Resources as the Basis for Sustainable Competitive Advantage in Social Entrepreneurial Ventures

Abstract

This conceptual paper explores one possible application of the resource-based theory of the firm (RBT) to social entrepreneurial ventures (SEVs). First, the paper argues that, despite some seeming incongruities, RBT is actually an appropriate and useful lens to apply to the study of social entrepreneurship. Furthermore, the paper explores the idea that a social mission is likely to meet the criteria of being valuable, rare, inimitable, and organizationally leveraged. The social mission, and an SEV’s commitment to that mission, may be uniquely leveraged and communicated to stakeholders to build an SEV’s reputational assets. An SEV’s reputation, as a strategic resource, can thereby provide a sustainable competitive advantage, and enhance organizational performance. A model and related propositions are developed regarding these concepts.