The Role of Development Oriented Non-Governmental Organizations in Creating Shared Value in the Educational Sector of Ghana: The Mediating Role of Basic Needs
- 42 Downloads
This paper employed a structural equation modeling technique to investigate how Development Oriented Non-Governmental Organizations (DONGOs) could complement government efforts through the concept of shared value creation in the educational sector of Ghana. To address this objective, we analyzed whether DONGOs could create shared value by pursuing both social and economic objectives and also how the growing basic needs of education could influence these relationships. The study concluded that basic needs fully mediate social value to shared value and partially mediate economic value to shared value. Moreover, the study revealed that economic value to shared value creation is statistically significant and also demonstrated a positive and significant relationship between social value and shared value. The results further indicate that basic needs have a positive and significant relationship with shared value.
KeywordsCreation of shared value (CSV) Social value Economic value Basic needs Development Oriented Non-Governmental Organizations (DONGOs)
This work is sponsored by Chinese National Fund “Research on the Formation and Governance Mechanisms of Enterprise Open Innovation Ecosystem” (15BGL032).
Compliance with Ethical Standards
Conflict of interest
The authors declare no conflict of interest.
All procedures performed in this study were in accordance with the ethical standards of the institutional and/or national research committee and with the 1964 Helsinki Declaration and its later amendments or comparable ethical standards. The study also complied with the guidelines by Development Oriented Non-Governmental Organizations (DONGOs) and the statutory provisions in Ghana for the conduct of research.
Informed consent was obtained from all individual participants included in the study. Respondents were informed about the objectives of the research and were made to understand that the study is scientific and confidential in nature. The respondents were also made to understand that the study is given a global and anonymous treatment to any data collected. Questionnaire was then administered to respondents who in this case are members of DONGOs to solicit information about the operations of their entities regarding economic and social issues.
- Aheto-Tsegah, C. (2011). Education in Ghana—Status and challenges. Commonwealth Education Partnerships, 27–30. http://www.cedol.org/wp-content/uploads/2012/02/Charles-Aheto-Tsegah-article.pdf.
- Alderfer, C. P. (1969). An empirical test of a new theory of human needs. Organizational Behavior and Human Performance,4(2), 142–175.Google Scholar
- Ametepee, L. K., & Anastasiou, D. (2015). Special and inclusive education in Ghana: Status and progress, challenges and implications. International Journal of Educational Development,41, 143–152.Google Scholar
- Anastasiou, D., & Keller, C. (2011). International differences in provision for exceptional learners. In J. M. Kauffman & D. P. Hallahan (Eds.), Handbook of special education (pp. 770–784). London: Routledge.Google Scholar
- Anastasiou, D., & Keller, C. E. (2014). Cross-national differences in special education coverage: An empirical analysis. Exceptional Children, 80(3), 353–367.Google Scholar
- Asiama, J., Akosah, N., & Owusu-Afriyie, E. (2014). An assessment of fiscal sustainability in Ghana. Bank of Ghana Working Paper, WP/BOG/9, pp. 1–33.Google Scholar
- Austin, J. E., Stevenson, H., & Wei-Skillern, J. (2006). Social and commercial entrepreneurship: Same, different, or both?”. Entrepreneurship Theory & Practice,30, 1–22.Google Scholar
- Baraka, D. (2010). Corporations and the third sector: Responsible marriages at last? Journal of Global Responsibility,1(1), 34–54.Google Scholar
- Barclay, D., Higgins, C., & Thompson, R. (1995). The partial least squares (pls) approach to casual modeling: Personal computer adoption and use as an illustration. Technological Studies, 2(2), 285–309.Google Scholar
- Barling, J., & Fincham, F. (1979). Maslow’s need hierarchy and dimensions of perceived locus of control. The Journal of Genetic Psychology,134(2), 313–314.Google Scholar
- Barney, J. B. (2002). Gaining and sustaining competitive advantage (2nd ed.). Upper Saddle River, NJ: Prentice-Hall.Google Scholar
- Bosch-badia, M. T., Montllor-serrats, J., & Tarrazon, M. A. (2013). Corporate social responsibility from Friedman to Porter and Kramer. Theoretical Economics Letters,3(June), 11–15.Google Scholar
- Braimah, I., & Oduro-Ofori, E. (2005). Basic school dropout in Ghana: a case study of the Amansie West district. Journal of Science and Technology (Ghana),25(1), 67–76.Google Scholar
- Brandsen, T., & Vrielink, M. O. (2010). Non-profit organisations, democratisation, and new forms of accountability: A preliminary evaluation. In Social accounting and public management (pp. 104–116). Routledge.Google Scholar
- Buttle, F. (1989). The social construction of needs. Psychology & Marketing,6(3), 197–210.Google Scholar
- Carmines, E. G., & Zeller, R. A. (1979). Reliability and validity assessment (Vol. 17). Thousand Oaks: Sage.Google Scholar
- Castro, G. M., Delgado-verde, M., Navas-lópez, J. E., & Cruz-gonzález, J. (2013). The moderating role of innovation culture in the relationship between knowledge assets and product innovation. Technological Forecasting and Social Change,80(2), 351–363. https://doi.org/10.1016/j.techfore.2012.08.012.CrossRefGoogle Scholar
- Chin, W. W. (1998). The partial least squares approach to structural equation modeling. Modern Methods for Business Research,295(2), 295–336.Google Scholar
- Christiansen, N. (2014). Business initiatives that overcome rural poverty and marginality through creating shared value. In J. V. Braun & F. W. Gatzweiler (Eds.), Marginality: Addressing the nexus of poverty, exclusion and ecology (pp. 1–389). Basel: Springer. https://doi.org/10.1007/978-94-007-7061-4.CrossRefGoogle Scholar
- Costanza, R., Fisher, B., Ali, S., Beer, C., Bond, L., Boumans, R., et al. (2007). Quality of life: An approach integrating opportunities, human needs, and subjective well-being. Ecological Economics,61(2–3), 267–276.Google Scholar
- Darby, L., & Jenkins, H. (2006). Applying sustainability indicators to the social enterprise business model: The development and application of an indicator set for Newport Wastesavers, Wales. International Journal of Social Economics,33(5/6), 411–431.Google Scholar
- Day, G. S., & Day, G. S. (1990). Market driven strategy: Processes for creating value. New York: Free Press.Google Scholar
- Dees, J. G., & Anderson, B. B. (2006). Framing a theory of social entrepreneurship: Building on two schools of practice and thought. Research on Social Entrepreneurship: Understanding and Contributing to an Emerging Field,1(3), 39–66.Google Scholar
- Defourny, J., Hulgard, L., & Pestoff, V. (2010). Social enterprise, social entrepreneurship, social economy, solidarity economy: An EMES reader on the “SE field”. Liege: EMES.Google Scholar
- Denning, S. (2011). Why “shared value” can’t fix capitalism. Forbes,12, 20.Google Scholar
- Di Zhang, D., & Swanson, L. A. (2013). Social entrepreneurship in nonprofit organizations: An empirical investigation of the synergy between social and business objectives. Journal of Nonprofit & Public Sector Marketing,25(1), 105–125.Google Scholar
- Doyal, L., & Cough, I. (1991). A theory of human need. Houndmills: Macmillan.Google Scholar
- Emerson, J., & Twersky, F. (1996). New social entrepreneurs: The success, challenge and lessons of non-profit enterprise creation. The Homeless Economic Fund, the Roberts Foundation.Google Scholar
- Epstein, M. J., & Yuthas, K. J. (2012). Redefining education in the developing world: A new approach that builds relevant marketplace, entrepreneurship, and health care skills is needed. Stanford Social Innovation Review. http://pdxscholar.library.pdx.edu/busadmin_fac
- Epstein-Reeves, J. (2012). What is ‘Creating Shared Value. Forbes: THe CSR Blog.Google Scholar
- Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50.Google Scholar
- Gedzi, V. S., Peprah, D. A., & Cofie, E. N. K. (2018). NGOs, spirituality and community development in Northern Ghana: Challenges and sustainability. Journal of African Political Economy and Development,3(1), 108–126.Google Scholar
- Gefen, D., Straub, D. W., & Boudreau, M.-C. (2000). Structural equation modeling and regression: Guidelines for research practice. Communications of the Association for Information Systems, 4(7). http://aisel.aisnet.org/cais/vol4/iss1/7.
- Gotoh, R., & Yoshihara, N. (2003). A class of fair distribution rules a la Rawls and Sen. Economic Theory,22(1), 63–88.Google Scholar
- GPRS. (2003). Ghana poverty reduction strategy (2003–2005), An Agenda for growth and prosperity—Vol. 1. Analysis and policy statement 2003 (Vol. 1). Accra Ghana: Accra Printing Office.Google Scholar
- Gyimah-Boadi, E. (2004). Democratic reform in Africa: The quality of progress. Boulder: Lynne Rienner Publishers.Google Scholar
- Hair, J. F., Jr., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2016). A primer on partial least squares structural equation modeling (PLS-SEM). Thousand Oaks: Sage.Google Scholar
- Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing Theory and Practice,19(2), 139–152.Google Scholar
- Hair, J. F., Sarstedt, M., Pieper, T. M., & Ringle, C. M. (2012a). The use of partial least squares structural equation modeling in strategic management research: A review of past practices and recommendations for future applications. Long Range Planning, 45(5–6), 320–340.Google Scholar
- Hair, J. F., Ringle, C. M., Sarstedt, M. (2013). Partial least squares structural equation modeling: Rigorous applications, better results and higher acceptance. Long Range Planning, 46(1–2), 1–12.Google Scholar
- Howard, J. A., & Sheth, J. N. (1969). The theory of buyer behavior. New York, London: Routledge.Google Scholar
- Hoyle, R. H. (2012). Handbook of structural equation modeling. New York: Guilford Press.Google Scholar
- Hull, C. L. (1943). Principles of behavior: An introduction to behavior theory. Yale University, New Haven. New York & London: Appleton-Century. https://doi.org/10.1001/jama.1944.02850020061030
- Imoro, B. (2009). Dimensions of basic school dropouts in rural Ghana: The case of Asutifi District. Journal of Science and Technology (Ghana),29(3), 72–85.Google Scholar
- Kasser, T. (2003). The high price of materialism. Cambridge: MIT Press.Google Scholar
- Koltko-Rivera, M. E. (2006). Rediscovering the later version of Maslow’s hierarchy of needs: Self-transcendence and opportunities for theory, research, and unification. Review of General Psychology,10(4), 302.Google Scholar
- Korhonen, H. (2013). Organizational needs: A co-creation and human systems perspective. jbm: Journal of Business Market Management,6(4), 214–227.Google Scholar
- Kramer, H., & Tallant, W. B. (2013). The new role of business in global education. How companies can create shared value by improving education while driving shareholder returns. Harvard Business Review, 1–25. http://sharedvalue.org/new-role-business-global-education.
- Leandro, L., & Neffa, E. (2012). Is the integration of Shared Value Creation (SVC) with strategy management of productive organizations an innovative approach to environmental challenges faced by companies today. International Journal of Business Management & Economic Research,3(2), 484–489.Google Scholar
- Lecy, J. D., & Searing, E. A. M. (2015). Anatomy of the nonprofit starvation cycle: An analysis of falling overhead ratios in the nonprofit sector. Nonprofit and Voluntary Sector Quarterly,44(3), 539–563.Google Scholar
- Lepoutre, J., Justo, R., Terjesen, S., & Bosma, N. (2013). Designing a global standardized methodology for measuring social entrepreneurship activity: the Global Entrepreneurship Monitor social entrepreneurship study. Small Business Economics,40(3), 693–714.Google Scholar
- Lozano, R. (2012). Towards better embedding sustainability into companies’ systems: An analysis of voluntary corporate initiatives. Journal of Cleaner Production,25, 14–26.Google Scholar
- Lozano, R., & Huisingh, D. (2011). Inter-linking issues and dimensions in sustainability reporting. Journal of Cleaner Production,19(2), 99–107.Google Scholar
- Mair, J., & Marti, I. (2006). Social entrepreneurship research: A source of explanation, prediction, and delight. Journal of World Business,41(1), 36–44.Google Scholar
- Malena, C. (1995). Working with NGOs—A practical guide to operational collaboration between The World Bank and Non-Governmental Organizations. NGO Unit, World Bank (March), 1–129. http://documents.worldbank.org/curated/en/814581468739240860/pdf/multi-page.pdf.
- Maltz, E., Thompson, F., & Ringold, D. J. (2011). Assessing and maximizing corporate social initiatives: A strategic view of corporate social responsibility. Journal of Public Affairs,11(4), 344–352.Google Scholar
- Maslow, A. H. (1943). A theory of human motivation. Psychological Review,50(4), 370.Google Scholar
- Maslow, A. H. (1967). A theory of metamotivation: The biological rooting of the value-life. Journal of Humanistic Psychology,7(2), 93–127.Google Scholar
- Max-Neef M. (1992). Development and human needs. In P. Ekins & M. Max-Neef (Eds.), Real-life economics: Understanding wealth creation (pp. 97–213). London: Routledge.Google Scholar
- McMullen, J. S., & Bergman, B. J., Jr. (2017). Social entrepreneurship and the development paradox of prosocial motivation: A cautionary tale. Strategic Entrepreneurship Journal,11(3), 243–270.Google Scholar
- McWilliams, A., & Siegel, D. S. (2011). Creating and capturing value: Strategic corporate social responsibility, resource-based theory, and sustainable competitive advantage. Journal of Management,37(5), 1480–1495.Google Scholar
- Memili, B. E., Fang, H. C., Welsh, D. H. B., Creation, D. H. V., & Appropriation, V. (2015). Value creation and value appropriation in innovation process in publicly-traded family firms. Management Decision,53(9), 1921–1952.Google Scholar
- Moon, H., Parc, J., Yim, S. H., & Park, N. (2011). An extension of Porter and Kramer’ s creating shared value (CSV): Reorienting strategies and seeking international cooperation. Journal of International and area studies,18(2), 49–64.Google Scholar
- Mundy, K., & Murphy, L. (2001). Transnational advocacy, global civil society? Emerging evidence from the field of education. Comparative Education Review,45(1), 85–126.Google Scholar
- Nair, P. (2004). India: Desk study of non-state providers of basic services. Birmingham: International Development Department, School of Public Policy, University of Birmingham.Google Scholar
- Nation United. (2000). World summit on millennium development goals. Retrieved April 7, 2019 fromhttp://www.un.org/millenniumgoals.
- Neale, J. (1997). Homelessness and theory reconsidered. Housing Studies,12(1), 47–61.Google Scholar
- Nicosia, F. M. (1968). Advertising management, consumer behavior, and simulation. Journal of Advertising Research,8(1), 29–37.Google Scholar
- Nunnally, J. C. (1978). Psychometric theory. New York: McGraw-Hill. http://www.books24x7.com/marc.asp?bookid=16469.
- Nussbaum, M. C. (2004). Beyond the social contract: Capabilities and global justice. An Olaf Palme lecture, delivered in Oxford on 19 June 2003. Oxford Development Studies,32(1), 3–18.Google Scholar
- Nussbaum, M. C., & Glover, J. (1995). Women, culture, and development: A study of human capabilities. Oxford: Oxford University Press.Google Scholar
- Pearce, S. M. (1994). Interpreting objects and collections. London: Psychology Press.Google Scholar
- Peteraf, M. A., & Barney, J. B. (2003). Unraveling the resource-based tangle. Managerial and Decision Economics,24(4), 309–323.Google Scholar
- Pfitzer, M., Bockstette, V., & Stamp, M. (2013). Innovating for shared value. Havard Business Review (September). http://web.b.ebscohost.com.esc-web.lib.cbs.dk/ehost/pdfviewer/pdfviewer?sid=cb5e15bf-3e99-4b50-a5ab-c8f70cd66f65%40sessionmgr115&vid=1&hid=121.
- Phills, J. A., Deiglmeier, K., & Miller, D. T. (2008). Rediscovering social innovation. Stanford Social Innovation Review,6(4), 34–43.Google Scholar
- Polites, G. L., Roberts, N., & Thatcher, J. (2012). Conceptualizing models using multidimensional constructs: A review and guidelines for their use. European Journal of Information Systems,21(1), 22–48.Google Scholar
- Porter, M. E., Hills, G., Pfitzer, M., Patscheke, S., & Hawkins, E. (2012). Measuring shared value–how to unlock value by linking business and social results. Foundation Strategy Report. Cambridge, Massachusetts.Google Scholar
- Porter, M. E., & Kramer, M. R. (2011b). The big idea: Creating shared value. How to reinvent capitalism—and unleash a wave of innovation and growth. Harvard business Review.Google Scholar
- Porter, M. E., & Kramer, M. R. (2014). A response to Andrew Crane et al.’s article. California Management Review,56(2), 149–151.Google Scholar
- Reinartz, W., Haenlein, M., & Henseler, J. (2009). An empirical comparison of the efficacy of covariance-based and variance-based SEM. International Journal of Research in Marketing,26(4), 332–344.Google Scholar
- Reyes Jr, G., Scholz, M., & Smith, N. C. (2017). Beyond the “Win-Win” creating shared value requires ethical frameworks (No. 2016/67/ATL/ISIC). California Management Review (Vol. 59). Sage, Los Angeles, CA: SAGE Publications. http://ssrn.com/abstract=2848192.
- Rose, P. (2007a). Consortium for research on educational access, transitions and equity supporting non-state providers in basic education service delivery research monograph No 4. Access.Google Scholar
- Sayed, Y., & Soudien, C. (2003). (Re) framing education exclusion and inclusion discourses: Limits and possibilities. IDS Bulletin,34(1), 9–19.Google Scholar
- Schmitt, J., & Renken, U. (2012). How to earn money by doing good! Shared value in the apparel industry (pp. 79–103). Erlangen: University of Erlangen-Nuremberg.Google Scholar
- See, G. (2009). Harmonious society and Chinese CSR: Is there really a link? Journal of Business Ethics,89, 1–22.Google Scholar
- Simmel, G. (1978). The philosophy of money (T. Bottomore and D. Frisby, Trans.). London: Routledge & Kegan Paul, 236, 232.Google Scholar
- Slaper, T. F., & Hall, T. J. (2011). The triple bottom line: What is it and how does it work. Indiana Business Review, 86(1), 4–8.Google Scholar
- Steinar, Alf Benum, J. D., & Gjærum, I. (2016). Innovation and shared value creation: Balancing the tensions between short term exploitation and long-term sustainability. Norway. https://sisvi.no/
- Swanson, L. A., & Di Zhang, D. (2010). The social entrepreneurship zone. Journal of Nonprofit & Public Sector Marketing,22(2), 71–88.Google Scholar
- Teegen, H., Doh, J. P., & Vachani, S. (2004). The importance of nongovernmental organizations (NGOs) in global governance and value creation: An international business research agenda. Journal of International Business Studies,35(6), 463–483. https://doi.org/10.1057/palgrave.jibs.8400112.CrossRefGoogle Scholar
- Thompson, J., & Doherty, B. (2006). The diverse world of social enterprise: A collection of social enterprise stories. International Journal of Social Economics,33(5/6), 361–375.Google Scholar
- Thompson, J. D., & MacMillan, I. C. (2010). Business models: Creating new markets and societal wealth. Long Range Planning,43(2–3), 291–307.Google Scholar
- Unesco. (2003). Gender and education for all: The leap to equality. EFA global monitoring summary report. Paris: Author.Google Scholar
- UNESCO. (2009). The role and impact of NGOs in capacity development from replacing the state to reinvigorating education. In U. Inger Ulleberg (Ed.). Paris: International Institute for Educational Planning.Google Scholar
- UNESCO. (2018). Global education monitoring report: Gender review—Meeting our commitments to gender equality in education. Paris 07 SP, France: United Nations Educational, Scientific and Cultural Organization.Google Scholar
- United Nations. (2003). NGO committee concludes 2002 resumed session, with final recommendations on economic and social council consultative status. http://www.un.org/News/Press/docs/2003/ngo494.doc.htm.
- Vakil, A. C. (1997). Confronting the classification problem: Toward a taxonomy of NGOs. World Development,25(12), 2057–2070.Google Scholar
- Van Marrewijk, M. (2003). Concepts and definitions of CSR and corporate sustainability: Between agency and communion. Journal of Business Ethics,44(2–3), 95–105.Google Scholar
- Weerawardena, J., McDonald, R. E., & Mort, G. S. (2010). Sustainability of nonprofit organizations: An empirical investigation. Journal of World Business,45(4), 346–356.Google Scholar
- Weerawardena, J., & Mort, G. S. (2006). Investigating social entrepreneurship: A multidimensional model. Journal of World Business,41(1), 21–35.Google Scholar
- White, S. (1996). Needs, labour, and marx’s conception of justice. Political Studies,44(1), 88–101.Google Scholar
- World Bank. (2010). Education in Ghana improving equity, efficiency and accountability of education service delivery document of the World Bank. Washington, DC: World Bank. http://documents.worldbank.org/curated/en/103961468029950786/Education-in-Ghana-improving-equity-efficiency-and-accountability-of-education-service-delivery.
- Yunus, M. (2007). The Nobel peace prize 2006-Nobel lecture. Law and Business Review of the Americas,13, 267.Google Scholar