Fostering Innovative Behavior in Social Enterprises: Role of HR Practices and Social Mission

Abstract

Unlike profit organizations, social enterprises pursue social missions while simultaneously engaging in economic activities. Social enterprises try to solve social problems with innovative approaches but usually operate with limited resources. Therefore, for social enterprises to succeed, employees’ intentional behaviors in generating and implementing creative ideas (i.e., innovative behaviors) are essential. Drawing on HRM and social identity theory literature, the present research examined the effects of High Performance Work Practices (HPWP) in fostering employees’ innovative behaviors in social enterprises along with the moderating effects of employees' perceptions of their organizations' social missions. Using survey data collected from 321 employees from 104 social enterprises, this study yields several meaningful results. HPWP triggered positive impacts on both employee idea generation and implementation. Regarding the moderation effects of social missions, perception of organizations' pursuit of social missions significantly moderated the effects of HPWP on both idea generation and idea implementation, while perception of organizations' past success in carrying out social missions significantly moderated the effect of HPWP on idea implementation but not the effect of HPWP on idea generation. These findings provide theoretical and practical implications and contribute to existing HRM and social enterprise literature.