Institutional Motivations for Conversion from Public Sector Unit to a Social Business: The Case Study of Burgundy School of Business in France

Abstract

Based on a qualitative single case study with eight interviews, this study lays the foundation for literature on the motivation for transforming from a quasi-governmental entity to a social business. The context of this case study is a spin off of business schools from the French chambers of commerce and industry. This spin off was encouraged by enabling legislation that allowed assets specific to business schools to be transferred without taxes and fees if they adopted this legal business form. This case study is on the Burgundy School of Business, one of the seven schools that have adopted the regime. The school is also a member of the Principles of Responsible Management in Education. This case study suggests that the motivation for adopting a social business form could be institutional rather than personal. International rankings influence country legislation and business form adoption in a competitive industry. This case also discusses why the school has intentionally decided not to go for a digital transformation of its core business model. This case leads to theoretical propositions that consider the conditions under which public sector enterprises may spin off units as social businesses focused on their beneficiaries, and the control mechanisms that need to be instituted by the parent enterprise.