Social Housing Organisations in England and The Netherlands: Between the State, Market and Community
Rapid and deep changes in society, the economy and policy over the last decades are having an increasing impact on the delivery of social housing in North Western Europe. These changes are transforming the way in which social housing providers perform their task and are reshaping their relationships with the State, communities and with other market actors. The combination of continued State withdrawal from service provision, the deep and persistent effects of the global financial crisis that begun in 2008 and profound changes in the type of demand for social housing across North Western Europe call for a reflection on the implications of these phenomena for social housing providers. Several studies indicate that social housing providers in Europe have begun to adopt new (social) entrepreneurial strategies and are becoming more innovative as a response to these challenges. These strategies imply tackling the tensions between (at times) conflicting drivers, notably those arising from the State, the market and communities. However, research in this topic so far is fragmented, focussing on one country or on specific sub-areas such as asset management and non- housing activities and rarely connects with the relevant wider literature on the third sector and social enterprise. Within this context, this PhD research has sought to widen this discussion by providing new insights through a comparative study of the ways in which individual social housing providers are relating to (i.e. responding to and influencing) these contextual changes. More specifically, the research sought to better understand the complex process of decision-making these companies undergo to manage their responses to competing drivers. Companies operating in two countries (England and The Netherlands) were studied in-depth. In both countries, the social rental sector has played a prominent role in their respective welfare states for decades. While both are amongst countries with the highest share of social rental housing in Europe, each represents a different type of welfare state and of social housing provision - following Kemeny’s classification, a unitary system (the Netherlands) and a dualist system (England). The broad aim of this PhD was to deepen the understanding of the ways in which contextual drivers impact on the mission, values and activities of social housing organisations. Furthermore, the study sought to understand how these organisations are positioning themselves vis-à-vis the State, market and community. The above aims translate into three research questions: (1) How are contextual developments impacting on the missions, values and activities of social housing organisations? (2) How do these organisations position themselves vis-à-vis the State, the market and community? and (3) How are competing values enacted in the decision-making process exercised by these organisations vis-à-vis these contextual drivers? The universe for this PhD research consists of social purpose organisations, not owned by the State, which operate on a non-profit distribution basis. Together they are part of a wide range of ‘third sector’ actors providing social and affordable housing across most of North Western Europe. The PhD adopted a pluralistic epistemological approach with an interpretivist emphasis, with significant use of qualitative research methods. This approach was deemed useful to give a voice to the subject(s) of study. The research design included a mixed methods approach and a longitudinal, international and inter-organisational case study research design, involving two company-cases. The companies were studied over a four-year period, starting in March 2008. The research design and data analysis draws on elements of grounded theory, and on the work of Eisenhardt on ‘building theory from cases’. Following this approach, a series of ‘theoretical propositions’ were devised from the study’s findings in order to answer each of the three research questions. In relation to the first research question, the study found that contextual developments and the missions, values and activities of social housing organisations are in a two-way relationship. From an initial assumption of unidirectional causality, in the process of the research it became clear that the relationship between contextual developments and organisational change is more often than not one of mutual causality. We qualified this relationship through six propositions. First, we posited that market and State drivers have a relatively stronger impact on social housing organisations as compared to community drivers. Second, we postulated that both market and State drivers have a knock-on effect on community drivers. Third, we established that State drivers pose continuous exogenous shocks to social housing providers by means of constant policy changes. Our fourth proposition stated that in a context of economic crisis the relationship between market drivers and social housing organisations is marked by volatility. Our fifth proposition established that all three types of contextual drivers are reinforcing the long-term trend of deepening residualisation of the social housing sector. The sixth proposition emphasizes the long-term mutually shaping relationship between context and social housing organisations. Findings on the second research question led us to describe the positioning of social housing organisations vis-à-vis their environment as a ‘dynamic balancing act’. In order to understand the way(s) in which social housing organisations position themselves in relation to changes in their environment we drew on theories of social enterprise and hybridity to unpack three ideal-typical strategic orientations that may be at play in this process: State, market and community. We adopted a triangular model to illustrate these orientations and developed a classification model to understand the ‘strategic position’ that these organisations adopt vis-à-vis their environment. We looked at three different dimensions of this strategic position, namely mission, values and activities, each captured by a different type of variables in the classification: ‘descriptor’ (to capture the formal characteristics of the organisation), ‘motivator’ (as related to the organisation’s mission), and ‘behaviour’ (referring to the organisation’s activities). Upon applying this classification to our case studies, our findings resulted in three propositions. First, it became clear that while descriptor variables confirmed the hybrid formal characteristics of social housing organisations, they do not account on their own for their position in relation to State, market and community. Our second proposition stated that social housing organisations are constantly balancing pressures to (re)define their mission. Our study found that in this process, each company is faced with trade-offs when considering their organisational mission in relation to a changing mandate from the State domain, while at the same time weighing demands from the market and community domain. Third, we posited that social housing organisations exert different degrees of agency in their positioning vis-à-vis the State, market and community. We identified a continuum of actions that these organisations have put in place to respond to key contextual changes, ranging from ‘reactive’ to ‘proactive’ and ‘strategic’. Hence, social housing organisations would have the capacity to shape their environment and / or at least, their position in relation to this environment. On our third research question, we found that enacting competing values in social housing organisations implies multiple rationalities at play in decision-making. The PhD research used the study of a critical incident in each company to describe the ways in which competing values are enacted in the decision-making process of these organisations in relation to the three types of contextual drivers. In each case, a critical incident was chosen in conjunction with the companies to be studied over a prolonged period of time. Both incidents turned out to be of regulatory nature (i.e. State-driven); in the English case, it was the Comprehensive spending review (CSR) announced in October 2010 and a series of major welfare reforms implemented by the coalition government. In the Netherlands, the Dutch government ruling on the issue of State aid by housing associations implemented in January 2011. The companies’ responses to these critical incidents, respectively, were operationalised through a ‘strategic decision’ made by each of them vis-à-vis these events, defined as a decision recognised as having significant implications for the structure, direction or purpose of an organisation. The English company defined their strategic decision as the impact on the company’s vision, direction, strategy and financial capacity of the October CSR and the shake-up in the welfare benefit system. More specifically, the company’s bid to the HCA for the four-year development programme in the first half of 2011 formed the basis for the study of this critical incident. The strategic decision of the Dutch company was whether to follow the Dutch government’s ruling on income ceilings or not. Furthermore, the company had to decide how to re-organize its financing in order to comply with the required administrative split between activities classified as ‘Services of General Economic Interest’ (SGEI) and ‘non SGEI’. The study of these critical incidents looked at the decision-making process from both a formal and content perspective, distinguishing motivator and behaviour variables in the process. In terms of form, we found that different modes of decision-making co-exist in the process. Participants in each company use a variety of ‘political tactics’ to influence the decision-making process. Taken
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