Social enterprises: An multi-level framework of the innovation adoption process

Abstract

This paper puts forth a multi-level framework that examines the adoption process of the social enterprise innovation by existing non-profit organizations. At the organizational level, executives understanding of the complexity and disruptive nature of the social enterprise are constrained by their motivation to reduce funding uncertainty. At the intra-organizational level, culture conflicts emerge when commercial activities are brought within a non-profit’s operations, internal stakeholders may reject commercialization, and managers’ lack of for-profit experience can lead new venture uncertainty. The social enterprise innovation – a solution to funding uncertainty – may ultimately create unintended problems, uncertainties, and failure to use the innovation for its intended purpose.