Refugee Talent Hub researched: an analysis of how the path of a young civil society organization is defined

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Refugee Talent Hub researched:

An analysis of how the path of a young civil society organization is

defined

Claudia Evers s1248898 Public Administration Economics and Governance

Supervisor dr. C.H.J.M. Braun

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Chapter 1: Introduction

It’s the year 2015 when the enormous consequences of the conflicts in Syria become clear. Human displacement is then reaching its peak with close to 5 million Syrians seeking refuge worldwide (UNHCR, 2015). Even though The Netherlands is not considered a ‘top host’ according to UNHCR (2015), the intake of refugees was significantly higher than years before. In October 2015 alone, about 5,000 Syrian refugees apply for asylum in The Netherlands (VWN, 2016).

As the number of refugees arriving in The Netherlands increased, so did the number of initiatives that seeks to support them (VWN, 2016). Initiatives vary from volunteers that teach refugees the Dutch language to organizations that aim to improve a refugees’ IT skills. As Ban Ki Moon, Secretary General of the United Nations stated, “this is not just a crisis of numbers; it is also a crisis of solidarity.” (UNHCR, 2015) With his remark on forced displacement, he stresses the need to approach resettlement in a sustainable manner. It’s not just about giving a refugee a place to be safe, it is a host countries’ duty to make a person feel welcome. He further states that when managed properly, it could be beneficial for everyone to accept refugees into their environment. In particular, he stresses how refugees are known to bring dynamism and new skills into ageing labor forces.

This thesis will describe the organizational development of a foundation who shares Ban Ki Moon’s beliefs. This foundation is named the Refugee Talent Hub (RTH). Launched in 2016, the aim of this organization is to bridge the gap that exists between refugee talents and employers. What is special about Refugee Talent Hub, is the fact that it was initially looking to address this societal issue with a digital solution. RTH had created an online database in which employers and refugee talents could register themselves and their qualifications. An especially designed algorithm would then generate a match between these two groups.

The overarching belief of the foundation is that by introducing refugees to the job market, they obtain the chance to integrate socially and economically into the Dutch society. Refugee Talent Hub believes that everybody has a talent and it is the labor market’s job to recognize, acknowledge and develop this talent. The core activity is to realize labor participation for refugees. However, as it will become clear in this research, this is not just a practical matter. A second core activity of Refugee Talent Hub concerns ‘Meaningful Waiting Activities’ or MWAs. During these activities, refugees obtain skills that increase their chances on the labor market. At the same time, these activities are a valuable tool to change the stigma

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that often comes with being a refugee. MWAs invite companies to look past the image of refugees and see them as possible future employees.

The digital solution mentioned before was designed by the founding firm behind RTH: Accenture, a multinational consulting firm. Accenture along with AkzoNobel, Arcadis and Vluchtelingenwerk Nederland (VWN) form the Board of the foundation. Because of their prominent role in the foundation and key funding position, they are also referred to as the ‘Founding Fathers’. The director of the foundation is occupied with the daily management. Important to emphasize is that the societal conditions at the time that RTH was founded were ought to be beneficial for the foundation to flourish. First of all, the labor market was suffering from a lack of employees. Second, there was an enormous group of refugees that could play a part in solving this deficiency whilst integrating into the Netherlands and most importantly: RTH had the unique possible solution to match refugees to possible employers at their disposal. However, as will become clear in the next chapters, RTHs development encountered several drawbacks that made the process of organizational development difficult or even problematic at times. This thesis will present the reader the opportunity to obtain a closer look into the challenges that a young organization like RTH encounters, how these influenced organizational developments and how the foundation aimed to survive these.

Academic relevance and research question

Organizational development in general has been described in varying literature (Brunsson, 1985; Aldrich, 2006; Halpin, 2014). Literature in this field suggests a variety of possible explanations as to how and why organizations thrive and survive. For example, organizations can be defined internally by means of vision (Halpin, 2014) or by organizational entrepreneurs who determine the incentive mix that’s being presented to members (Salisbury, 1969). Externally, factors of importance might for example be successful lobbying (Browne, 1990) or finding a viable niche in which the organization flourishes (Gray & Lowery, 1996). It can also be that the macro-political context in which an organization is active is beneficial (Fraussen, 2014).

The most important knowledge that this thesis can attribute to existing literature, lies in the fact that RTH is a particularly young organization. Mechanisms have been described that point out the importance of age in organizational development (Hannan & Freeman, 1989), as well as concepts that connect age to a higher mortality rate amongst young organizations (Hager et. al, 2004; Stinchcombe, 1965). What is missing from this abundance of research, is an in-depth investigation of how relevant mechanisms play a role on a micro-level. Whilst being

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guided by theoretical expectations that have been identified by previous literature, the goal of this thesis is to answer the question: What defines the path for a young civil society

organization?

This analysis will commence by examining varying factors that influence organizational development according to literature. These theories will provide a framework along which the case of RTH can be researched. Hopefully, this will enable the gaining of new insights in how ‘newborn’ organizations find their way and guarantee survival.

The setting in which this research takes place is equally relevant as interesting. The immense influx of refugees in 2015 in The Netherlands led to the birth of a variety of organizations that sought to relieve some of the troubles that came along with it. As Boersma et. al (2018) argue, it created an ecosystem where the top-down approach from formal institutions was forced to react more resilient and where social initiatives struggled between participation and professionalism. Analyzing the choices that a new organization as Refugee Talent Hub made in this dynamic environment can lead to valuable insights in organizational development.

Additionally, Selsky & Parker (2005) have described different forms of cross-sector social-oriented partnerships (CSSPs) in their article. Because of RTHs complex nature, with interests and stakeholders from the private sector being incredibly entangled with the foundation, it can be useful to examine this interplay between the organization and businesses. Googins & Rochlin (2000) emphasize that organizations that form CSSPs are a poorly understood phenomenon., this research might therefore add valuable knowledge on the subject of CSSPs.

Structure of the thesis

This thesis will commence by providing theoretical expectations in which several concepts are introduced that may explain the organizational development of Refugee Talent Hub. Afterwards, the empirical results will be divided into four different chapters. Each chapter will provide a profound overview of what happened in that phase and why this research considers it a separate phase, therefore. This is accomplished by carefully examining policy plans and minutes. Participatory observation and interviews will then provide a context that explains why certain choices are made and how they were influenced. Afterwards, the factors that are described in the theoretical expectations will be examined per phase. Together with possible new factors that flow from further investigation, they will provide a formal framework. This

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framework will form the base for a solid theory regarding the organizational development of Refugee Talent Hub.

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Chapter 2: Theoretical Expectations

Literature suggests a great variety of explanations for organizational survival and development. In this literature review, several of those are discussed. These factors, that work both internally and externally, may explain choices that have been made by Refugee Talent Hub. Taking into consideration the knowledge that already exists about the foundation’s development, a series of core characteristics are presented in this chapter.

As an overarching framework, the literature review will examine work that describes general forces in organizational development. Consequently, it will look into challenges that are faced by young organizations in particular. It is acknowledged in this thesis that interest-group literature tends to emphasize on the formation or birth of an organization (Olson, 1965; Salisbury, 1969). After the occurring of this ‘event’, Hannan and Freeman (1993) stipulate that in literature it is often assumed that groups afterwards simply exist whilst being maintained through efforts of group entrepreneurs. By looking into challenges faced by young organizations, clarity on the gap between the phase of organizational birth and organizational existence is provided. Hager et. al (2004) points out how ecological studies consistently reported that younger organizations have a greater chance to disband or close than older organizations. As the foundation was only launched by the end of 2016, it is presumed that its short period of existing affected its functioning. Literature might explain problems related to its newness.

Furthermore, Refugee Talent Hub is a foundation with an interesting character. The fact that it works together with public and private partners in order to solve societal issues on a non-profit base, classifies the foundation as a civil society group. Theoretical expectations are therefore derived from literature about the mobilization and organizational maintenance of interest groups. Literature has posed several generic questions regarding developments in interest groups. Questions that are of particular interest to the case of Refugee Talent Hub are showcased in Halpin (2014). He looks into the possibility of groups to change form and adapt over their careers and more importantly, why they do so. The questions he takes as a starting point are as following:

“[…] questions such as ‘What is our broad mission and purpose?’, plus more practical concerns such as ‘How should we engage in policy?’ and ‘From where and by what means should we garner financial resources?’. The answers to such

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questions – and changes to these answers – are often times heavily interdependent and, as such, are best explored together (Halpin, 2014, pp. 11-12).”

These questions consider overarching themes regarding organizational development that will be solidified into more concrete characteristics.

The goal of the literature review is to create a typology that serves as a guide in the empirical research. To serve this purpose, five concrete resource dimensions derived from niche theory are discussed because of their ability to predict whether an organization’s environment is viable. Entrepreneurial steering and managerial steering consider internal forces that influence an organization’s path. Entrepreneurial steering specifically looks into initial entrepreneurs/organizers and the consequences of their legacy for an organization, whereas managerial steering describes the influence of present-day leadership.

The Evolution of Organizations

In narrowing down specific concepts to address organizational development, this thesis builds on organizational theory proposed by Aldrich (2006). He argues that evolutionary approaches regarding organizational development can essentially be boiled down to a series of main ingredients or components. These are variation (either blind or intentional), selection (either external or internal), retention and competition (struggle). Each of these activities can be observed within organizations, between organizations or even between populations of organizations.

A variation is seen as any departure from tradition or routine (Aldrich, 2006). When organizations or people actively try to seek solutions to encountered problems or actively generate alternatives, this is seen as intentional variation. The opposite goes for blind variation. Brunsson (1985) argues that these variations result from responses to adaptation difficulties such as conflict, malfeasance or accidents. It is emphasized by Aldrich (2006) that variation can serve as a useful starting point when one aims to understand organizational evolution. Variations are “the raw materials from which selection processes cull those that are most suitable, given the selection criteria. The higher the frequency of variations, whatever their source, the greater the opportunities for change” (Aldrich, 2006, p. 18).

A second force in the evolution or organizations is known to be selection (Aldrich, 2006). During this process, certain types of variations are selectively eliminated or differentially selected. Selecting variations can help organizations in acquiring legitimacy or specific resources. The criteria for selection are based on a number of processes such as the logic of

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core organizational structuring or competitive pressures. The concept of selection plays an important part in shaping the organizational path. It shows close linkage to niche theory (Gray & Lowery, 1996; Browne, 1990), as will be discussed in the paragraph regarding the organizational environment.

Retention, the third important force in evolving organizations, describes the process in which positively selected variations are maintained. The procedure takes place when variations are reproduced in a way that the selected activities or structures emerge again in forthcoming generations (Aldrich, 2006). Miner (1994) argues that the process of retention allows organizations and groups to seize value from routines that have been proved or perceived as being beneficial. Added to that by Latour (1993) is the fact that organizational memory doesn’t only give organizations immaterial value, it also inheres in resources that are physical, such as machines or buildings.

A fourth and final force presented is that of struggle (Aldrich, 2006). The scarcity of resources within and between organizations as well as between populations brings selection pressures and quests for effective variations (Feldman & Pentland, 2003). This concept is further treated in the form of the competitive exclusion principle as will also be explained in organizational environment paragraph.

Challenges Faced by Young Organizations

A finding that often recurs in literature regarding organizational closure is that younger organizations are more likely to close compared to older organizations (Hager et. al, 2004). This phenomenon is labeled ‘liability of newness’. Hannan and Freeman (1989) conclude that when it comes to predictors of organizational mortality, age is one the strongest. Carroll and Delacroix (1982) have found evidence that organizational mortality rates are negatively related with age. When controlled for liabilities of size or population heterogeneity, negative age dependency of death rates still persists (Hannan et. al, 1983; Carroll and Delacroix, 1982).

As liability of newness was first formulated in literature, it was understood that the cause of success or failure of an organization is not age itself (Stinchcombe, 1965). Stinchcombe (1965) instead mentions several reasons that may explain why younger organizations are more vulnerable to cessation. The first reason entails the difficulties that arise in reproducing roles, creating an organizational culture, settling on operating procedures and the learning of skills. A second reason involves the high costs that are related to structuring relations and inventing roles. A third reason concerns the problems that are inherent in creating working relations with

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strangers, especially working relations with employees. The last reason entails the uncertainty that is associated with setting up ties to those who use the services of an organization.

Hannan and Freeman (1989) add to this by stating that until stakeholders perceive organizations as accountable and reliable, organizations will flounder. This isn’t likely to happen until an organization has institutionalized roles, control systems and established routines. Obtaining legitimacy is key to organizational survival since it attracts potential members (Singh et. al, 1986). Pfeffer and Salancik (1978) emphasize that legitimacy is usually controlled by parties outside of the organization because it is conferred status, hence creating and maintaining relations with the external environment are an important activity for young organizations.

It is furthermore found that until employees are convinced that an organization is stable, Hannan and Freeman (1989) argue that they won’t invest in learning skills that are specific to the organization. When employees have obtained these skills, the cost of changing jobs increases, hence their interests in the success of an organization grows.

Another group that is concerned with an organization’s reliability and accountability are donors and investors (Hannan & Freeman, 1989). Until it is made clear that an organization has the ability to deliver quality services and that it acts accountable, they’ll be slow to invest in the organization.

As has been described above, young organizations might have to overcome some issues in the beginning of their existence before they can act as a mature organization. The next paragraphs will describe key factors that usually determine organizational development. It is suggested here that the young age of the researched organization will be intertwined with the following concepts. This entails that for every concept that is expected to have an influence on organizational development, liability of newness also plays a role in this. Age will not be used as a separate variable but will be discussed in the results analysis section.

The Interaction between an Organization and its Niche

The broad concepts appointed by Aldrich (2006) are narrowed down in organizational niche theory. This theory in particular has been described by multiple authors (Gray & Lowery, 1996; Browne, 1990). It can provide a useful framework to understand why organizations make specific strategic choices. For example, Gray & Lowery focus on the autonomy that follows from being in a certain niche. Their definition of a niche is formulated as a distinctive area of competence that is clearly distinguished and able to exclusively serve membership. With that,

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within a niche, an organization exercises uncontested jurisdiction over a certain goal or function.

Browne (1988) adds the practical outcome of being in a specific niche, arguing that organizations will look for substantial policy niches and try to maintain their position in this niche for as long as this is feasible. Feasibility is described as the situation in which specific resources that a niche provides can be used sufficiently. Browne (1990) further argues that it is advantageous to interest groups to find rather narrow topic niches since this sends a robust signal to patrons and possible members as to what an interest group does.

The implications of niche theory in general have several consequences for organizations. For example, Gray & Lowery (1996) conclude that when two competing species are environmentally similar, their coexistence becomes less probable. Therefore, they argue that there must be boundaries to organizations’ environmental similarity. The authors label this phenomenon the competitive exclusion principle, as mentioned before.

Braun (2015) argues that niche theory stipulates by what means the competitive organizational setting defines interest group mobilization as well as niche selection. She emphasizes the importance of a realized niche: a setting in which organizations have access to a minimum level of resources that are necessary for survival. Like Browne (1988), she emphasizes the consequences that arise from competition amongst like-minded organizations. Braun (2015) further argues that competition drives organizations to resource partitioning, which is comparable to narrow issue selection. By doing so, the acquirement of resources can be ensured at the minimum sustainable level.

Concretizing Resource Dimensions

To conclude niche theory and generate concrete theoretical expectations for the case study, a finalized list of resource sets by Gray and Lowery (1996) is presented here. They argue these sets deserve substantial attention in defining organizational niches. By addressing these resource sets to the case, it is presumed that some organizational developments can be explained.

First, an interest group needs sufficient members. If all potential members of an organization are secured by competitors, the organization will die. This resource set is rather straightforward and will therefore be treated as a concrete classification in the empirical chapter. Second, it is necessary for an organization to have access to selective benefits so that potential members can be mobilized. If all selective benefits that an interest organization can offer are already being provided by competitors, an organization’s ability to mobilize potential but

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unaffiliated members is limited. Selective benefits exist in many different forms, but the essence of this principle is that these benefits can be restricted to those that are members of a particular interest group (Olson, 1965). Access to selective benefits will serve as a catch-all concept for now and will be further examined and defined in the empirical chapter.

Third, from an internal point of view it is essential to have sufficient finances to maintain an organization. Depending on the size and structure of an organization, the level of sufficient finances will differ. If an organization is financially stable, this will not heavily affect its functioning. However, if an organization is financially instable, this can have great consequences for its development. Financial stability will therefore be taken into consideration in analyzing organizational development.

Fourth, some access to the policy-making process on issues of concern to the organization should exist as already discussed by Browne (1990). Brown’s model (1990) suggests that this may even entail nearly exclusive control over a narrow issue agenda. Fifth and final, multiple authors (Salisbury, 1994, pp. 12; Lowery and Gray, 1995, pp. 11-12) stipulate the importance of there being “authoritative action or proposed action by government”. This entails that if there is nothing to lobby for, it is difficult to legitimize lobbying activity. Fraussen (2014) stipulates that relations with public authorities allow professionalization because it enables a more stable funding source. In the empirical analysis however, this resource dimension is imbedded in a broader dimension of societal demand. This demand describes the gap between realized and desired action by government that an interest group should aspire to close.

Gray and Lowery (1996) emphasize that autonomy on all resource sets may not be necessary to ensure viable realized niches. They suggest two kinds of interactions that potentially indicate that a certain resource dimension may not be of vital importance to an organization’s survival. These are as follows: cooperating/communicating with allies and

engaging in overt conflict with opponents. Gray and Lowery (1996) note that a difficulty in

evaluating organizational interactions is the lack of objective criteria to assess whether values for co-operation, conflict and partitioning are low or high. Still, looking at activities in which an organization participates can tell us something about their presence and behavior in an organizational niche. They stress that judgments about an organization’s behavior can be advised by assessing interactions across the five resource dimensions.

Halpin (2014) stipulates that when it comes to discussing niche theories, an emphasis is often laid on differences among groups. The key argument that is ought to be appreciated is that limited resources demarcate a fundamental niche in which similar groups compete. Following

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from this can be stated that strategies for group survival will entail the partitioning of a resource area into feasible realized niches (Gray and Lowery, 1996).

Entrepreneurial Steering

Key works of Salisbury (1969) and Olson (1965) stipulate the vital task of group maintenance or survival as a role for entrepreneurs that manage (selective) incentives to obtain member support. In ‘An Exchange Theory of Interest Groups’, Salisbury (1969) elaborates on the conceptualization of interest groups regarded as benefit exchanges. He argues that organizers/entrepreneurs invest capital to create a set of benefits that they offer to a market of potential customers. The group is in business as long as enough customers buy, i.e. join, to make a feasible organization. This theory is of importance as Salisbury argues that within this frame, all interest groups are conceptualized. Four concepts form the core of his argument: organizer/entrepreneur, group members, benefits and exchange; hereby noting that the organizer/entrepreneur is a central concept in exchange theory in particular as this entity is the initiator of the enterprise.

When one applies this analogy to interest groups, Salisbury (1969) reasons that it is essential to identify specific entrepreneurs whose undertakings establish the first signs of any particular organized group. With that, the identifying of some kind of capital invested to commence a group enterprise is also needed. It is furthermore desired to look into processes and sources of recruitment of interest group entrepreneurs. In many cases, capital costs and particular entrepreneurs are derived from other, older organizations. By taking into consideration all the above, Salisbury (1969) concludes the following:

“If groups must be organized by organizers investing capital, and if very often these organizers and this capital are derived either as a subsidy or a legacy, from older organizations, then the emergence of extensive organized group life in a political system will tend (a) to be a gradual process, partially dependent on the spread of the organizational experience to socialize and recruit organizers, and (b) will depend upon the accumulation of social capital sufficient to invest in the formation of durable organizations (Salisbury, 1969, p. 15)”

The role of benefactors and patronage in organizations isn’t only of importance in founding an organization, but also in organizational maintenance (Walker, 1991; Nownes and Neeley,

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1996). As group leaders are in charge of managing the incentive mix as proposed by Salisbury (1969), they are likely to determine the path of organizational development in the long run. All the above will be solidified into the concept of entrepreneurial steering. This classification refers to the degree that (the direction of) an organization is being steered by the initial organizer/entrepreneur of the interest group.

One of the important consequences of exchange theory is its link to the role of leadership, a proposition made by Halpin (2014). He states that after the formation of an interest group, the leaders’ dominant driving force shifts from original policy goals to organizational survival. This proposition can have a large impact on organizational development, which will be further examined in the next paragraph.

Managerial Steering

Halpin (2014) describes how leaders are often seen as key agents in group maintenance, making them an important factor to research when looking into organizational development. They firstly play a role when it comes to membership. Multiple authors describe how leaders of interest groups must continually listen to changing needs of members (Young and Forsyth, 1993; Dunleavy, 1988). Others focus on the essential role of leadership in concretizing opportunities for joining the group (Jordan & Maloney, 1998). All approaches make a general assumption whereby the joining and dedication of members is constrained by what leaders offer them.

Second, Halpin (2014) argues that exchange theory implies that the incentive mix of an interest group is managed by its leaders, but he also points out the unclarity as to why and how they manage it. Literature suggests that leaders will choose the right incentive mix at any time. However, Halpin (2014) calls attention to the embedded assumption in this argument, stating that:

“[…] Most would-be supporters are motivated by utility-maximization: thus, leaders simply act as ‘relays’ in formulating groups to match the basic preference structure of supporters. This inevitability means that leaders lose any strong sense of agency (Halpin, 2014, p. 25)”

Others suggest that leaders are capable of managing the collective action problem by deciding the type of group they aim to build. Research points out that purposive and solidary incentives work well to build smaller groups whereas selective incentives are more appropriate for

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communicating with the masses (Halpin, 2014). When following this line of argument, it can be assumed that leadership creates a choice concerning what type of organization should be built. This, in turn, shapes “the basic premise around which any exchange of incentives might be constructed (Halpin, 2014, p. 25)”. It is hereby noted that a leaders’ task is to respond to environmental resource restraints, which uncovers an interaction between niche theory and the role of leadership in interest groups.

The influence of leadership on the functioning of an interest group is examined through the concept of managerial steering. This entails all choices made by the daily management of an interest group and how this affects organizational development.

Concluding theoretical expectations

Though the factors that are being described in this chapter form separate paragraphs, they do not have such clear boundaries when applied to the case. This leads back to the core questions asked by Halpin (2014), where interdependence among core characteristics is stipulated. Through the next chapters, the presented theoretical frameworks will form a red line for the empirical analysis. The concepts will first be applied per phase. In the integrated analysis, a table will then summarize the effect of the concepts to uncover mechanisms over the entire period.

In summary, the first concept that will be applied is the effect of niche theory, divided into five resource dimensions. These are membership, access to selective benefits, financial stability, access to the policy-making process and proposed action by government. The second concept is that of entrepreneurial steering, which looks into the effect that initial entrepreneurs/organizers have on organizational development. The third concept that will be considered is managerial steering, whereby the aim is to uncover the role that daily management plays in the process of organizational development. As stated before, the influence of the age of the organization will be taken into account in general.

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Chapter 3: Research Design

In order to create an understanding of RTHs organizational development, it is important to document what choices have been made by the foundation and why. Because I’ve served as an employee for the foundation for several months, there has been a great access to data for the research. The goal of this explanatory research is to explain organizational development of the foundation by tracing and documenting a series of events that are specific to RTH. Once completed, the overarching ambition is to gain an understanding of what defined the first years of RTHs existence. This research will furthermore compare RTHs path to theoretical expectations that have been indicated in the previous chapter to see to what extent it resembles – or differs from – development in other (young) organizations. By doing so, the aim is to add valuable knowledge and further understanding to existing literature.

Case selection

As described in the previous chapter, there already exists relatively much literature concerning the liability of newness of young organizations. However, what is missing in this spectrum is in-depth knowledge that digs deeper into concrete challenges that these kinds of organizations experience. To be able to provide this knowledge, the specific research design used for this thesis concerns a single-case study. This means that rather than looking at evidence across units, observations about one single unit are being explored (Toshkov, 2016). The unit that is being researched in this thesis is the foundation, Refugee Talent Hub.

The decision to research this organization was made after already being an employee for the foundation for several months. The integration of refugees continues to be an important issue on the political agenda. RTH is a foundation founded in 2016 that aims to attribute to this integration but has the unique character of being by and for the private sector which provides interesting circumstances to investigate. It came to my attention that the organization underwent significant changes, and this became the ground from which the thesis is set up. The theoretical expectations that have been presented in previous chapter will serve as guidelines to examine RTHs organizational development. These concepts have often been researched independently, whereas this case will treat them as an interdependent framework.

Concluding, this research is focused on the advancement of a ‘newborn’ organization and its first years of existence. This research can complement existing theories and provide insight on how the path for a young organization like Refugee Talent Hub is defined. It documents the foundation’s developments since the original pitch in February 2016 up to its

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form in July 2018. The research design that is used for this thesis consists of several qualitative research methods.

Document analysis

The first source that has been used for the research concerns document analysis. Before the official launching of the foundation, much information has been gathered in memos by Accenture to create an understanding of the problem. They consulted experts from within the field to understand what creates the gap between refugees and the job market and what kind of foundation Accenture could build to offer a solution. Another valuable document source concerned written sources such as minutes and speeches.

An advantage of using document analysis as a method is the fact that documents are non-reactive (Reulink & Lindeman, 2005). Documents are ‘produced’ for members of an organization and not for research, which improves the quality of the source. With that, Reulink & Lindeman (2005) argue that document analysis can form a good basis for interviews and observations. They do highlight the fact that documents are being produced selectively, meaning that documents may not capture all information that is required for thorough research. With that, document analysis as a sole source of information is a potential disadvantage, because of limited contact with the research units. This may lead to incorrect interpretations and missing information (Reulink & Lindeman, 2005). Participatory observation and interviews therefore formed indispensable methods of research.

During my internship, colleagues granted me the opportunity to look into documents as mentioned in the beginning of this paragraph. Especially in researching how the foundation is initially set up as well as during the months before I started working there, these documents have been very useful. Mostly to understand Accenture’s vision in the beginning, but also in comparing this to its vision by the end of my research period.

Participatory observation

The second source of information gathering entails participatory observation, as I served as an employee for the foundation before and during the research. Concretely, I’ve been working as an intern for the foundation from November 2017 until June 2018. The research itself began after I had already conducted activities for the foundation for several months. This benefits the validity of the research, as my activities and observations in the beginning were independent from any research goals. Usually, researchers decide to use participatory observation because non-participatory observations don’t suffice in the research situation (Reulink & Lindeman,

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2005). Participatory observations render researchers the possibility to obtain more (or more valid) information.

Reulink & Lindeman (2005) suggest that one of the most important decisions in participatory observation is the decision which role you will take on as a researcher. It can range from barely participating to intensively participating and from being barely visible to participating in the open. I’ve actively participated in the ‘daily life’ of the foundation, where I took part in meetings, matched refugee talent to both mentors and possible employers and brainstormed about future programs the foundation could offer. From April 2018 until June 2018, I specifically gathered scientifically useful information with consent from the observed employees. Within my research plan, I tried to remain as flexible as possible, so that my activities for the foundation didn’t influence any outcomes. Using different methods and techniques has enabled me to do so. For example, I didn’t just observe, I also took informal interviews. This ensures that employees didn’t respond to questions in a reactive manner. Concluding it can be stated that my role during the participatory observation was highly intensive as well as visible.

A potential negative effect of this kind of participatory observation is the fact that the observed participants of the research may not behave in a natural manner and are showing so-called reactive behavior (Berendsen, 2008). However, it is presumed here that because of the extensive period of research, this potentially reactive behavior of participants is outlived.

Interviews

The goal of conducting interviews is to collect information from remarks by the interviewees in order to answer a previously formulated research question (Toshkov, 2016). In conducting qualitative research, it is important that researchers have the possibility to respond flexibly to the research situation and the information provided by the interviewees. Structured interviews do not provide this opportunity and therefore aren’t adequate for qualitative research (Reulink & Lindeman). In this research, it has therefore been decided to conduct semi-structured interviews.

Conducting interviews in researching RTHs organizational development had multiple underlying reasons. First of all, interviews were necessary to gather information about the period where I hadn’t commenced working for the foundation yet. Second, interviews were needed to create a deeper understanding of the data that has been observed and documented. In total 7 employees have been interviewed on the basis of in-depth interviews. A topic-list has been used that consisted of presumable important objects. These subjects have been selected on

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the base of document analysis, participatory observation as well as on informal interviews that have been conducted on-going. However, the topic-list has served merely as guidance. In order to obtain

To gain comprehensive insights I have interviewed employees on all levels of the foundation. This entails interns, office managers, senior level employees and the directors. Since entrepreneurial steering is assumed to have an effect on organizational development, I interviewed employees that were attracted externally as well as in-kind employees that came from Accenture. Appendix A demonstrates which interviewees are in-kind Accenture employees. By interviewing both in-kind Accenture employees and external employees, the effect of conflicting interests that could arise from Accenture employees indirectly criticizing their ‘mother organization’ should be limited. In addition, both directors that have led the organization have also been interviewed, this should make it possible to look at the concept of entrepreneurial steering from multiple angles.

Structure of the results

Due to significant organizational changes, RTHs path has been divided into phases. The first phase (phase 0) is researched by analyzing policy plans, minutes and initial pitches. In the phases that follow phase 0, this research method has been supplemented with participatory observation and interviews.

Each phase ends with a table that demonstrates the concepts that have been identified as being important in theoretical expectations. This table has been inspired by work of Rasmussen (2015), who uses a similar table to demonstrate the effects of business lobbying in the European parliament. In the analysis chapter, all tables from the separate chapters are being merged into one table to create an accessible overview of changes throughout the phases.

In the table that is being used in this research, the degree of dominance in designated period describes the value of a specific concept per phase. It can take on different values. The first set of potential values is formed by a range that can take on the value of ‘very low’, ‘low’, ‘moderate’, ‘high’ or ‘very high’. When the degree of dominance didn’t change significantly from its value in an earlier period, this is denoted as ‘constant’. The term ‘insignificant’ means that a certain concept didn’t play a noteworthy role in a period at all.

The weight of a concept is being measured qualitatively, on the basis of its share in (the absence of) pushing or restraining organizational development in a period.

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Limitations

Case study designs face important limitations. First, Toshkov (2016) emphasizes that generalization beyond the case study is hard to guarantee, i.e. external validity cannot be ensured. RTH has an interesting character organization-wise, making it an appealing case for research. However, it also entails that the findings may not be applicable to other young organizations. It is argued here that it can still at least offer valuable indications for further research.

Furthermore, these types of studies must rely on offered theories to provide the building blocks of individual explanations. For process tracing to work properly, this entails that events need to be linked to each other by an unconquerable fatality (Toshkov, 2016). This happens in this research as will, since findings have to be consolidated into broader concepts. By doing so, the research might overlook nuances that play a part in organizational development.

In addition, internal validity might be challenged by the fact that close ties with colleagues and the foundation in general subjectifies observations (Råheim et. al, 2016). Raheim et. al (2016) argue that the dual role of being both insider and outsider – which is characteristic of qualitative approaches - might lead to researcher vulnerability. This entails that for example during interviews, it is hard to have an objective conversation without guiding the interview.

Lastly, the degree of dominance that is used to measure the values of a concept in phases is calculated qualitatively. Even though all data on which the measurement is based is provided and closely examined, the calculations remain subjective. This means that the final analysis can be seen merely as an indication rather than an etched-in-stone calculation of organizational development in young organizations.

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Chapter 4: Results

The following chapter will present the results that have been gathered through research. At the end of each phase, the table will summarize the size of the found effects.

4.1 Phase 0: the origins of Refugee Talent Hub and getting started

In general, the main vision of Accenture was fueled by the belief that a partnership between leading corporates in the Netherlands, the Dutch government, NGOs and educational institutions could accelerate a responsible, efficient and effective deployment of refugees on the Dutch labor market. In its first outreach to potential partners, the common responsibility to address this situation was stressed. Emphasizing first and foremost that by tapping into the talent that refugees bring, it is possible to do the right thing and create an opportunity for business and the Dutch society at the same time.

“Highly educated refugees have talent, are extremely motivated and have rich

knowledge and life experience. At Accenture, we see an opportunity to attract from this pool of talent.”

- Manon van Beek, Country Managing Director of Accenture Netherlands in 2016

The key concepts that are of importance in examining organizational birth during this first phase will be presented in the next paragraphs. These concepts are interdependent and will be presented based on their time of occurrence.

Societal demand

As described in theoretical expectations, societal demand is the gap between realized and desired action by government in the area of concern that an interest group aspires to close. In the case of RTH, there existed a gap between unemployed refugee talents and the tightness of the Dutch labor market. This paragraph will elaborate on the macro level circumstances that led to the pitch of the foundation.

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Figure 1. Asylum seekers in the Netherlands in 2015 (Internal Accenture presentation, 2016)

In figure 1, it is demonstrated how the influx of asylum seekers is build up. Among the total number of refugees, about 20.000 are in the age of 18-59 years old at the time Accenture pitched their idea for Refugee Talent Hub (The Economist, 2015). About a third of those seeking asylum enjoyed education that is higher than secondary schooling, in particular the group that is fleeing from Syria (The Economist, 2015). As vacancies increase in Europe, it may seem natural that possibilities arise for those seeking refuge on this continent. However, in the same article, The Economist (2015) identifies several shortcomings of current European workplaces that hinder refugees from obtaining a job.

These shortcomings arise firstly in the legal asylum process. The immense influx of refugees couldn’t be dealt with by the COA, IND and Aliens Police (Boersma, 2018). The system was not prepared for the high number of asylum seekers that entered the Netherlands in 2015, which had consequences for the coordination between different institutions. Furthermore, Dutch institutions failed to systematically assess a refugees’ skillset and education as well as foreign qualifications (The Economist, 2015). These components are key to smoothly flowing into the labor market. A last obstacle that played a large role was the overcoming of language barriers.

Accenture consulted stakeholders and experience experts to discuss what their most important findings of the situation at that time were. Their key background finding is that there are more than 45.000 refugees in The Netherlands in 2015 and 90.000 to be expected in 2016. They highlight that the refugee problem “is not just a political problem, but also a business problem”. The challenges they indicate in that current moment mostly arise from the complex asylum procedure where only 20% of the budget and time is invested in Meaningful Waiting. Meaningful Waiting concerns all activities like workshops or trainings that contribute to a refugees’ skillset while they are waiting for to be granted asylum. Furthermore, they find that

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skills are not recorded systematically, and qualifications are recognized insufficiently, which is in line with the findings presented in the Economist. Lastly, it is noted that only 25% of the refugees have a job in the first two years they live in The Netherlands.

Furthermore, the experts from within the field emphasize that difficulties start in the AZC. The numbers of refugees are whopping, and the shelters cannot keep up. It raises questions such as: “What kind of leadership can we demonstrate?” and “Would the government be open to accelerate asylum procedures?”. Furthermore, questions such as “What can be our contribution?” and “What have we learned from the past?” are addressed in the presentation. The described shortcomings shaped the landscape for interest groups that want to participate in refugee aid in general. On the basis of which parts of the chain are still unoperated or possibly optimized by an interest group, concrete activities can be chosen. Accenture didn’t have the capacities neither the ambition to help refugees with learning Dutch. With that, many interest groups in the area of Amsterdam were already focusing on helping refugees to overcome the language barrier. Since Accenture faced labor shortage itself and was part of a large network with players from the public and private sector, it was rational to choose the gap between refugee talent and the labor market as a starting point. The next paragraph describes the means by which Accenture planned to do so.

Entrepreneurial Steering

Accenture being the founder of the Refugee Talent Hub is presumed to have a large impact on the shaping of the foundation. A designated team within Accenture was responsible for creating a pilot - that would later turn into the foundation – which shaped the basic premises on which the foundation is built. The first step for them was to create a clear understanding of the sentiment behind the foundation and what exactly it would bring to the table. In March 2016, Accenture presented an implementation-plan for the Refugee Talent Hub pilot. This plan started with remarks that were assembled through a brainstorm session. It demonstrates the attitude of initial key players towards raising the foundation in the Dutch refugee climate. The remarks presented were as follows:

“The Netherlands have to play its part in this matter”. “We have to do something about this misery”. “Every person is unique.”. “We have gold in our hands, but we don’t see it that way yet.”. “This crisis is a wake-up call, we have to start a movement.”. “We should be a connecting factor, we have to build bridges."

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- Presentation of the implementation-plan Refugee Talent Hub by Accenture, March 2016

The initiators created leading principles that would become RTH’s backbone: a broad mission from which more specific strategies and actions would follow. The overarching principle was that everyone is talented, and it is RTHs job to unlock that talent. Furthermore, one of the principles was that RTH would be an open platform that does not exist for profit, nor for loss. Key missions would be to combine the power and speed of the private sector with the societal role of the public sector. The platform would be an ecosystem between refugees, businesses and the society. It was also important for the foundation to be more than just a technical solution; the goal was to create a sustainable ecosystem. Utilizing digital possibilities, Accenture’s specialty, to gain real-time insights and enhance user comfort was a strong, shared belief amongst the initiators. To achieve the goals that RTH set, the aim was to collaborate as much as possible with initiatives that already existed.

The initial implementation-plan then proceeded to core themes that the foundation would address. Hereby, the core vision was to offer perspective for refugees as well as employers. A distinctive approach was to talk about talent rather than ‘refugees’, a word that often carries a stigma. The aim was to create a solution for all refugees, not just the top 5%. Furthermore, RTH was to make the role of businesses bigger than the role of the government. Large sized businesses, but also small and middle-sized companies would be addressed. A special role of RTH would be in increasing labor participation amongst women in the target group.

Concluding remarks concerning the mission of the foundation is that it needs to spread a positive message of integration. Shorter procedures with a focus on accelerated integration socially and economically are key. The ultimate starting-point is that by improving the current refugee situation, it is possible to create political, social and economic chances.

Access to the policy-making process

RTH’s approach to altering the policy-making process can be described as proactive. Plans existed to accelerate public policies regarding refugees. A specific example was the fast-tracking of a uniform system of assessing diplomas so that refugees can flow into the labor market more efficiently.

The initial implementation plan however (2016) stated that rather than influencing politics beforehand, it seemed better to lead to by example. One of the approaches stipulated

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was to offer Meaningful Waiting activities (MWAs) to refugees. As mentioned before, experts stipulated that only a small percentage of time and money is invested in these activities. The overarching idea of MWAs is to provide refugees with valuable training to enhance their skillset until they are granted asylum. This can possibly enable individuals to close the gap between a desired job and their current skillset. Furthermore, it offers refugees a chance to learn the language and it could encourage the feeling of being welcome in The Netherlands. It is also seen as a convenient manner to learn about standards and values in Dutch business.

Altering business standards

Although altering existing policies concerning refugees is part of the implementation plan, a bigger emphasis is laid on altering business standards. An example hereof is found under ‘society education’ and would be to increase levels of diversity within a business by offering tools or training that encourages openness towards refugees. Accenture aims to achieve this through leading by example. A concrete proposed method is to let CEOs coach refugee talent, as a signal to lower levels of an organization that the business culture is inclusive. Another technique that was mentioned is to turn Dutch employees into ambassadors of RTH.

Managerial steering

The desired director that would start Refugee Talent Hub’s path of actual independence was chosen by the board. The board chose Paul Mbikayi. As he arrived in the Netherlands at the age of 31, being a political refugee from Congo, he understood the experiences and stories that refugees carry with them. He obtained the required leadership skills whilst being a top official at Rijkswaterstaat, the Dutch governmental department that takes care of the main infrastructure facilities.

RTH launched as an independent foundation in December 2016, with Paul Mbikayi as director. The final organizational structure was as follows: the board held an advisory position and consisted of the CEOs of Accenture, UAF and VWN, as well as the HR directors of Arcadis and AkzoNobel. The director became responsible for the daily management. The paid operational team consisted of two in-kind employees, coming from Accenture. Lastly, two interns fulfilled a supporting role. The impact of managerial steering was very limited in the initial phase, since all basic premises were firstly shaped by Accenture’s team that created the core values and activities for the foundation.

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Sufficient Members

One of the driving forces in organizational development is the acquisition of sufficient members. For RTH, members can be perceived from two angles. First, to obtain financial support and credibility, the foundation needed members in the sense of partners in the public and private domain. As Accenture launched the idea of RTH at the World Economic Forum in Davos in February 2016, it immediately sparked interest amongst other CEOs that attended. An interview with Employee 3 demonstrates the effect of Accenture’s CEO, Pierre Nanterme, presenting the Refugee Talent Hub as Accenture’s digital solution to bridging the gap between refugee talent and employment, saying:

“I mean, if Accenture’s CEO says “we’re going to make this happen” at the World Economic Forum, then it’s a lot easier for other parties to join than when I would say such a thing, I would’ve even been given such a stage. The fact that a corporate like Accenture takes responsibility for an initiative like Refugee Talent Hub has had an enormous effect on other corporates. […] AkzoNobel and Arcadis immediately decided to join at the World Economic Forum for example.”

- Interview Employee 3, July 2018

The affiliation of corporates like AkzoNobel and Arcadis at the World Economic Forum was a significant moment for Refugee Talent Hub. It sent off an important signal towards possible partners about the foundation’s innovative potential. It also shows the interdependence between the concept of membership and entrepreneurial steering.

The second group of members concern the refugees that the foundation ought to help finding a job. Since there existed many initiatives organizations by then, RTH needed to offer something significantly different. This involved the ecosystem that RTH was to create that would focus on accelerating the asylum processing time, the right matching of skill demand & supply through a digital platform and lastly on facilitating Meaningful Waiting.

Fiscal advantages for corporates and CSR

From a fiscal point of view, RTH is a foundation with an ANBI-status. The ANBI-status (English: Public Benefit Organisation) is assigned to an institution of which 90% of its efforts are concentrated on the general good (Belastingdienst, 2018). The benefits of having this status is that the foundation is not required to pay inheritance or gift taxes over inheritances or gifts they use for serving the general good. Further advantages of having this status is that businesses

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who donate to the foundation can deduct this amount from their profits, hence yielding a fiscal advantage for potential donors (Belastingdienst, 2018).

Furthermore, Selsky & Parker (2005) argue that requests for corporate social responsibility (CSR) inspire businesses to partner up with non-profits. CSR is an important topic in today’s business world and this facet contributes to a positive environment for foundations like RTH. Besides CSR, the fact that businesses who support the foundation can deduct this amount from their profit can serve as an extra stimulus to become a partner.

Access to selective benefits

Access to selective benefits is incredibly entangled with membership in shaping the fundamentals of the foundation. As said before, these selective benefits mostly concern the digital platform and the enlarged access to the Dutch job market in general. Concretely, the access to selective benefits can be summarized as ‘matching’ which will be described in the following paragraph.

Matching

The process of matching would form one of the core activities of the foundation. It was regarded from multiple perspectives. In a sense of matching refugee talents to employers, but also to mentors, who can help them build a network. Practically, matching is approached in a general way: with RTH as a connecting factor that creates a platform for matches between refugee talent and employers to arise. But also, in a specific way, through an algorithm where potential employees are directly linked to refugee talents with the required skills. The starting-point of the matching platform is that it offers refugees an entrance into the Dutch society and that it forms a front portal to physical meetings between parties.

Concluding phase 0

Phase 0 can be seen as the moment of organizational birth. The interplay between the political context of the refugee crisis and the societal and economic opportunities that Accenture perceived in this situation, i.e. societal demand, led to the initial pitch of Refugee Talent Hub. This concept can therefore be seen as the most dominant factor in this phase. Accenture itself plays a big role in this phase for two reasons. First, the basics of RTH were shaped by a team of Accenture employees. With that, the multinational’s reputation made it possible to send a strong signal of being a credible player to other businesses. This was necessary for funding as well as to become visible in the vast landscape of refugee aid.

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The fact that Accenture’s aim was to create a foundation for and by the private sector had consequences on RTH’s business model. The foundation would not depend on subsidies in contrast to like-minded actors. This granted RTH a sense of independence from the public sector, since it didn’t have to meet government targets or regulations in order to receive subsidies. Financial stability is always an important factor in the beginning of an organization and is therefore denoted as high.

As described in the theoretical expectations, distinctiveness is an important aspect of an organization’s possibility to thrive. RTH ensured its distinctive position because of its digital solution to a societal problem. With that, its close ties to the private sector granted it an advantage compared to other initiatives.

Overall, this phase can be seen as the initial base for the foundation. The immense influx of refugees into the Netherland created political, economic and societal turmoil. Accenture felt it was necessary to play a part in solving this urgent matter. By looking into demographics, it became clear that many of the refugees had the potential to enter the Dutch job market. However, due to overwhelming numbers and rigid bureaucracy, this potential was not utilized. Accenture concluded that altering public policy regarding refugees on the labor market was needed, but this wasn’t going to its first focal point. By using its digital expertise and broad private sector network, the belief arose that by combining these two, the refugee crisis could be relieved. In short: driven by external pressure and the confidence that the foundation would bring something innovative and distinct to the table, Refugee Talent Hub was born. Hereby offering selective benefits through the platform and the private network, which mobilized potential members because of the distinctive character of the foundation.

Table 2: Phase 0 Findings

Degree of dominance in designated period

Resource dimensions

Sufficient members High Access to selective benefits High Financial stability High Access to policy-making process Low Societal demand Very high

Entrepreneurial steering High

Managerial steering Low

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4.2 Phase 1: the foundation enters into force

The driving force that led to the initial design of the foundation was Accenture’s idea to bring a digital solution to bridge the existing gap between refugee talent and employers. Practically, this solution implied a digital platform where refugee talents sign up and provide basal

information such as age and country of origin. Added to that is former work experience, education and skills. Employers were to register their job vacancies on the website. A specially designed algorithm would then automatically match refugee talents to employers. From the beginning, it was believed that some manual action would be required since cultural differences or variances in Dutch and foreign resumés could influence the matchmaking. The great advantages of this digital approach mainly were that it would be able to facilitate matching on a large scale. With that, digital solutions form Accenture’s core

business, so launching an innovative matching platform had the possibility of becoming their unique selling point. Regarding the large-scale matching, concrete targets were set to

determine Refugee Talent Hub’s success at the end of the year, i.e. December 2017. By then, 2.500 refugee talents were to be matched with an employer.

Validating RTHs Selective Benefits

As niche theory suggests, organizations have to be sufficiently distinctive from others in order to coexist. In the first phase, where the initial ideas were being transformed into the digital match-making platform, this condition was met. The selective benefits that the foundation offered predominantly existed of the specially designed algorithm that automatically links refugee talent to employers.

Because of its distinctive character, RTH could count on support from other initiatives that are concerned with refugee aid. Apart from the fact that its digital approach was unique, funding comprised another factor. RTH exists by and for the private sector, therefore

demanding that its funding arises from the private sector.

The Advantage of Different Selective Benefits in Relation to Members

Two key players that RTH co-operated with in the first phase were Vluchtelingenwerk Nederland (VWN) and Stichting voor Vluchteling-Studenten UAF (UAF). From the moment that RTH was launched as an official and independent foundation, their CEOs were active as board members. Initiatives like VWN and UAF are mostly publicly funded. The fact that

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RTH was funded by the private sector enabled the support of these like-minded actors, since the foundation wouldn’t be “fishing in the same pond” regarding subsidies.

Because of its unique position, co-operation between RTH and VWN & UAF went smoothly in the beginning. Even though their core constituency addresses the same group of potential members, RTH offered significantly different options compared to these

organizations. VWN helps refugees in a functional manner. For example, by offering legal support in the asylum procedure or during family reunification. UAF is occupied with

enabling education for refugees. They supply funding and help the target group in the process of finding the appropriate field of study. With that, they offer information about how refugees can have their diplomas reassessed and support them whilst doing so. By working with these organizations, RTH was able to build on knowledge that was acquired in the years before they were active. Examples concern insights in what kind of help other organizations provide, and therefore understanding the dynamics between RTH and its environment. The most important understanding they provided RTH with concerned refugee behavior and expectations towards organizations like RTH.

The other group of members, i.e. refugees were actively recommended to join RTH by organizations like VWN and UAF. Initially, refugees were very enthusiastic about the

foundation because of the concrete labor participation segment that RTH served. With that, the threshold was low since all you had to do to join was sign up online. Both the active recommendations as well as the concrete offer and low threshold led to many registrations (>500) in the first months.

Concluding, it can be stated that the access to selective benefits and its relation to gaining members played an important, positive part in this phase.

First Phase Funding Options

In order to secure RTHs organizational development, (financial) resources are required. Funding originated from private network partners that donate cash or in-kind to RTH. When the foundation was officially launched, there were three options for businesses to become a partner, each with different benefits. As a gold member, a partner pays 25.000 euros annually and is therefore entitled to all services that RTH offers. In the first phase, this meant that a partner had access to the online database and post job vacancies, organize events in cooperation with RTH and ask for advice regarding the hiring of refugee talent. Also, it rendered businesses the right to promote their partnership with RTH in the context of

Refugee Talent Hub researched: an analysis of how the path of a young civil society organization is defined