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Abstract
This study aims to empirically verify whether the entrepreneurial strategic orientation of social enterprises has any effect on organizational effectiveness with the mediation of dynamic capabilities. In the consideration of social enterprises’ features, strategic orientation consisted of social value orientation, entrepreneurial orientation, and market orientation. Dynamic capabilities consisted of absorption capacity and coordination capacity, and organizational effectiveness was comprised of job satisfaction and organizational commitment. An online questionnaire survey targeted 228 employees of Korean social enterprises. The survey results were analyzed using a structural equation. As a result of the analysis, entrepreneurial orientation and market orientation significantly affected absorption capacity, but social value orientation did not affect it. Social value orientation and market orientation significantly affected coordination capacity, but entrepreneurial orientation did not affect it. Absorptive capacity and coordination capacity affected organizational effectiveness, and the hypotheses were adopted. Consequently, it was revealed that market orientation had the most significant effects on social enterprises’ dynamic capabilities and organizational effectiveness. It was confirmed that social value orientation and entrepreneurial orientation revealed differences depending on the absorptive capacity and coordination capacity of dynamic capabilities.
Highlights
Social enterprises, typical social economies, have spread dramatically from the 1980s, in Europe and the USA (Defourny and Nyssens 2010)
As social enterprises’ dynamic capabilities, this study investigates the effect of the absorptive capacity and the coordination capacity to entrepreneurial strategic orientation and organizational effectiveness
It was confirmed that market orientation affected organizational effectiveness through the mediation of coordination capacity (0.108, p < 0.05)
Summary
Typical social economies, have spread dramatically from the 1980s, in Europe and the USA (Defourny and Nyssens 2010). Social enterprises developed as nonprofit companies, which had faced financial burdens, adopted a commercial profit mode in the USA (Alter 2007; Kerlin 2006). In Korea, the government has been certifying social enterprises since the Social Enterprise Fostering Act in 2007. Alter (2007) explains that social enterprises are located between nonprofit organizations pursuing social welfare logics, and public, private companies emphasizing profitability, wherein the nonprofit and profit-making enterprises are classified with a spectrum deployed in both extremities. If the synergy between social welfare logics and commercial logics increases, social enterprises’ innovation and performance can be enhanced. A need to seek organizational transformation reflecting new needs has been emphasized, through which social missions can be upheld, and innovative corporate performance can take place (Soh 2012; Young and Kim 2015)
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