Institutional Theory in Social Entrepreneurship: A Systematic Review

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Over the past years, institutional theory has become an increasingly utilized theoretical lens for social entrepreneurship (SE) research. However, while there is a rapid growth of SE research that employs an institutional perspective, researchers have yet to systematically understand the wide-ranging application of institutional theory to SE study. Thus, a review of existing SE literature that employs institutional theory seems warranted and timely. Accordingly, we initially review the current use of institutional theory in SE research based on 101 peer-reviewed articles published between 2008 and 2020. More specifically, drawing on four critical institutional perspectives that have long been used in entrepreneurship research (including institutional context, legitimacy, institutional logic, and institutional entrepreneurship), we provide the first comprehensive analysis of the uses of institutional theory in SE literature. We then offer a comparative analysis of the application of institutional theory to SE and commercial entrepreneurship based on these four institutional perspectives, especially considering the similarities and differences between social and commercial entrepreneurship. Based on our review, we finally identify gaps in the existing SE study and provide several promising avenues for future SE study, as well as contribute to advancing institutional theory development.

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Google ScholarHolm P. 1995. The dynamics of institutionalization: Transformation processes in Norwegian fisheries. Administrative Science Quarterly, 40: 398–422. Google ScholarKrueger N. F. 1993. The impact of prior entrepreneurial exposure on perceptions of new venture feasibility and desirability. Entrepreneurship Theory and Practice, 18(1): 5–21. Google ScholarLeadbeater C. 1997. The rise of the social entrepreneur. London: Demos. Google ScholarMair J., Marti I. 2006. Social entrepreneurship research: A source of explanation, prediction, and delight. Journal of World Business, 41(1): 36–44. Google ScholarMair J., Marti I., Ventresca M. J. 2012. Building inclusive markets in rural Bangladesh: How intermediaries work institutional voids. Academy of Management Journal, 55: 819–850.Link , Google ScholarMcMullen J. S., Plummer L. A., Acs Z. J. 2007. What is an entrepreneurial opportunity? Small Business Economics, 28(4): 273–283. Google ScholarMcMullen J. S., Shepherd A. 2006. 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