Does the Business Suit Fit? An Economic Perspective on Social Ventures’ Success

Abstract

This article analyses how management culture and organizational structure shape economic success in social ventures (SVs). It finds out that an entrepreneurial orientation, taking care of the internal communication culture, good anchoring of organizational goals and strategies, from time to time an external evaluation, less dependency on donations and a powerful strategic committee lead to a successful achievement of economic goals. This is shown by the results of a survey of 257 Swiss work integration social enterprises offering customers residential, job, education, and consulting services in the context of social integration. Although historically liberal, Switzerland has over the years developed into a welfare state. Politically, a countermovement has emerged that demands SVs to act in an entrepreneurial and economically successful manner. This article contributes to this topic, which is increasingly being discussed in social entrepreneurship and SV literature, by setting up and testing its own research model and generating numerous managerial implications.