Antecedents of Shared Value Creation in Social Enterprise: Evidence from Educational Sector of Pakistan

Abstract

Capitalistic aspirations in corporations have resulted in adverse social and environmental impacts from their operations in different parts of the world. The race of higher returns is also causing similar problems are social enterprises like educational institutions. In this context, creating shared value would enhance their financial as well as social performance. This study aims to explore how economic and social performance contributes to creating shared value among social enterprises. Moreover, how social innovation complements the effect of economic and social value on shared value creation. For this, we applied Sadick et. al. (2018) framework in the context of the educational sector of Pakistan. Data from 242 respondents belonging from 70 social enterprises were collected by means of a close-ended questionnaire. The social organizations included both private, public, and not for profit organizations from the educational sector of Pakistan. Data were analyzed using confirmatory factor analysis and structured equation modeling. The results reveal that economic value has a significant positive influence the social value. Moreover, both economic and social values along with social innovation contribute positively and significantly in creating shared value. However, no complementarities effect of social innovation in explaining the effect of both economic and social value on shared value creation.