Does co-creation drive the creation and success of social enterprises? Evidence from a quasi-natural experiment

PurposeThe purpose of this paper is to understand how important networks are for the emergence and growth of social enterprises as well as how social enterprises use their networks throughout the life course of their organisation. A comparative approach is used by contrasting social enterprises with traditional commercial enterprises along the dimensions of obtaining resources and legitimacy through their networks.Design/methodology/approachAn abductive approach is used starting from existing knowledge on how commercial enterprises use networks during the start-up and growth of their enterprise. Qualitative interviews with 23 entrepreneurs were conducted. Using a matched-pairs design, the network importance and use of social and commercial enterprises is compared.FindingsIt is found that networks are highly important for both commercial and social enterprises throughout their life course. However, they substantially diverge in how they use their networks. Social enterprises tend to access more intangible resources through their networks than do commercial enterprises. Moreover, social enterprises rely more strongly on their networks for legitimacy in both the start-up and growth phase of the enterprise.Originality/valueThis paper takes a novel approach by empirically comparing the networks of social and commercial enterprises. New insights are offered in the resource flows within networks and how entrepreneurs use resources obtained from their networks.

This research aims to understand how resource bricolage strategy plays a role in the growth of social enterprises in terms of their product and market. Based on interviews with nine social enterprises, our exploratory finding suggests that social enterprises often employ both internal and network resources in the process of making do. We further explore the relationship between the form of resource utilisation and the nature and scope of activities that the social enterprises embark upon, and find that only those relying on both internal and network bricolage are able to expand into new markets utilising newly developed products. We also find that social enterprises relying on only internal resources can reach the same point through incremental improvisation, by first moving towards either product extension or market expansion, before then embarking on the other. This research contributes to the social entrepreneurship literature by enhancing our understanding of the relationship between resource bricolage strategy and growth of social enterprises through product/ market scope in a penurious environment. The findings of this research also have implications for social enterprise managers and policy makers in utilising their resources and responding to environmental opportunities and challenges.

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Using insights from institutional theory, the chapter proposes understanding ethics as national institutions that deeply influence social entrepreneurship. Moreover, the chapter proposes that low behavioral ethical standards (normative ethical institutions) provide opportunities for individuals to establish social enterprises. Furthermore, it proposes that high public-sector ethical standards (regulatory ethical institutions) and values of unselfishness (cognitive ethical institutions) facilitate and motivate individuals to establish social enterprises. The chapter also explores the combined effects of public-sector ethical standards and low behavioral ethics, public-sector ethical standards and societal unselfishness, and low behavioral ethics and unselfishness, on the creation of social enterprises. The chapter contributes to cross-cultural comparative entrepreneurship by suggesting, through a multilevel framework, the effects of societal-level ethical institutions on the creation of social enterprises.

Using insights from institutional theory, the chapter proposes understanding ethics as national institutions that deeply influence social entrepreneurship. Moreover, the chapter proposes that low behavioral ethical standards (normative ethical institutions) provide opportunities for individuals to establish social enterprises. Furthermore, it proposes that high public-sector ethical standards (regulatory ethical institutions) and values of unselfishness (cognitive ethical institutions) facilitate and motivate individuals to establish social enterprises. The chapter also explores the combined effects of public-sector ethical standards and low behavioral ethics, public-sector ethical standards and societal unselfishness, and low behavioral ethics and unselfishness, on the creation of social enterprises. The chapter contributes to cross-cultural comparative entrepreneurship by suggesting, through a multilevel framework, the effects of societal-level ethical institutions on the creation of social enterprises.

As social enterprises are established for the purpose of solving local problems, the sustainability of social enterprises is also important for local development. In order to increase the sustainability of social enterprises, performance improvement is necessary, and research on finding leadership styles suitable for social enterprises continues to be an important method of performance improvement. However, despite considerable interest in social enterprises over the past few decades, no consistent conclusion has been reached about what leadership style is appropriate for social enterprises. The present study aimed to find a suitable leadership style for social enterprises within the major leadership styles recognized in commercial enterprises. This study investigated the impact of the three major leadership styles in commercial enterprises on satisfaction and performance in social enterprises. Based on prior research, transformational leadership, with its capacity to promote change and support the achievement of goals, was considered appropriate for social enterprises, and entrepreneurship was also considered as challenge is important for balancing economic and social purposes. Servant leadership also focused on the importance of providing support for employees on the basis that employees’ success is the success of social enterprises. In this study, in order to broadly understand the performance of different leadership styles, job satisfaction and leader satisfaction were considered at the individual level, and economic performance and social performance were considered at the firm level. To support the argument of this study, the researcher aimed to survey employees who perceive a leader as possessing leadership qualities in social enterprises. For this purpose, a survey on transaction leadership was conducted among employees who participated in a three-week training session related to social enterprises. And on the last day of training, three leadership and four outcome variables were surveyed. Analyzing data form 170 respondents in 52 social enterprises whose evaluation of their leader’s transactional leadership was higher than the average, the present study found that transformational leadership had a positive relationship with all four variables considered as leadership outcomes. And this study found evidence that entrepreneurship had a positive relationship with job and leader satisfactions, but the impact of entrepreneurship on economic and social performance was insignificant. However, servant leadership had a positive relationship with leader satisfaction and social performance, but the impact of servant leadership on job satisfaction and economic performance was insignificant. These results contribute to confirming that the emphasis on leadership styles in commercial enterprises can effectively operate in social enterprises as well, and that the effectiveness of leadership can vary depending on the desired outcomes.

PurposeThe paper examines the key driving factors behind the rapid and uneven growth of social enterprises in China based on Kerlin’s Macro-Institutional Social Enterprise (MISE) model of social enterprise development, with an emphasis on testing key local institutional factors.Design/methodology/approachThe study adopts the quantitative method approach. The hypotheses have been tested based on a cross-regional empirical analysis with two national datasets on China.FindingsThis study shows that among the state, market and civil society, local government support in terms of favorable policies is the sole determinant factor driving China’s social enterprise growth. On the other hand, the market is irrelevant and local civil society impedes social enterprise growth. This demonstrates that the current growth model is the result of government intervention.Research limitations/implicationsThe datasets have a limited sample size. We suggest that future studies may collect a larger sample size with more comprehensive information. We think this study will encourage more comparative qualitative studies at the local level to reveal the underlying mechanisms of growth.Practical implicationsSince government policy is the determinant factor, the quality and quantity of government-backed incubation programs and platforms would matter the most for social enterprise growth. Our study also helps social entrepreneurs understand what factors matter when they try to develop social enterprises in China. They are advised to work on aspects of gaining legal legitimacy and political support in order to grow the sector.Social implicationsThis conclusion suggests that professionals and practitioners should review the implications of the current growth of social enterprises in China, in terms of their sustainability, given their institutional isolation from other sectors.Originality/valueCurrent studies have yet to thoroughly explore the role of meso- and micro-institutional factors in social enterprise development, especially in different contexts. With reference to Kerlin’s framework and the tri-sector model, this paper advances the understanding of social enterprise growth in China.

PurposeThe purpose of this study is to extend theoretical understanding on social enterprises’ growth orientation. Inspiration is drawn from the fundamentals of prospect theory and threat-rigidity theory, as the role of external threats as a source of growth orientation is largely absent from the social enterprise growth literature. According to previous studies, social enterprises grow mainly because of their social mission and social opportunities.Design/methodology/approachThe qualitative research is conducted by analysing thematic interviews from seven, growth-oriented social enterprises operating in Finland.FindingsThe study provides novel insights on social enterprises’ growth orientation by drawing attention to the plurality of growth motivations and showing the importance of perceived threats as the origin of their growth pursuits. Goals of growth are defined mainly in terms of organisational and financial performance of the firm.Practical implicationsSocial enterprise managers and boards are encouraged to cooperate in analysing the significance of external threats and opportunities for their business and to concentrate on defining measurable social goals to ensure balanced growth.Originality/valueThe study demonstrates that the behavioural theories offer a beneficial departure point for studying social venture growth. By clarifying the role of the perceptions of the firm’s internal actors and showing that growth is sometimes seen as a response to external threats, the study increases theoretical understanding on social enterprises’ growth orientation.

PurposeThe paper aims to explore the roles and impact of design in incubating and accelerating social enterprises. It aims to understand design’s influence on social enterprise ecosystems and in improving outcomes for social enterprises.Design/methodology/approachThe study used an exploratory, qualitative approach, using case studies and interviews. The comparative case-study methodology was applied to evaluate the influence of design on the development of social enterprises in the UK and South Korea and identify critical issues in their utilisation of design. Empirical data included: in-depth case studies of design utilisation practices (UK = 6; South Korea = 15) and design applications (UK = 2; South Korea = 2) for the growth of social enterprise and its ecosystem; 27 social enterprise/design experts (UK = 17; South Korea = 10); and 22 social enterprises (UK = 12; South Korea = 10). Content and thematic analysis were used to synthesise the findings.FindingsFindings demonstrate the differing influences of design on social enterprise, from improving products/services and business models to enhancing social enterprise ecosystem support and networks. Future directions are suggested for applying design for social enterprise growth, business stage development and systematising interactions between the social enterprise and design sectors.Research limitations/implicationsThe research is based on case studies from only two countries. Further, the adoption of working definitions of social enterprise in the countries may result in the research underestimating the heterogeneity of social enterprise.Practical implicationsThe findings contribute to optimising efficient ecosystem development to improve social enterprise competitiveness and innovation.Originality/valueThis paper establishes a research foundation on design for social enterprise, offering theoretical and practical insights into its impact on growth.

The traditional approach to demonstrate the growth processes of social enterprise still relies heavily on an internal perspective of resource and capability accumulation. However, it is insufficient to explain why some social enterprises grow quickly while other social enterprises do not. Based on the theory of value co-creation, this paper proposes a theoretical framework of the effect of value co-creation on social enterprise growth. A survey was conducted in China across 29 provinces and municipalities from October 2015 to March 2016, through the efforts of a market research group. The final number of usable questionnaires was 172. Specifically, by employing hierarchical regression models, this paper partially confirms the positive impact of value co-creation on social enterprise growth, while environment dynamics have a negative moderating effect on the relationship between value creation and the growth of social enterprises.

Social enterprises, as a new form of organization where public welfare and business coexist, are gradually becoming an important power in innovating social governance. However, the development of social enterprises in China is still in its infancy. Social entrepreneurs have a profound impact on the growth of social enterprises and may bring advantages to the development of enterprises, while barriers to legitimacy commonly faced by social enterprises hinder the development of the enterprise to some extent. Social enterprise performance has always been a research focus in social entrepreneurship, on which many studies have been reported, while it is seldom investigated from the perspective of entrepreneurial traits. The research aims to clarify how entrepreneurial traits influence the growth of social enterprises in an institutional scenario. Taking 208 social enterprises in China as samples, the relationship among entrepreneurial traits, relational capital, cognitive legitimacy, and social enterprise performance was verified using SPSS 22.0 and methods including correlation analysis and regression analysis based on trait theory and relational capital theory. The results indicate that: (1) entrepreneurial traits exert a significant positive effect on both the economic and social performance of social enterprises; (2) relational capital plays a mediating effect between entrepreneurial traits and social enterprise performance; (3) cognitive legitimacy only positively regulates the relationship between relational capital and economic performance. The conclusions may enrich the theory of traits and provide new ideas allowing social enterprises to overcome the dilemma of resource constraints and improve their performance. Social entrepreneurs need to pay close attention to cultivating their entrepreneurial traits and actively establishing relational capital; governments should create an institutional environment conducive to social entrepreneurship, to promote improvement in social enterprise performance.

ABSTRACTOver the past decades, social enterprises have been acknowledged as key welfare actors in several EU countries. In spite of the dramatic research devoted to exploring them, several issues concerning the definition, drivers and roles played by policies in sustaining social enterprise growth are still highly contested. Drawing on the papers published in this Monographic section, the introduction to this issue reconstructs the debate that has accompanied the emergence and development of social enterprises with a view to providing evidence of the advantages of collective participation for social enterprise emergence and growth. Next, the introduction pays attention to the factors that have led to the emergence and success of social enterprises as a form of self-organization of civil society; and briefly describes the papers included in this issue.

The solutions to the grand challenges of sustainability, poverty, and health affecting the world will require education and capacity building for all individuals implementing change on a global scale. The challenge ahead is to reach those missed by traditional education and support networks. Online Learning and Massive Open Online Courses (MOOCs) have the potential to build knowledge and share best practice experiences among individuals worldwide. This paper examines the case of the FutureLearn Social Enterprise Program, a series of MOOCs with over 50,000 registered learners, of which 15% become active learners, engaging in online exercises, debates, and conversations. This paper draws on quantitative and qualitative data collected over four years. The findings show that the course has not only had an impact on the creation of new startup social enterprises, but it has also supported a large proportion of learners in developing sustainability and social entrepreneurial ideas within a range of organisations in the public, private, and civil society sectors. The findings also show a positive cascading impact effect from the learners registered on the course to those in their network, as ideas are shared, and learners become mentors to others. Our conclusions demonstrate how digital education and online courses contribute to global education for sustainable development and social enterprise development.

Purpose The purpose of this paper is to examine social enterprise sustainability by comparing recent international research with prior findings seeking to identify the important factors that facilitate social enterprise development. Design/methodology/approach The research used a concurrent, convergent mixed methods approach on a sample of 93 social enterprise leaders using surveys and face-to-face interviews. The participants were sourced from a cross-section of social enterprise organisational types from urban and regional locations in Australia and Scotland. Findings The findings support prior research, identifying resourcing, organisational capabilities, collaborative networks and legitimacy as influential in the success of social enterprises. However, the research contributes new knowledge by revealing an overarching growth orientation as the dominant factor in the strategic management for sustainability of these ventures. This growth orientation is generally associated with the intent to achieve profitability. Thus, social enterprise managers view a commercially focused growth orientation as an overarching strategic factor that underpins organisational sustainability. Originality/value The paper delivers new insights into the strategic orientation of social ventures of benefit to policy makers and practitioners alike. The findings are significant for policy makers providing perspectives into how governmental assistance can be targeted to develop sustainable social enterprises, particularly the need to support the growth of these ventures. Similarly, practitioners are alerted to the strategic imperatives of incorporating a commercially focused growth orientation and the latent potential that exists in the networks of social enterprise.

This study investigates the impact of effectuation and co-creation on the success of social enterprises in India. Given the hybridisation in their operations, social enterprises operate under highly uncertain environments. Although scholars have attempted to identify approaches and strategies for scaling social enterprises, we propose the relevance of effectuation and co-creation in social entrepreneurial action to drive social enterprises in uncertain environments. To achieve this, we examined government support (GS) and slack resources (SR) as environmental and firm-level factors respectively in impacting the performance of social enterprises. We gathered empirical data from a sample of 181 social enterprises based in India and utilised hierarchical regression in our analytical approach. The results largely support our research model.