What drives human resource acquisition and retention in social enterprises? An empirical investigation in the healthcare industry in an emerging market

Abstract

Although healthcare is one of the fastest growing sectors in the world, it faces crucial shortages in human resource (HR) availability and retention. This challenge is worsened in social enterprises. In this research, we build on a multimethod and a multistudy approach. In the first study, using an exploratory qualitative study, we identify HR practices that influence HR acquisition and retention. Utilizing an institutional logics lens, we propose that market logic and community logic-driven HR practices influence a firm's ability to acquire and retain HR. In the second study, we test our hypotheses using primary data from 182 faith-based hospitals in India and a robust empirical model accounting for endogeneity. We find that while market logic-driven HR practices help with HR acquisition, community logic-driven HR practices help with HR retention. In the third study, through a simple field experiment, we showcase that, indeed, market and community logic-based HR practices are responsible for HR acquisition and retention.