Complements or substitutes? Configurational effects of entrepreneurial activities and institutional frameworks on social well-being

Abstract

Prior research has advanced our understanding of how isolated institutional factors affect social entrepreneurship (SE) and commercial entrepreneurship (CE). Although SE and CE are closely intertwined with institutional frameworks to generate social impact, little is known about how these factors together produce joint effects on social well-being. On the basis of the configuration theory, this study investigates how SE, CE, and three-pillar institutions work together effectively to promote social well-being. We use the fuzzy-set qualitative comparative analysis to investigate the substitution and complementarity mechanisms for achieving high social well-being among 23 economies. This study reconciles the contradictory results in the extant literature regarding whether SE and CE, SE and government activism, CE and postmaterialism, and government activism and postmaterialism are complements or substitutes in promoting social well-being. Our work shows that the complementarity and substitution between these factors can coexist depending on the social context of the given society.