Surviving and thriving in the COVID-19 crisis: Performance drivers and resource dynamics of social enterprises in a nascent ecology

Abstract

This study employs structural equation modelling to investigate performance drivers and resource dynamics in social enterprises (SEs) operating in a nascent ecology (i.e., Malaysia) during the COVID-19 pandemic. The findings shed light on the relationships between various factors. Notably, entrepreneurial orientation and network connections positively influence SEs' financial performance, while traditional business planning unexpectedly demonstrates a negative impact during the crisis, highlighting the need for adaptive approaches in dynamic environments. Additionally, the study confirms a significant correlation between financial and social performance, emphasising the crucial role of financial feasibility in generating sustainable social value. Consistent with the standard regression analysis, the importance-performance matrix emphasises that entrepreneurial orientation is the focal area for driving financial success and ensuring the sustainable growth of SEs. These insights contribute to the existing knowledge on SEs and offer practical implications for practitioners, policymakers, and stakeholders seeking to enhance social entrepreneurship's performance despite challenging circumstances.