How to Measure the Performance of Social Innovation? Case Study of Hungarian Social Cooperatives

Abstract

Innovation is a key element of economic development and a key factor in social processes. Technological and economic innovations cannot respond to all social challenges. However, innovation - the search for new and innovative solutions - needs to be interpreted more broadly than before. In line with social changes, the European Union pays more attention to the context of social innovation. The social enterprises play a vital role in modern societies. The subject of our study is social cooperatives, which are a type of social enterprise. The social cooperatives offer an opportunity to improve the employment skills. However, the management of this enterprises faces several dilemmas how can build up an effective control system of a social enterprises in Central-Europe. As our questionnaire stated, the major problem of social cooperative is the quality of available labour force. This paper focuses the applicability of the traditional Balanced Scorecard system to the special needs of a social cooperative. Here one area of the Balances Scorecard will be highlighted – the Human Resource management and how the tools can be effectively adapted to the social cooperatives. A report system and a ratio analysis tool are developed to help the work of social cooperative managers. The focus of this paper research question how can improve the monitoring of Human Resource Management in social enterprises like social cooperatives. In the introduction part of this paper the importance of social innovation is emphasized, and a brief introduction to the development of controlling tools is provided. Next, part of our broader questionnaire is presented to highlight the importance of Human Resource Management in the Hungarian social cooperatives. In the discussion part a special BSC is presented which is based on Bull’s social enterprise Business Scorecard system. The Human Resouce Management should consider the regulatory requirements of granting authority, so these are briefly introduced. Finally, some indicators and tables are presented which can help the Human Resource Management in a social innovation enterprise.