The Influence of Isomorphic Pressures From Public Funding Programs on the Emergence of Social Enterprises in Romania
The Influence of Isomorphic Pressures From Public Funding Programs on the Emergence of Social Enterprises in Romania

Summary/Abstract: This paper explores the influence of isomorphic pressures exerted by public funding programs on the emergence and evolution of social enterprises in Romania. By applying the institutional theory framework developed by DiMaggio and Powell, the study examines how normative, coercive, and mimetic isomorphism shape the social enterprise ecosystem, particularly through eligibility criteria, funding allocation mechanisms, and strategic priorities imposed by public financing. The main question of this research is: „ How does public funding influence the development and professionalization of social enterprises in Romania, considering the constraints imposed by normative and coercive isomorphism”? Thus, the main object of the study in the study is to analyze the impact of public funding programs on the development of social enterprises in Romania. Using document analysis as the primary research method, the study conducts a comparative evaluation of five public programs supporting the social economy sector between 2009 and 2023. The findings indicate that public funding programs contribute to the institutional homogenization of social enterprises, fostering legitimacy while simultaneously constraining diversity and innovation within the sector. The paper discusses both the benefits of standardization—such as increased professionalization and sectoral stability—and the challenges it poses, including reduced adaptability to local social needs and potential mission drift. By critically assessing the implications of isomorphic pressures, this study highlights the tensions between institutional compliance and the need for social enterprises to maintain flexibility in addressing complex social issues.

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