The interviews were conducted by me assisted by a senior researcher in February 2016 at various locations in Scotland, Edinburgh. The semi-structured interviews involved respondents from various organisational layers, namely: (a) shareholders; (b) stakeholders; (c) directors; and (d) employees. A separate questionnaire was developed for each category, making four in total.8 The interviews were recorded and transcribed into verbatim transcripts by professionals. The transcriptions were sent to the respondents for comments, validation and approval;9

(ii)

Collection of relevant data from relevant documents and publications, e.g. the CIC AoA, annual financial and CIC reports retrieved from the UK Companies House, and other relevant publications and statements regarding the mission, quality and management system produced by the two CICs;10

(iii)

Personal observations from interacting with the respondents at the interview location.11

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