The internationalization of social enterprises: The impact of business model characteristics

Abstract

Social enterprises (SEs) are firms that employ a business-oriented approach to tackling social problems. This paper quantitatively analyzes the importance of SEs’ business models for their internationalization using regressions as well as configuration methodology (QCA). Our unique dataset of 175 SEs in India reveals that SEs that have implemented a business model (1) that differentiates clients and beneficiaries are more likely to internationalize; (2) that does not have to engage in additional activities to create their intended social value are more likely to internationalize; and (3) that depend primarily on subsidies, grants, and donations are less likely to internationalize than those that also generate income. We elaborate on the contributions of our findings for the social entrepreneurship and international business literatures, and highlight the implications for practitioners and policymakers.