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Measuring sustainability in social enterprises: Development and validation of a multi-dimensional framework
Fouzia Yasmin1, Muhammad Abid Saleem2, David Low1
1Faculty of Arts and Society, Charles Darwin University, Australia.
Acta Psychologica
|February 16, 2025
Summary
This study developed a validated scale to measure the sustainability performance of social enterprises (SEs), crucial for achieving Sustainable Development Goals (SDGs). The new tool helps SEs enhance their impact and contributions to global sustainability efforts.
Area of Science:
- Social Entrepreneurship
- Sustainability Science
- Business Management
Background:
- Social enterprises (SEs) are vital for Sustainable Development Goals (SDGs) but lack validated tools to measure their sustainability performance.
- This deficit hinders SEs' capacity to drive transformative change and achieve SDG targets.
Purpose of the Study:
- To develop and validate a multidimensional scale for measuring the sustainability performance of social enterprises.
- To provide SEs with a tool to enhance their operational efficiency and SDG contributions.
Main Methods:
- Utilized a three-phase methodology (Churchill, 1979) involving literature review, qualitative analysis, and expert validation.
- Employed exploratory factor analysis (EFA) on 149 SEs and confirmatory factor analysis (CFA) on 435 SEs for scale refinement and validation.
Main Results:
- Developed a 36-item, five-dimensional scale (social, economic, environmental, political, governance) for SE sustainability performance.
- Confirmed scale reliability (Cronbach's alpha > 0.7), convergent validity (AVE > 50%), and discriminant validity (HTMT < 0.85).
Conclusions:
- The validated scale offers a robust tool for assessing SE sustainability performance.
- Empowers SEs to optimize operations, strengthen impact, and improve contributions to the SDGs.
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