Social enterprise and co-productive relationships in public service delivery

Social enterprises within the UK policy landscape are a major provider of public services. They are often described normatively as being more innovative and efficient in responding to the needs of citizens. However, a more... [ view full abstract ]

Social enterprises within the UK policy landscape are a major provider of public services. They are often described normatively as being more innovative and efficient in responding to the needs of citizens. However, a more critical literature is emerging which questions their ability in managing the dynamic tension of their hybrid nature, bringing together both social and business aims. The purpose of this paper is to compare two bipolar case studies that explore how they might utilise relationships to drive more innovative forms of service delivery. The two cases both take uniquely different approaches in how they utilise the multiple co-productive relationships they have with their stakeholders, and the extent to which this allows them to co-produce service innovations with these stakeholders. The first case works with service users to develop work based skills through upscaling furniture, delivering leaflets within the community and taking part in conservation projects. The majority of the cases income is earnt through the day service provided, but also through the running of a farm shop, café and caravan park. Their approach to the development of their relationships with the service users is focused upon delivering a quality and personalised service for the service users. By doing this, the service users become advocates for the organisation and become more likely to engage in positive word of mouth with other service users in their social groups. In contrast, the second case focuses upon the continuous management by service users of their service relationships with social care practitioners. Both organisations argue that they use such co-productive relationships to develop innovative forms of public service delivery.

This paper evaluates the evidence for such claims for their innovative capacity and also the extent to which it is enabled or hindered by the hybrid nature of social enterprises. It emphasises the importance of an active, relational and co-productive rather than transactional orientation of such organisations. Whilst these approaches to co-productive relationships are different, they both enhanced the organisations ability to innovate. It considers the extent to which both offer such an approach in practice to engaging service users in the innovative reform of public services. Consequently it offers novel insights into how such relationship management can facilitate innovative public services.   It concludes by reviewing the implications of this research for public management theory and practice.