Abstract
In this paper, I experimentally test the influence of goal-based categorization and categorical analogy on the perceived competitiveness of social enterprises, which are hybrid organizations with a dual social and business mission. When a social enterprise emphasizes its business mission first (commercial-social hybrid), the organization improves its perceived competitiveness when goal-based categorization is activated in the evaluators’ mind, meaning they perform goal-derived conceptual combinations and rely on a piecemeal cognitive mechanism based on the evaluators’ goal. However, when a social enterprise emphasizes its social mission first (social-commercial hybrid), the organization improves its perceived competitiveness when categorical analogy is activated in the evaluators’ mind, meaning they use a holistic cognitive mechanism that establishes a relational mapping of the hybrid venture with a typical venture. This work contributes to the literature on categorization in markets, hybrid organizations and differentiation in markets.
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