The effects of scaling strategies on the scaling of social impact: Evidence from Chinese social enterprises

Abstract

AbstractConventional nonprofit organizations (NPOs) and social enterprises (SEs) face constant challenges when scaling their social impacts, especially in societies undergoing transformation, such as China, where NPO and SE ecosystems are still nascent. Whereas previous studies have identified various scaling approaches for SEs, empirical investigations of the linkages between scaling strategies and scaling performance are lacking. To address this gap, we conducted a quantitative study of 293 Chinese SEs to examine how the four types of scaling strategies brought about different scaling performances and how the results varied upon organizational form. Our results revealed that three of these scaling strategies, namely knowledge dissemination, organizational growth, and contractual partnerships, contributed positively and significantly to scaling performance, whereas capacity building had a positive but not statistically significant effect. Our results also indicated that the positive contributions of organizational growth and knowledge dissemination to scaling performance were reinforced in SEs organized as nonprofits. Moreover, the results indicated that SEs that deployed combined and diversified scaling strategies demonstrated better scaling performance than those that deployed just one strategy. Our findings have important managerial implications for practitioners within the SE community, and especially providing a scientific basis for the managers of nonprofit SEs to select appropriate scaling strategies.