Network importance and use: commercial versus social enterprises

Purpose The burden of uncorrected refractive error warrants a team approach and strengthened partnership across all sectors engaged in the delivery of refractive error services. However, in low-income countries such as Kenya, commercial entrepreneurship still dominates the optical industry, with social enterprises remaining unrecognized. Therefore, this study aims to explore social enterprises and stakeholder’s views on collaboration with commercial enterprises in the provision of eye care services in Kenya. Design/methodology/approach This study adopted an exploratory case study design. The participants included the Eye Rafiki, which is a programme supported by the OneSight EssilorLuxottica Foundation to train competitively recruited community members as Eye Rafikis on the basics of refraction. The beneficiaries of refractive error services from activities of the Eye Rafikis were also included. The participants were recruited through purposive sampling, with interviews conducted through telephonic calls with the participants. The interviews comprised semi-structured questions on aspects around the need for collaboration between sectors engaged in eye care delivery in Kenya. Thematic analysis for qualitative data was carried out by categorizing the codes into categories using NVivo Software (version 11) and themes based on the semantic meaning of the codes. The results were presented in the form of descriptive and inferential statistics. Findings The preference for social enterprises as standalone was expressed by 63.5% (n = 428) of the beneficiaries and 3.6% (n = 4) of the Eye Rafikis. The preference for social enterprises that are standalone by the Eye Rafikis and the beneficiaries yielded two themes, namely, benefits and goals and interest. The majority of the Eye Rafikis (96.4%; n = 108) had the preference for a collaboration between social and commercial enterprises. The justifications put forth for the preference of a collaboration between social and commercial enterprises by the participants yielded three themes, namely, sustainability, human resource and conflict of interest. Originality/value The current dominant independent operation approach by commercial and social enterprises may not sufficiently address uncorrected refractive error. As a result, collaboration between the enterprises is desirable to synergize the achievement of effective refractive error coverage in Kenya. Even though social enterprises are positive about collaboration with commercial enterprises, evidence should be generated on the perspectives of commercial enterprises on such collaboration.

Growth is a key dimension of organisational performance, and innovativeness has been identified as one of its most important predictors in commercial enterprises. But does this also hold for the growing number of social enterprises and so-called “hybrid” organisations? Whereas neo-institutional accounts emphasise the legitimacy premium and performance benefits that come with hybridity, category signaling approaches stress the downsides and negative performance effects of blurred categories. Introducing the neglected distinction between category hybridity and goal hybridity and adopting a multilevel perspective on hybrid organisations, the present study develops and empirically tests competing hypotheses with data from the 2009 Global Entrepreneurship Monitor (GEM). Multilevel analysis of 2,606 social and 10,133 commercial enterprises, obtained from 150,721 respondents in 42 countries reveals a significant and positive association between organisation-level innovativeness and growth expectations for both commercial and social enterprises. The effect of organisational innovativeness on growth expectations is stronger positive for social compared to commercial enterprises, and higher levels of goal hybridity increase growth expectations for commercial, but not for social enterprises. No moderating effects of country-level differences were found.

Objective: The purpose of this article is to evaluate the scope of Corporate Social Responsibility (CSR) and ‘Social Value Initiatives’ (SVIs) among corporations. Nowadays, CSR provides firms with an opportunity to provide community social need through discretionary corporate practices. This article contributes to knowledge on how firms approach social and environmental sustainability while maintaining economic responsibility. Research Design & Methods: This article adopts analysis based on secondary data from UK based companies. Fifty companies’ websites and policy documents (30 commercial enterprises and 20 social enterprises) were researched to identify the patterns of practices of SVIs and factors that influence the practices among companies. Findings: The findings suggest that both social and commercial enterprises focus on the adoption of the ‘CSR’ practices based on the ‘Triple Bottom Line’ (TBL) as defined in the ‘Elkington, 1997 framework’ of economic, environmental and social sustainability. The difference is that while the ‘SVIs’ of commercial enterprises develop as an operational strategy at the later stages of the business, the ‘SVIs’ of social enterprises are embedded during the enterprise creation stage. Implications & Recommendations: Based on the findings, this article develops a conceptual ‘Social Value Initiatives’ framework which forms the domain of social value practices. We suggest that future studies should focus on adopting qualitative-ori-ented primary research to explore CSR approaches, which will capture the views of management, customers, employees and shareholders. Contribution & Value Added: Despite its limitations, this article contributes to the knowledge on CSR and social value practices among social and commercial enterprises. © 2018, Cracow University of Economics. All rights reserved.

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.

Social enterprises follow the dual mission of achieving social aims as well as attaining financial sustainability and therefore elude easy categorization into either a non‐profit or for‐profit organization. Consequently, social enterprises might struggle with their image since external stakeholders (e.g., job applicants and customers) could hold back their support when the enterprise's dual aims seem unusual to them. Despite the importance of the image to gain stakeholder support, factors that determine how individuals perceive social enterprises are underexplored, especially in their early life stages before they have developed reputational capital and brand recognition. Following human value theory, we propose that stakeholders' self‐transcendence (“other‐oriented”) versus self‐enhancement (“self‐centered”) values explain how they evaluate social versus commercial enterprises. In a vignette study with 945 individuals, we reveal that social enterprises are more likely to attract self‐transcendent individuals whereas individuals with stronger self‐enhancement values are less likely to feel attracted to social enterprises. Moreover, our findings show that individuals' values were more strongly related to the image of social enterprises than to the image of commercial enterprises. Thus, external individuals' values lead to stronger and more contrasting reactions regarding social compared to commercial enterprises. The findings indicate that the image of social enterprises is more equivocal and distinct compared to commercial enterprises and therefore might require a different theoretical understanding and careful management as it depends on stakeholders' deep‐seated values.

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.

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.

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.

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.

AimTo conduct a situational analysis of the social enterprises (SEs) engaged in refractive error services delivery in Kenya.MethodsThis was a sequential mixed method study conducted with commercial enterprises (CE), eye care professional’s representatives from the Ministry of Health ophthalmic service unit and representatives from SEs. The study was undertaken in two phases with phase one aimed at identifying the SEs while phase two aimed at exploring the SEs. The participants were recruited purposively and through snowball sampling with data collected telephonically and through online Google form survey. The qualitative data was collected until thematic saturation was achieved. The descriptive data was presented in figures, as well as reported in terms of frequencies.ResultsOut of the 196 (28%) CE, only 49 (7.1%) reported referral and vision screening as some of the support they provide to SEs. The key barrier to SE integration into refractive error service delivery in conjunction with other eye care providers in Kenya, was lack of awareness on SE (n = 12; 41.4%) while cash flow was noted as the least cited barrier to SEs integration (n = 2; 13.8%). Reasons for the success of SE in the broader eye health ecosystem constituted mission, leadership skills and creativity. Policy regulation reported by the SE representatives (n = 14; 48.3%) was the key factor influencing the operations of SEs in Kenya. Factors negatively influencing integration of SE into refractive error service delivery in Kenya were categorized into unhealthy competition, inadequate human resources, predator SE (n = 19; 65.5%) and lack of proper policy regulation. Partnership, technology, cross-subsidization and skills development were identified as ideal for SE integration.ConclusionThis study found that SEs are worthy for integration into the eye health ecosystem to complement the dominant CE for effective refractive error service delivery. However, establishment of policies recognizing SEs and integration into the eye health ecosystem is desirable to address the challenges experienced by the SEs.

Purpose In developing countries, social enterprise creation is often said to offer a promising solution when public institutions struggle to uplift society from social, economic and environmental challenges. Despite social enterprises’ vital role, they still face challenges such as financial sustainability, market penetration, access to financial resources and maintaining social enterprises’ dual (social and economic) nature. The recent discussion about the positive effects of co-creation processes in institutional creation paves the path for exploring the potential of this approach in creating social enterprise. Therefore, the purpose of this study is to explore an integrative social innovation model based on a co-creation process to help social enterprises address their challenges. Design/methodology/approach This study explores a social innovation model based on co-creation and quantitatively analyzes its impact using the difference-in-differences approach. It used STATA 18 to analyze panel data from the World Bank, Pakistan Bureau of Statistics, Small and Medium Enterprises Development Authority and the United States Agency for International Development-funded PYWD project, covering 2013–2020. Findings This study’s findings indicate a significant positive impact on the creation and growth of social enterprises over time, which is further strengthened in the presence of covariates such as social infrastructure availability, education investment, urbanization and public support institutions. Originality/value This study uniquely emphasizes the ways that can curtail social enterprises to subside potential uncertainties about their sustainability.

Since the financial performance of social enterprises may affect or reflect their social impact performance, it is important to consider. As a first step, I compare the financial performance of social enterprises with that of commercial enterprises. I take a matched sample approach, using data about social and commercial enterprises in the UK. I find that social enterprises have lower mean revenue growth and total assets growth rates than commercial enterprises. Yet social enterprises also have higher survival rates, indicating that, on average, they live longer than commercial enterprises. I discuss implications of these findings for practice.

PurposeThis paper aims to contribute to better understanding of where and how network concepts, theories and perspectives, organisational networks, and networking practices, are being studied and deployed in social enterprise research. This is done through a systematic review of social enterprise and networks literature in business and management journals. Key trends and developments in this literature, and gaps and limitations, are identified, culminating in discussion of what next for social enterprise and networks research. The papers in this special issue on “Social Enterprise and Networks” are introduced.Design/methodology/approachA systematic review was undertaken of social enterprise and networks literature in business and management journals. Journals sampled included all those in the Entrepreneurship and Small Business subject area of the Association of Business Schools (ABS) Academic Journal Guide 2018, the journals in the Financial Times 50 research ranking, and selected wider business and society, non-profit management and public administration journals.FindingsAnalysis of publishing patterns of social enterprise and networks research finds that such research is growing, and that varied network perspectives, concepts and theories are being deployed. Social enterprise and networks are also being studied globally, using different methodologies. Nevertheless, there remains scope for deeper theoretical engagement, and for a wider range of network theories to be used. More even geographic coverage is also needed, and further insights can be gained through use of alternative methodologies.Research limitations/implicationsDiscussions in this paper have implications for research through outlining systematically the state of current scholarship on social enterprise and networks. In so doing, insight is provided on what is known about social enterprise and networks. But also on what is not known and where further enquiry is needed. Direction is thus provided for future social enterprise and networks scholarship.Practical implicationsIn this paper, how, and the extent to which, social enterprise and networks scholarship offers implications for practice and policy is considered.Originality/valueThis paper makes a valuable contribution to social enterprise scholarship. It outlines the state of current knowledge and research on social enterprise and networks, identifying where and how relationships between social enterprise and networks have been studied, whilst also providing insights for what next in future social enterprise and networks research.

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.

In Lithuania social enterprise as a social category is formed through defined legal social enterprise criteria and their detailed requirements. This suggests that the criteria for the legal definition of a social business enterprise form the identity referents of a social enterprise as a social category. Between 2018 and 2021, seven law projects were submitted to the parliament of Lithuania that aimed to establish criteria defining social business enterprises. Study of these documents aims to identify criteria for a legal definition of Lithuanian social business enterprises that form the defining attributes of the identity of these enterprises, important for the organizational communication of the social business enterprise. The study revealed that the set of legal criteria – entrepreneurship (doing business), social goals aimed at solving social problems and activity stakeholder involvement – define social business enterprises. This exhibits that Lithuanian social business enterprises are institutionalized as hybrid organizations. The assessment of these identity referents showed that their use in the communication of the organization does not ensure the separation of the social enterprise from the subjects of the non-market subsector of the social economy. It has been observed that the exclusion of a social enterprise from other entities can be constructed by elements detailing the referents, often depending on the success of the company’s activities. This ultimately indicates shortcomings in the legal definition of social economic enterprises in Lithuania.