Originating from Silicon Valley, high-tech oriented entrepreneurs-turned-philanthropists have applied venture capital principles in philanthropy for intractable social problem solving, coined as Venture Philanthropy (VP). ... [ view full abstract ]
Originating from Silicon Valley, high-tech oriented entrepreneurs-turned-philanthropists have applied venture capital principles in philanthropy for intractable social problem solving, coined as Venture Philanthropy (VP). Evolving from an emergent to a pervasive model in Europe in the last two decades, VP has been considered as an innovative alternative as opposed to traditional philanthropy (TP) of benevolence and cheque-writing (Anheier and Leat 2006). With an increasing expectation, in the context of governmental hollow-out social services, there seems to be a polarised debate. VP appears to be controversial innovations in recent change of philanthropic practice (Porter and Kramer,1999; Schervish, 2000); and to be criticised of failure addressing fundamental social issues (Sievers 2001; Shiller 2012). However, little scholarly analysis is on VP development (Moody 2007).
Our paper explores the nature of isomorphic change between TP and VP based on legitimacy and resource assembly principles. We create a new operational framework for analysing philanthropy, which we use to analyse processual convergence between TP and VP foundations, citing new evidence from Scotland. Comparative case studies include four grant-giving modes: 1] traditional-grant giving 2] venture-philanthropy-grant-giving 3] mixed grant and loan 4] loan from 2011 to 2014.
Research findings suggest that a pattern of resource heterogeneity is emerging in the four models in response to the isomorphic forces. While dealing with inward [governance] and outward [market and political] legitimacy forces, hero-entrepreneurs drive the change process. The contribution is threefold. Firstly, for the theoretical contribution, findings suggest conventional isomorphic change theory by claiming agent-conduit-roles: a] rather than determined by structure, individual agent [hero-entrepreneur] plays a dominant role in the change process of initiating, leading, diffusing influence and levering power for change; b] being an active but reflective intermediary, the changes take place in the process of legitimacy and resource distribution through the circle of logic shaping; convening and conducting; reflecting, dismantling, and reshaping.. This contribution enhances and complements TP and VP mutually as creating space for negotiation, shared objectives and reflective isomorphism process (Nicholls 2010; Mair and Hehenberger, 2014). Secondly, for the empirical contribution, a new typology, is proposed. This new typology is different from Ostrower’s (2006) philanthropic assertion perspective. Innovative elements deployed are synthesised of resource supplies and engagement modes by grant-giving foundations. Thirdly, practice contribution is considered by the implication of the proposed framework which we suggest may improve decision making in the grant-giving behaviour and by shaping the type of governance.
Key words: isomorphic change, venture philanthropy, hero-entrepreneur, collaboration
New Researcher Basic Information:
Wendy Wu currently is completing her doctoral research after having more than ten years’ mixed-sector experience as a funding officer, chief executive of a charity and private business entrepreneur. Engaging with young colleagues is crucial as well as enhancing early career development. The conference would provide Wendy a platform for her to receive constructive and focused feedback in developing her paper for eventual journal publication. Also, as a Chinese born decedent, this conference extends opportunities for potential networking and for future research development-collaboration between Asia (China) and Europe.
