Purpose – This study aims to identify the key factors that lead to organizational learning through evaluation processes in social businesses. The research highlights how evaluation practices contribute to learning and the necessary conditions for this learning to occur within social enterprises.
Theoretical framework – The research is grounded in organizational learning and social business evaluation theories, focusing on how these frameworks apply to social enterprises seeking sustainable impact.
Design/methodology/approach – A multiple case study methodology was used. The study analyzed 13 organizations, including social businesses, investment funds, and an evaluation organization, through six case studies. Data were collected via interviews and document analysis, focusing on how evaluation practices influence organizational learning.
Findings – The study reveals that evaluation fosters organizational learning when at least one of the following conditions is met: strong partnerships between investors and the business, full involvement of the team in the evaluation process, continuous interaction with customers, and investor-driven demand for relevant indicators.
Practical & social implications of research – This study contributes to improving evaluation practices in social businesses, especially in developing countries. The findings suggest that tailored methodologies can enhance the ability of social businesses to learn from evaluations, potentially leading to more sustainable social impact.
Originality/value – The research offers a unique contribution to understanding how evaluation processes can drive organizational learning in social enterprises. It identifies practical factors that enable this learning, contributing to the advancement of both theory and practice in the field of social business.