# Navigating Cross-Sector Partnerships: Innovative Strategies and Challenges for Work Integration Social Enterprises in France

Giorgia Trasciani, Francesca Petrella, Nadine Richez-Battesti

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Giorgia Trasciani, Francesca Petrella, Nadine Richez-Battesti. Navigating Cross-Sector Partnerships: Innovative Strategies and Challenges for Work Integration Social Enterprises in France. International Journal of Social Entrepreneurship and Innovation, 2024, 16 (3), pp.1655-1676. 10.1080/19420676.2024.2325706. hal-04568618

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# Navigating Cross-Sector Partnerships: Innovative Strategies and Challenges for Work Integration Social Enterprises in France

Giorgia Trasciani, Francesca Petrella, Nadine Richez-Battesti

Aix-Marseille, Univ. CNRS, LEST, Aix-en Provence. France

In recent years, ground breaking approaches have emerged to dismantle entry barriers in the labour market for individuals facing substantial challenges. The prevailing labor market policies predominantly centre around the activation strategy, however, vulnerable groups, grappling with individual and contextual obstacles, encounter difficulties overcoming societal stigmas to secure lasting employment. This study delves into how WISEs experiment with cross-sector partnerships (CSPs) to tackle these challenges. Through collaboration with public authorities and private entities, WISEs convert transitional initiatives into enduring, valuable experiences for beneficiaries. The paper scrutinizes two case studies, shedding light on tensions encountered and how organizations navigate tensions to uphold social objectives amid partnerships with entities possessing distinct logics and goals. Despite the success in providing positive experiences and practical skills, CSPs introduce complexity and inter-organizational tensions. The research identifies mechanisms and strategies employed by WISEs to prevent mission drift and sustain a focus on work integration. The study underscores the imperative for further research on CSPs in work integration, recognizing their increasing individual, local and policy impact, and on the other hand the organizational implications.

Keywords: WISEs; cross-sector partnerships; social enterprises; inter-organizational tensions.

## Introduction

In recent years, ground-breaking practices have emerged to dismantle barriers to entry the labour market for individuals facing significant challenges. Current labour market public policies predominantly embrace the activation strategy (OECD, 2021) which consists of supporting access to employment based on co-operation between public employment services and other organizations, often social enterprises defined as work
integration social enterprises (WISEs). However, the most vulnerable groups face numerous employment obstacles both individual such as low education, challenging life experiences, or contextual residing in high-crime areas with high rate of unemployment.

For them breaking free from societal stigmas, and entering the workforce remains an uphill battle. In these cases, often, although having an initial working experience in social enterprises through subsidized contracts, many individuals continue to struggle to transition into sustained employment, often beyond the scope of existing support mechanisms.

In this study, we shed light on innovative solutions experimented by WISEs to address this persistent issue. Some WISEs strategically cultivate cross-sector partnerships, collaborating with both public authorities and private entities. By doing so, they transform transitional initiatives into long term-effect valuable and profitable experiences for program beneficiaries. Thanks to these innovative solutions, beneficiaries not only acquire practical skills but also gain exposure to reputable large companies that provide specific, highly professional training—employing them at long term or acting as gateways to new opportunities.

From an organizational perspective, while collaboration with public authorities, job centres, and government agencies is well documented, the cross-sector partnerships (CSPs) are still less explored. Although representing an innovative configuration, with a strong potential for social impact (Leca et al. 2019), cross-sector partnerships do not come without difficulties. CSPs involving WISEs can present challenges due to the inherent differences between sectors, each with its specific goals, values, and operating principles. This research explores how do organizations try to reconcile divergent institutional logics in the context of a firm-public- social enterprise partnership, and
what kind of instruments could be introduced to avoid the mission drift in the context of highly innovative multi-actor projects, such as cross-sector partnerships.

Based on two different case studies, this paper analyses closely how organizations manage to preserve the social objectives to implement innovative schemes of work integration, despite tensions due to close partnerships with other organizations, which by their nature have different logics (Thornton and Ocasio 1999) and objectives, i.e. commercial objectives for private organizations, and creation of public value (Moore 2013) for public ones.

This research shows how, while looking for innovative ways to overcome the problem of unemployment, WISEs also face contrasting institutional pressures, the potential to shift focus away from its social mission. In our cases we observed the mechanisms and the strategies implemented to preserve their hybrid nature and to mitigate the risk of mission drift, preventing to diverge from its original mission statement, namely, work integration. Results shows that enabling cross-sector partnerships (CSPs) seems to guarantee a discrete success to the WISEs, ensuring positive experiences for the beneficiaries who gain new practical skills in a reputable conventional company. However, this increases complexity, creating inter-organisational tensions which requires actions, to mitigate the differences between the guiding institutional logics of actors.

It is appropriate to consolidate research on CSPs, especially in the field of work integration, as their number is growing (Ahmadsimab and Chowdhury 2021), their impact is significant especially at the local level, and they have important implications at the organizational level. Based on the idea that grand challenges such as social work exclusion could be faced only through the involvement of the different actors from the
field, the two WISEs analysed in our cases not only set an example, but also experiment
a model of partnership that could be replicable for both WISEs and private companies.

This article is organised as follows: the first section presents the context and
deals with the object of this work: the cross sectoral partnership including a WISE, the
public sector and a conventional private enterprise, with a specific focus on the case of
France; the second section illustrates how the literature explains the mission drift risks
linked to CSP and collaboration among different actors; the third section presents the
methodology and describes the two case studies. The last section analyses the
instruments put in place to avoid the mission drift and to preserve the identity of the
organisation. Finally, we conclude.

Context: The work integration in France and the role played by the WISEs
and the partnerships

Work integration in France

The WISEs refers to organizations that operate with the primary goal of integrating
hard-to-employ individuals (Ebrahim, Battilana, and Mair 2014). WISEs could set up
different strategies to facilitate market integration for individuals facing barriers to
employment, including skill development programs, customized job placement, or
continuous support services.

In France, historically they result from the self-organisation of citizens in the
early 80's, and thus characterised by a local and bottom-up approach. Nowadays they
are legally institutionalised, as associations or social enterprises, under the name of
Inclusion through economic activity (Insertion par l'activité économique - IAE).
Furthermore, since 2014 they are officially recognized as part of the social and solidarity economy (as mentioned in the 2014 Law on Social and solidarity economy - SEE). Their mission is to hire disadvantaged people for a limited period to produce goods and services sold on the commercial market. So, they compete on the market, but they are compensated by State subsidies for the effort to hire long-term unemployed or low-skilled people who may therefore be less productive.

Today, work integration initiatives, recognized and subsidized by public authorities are mainly the following: work integration enterprises (entreprises d'insertion- EI), intermediate voluntary organizations whose aim is to play the intermediary at the local level between work supply and demand (associations intermédiaires-AI), ateliers chantiers d'insertion - ACI that provide training and work to people excluded from the labour market, neighbourhood enterprises (régies de quartier), temporary work integration enterprises (entreprises de travail temporaire d'insertion-ETTI), employers organizations for work integration and training (groupements d'employeurs pour l'insertion et la qualification- GEIQ). In France, 142,900 employees are working in IAE in 2021 (Blasco and Chikhi 2023). They are spread across more or less 4,000 organisations, 49% of which are ACI, 26% WISEs, 16% AI, 8% ETTI, others are very small.

Work integration allows people who are far from employment to benefit from reinforced support to facilitate their professional integration. It is implemented by specialized structures which are in charge to match job supply and demand, to prepare the beneficiaries of these schemes for the world of work with specific paths, but also to support them from a social point of view, to deal with all the different possible problems, for which they fall into the category of disadvantage people, more commonly,
becoming long-term unemployed. Different legal schemes could be implemented to hire people.

The most used is the “contrat à durée déterminée d'insertion (CDDI)”-fixed-term integration contracts, contracts de professionalisation -professionalization contracts, alternance- alternation between training (of different levels) and work. The different schemes are approved by the State, which allows the hiring of unemployed people with particular social and professional difficulties. These workers have a real employment contract (e.g. a fixed-term integration contract - CDI) while the organization receives financial assistance from the State.

## Different types of partnership

WISEs can establish partnerships with various stakeholders to amplify the impact of their initiatives. The nature of these collaborations can take diverse forms, contingent upon the legal structures of the involved entities. The conventional collaboration often involves partnering with public authorities. WISEs may play varying roles, which imply a different degree of participation in the process of designing the activities. While in co-producing processes their role is limited to collaborative creation and delivery of the services (Bode and Brandsen 2014; Brandsen, Steen, and Verschuere 2018), the co-designing process focuses on the collaborative process of designing or shaping a service, aimed at combating unemployment.

In France public grants and subsidies can provide crucial financial support for training, employment, and community development projects and can be considered as a public-private partnership process. Typically, WISEs are required to enter into an agreement, commonly known as a "convention," with the State, represented in this case by the France Travail (the job centre). This agreement, lasting a maximum of 3 years, outlines various specificities, including the number of full-time equivalent positions
designated for individuals approved by France Travail, making them eligible for State
aid. The job centre represents in the life of lower-middle class and, or precarious French
people, and therefore of hard-to-employ individuals, a constant point of reference,
dossiers are followed by a personal contact person 'conseiller'. The above-mentioned
agreement also delineates the regulations governing the remuneration of individuals
engaged in work integration, the human resources allocated for supervising integrated
employees, the tools for assessing and monitoring individuals in integration (such as
evaluations), and the procedure for submitting job offers to France Travail. The
recruitment of individuals approved by France Travail grants WISEs open access to
financial aid within the limits set by the agreement, specifically for integration
positions. This financial aid, provided on behalf of the State, is administered by the
Agence de services et de paiement (ASP). Importantly, this aid cannot be combined
with any other State-funded employment assistance for the same position (gouv.fr).

A new model of partnership engages WISEs with for-profit private companies (Ahmadsimab and Chowdhury 2021). In France already at the beginning of 90s a WISE named “Idee Interim”, concluded an agreement with the multinational group Adecco, a Franco-Swiss group specialising in temporary work. In the following years, other WISEs did the same. Although still poorly documented, particularly in the specific field of work integration (Leca et al. 2019), the literature recognises that firms and non-profit organizations (NPOs) are increasingly collaborating to provide joint solutions to various societal problems including grand challenges such as health, education and alleviating poverty (Selsky and Parker 2005; Yaziji and Doh 2009).

Finally, during the last decade we observed an increase of WISEs enabling CSPs
- both with private actors and public authorities - to make the transitional initiatives
useful and profitable for the beneficiaries, who gain new practical skills gained. These
programs have the potential to preserve the new jobs created, making long-term
accompaniment more effective, thanks to the experience of reputable large conventional
company or solid company rooted in the area, which acts as a gateway to new
opportunities. In the last decades the French government focused attention on the value
of CSPs in the field of work integration and launched the creation of tools such as a
model partnership contract, intended to assist the emergence of new collaborations.

Explaining conflicts for one same objective in cross sectorial partnership

In CSPs involving WISEs, public actors, and companies, conflicts may arise due to the
presence of the tension between divergent institutional logics and values (Cornforth,
Hayes, and Vangen 2015; Ebrahim, Battilana, and Mair 2014; Jeter 2017). Public
actors, WISEs, and private companies often operate with distinct sets of principles,
priorities, and organizational cultures, which can lead to potential tensions. Institutional
logics refer to the socially constructed, historically developed, and culturally embedded
patterns of thought and behaviour that shape the actions of individuals and
organizations within a given field (Thornton and Ocasio 1999). Different sectors—
public entities, social enterprises, and private companies—operate with distinct
institutional logics, contributing to potential conflicts.

The public sector is often guided by a logic rooted in public service and societal
welfare, and responsible for addressing social issues, serving the interests of the
citizens. The institutional logic of the public sector emphasizes regulation, bureaucracy,
and adherence to legal frameworks (Skelcher and Smith 2015; Thornton, Ocasio, and
Lounsbury 2012). However after the new public management reforms (NPM)
(Dunleavy and Hood 1994; Pollitt and Bouckaert 2011) also principles, such as cost effectiveness and efficiency have been internalized. Based on the idea that the adoption of business-like practices would enhance efficiency and effectiveness (Alford and Hughes 2008), public authorities must ensure that the activities carried out are as inexpensive as possible for maximum results and performance measurement techniques to better evaluate public sector performance have been implemented (Alonso, Clifton, and Diaz-Fuentes 2015). An indicator of public manager performance is the creation of public value, which adapts the concept of added value to the private sector (Kurniawati and Kustulasari 2021; Moore 2013).

WISEs, as social enterprises, typically operate with a social and mission-driven logic. Their primary objective is to address social issues, such as unemployment and social exclusion. The institutional logic of WISE revolves around creating sustainable solutions to social problems through employment and skill development.

Private companies are driven by a market-oriented and profit-driven logic and their values are mostly rooted in their commercial knowledge, financial capital and market legitimacy (Di Domenico, Tracey, and Haugh 2009). Their primary goal is to generate financial returns for shareholders and, in some cases, for other stakeholders. They focus firstly on profit maximization, although new practices of corporate social responsibility (CSR) are spreading, making the companies more attentive to environmental and social negative impact they could create through their activities.

Literature also highlights that organizations can be exposed to and influenced by multiple types of institutional logics (Pache and Santos 2013), and that different logics overcome the demarcation among sectors, as showed through the concept of hybrid organization (Battilana and Dorado 2010). Organizations by every sector face different pressures and develop different expectations that encourage them to partner across
sectors (Selsky & Parker, 2005). While the call for CSR prompts businesses to engage
in partnerships, governments are encouraged to deliver increased benefits and services
while adopting a less intrusive yet more transparent approach, while attempting to
reduce public expenditure. Finally, social enterprise are driven by the desire to
accomplish their mission, and scale their actions (Islam 2022), while differentiating
resources, and maintaining a hybrid economic model without having to rely totally on
the public sector (Froelich 1999).

Due to the co-existence of different interests in the arena, there is a potential risk
of mission drift for WISEs when engaging in cross-sectoral partnerships. Mission drift
refers to a situation where an organization's original mission and social goals gradually
shift or dilute over time due to various external influences, including partnerships and
collaborations (Cornforth, Hayes, and Vangen 2015). Becoming more business-like, due
to the contextual institutional pressures may cause mission drift (Maier, Meyer, and
Steinbereithner 2016). In the efforts to improve performance, prompted by the request
from public authorities and following a mimetic isomorphic process (DiMaggio and
Powell 1983) towards business partners, WISE can develop business-like rhetoric,
business-like organization of NPOs' core and support processes, and business-like goals
(Dart 2004). Ultimately, facing the same economic pressures to survive as any
business, WISE can end emphasize more economic than social values associated with.

For WISEs, different factors could contribute to a mission drift in the context of
CSP, such as conflicting priorities, financial dependency or mimetic isomorphism.
Collaborating with private sector partners may reinforce commercial priorities that
could conflict with the original social mission of the WISE. The focus on profitability
and business objectives might divert attention from the primary goal of the WISE social
mission. If the partners have conflicting views on the desired outcomes or approaches, the WISE may be compelled to adjust its strategies to accommodate the interests of its partners. Financial dependency due to the partnership with the private actors may create financial pressures that lead the WISE to prioritize financial performance, and so follow the decisions and according directly or indirectly, the decision power to the private partners. This could result in a shift towards activities that generate revenue but may not align with the initial social objectives. Furthermore, public authorities could exercise coercive pressures, being the WISEs economically dependent, aimed at increasing performance and reducing the cost. The conflict could extend the strategic decisions and cover daily actions and activities. For example, Ahmadsimab and Chowdhury (2019) found that many disagreements between partners cover day-to-day items related to either commercial logic or social logic. Working with partners from different sectors may expose the WISE to divergent values, but also with different business practices.

The WISE could imitate the business organization's structure because of the belief that the structure of the latter organization is beneficial. In specific types of activities, under an isomorphic process, the WISE could feel the pressure of the legitimacy of the for-profit organization well established in its field. If not managed carefully, this could lead to compromises on social values or to the adoption of practices that are contrary to the organization's original mission.

The literature highlights that avoiding mission drift and tension associated with emphasis on business goals is a crucial challenge for social enterprises (Cornforth, Hayes, and Vangen 2015) (Ebrahim, Battilana, and Mair 2014) (Jäger and Schröer 2014). A significant hurdle for social enterprise involved in CSP is effectively managing and harmonizing social and business goals. To mitigate the risk of mission drift, WISE organizations could establish specific strategies and safeguard mechanisms,
such as clear guidelines for collaborations, and maintain open communication with all stakeholders. The literature suggests the following main strategies: accurate partner selection; partnership clear mission articulation; detailed partnership agreement; clearly defined governance structure, and continuous stakeholder engagement.

Concerning the clear articulation of the partnership mission, as mentioned by Ansell and Gash (2008) a shared understanding of what the partners can collectively achieve together, which also include agreement on a definition of the problem (Bentrup 2001), it is not only a way to avoid conflicting tensions, but also to ensure the commitment to and the success of the project. Dees (1998) suggests that the alignment of missions can overcome different visions due to belonging to different sectors.

Develop comprehensive partnership agreements that clearly outline the roles, expectations, and goals of each partner is another strategy. These agreements could also include provisions that explicitly state the commitment to the WISE's social mission and specify how the partnership will contribute to, rather than compromise, those objectives.

This is of course linked to the definition of a clear governance structure.

Strengthen governance structures to include checks and balances that safeguard the organization's mission is a further crucial point (Ansell and Gash 2008). Governance is highly relevant to navigate context of institutional plurality, characterized by multiple logics (Mair, Mayer, and Lutz 2015) and to manage the risk of negative effects on a social enterprise's mission (Jeter 2017). Strengthening governance structures is a critical strategy to prevent mission drift in cross-sectoral partnerships (Cornforth, 2014). By establishing robust governance mechanisms, organizations can enhance accountability, maintain focus on their core mission, and ensure that collaborative efforts align with their intended social mission (Petrella et al. 2022). This involves implementing clear
decision-making processes, defining roles and responsibilities, and fostering effective communication among partners.

Finally, the literature highlights the importance of engaging regularly with beneficiaries, employees, board members, and other stakeholders to gather feedback and insights. This ongoing dialogue ensures that the organization remains responsive to the needs of its primary stakeholders and helps identify any emerging issues related to mission drift.

In our study, we will first identify what the two case studies have implemented in terms of CSP and highlights the challenges or tensions that our cases have faced and what they put in place to tackle them. Our focus on WISEs might also stress a double source of tension as WISEs involved in CSPs have to deal with tensions coming both from the public sector (such as a high bureaucratic burden, prove the creation of public value) and from for-profit enterprises (aimed at maximising profits).

# Methodology

## Data Collection

To investigate our question, we conducted two in-depth case studies of partnerships between for-profit firms, WISEs and public actors. Case studies have proven to be particularly useful for generating theoretical and practical insights in the study of collaborations (Wood and Gray 1991) and cross sectorial partnerships (Austin 2000).

To capture detailed elements of these CSPs, we collected both archival data and semi-structured interviews. Concerning the first type, they consisted of websites, studies, and articles published on the two selected WISEs. We also reviewed internal organization documents such as annual reports, and strategic plans. We recorded the interviews, transcribed and anonymized the organizations that were part of the cross sectorial
partnerships involved in the project, except for the public actors.

In addition, we conducted two types of interviews. A first set of the interviews has been conducted with 3 experts. These interviews allowed for a more detailed understanding the specificities and dynamics of the work integration sector in France. Three experts including one prominent academic voice, la fédération des entreprises d'insertion, the federation of work integration enterprises, and the fédération des acteurs de la solidarité (fas) the federation of solidarity actors, a network working to fight against exclusion, and which brings together more than 870 associations and organizations working to promote solidarity.

The federation of work integration enterprises 's help and guidance to select the two cases has been crucial. It helped to acknowledge us of the existence of different cases and then to put us in touch with firms and WISEs engaged in partnerships and we followed up with these organizations to obtain further information. The federation represents the French WISEs at national and regional level, while at institutional level, it contributes to the development of employment policies, and demonstrates the economic and social weight of integration enterprises. The federation promotes the sharing of initiatives, identifies, and disseminates best practices, and monitors and informs the entire sector through dissemination and engagement activities.

A second round of interviews has been conducted with partners of the CSPs selected as case studies, included one public partner, represented by *France Travail* (the job centre). Interviews with case protagonists were conducted to understand in depth the content and evolution of selected cross-sectorial partnerships. The interviews mainly focused on barriers and difficulties. The motivations for creating a partnership were explored, how it was managed on a day-to-day basis, but also how choices were made at crucial moments, with a view to retracing the various stages to arrive at the co-
ordination and collaboration in place. Three interviews have been realized for each case,
for a total of 9 interviews.

## Case Selection

With the support of the federation of work integration enterprises, we selected two
cases: La Montagne-PARCOURS partnership, and La Promenade – multiple enterprises
partnership. Both cases are based in the PACA region, one of the regions the most
affected by a high rate of unemployment at the national level. Aix-Marseille is, in fact,
one of the most unequal metropolises in France - whether in terms of education, access
to employment and income - historically registering a higher unemployment rate
compared to the national average. Furthermore, Marseille registers in absolute the
highest rate of unemployment for the young population in France. In the next two
paragraphs, we will present the two case studies, namely the case of the joint-venture
(co-entreprise) LINCA, created by the social enterprise La Montagne and PARCOURS,
a French concessions and construction company. The second case is represented by the
case study La Promenade, a place which fosters collaboration among enterprises,
gathered by a commonality of values.

## *The Partnership 1 – La Montagne – PARCOURS*

La Montagne is a prominent French WISE headquartered and operating within the
PACA region in the South of France. Operating branches nationwide, La Montagne
unites over 30 enterprises specializing in four diverse sectors: human resources,
environment, eco-construction, and health. Established as an association in 1992, it
transitioned into a holding in 2008. In 2020, La Montagne demonstrated remarkable
growth, achieving a turnover of almost € 50 million—an impressive 16% increase—
accompanied by a workforce of nearly 6,900 employees, as reported in La Montagne Annual Report for 2020. Every enterprise within the La Montagne group undergoes a formal agreement process to attain recognition as a work integration enterprise. The group comprises various legal forms, including integration enterprises, temporary work integration enterprises, adapted enterprises, and temporary work integration adapted enterprises.

In a noteworthy collaboration, La Montagne ventured into its first joint-venture, named LINCA, in 2020. This partnership emerged from a collaboration with PARCOURS, a conventional company and a subsidiary of the PARCOURS Group—a renowned French concessions and construction entity established in 1899. PARCOURS stands as one of the world's largest construction companies by revenue, with a presence in thousands of building sites across a hundred countries. PARCOURS, a part of this conglomerate, specializes in the design, construction, financing, and operation of motorways under long-term concessions in France, serving millions of customers daily.

LINCA, the joint venture created between La Montagne and PARCOURS, specializes in providing cleaning and maintenance services for spaces associated with passenger mobility. Highly skilled in ensuring the cleanliness and upkeep of areas integral to transportation and the mobility of motorway travellers, LINCA extends its services across six French departments. With a turnover of €820,000 and a workforce of 28 people, the organization has a dual mission: preserving the hygiene and cleanliness of collective environments and infrastructures while empowering employees to enhance their job market positioning through the development of technical and transversal skills. Despite its relative youth, LINCA is experiencing rapid growth, expanding its services to other regions in the South of France. This dynamic enterprise reflects La Montagne's commitment to impactful social integration and economic development.
Identified as one of the most innovative places in France in 2022, La Promenade includes a mix of WISEs and for-profit enterprises, in six-hectare wooded estate in the north of Marseille, which represents the most deprived area of the city. The formerly abandoned area has been transformed into a centre for innovation and social entrepreneurship. The building is owned by the Fondation Formation par la pratique and is in the northern suburbs of Marseille.

This project is based on a process of co-creation between the Fondation Formation par la pratique, a WISE and entrepreneurs, Ashoka social fellows and directors of major groups, to pursue and accentuate commitment to the most vulnerable young people and families by promoting their qualification through economic activity. Digital, gastronomy, urban agriculture, and services—all find representation in this innovative hub. The fundamental idea is straightforward: each resident enterprise develops their own activity within an emerging sector and commits to training young people from the area in their respective trades. The overarching ambition is to establish the enterprise as the gravitational centre of collective interest. La Promenade engages in various activities, ranging from supporting business creation and co-working to operating an organic and responsible restaurant, organic market gardening, and providing training in digital professions. It stands as a dynamic space where diverse enterprises coexist and collaborate, embodying the ethos of innovation, social responsibility, and community engagement.

There is an organisation dealing with social concierge services, which extends a unique concierge service to companies, and residents. With over 15,000 beneficiaries and a network of 150 partners, this service enhances community well-being.
There are also two restaurants: the first one is an ethical and fair restaurant, offering 100% local cuisine, hosting starred chefs, and the second a restaurant inspired by traditional Mediterranean cuisines. The restaurants are furnished by the urban farm, fostering agro-ecological and socially responsible, resident in the La Promenade. There is also another association working with food, whose mission is to feed families in need and educate future generations to develop their food autonomy. Some of the enterprises deal with new technologies and new services related to them. There is a so called, a digital mill, which is part of a digital and inclusive network of factories in France and abroad, aiming to make digital technology an inclusive force and to unearth talents among underrepresented groups; and a call centre, combining high-quality service with competitive pricing, emphasizing a social approach by integrating individuals into professional roles. Other associations deal with circular economy offering services such as inclusive, innovative, incentive, and solidarity-based solutions to recycle more effectively. Finally, there are also enterprises offering services related to sustainable tourism.

Concerning the services related to the support of young people, a number of training centres have been embarked in this project since the beginning, included an association devoted to promoting and facilitating the support for the integration of people with disabilities or other difficulties. All of them address the dual needs of young people facing integration challenges and recruiters seeking qualified personnel through specialized training programs. One of them supports young people aged 18-30, particularly those with little or no qualifications, experiencing difficulties in social and/or professional integration, and with a business creation project, shares this large space with other organizations. While a diverse range of business activities thrives
within this space, some are WISEs, while others operate as conventional for-profit
organizations.

## How to avoid the mission drift?

### Description of the tensions observed

Sources of tensions arises from the divergent institutional logics inherent in CSPs.

WISEs often operate with a primary focus on social mission, public authority represented by France Travail follows the bureaucratic process and aims to create public (measurable) value, while private entities may prioritize profit generation. Navigating these differences becomes crucial to sustaining the social mission, and to ensure the proper functioning of the partnership. The following tensions have been observed in our case studies.

### Divergent Objectives

The organizations involved, particularly the for-profit enterprise and the WISEs, exhibit divergent primary objectives. WISEs prioritize inclusion and specific outcomes, such as the well-being of workers and the development of skills beyond job placement.

Both La Montagne and the WISEs affiliated with La Promenade adopt an integrated approach to work integration, focusing on holistic support to improve the overall conditions of the beneficiaries. In the realm of social and professional development, a holistic approach has become the cornerstone of initiatives aiming to revitalize both individuals and communities. They exemplify this holistic philosophy by seamlessly integrating social and professional elements into their respective projects, each with a unique strategy and set of challenges. They combine a professional activity with
personalized professional and social support. They address the issue of work integration
by considering the multiple problems disadvantaged people face (including health,
housing, literacy, or administrative issues). A professional training is offered to learn
practical activities that can be directly reused in the work they do.

By contrast, private sector partners prioritize profitability and shareholder value.
Their primary objective revolves around financial success and profit maximization.
Operating within a commercial framework driven by market demands and competition,
PARCOURS for example, expresses a keen interest in expanding its size, securing new
contracts, and engaging in public procurement. LINCA's strategy is anchored in two
main pillars: social innovation and experimentation. Both partners, La Montagne and
PARCOURS (founders of the co-enterprise LINCA), agree that achieving these
objectives necessitates an increase in scale and organizational size. However, their
motivations differ. La Montagne sees scale as integral to its mission, aiming for a major
impact, while PARCOURS is motivated by the intention to gain a larger market share.

On the public sector side, France Travail prioritizes specific outcome objectives,
particularly increasing the number of people employed. While this objective aligns to
some extent with social enterprises, France Travail places a stronger emphasis on
quantifiable outcomes, such as achieving specific numbers of new employments. Social
enterprises also value qualitative aspects, emphasizing personal well-being and the
quality of work.

Ultimately, both cases of WISEs advocate for a social entrepreneurship mindset,
emphasizing the fusion of social mission with business endeavours. The WISEs
affiliated with La Promenade explicitly stress the necessity of 'mixing worlds' as
declared by a member of the La Promenade, referring to a business model based on a
mix of resources, to dispel the notion that work integration activities are solely reliant
on state funding. This mindset underscores the belief that a successful integration model involves a synergy between social objectives and sustainable business practices. For the enterprises established in the La Promenade 's spaces and PARCOURS, they show a strong interest in socially responsible actions and choices.

## Varying Timelines and Expectations

Varying timelines and expectations among different sectors can indeed create tensions within CSPs. These tensions arise due to the diverse priorities and operational structures of WISEs, private sector partners, and public sector organizations. WISE organizations operate with a long-term perspective, emphasizing sustained social impact and the gradual improvement of beneficiaries' well-being, and focusing on long-term results. Their primary focus is on the holistic integration of individuals into the workforce, which may take time to achieve. Private sector partners, driven by profit motives, typically seek quick returns on their investments. They operate within a competitive market that values efficiency and immediate financial outcomes. Quick decision-making and tangible results are often prioritized. Public sector organizations are subject to bureaucratic processes and regulations, which often slow down decision-making. For France Travail implementation of programs and initiatives requires adherence to specific rules and regulations. This results often in longer timelines for planning and execution. France Travail has its own timelines for program implementation, influenced by government cycles, and political decisions, budget allocations, and regulatory compliance. These timelines might not align with the faster-paced expectations of private sector partners. For instance, when it comes to finding new people to be included in the job market, public sector organizations may operate on different timelines than enterprises. Government-driven employment initiatives and
workforce development programs may have specific cycles that do not necessarily align
with the immediate needs of private sector partners. Timelines are linked to the ability
to adapt to pivot quickly in response to market changes. While the activities managed
by France Travail shows that public partners face challenges in adapting quickly due to
bureaucratic processes and regulatory constraints, WISEs and private actors are more
reactive. Variances in flexibility can lead to frustration, especially because the two latter
perceives the other as inflexible.

Operational Differences

Operational differences in CSPs can create tensions, and these differences often manifest in various aspects, including hierarchical structures decision-making processes, communication styles and stakeholder involvement.

Concerning the communication, the WISEs emphasizes inclusive communication, involving beneficiaries and stakeholders in decision-making processes.

In the case studies the beneficiaries are also the workers, and this make for the WISE even more important listening to their voice, needs and feedback. Concerning the private actors PARCOURS is characterised by centralized hierarchical structure with a focus on efficiency and quick decision-making, while the organisations part of La Promenade being smaller are also less structured. Finally, concerning a more complex hierarchical structure influenced by bureaucratic processes and a need for compliance is in place since the end of the 19th century.

Measurement of Success
Defining and measuring success becomes particularly challenging when partners hold distinct criteria for evaluating outcomes. In the chosen case studies, private sector actors prioritize financial metrics, emphasizing monetary success. In contrast, WISE organizations place a significant emphasis on qualitative results, assessing the quality of newly acquired skills and the improved quality of life for workers. Public actors, on the other hand, measure success by the number of individuals successfully employed. Upon completion of the integration program, there are three types of exits, collectively referred to as "dynamic exits," which contribute to the indicators defined and monitored by the DDETS (Directions Départementales de l'Emploi, du Travail et des Solidarités - Departmental Departments of Employment, Labour, and Solidarity) at a local level to determine the modulated amount of aid for integration posts. The first type consists in Exits to Sustainable Employment. The criteria include securing an open-ended contract (CDI), a fixed-term contract (CDD) lasting more than six months that is not subsidized, entering the civil service, or initiating and managing a business. The second type is the exits to transitional employment. This category encompasses exits to fixed-term unsubsidized contracts of less than six months or fixed-term subsidized contracts outside the IAE scheme. Finally, there are Positive Exits: these exits involve recruitment in another SIAE for a fixed period, integration or continuation of a pre-qualifying or qualifying training course, or retirement entitlement.

## Financial Disparities and Risk Aversion Differences

WISEs' limited financial resources represent one of the reasons for creating a CSP. WISEs often operate with constrained budgets, relying on a mix of earned income, subsidies, and grants to sustain their social mission. However, in the two selected case
studies this is not the main reason. Obviously, generating consistent revenue can be a
struggle, as WISEs may face financial disparities compared to larger private enterprises.

The two cases are different with respect to this point. On the one hand, PARCOURS realised that LINCA will not be its most profitable activity, and it has such economic solidity that, although it remains convinced that it wants a profit-oriented management of the organisation, in this specific case it is more focused on an image return. Concerning the core business of LINCA, providing cleaning and maintenance services for spaces associated with passenger mobility, PARCOURS has larger budgets for operations, expansion, and innovation. So, although a revenue-driven model is applied, there is also a strong awareness of La Montagne's contribution in terms of know-how and ability to manage the situation (selection, grading, holistic support, etc.), also interpreted as a cost saving besides a guarantee of quality. La Montagne is driven by a primary social mission, it exhibits a higher tolerance for social risks and innovative approaches to address employment challenges, with new with new advances in terms of support for workers such as the above mentioned 'gestionnaire de parcours', while it is more risk-averse financially due to its reliance on various funding sources and the need for sustainability. On the other hand, the organisations that are part of La Promenade, they are small and have a real concern to remain viable in the market. Even though they are all organisations that have decided to join an urban regeneration project, they still need to have a turnover that allows them to make a profit.

## Description of the tools

The emergence of various tensions in CSP involving WISEs highlights the complexity of maintaining social mission integrity amid collaborations. These divergences can pose
challenges to WISEs, potentially impacting their core social mission. The risk of mission drift, a scenario where the focus shifts from the primary social mission towards profit generation, or pursuing of public actors' objectives, becomes a significant concern that requires proactive management. From the interviews emerged that La Montagne and WISEs included in La Promenade actively manage the risk of mission drift, implementing strategies that reinforce their commitment to the social mission. This includes setting clear boundaries, establishing shared values with partners, and regularly reassessing the partnership's alignment with the social mission. The implementation of the following instruments emerged.

Governance structure and instruments to implement it

Both the case shows a long-term commitment to contributing to job creation. Concerning the first case La Montagne -PARCOURS, the joint venture involves a shared ownership structure between the WISE and PARCOURS. However, there is a distinctive distribution of shares, with the WISE holding the majority at 51%, and PARCOURS owning the remaining 49%. This distribution is strategic, with the WISE intentionally maintaining majority ownership to retain control over the organization's primary mission of integrating workers. Concerning the decision-making and control, the ownership model ensures that decisions align with the social mission of worker integration, as also testified by PARCOURS 'there's a reason why we didn't want the majority. this is about getting people into work in the first place and getting them out of unemployment. it's about knowing how to stay in your place and how to take advantage of your partner's skills' (Interviewed_1_PARCOURS). The WISE, as the majority shareholder, plays a crucial role in maintaining control and preventing any mission shift. PARCOURS's role is supportive, focusing on facilitating LINCA's economic
model based on total self-financing, with a harmonious balance between economic and
social goals. The creation of the LINCA, a totally new organisation permits to set
specific organisational governance structure, to make the project solid, because 'this
joint venture is not an empty shell' (interviewed_2_La Montagne). Thanks to a long
process of consultation with the actors, it was decided, prior to the creation which
decisions must be taken by majority vote and which by two-thirds agreement, how
dividends are redistributed. This allows for 'sharing of risks and costs with our partner,
having access to new knowledge and expertise, and including specialised staff that we
would not be able to select' (interviewed_2_La Montagne). Furthermore, a strategic
committee which meets every three months to take strategic decisions.

La Promenade operates based on a partnership agreement, namely, 'the
convention de partenariat'. The founders and in particular the foundation Formation par
la pratique drafted and signed commitment chart within the partnership agreement
outlines specific commitments from both the foundation and the company. Based on
this chart, the foundation commits to providing a low rental price, below market rates,
to the company, fostering an entrepreneurial dynamic within the space. In return, the
company undertakes to engage in work integration activities, aligning with the dual
purpose of maintaining an entrepreneurial environment while contributing to social
impact. All enterprises within La Promenade, whether conventional or SSE, actively
participate in work integration activities, emphasizing social impact alongside their
primary business activities.

While LINCA adopts a joint venture model with clear ownership distribution to
safeguard its social mission, La Promenade employs a partnership agreement that
emphasizes commitments to work integration and social activities for all participating
enterprises, contributing to a vibrant entrepreneurial and socially impactful
environment.

Selection of partners

In both cases organisations emphasised the difficulty of working together based on a
bias against the other party. Regarding La Promenade, there is a strong selection at the
entrance. Only organisations interested in the development of the neighbourhood and
the local area are accepted. By adhering to the charter, they also commit themselves to
the activity of work integration of the people living in the neighbourhood.

‘We unite to address these challenges within La Promenade, grounded in shared values of equality, respect, reciprocity, solidarity, sharing, and transparency. This collective effort aims to enhance the quality of life for individuals in vulnerable situations. The formation of this alliance is rooted in a foundation of trust and friendship’ (La Promenade Commitment Chart, page 13).

Concerning LINCA although the people involved in the organizations had known each
other for a long time, before deciding to collaborate and how to collaborate, the
discussion was lengthy this is in line with this part of the literature saying that the
existence of a personalized, reciprocal bond between firms and NPOs in a partnership
helps (Berger et al., 2004). Both organizations were aware of the potential dysfunctions
and difficulties. However, while La Montagne is not new in collaboration with for profit
large size enterprises so demonstrating solidity in many CSP projects, on the other
PARCOURS is a top expert in the fields in which it works, so it is an ideal partner to
reinforce the idea that labour inclusion is not just a public subsidy but real business.
LINCA is the result of a long negotiation between La Montagne and PARCOURS which started from the same point of view, having a social impact, while doing business. 'There is no economic project without a social project' (Interviewed_2_La Montagne) says a member of La Montagne. The joint venture is guided by a shared mission that goes beyond financial success. The partners work collectively to achieve specific social (work integration) and economic (profit) objectives, and the success of the venture is measured by its impact on both these two goals. Each partner brings its unique strengths, resources, and expertise to the collaboration. Private company PARCOURS contribute business acumen and financial resources, while social enterprises La Montagne brings on-the-ground knowledge and a commitment to work integration. However, the clear mission articulation is also confirmed by the organisational configuration and roles that would not be present in the classical for-profit enterprise and that instead confirm the actors' intentionality to also achieve the social objective, such as the 'gestionnaire de parcours'. The 'gestionnaire de parcours' (path manager) covers a crucial role. He/she plays a vital role in assisting and supporting workers throughout their tenure at LINCA. This path manager guides individuals in crafting their paths by involving them in exceptional projects, employment experiences, and training while providing personalized support. He/she employs a combination of relational and technical approaches, steering and sustaining individuals to overcome challenges. Additionally, the path manager also imparts social capital, including networking abilities and autonomy, as well as psychological capital, such as self-confidence and decision-making skills.
La Promenade 's charter serves the dual purpose of preventing mission drift and ensuring consistent commitment within a highly diverse group characterized by various organizational legal forms. On the one side, the foundation overseeing the premises reduces the rental costs, making it financially advantageous for companies to participate in the project. On the other side, these companies must pledge to actively engage in the work integration of young individuals, as well as contribute to socially beneficial activities and adopt an innovative approach to rejuvenate the neighbourhood. The affordability of the rent is facilitated by EU funds secured for the regeneration of the area, transforming it into a hub for social innovation. La Promenade hosts several training and integration schemes in high recruitment sectors. Among them, three are specific schemes to Fondation Formation par la pratique: a first program of integration in the job market aimed at young people in the sector of three housing estates in the Bouches-du-Rhône; a second program, which is a program that trains young people in various sector of activity (e.g., sales and fibre optics); and a third program, which provides support for 16-29-year-old people in obtaining qualifications and employment. Nowadays more than 300 young people have already passed through the La Promenade for work-linked training courses leading to qualifications. The Fondation Formation par la pratique mobilises the whole range of specific tools dedicated to training young people via companies including coworking, urban farm, restaurant, the organic market gardening, the digital services, among others.

*Continuous stakeholder engagement*

Although intensive stakeholder engagement was observed in both cases, it takes different forms in the two contexts.
In the case of the joint venture LINCA the recruitment process involves a partnership with the French unemployment office. In 2018, as part of the national strategy to prevent and combat poverty, the government established the ‘Plateforme de l'inclusion' (Inclusion Platform). This platform aims to simplify job searching for individuals by facilitating connections between those furthest from employment, solidarity employers, and support workers. It provides users with a shared tool to streamline procedures, enhance the fluidity of integration paths among professionals, and improve the overall quality of support for individuals. Another method of recruitment involves a door-to-door approach. Immersed in vulnerable territories, specialized individuals visit people in their homes and community spaces. They engage with local stakeholders, contributing to the ecosystem of the territory.

The goal is to collaborate with individuals who may have been overlooked by public policies, providing them with an opportunity to enter the labour market.

Furthermore, to support the new workers employed in the co-enterprise LINCA, the WISE La Montagne also gives access to another initiative internally developed and not related to this specific co-enterprise. This action consists of an innovative approach to recruitment focuses on exploring and evaluating talents based on soft skills. The action unfolds in three steps: (i) identifying individuals under the radar through field coaches, instilling a desire for change in everyone; (ii) creating meaningful experiences between recruiters and candidates within new projects; and (iii) engaging local companies in these projects.

Both organizations have recognized the significance of forging relationships with public authorities. La Montagne employs a proactive approach by reaching out to individuals in disadvantaged areas door-to-door, ensuring a direct link with job centres for validation. By contrast, La Promenade relies on the selection process directly
managed by job centres. Meanwhile, La Promenade 's agreement requires private
companies to commit to employing and training local and disadvantaged people,
fostering economic and social impact in the area. The main challenge for La Promenade
is to involve businesses more and better in order to create jobs on the site. La
Promenade is also developing local links with local residents and visitors and creating
new services, such as the day-care centre. La Promenade is set to become a destination
for training and leisure activities, as well as being recognised for the quality of its
catering. At the same time, La Promenade is expanding its local partnerships with the
Chamber of Commerce and Industry (CCI), local institutions and ‘Medef -Mouvement
des Entreprises de France’ (the French Business Movement).

La Promenade emphasizes the importance of personal relationships in
comprehending a challenging sector. Its focus on creating a network within the
community, supported by organizations like ASHOKA, is crucial in overcoming the
fragmentation of small organizations operating with different legal forms. This network
helps in finding suitable work integration partners and contributes to the long-term
impact on local entrepreneurship ecosystems.

The collaborative workspace fosters a sense of community within the local
entrepreneurship ecosystem, promoting sustainable business growth.

Conclusion

Against the backdrop of conventional labour market strategies, the two case studies
analysed in this article illuminate a different path—one forged through CSPs. Our work
has highlighted two aspects: the impact of these partnerships at the individual,
community, and policy level, on the one hand and, on the other hand, the organizational
challenges, and the risk for mission drift, based on the tensions observed, namely
divergent objectives, varying timelines and expectations, operational differences,
measurement of success and financial disparities.

CSPs contribute to the development of practical skills but also provide a steppingstone for individuals to access opportunities within well-established companies. One of the objectives of the partnership is to make the workers even more independent of the outside world, thanks to a contract with a conventional company, which could have a more positive impact on the professional life of the person, to look for a new job later. Individuals seem to come out strengthened from these pathways, thanks to the new skills they have acquired, rather individualised support, and the legitimacy of private company that puts its name on it. Going through the traditional company allows the worker to have in his CV an experience which has an added value not only in terms of new skills, but also in terms of a higher visibility in the labour world. Secondly, at the level of territorial development, CSPs may represent a great opportunity. By challenging preconceptions and embracing innovative practices, social enterprises become powerful agents of change.

La Montagne and La Promenade exemplify the transformative power of holistic approaches in merging social and professional elements to revitalize individuals and communities. In the case of La Promenade, the innovative organizational setting permits to align the mission of charter member organizations towards the objective of contributing to long-term sustainable development of the local area, which includes the creation of new and stable jobs, while continuing pursuing their commercial objectives.

La Promenade also continues through events and initiatives to try to expand the community of participating companies, and in so doing to create new job opportunities.

In the case of La Montagne, the alliance with private giants like PARCOURS exemplifies the potential for social enterprises to broker relationships that extend beyond the traditional confines of labour market interventions. In addition, La
Montagne, with their recruitment tools, through a door-to-door activity, goes directly into the most disadvantaged neighbourhoods, in search of people who might be interested in their placement programmes. Thirdly, by navigating relationships with public authorities, private actors, and fostering a social entrepreneurship mindset, these organizations pave the way for sustainable job market integration. Despite facing barriers, their innovative models offer valuable insights into the future of inclusive and impactful initiatives. Their efforts go beyond immediate employment, aiming to create sustainable models that redefine the relationship between business and social mission. Through these endeavours, they set the stage for a transformative narrative where partnerships become the linchpin for inclusive job market integration, breaking down barriers that have long hindered the progress of disadvantaged individuals.

Concerning the organisational dynamics, as illustrated by the case studies, social enterprises can act as catalysts for collaboration between private actors and public authorities. By bridging the gap between different sectors, they create synergies that enhance the effectiveness of transitional initiatives. However, CSPs are not always easy. For example, for the LINCA case, the co-enterprise model, while innovative, comes with bureaucratic challenges and demands a high level of reporting. Not all WISEs may be equipped to navigate this demanding process, requiring a solid and trained structure for successful joint ventures. Despite shared spaces and overarching goals, La Promenade faces challenges in getting diverse organizations to collaborate effectively. Overcoming this hurdle requires a special figure to facilitate communication, understand mutual needs, and foster a supportive environment for diverse economic activities to thrive together.

In this article we observed the emergence of five specific tensions that can put in danger the entire partnership, and weakening the WISE organisational identities, due to
different logics. To solve these tensions, the CSPs' actors provide themselves with a toolbox consisting of five instruments: governance structure, process of selection of partners, clear mission articulation, continuous internal and external stakeholders' engagement, which partially protects organisations from the risk of mission drift. These elements are not static, and tensions can change over time, which is why these tools must be imagined and applied in a networked manner and readapted to the different moments in the life of the CSP member organisation.

In conclusion, the exploration of CSPs through the lens of institutional logics presents a way to enhance the understanding of institutional complexity, and the dynamics leading to mission drift. However, from a more pragmatic point of view, we consider that these results can also be useful to actors on the ground, managers at firms, WISEs and public authorities, to decide what activities to implement to deal with this complexity, create lasting partnerships and embrace a transformative narrative for inclusive job market integration at different levels. While the path to successful CSPs may be challenging, the insights from these case studies offer valuable lessons for the future of collaborative, inclusive initiatives that transcend traditional barriers hindering the progress of individuals facing significant challenges to enter in the job market.

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