To shield stakeholders from exploitation, society increasingly expects organizations to engage with stakeholders. While exploitation of stakeholders is of great concern, economic literature points to the costly nature of stakeholder engagement vis-à-vis alternative mechanisms that protect stakeholders, such as competitive markets. When the costs of stakeholder engagement outweigh the benefits, why would organizations engage with stakeholders? Through an analysis of the cooperative enterprise and a comparison with its capitalist counterpart, we theorize two additional reasons why stakeholder engagement is beneficial. First, (...) we explain how stakeholder engagement facilitates long-term organizational resilience and protection of stakeholders in times of crisis, and second, we show how engagement is a decisive ingredient in answering non-economic value requirements of stakeholders. To conclude, we contribute to the broader stakeholder engagement and cooperative literature by stressing that engagement practices, and particularly democratic governance arrangements, are subject to design principles that sometimes favor stakeholders in capitalist firms. (shrink)

This article examines how organizational experience influences social enterprise responses to impact assessment practices. Limited attention has been paid to why organizations resist or challenge impact assessment practices or how prior experience with impact assessment may shape organizational responses. The study draws on interviews with practitioners involved in social enterprise–impact investor dyads in Australia and the United Kingdom. The findings reveal that social enterprises enact either combative or collaborative responses in their relationships with impact investors based on past experiences with (...) impact assessment. The study shows how more experienced social enterprises reach a state of impact lock-in—where they become committed to particular approaches to understanding, measuring, and reporting impact. The article contributes to the literature on impact assessment and impact investment by showing how organizational experience shapes divergent reactions to the demands imposed by impact investors, creating complementary forces of institutionalization and contestation of impact assessment practice. (shrink)

An increasing amount of research has examined the management of competing logics, and possible tensions arising between them, within “hybrid organizations.” However, the ways in which the relationships of hybrids with other organizations shape the conciliation of these logics and tensions have received limited attention so far. In this theoretical paper, we examine how hybrid organizations deal with interorganizational collaboration, in particular whether and how their hybridity can be maintained when they partner with “dominant-logic organizations.” Drawing on empirical literature on (...) social enterprise–corporate collaborations, we develop a framework and several propositions on how competing logics and their balancing within hybrid organizations may be affected by interactions with organizations underpinned by one dominant logic. We suggest that influences will mostly depend on the type of collaboration pursued. A collaboration based on a lower level of engagement and interaction between the two partners is likely to give precedence to one logic over the other, reducing inter-logic tensions but possibly compromising organizational hybridity. By contrast, a collaboration featuring numerous interactions and mission compatibility may facilitate sustained hybridity if tensions are acknowledged and managed. Our propositions contribute to the literatures on hybrid organizations, interorganizational collaboration, and social enterprise. (shrink)

Over the past decade, institutional theory has been extensively utilized in the field of social entrepreneurship (SE). However, an encompassing overview of the wide-ranging applications of institutional theory to SE is lacking, potentially hampering academic advances in this domain. To fill this gap, we conduct a systematic review and supplementary bibliometric analysis of 148 papers published between 2008 and 2022 to comprehensively understand the nexus of SE and institutional theory while also outlining the integration of ethics herein. Our analysis shows (...) that the existing research is divided into three clusters, reflecting three unique conversations between SE and institutional theory: institutional and societal change through SE, institutional complexity and hybrid organizations, and the institutional context of SE. We find that ethics is only integrated into these conversations to a limited degree. Based on our analysis, we zoom in on each conversation to identify the existing research gaps and point to new opportunities for future research. We also encourage SE scholars to zoom out on the abovementioned conversations to enrich this promising field by critically examining ethics and incorporating relevant insights from other research fields (i.e., social movement theory, category, and emotions). (shrink)

Social enterprises that operate in business-to-business contexts, often out of emerging economies, typically face high expectations from business clients, mainstream competition, and the challenge of operating across distances. In these contexts, social enterprises need to carefully choose which market segments to serve and how to organize their social mission accordingly. Based on the case of impact sourcing—hiring and training of disadvantaged staff for global business services—we seek to better understand this interplay. In general, we find that social enterprises in this (...) context focus on serving either domestic clients with an implicit social mission and an integrated social enterprise model or international clients with a more explicit social mission and a decoupled model. We discuss why both main configurations represent viable social enterprise models in the outsourcing industry, and why, in particular, the professional background of founders plays a key role in these strategic choices. Our findings contribute to a more nuanced and context-sensitive understanding of social enterprise model adoption in emerging economies. (shrink)

In this study, we employed a combination of bibliometric analysis and a structured review approach to examine the social entrepreneurship (SE) research. Our bibliometric analysis involved 2517 articles containing 155,846 references and we analyzed the data in three time periods: 1990–2009, 2010–2014, and 2015–2020 to detect longitudinal trends. This analysis helped us to identify the intellectual foundation of each period and the evolution of the intellectual structure of SE research. We specifically identified 13, 9, and 11 clusters that constituted the (...) philosophical foundations of SE research for the periods 1990–2009, 2010–2014, and 2015–2020 respectively. A longitudinal comparison of three periods helped us to trace the evolution of the intellectual structure of SE research. Further, the structured review, involving 106 recent influential articles, enabled us to identify 10 recent dominant themes of SE research. Building on our bibliometric and structured review approach, we developed an organizing framework for guiding future SE research across six dimensions: ethics, individual, community, collaborative, organizational, and contextual. (shrink)

Understanding how hybrid organizations resist mission drift and sustain the joint pursuit of their plural goals over time remains a central theoretical and practical concern in the business and society literature. In this article, we mobilize an organizational politics approach to elucidate how hybrid organizations react to mission drift and strive to rebalance the relationship between their conflicting missions. Drawing on an in-depth longitudinal analysis of a project developed within a multinational worker co-op to reverse mission drift, we elaborate a (...) process model showing how shifting patterns in the mobilization of episodic and systemic forms of power provoke critical changes in the way that plural missions are construed and enacted within hybrid organizations. This study also contributes to the field of co-operative organization and management studies by revealing that the transfer of organizational practices within multinational co-ops is more critically shaped by power relations and conflicting interests rather than, as much of the previous literature has argued, by host country institutions. (shrink)

How does a social enterprise pursue its ethical mandate of social impact growth while navigating the perils of the most vulnerable stage in a venture’s life—scaling up? We observe a small inclusivity social enterprise attempting to scale up rapidly to create equality for people with disabilities throughout the world. Our embedded, ethnographic study is terminated with the venture’s unfortunate demise after their dramatic effort to scale up failed. By examining scaling decision-making and conflicts around creation reasoning longitudinally, our study identifies (...) over-use of effectual logic—a creation reasoning type considered more ethical and more appropriate for high-innovativeness contexts than causal logic—as a major factor in the venture’s failure. From this insight, we extend the parameters of effectuation theory to scaling up and dimensionalize its ethical implications. Guidance for social entrepreneurs to scale up successfully while maintaining ethical integrity is also provided. (shrink)

Emergent structural approaches to institutional complexity tend to inhibit the role of agency in addressing logic multiplicity scenarios. Prior studies of logic multiplicity have documented a diverse set of outcomes, ranging from domination through hybridization, and characterized by various levels of conflict. A new stream of research has emerged that seeks to explain this heterogeneity through the structural components of complexity. These studies tend to minimize the role of agency in institutional complexity scenarios, positing that outcome diversity, and the organization’s (...) ability to exert agency, can be accounted for by the interaction of exogenously determined parameters, such as centrality, compatibility, prioritization, and jurisdictional overlap. This article revisits the role of agency in these models, suggesting that agency is not only framed by, but may itself shape, structure. The article draws on a comparative case study in five Israeli nonprofit organizations, focusing on the introduction of the business logic through a strategic planning process, and the challenge that this represents for the legacy social logic. The case studies demonstrate that organizations regularly use a set of distinctive mechanisms to manipulate the structural components of complexity, and, in so doing, agentically regulate logic multiplicity outcomes. (shrink)

Using Giddens’s structuration theory and empirical data from a study with social enterprise stakeholders, the article explores how social entrepreneurs and the structure co-create one another. We show that the development of the contemporary significance of social entrepreneurialism lies in a combination of complex context-specific structural forces and the activities of agents who initiate, demand, and impose change. Social entrepreneurs intentionally tackle social challenges, but their actions bring unintentional results, such as the transfer of state responsibilities onto communities. Direct outputs (...) of their activities introduce indirect outcomes, bringing wider changes in culture and policy. The evolving nature of entrepreneurship and a number of factors that interplay in time and space, and enable and constrain social entrepreneurs, confirm the applicability of Giddens’s theory in the field of social entrepreneurship. The originality of this article derives from revealing mechanisms that enable social entrepreneurs to emerge and reasons for structural change. We also build a “co-creation model of structure and agency” that can be used to “engineer” the process of social entrepreneurship. (shrink)

This article investigates how firms address the stability-change paradox inherent in sustainability transitions through the maintenance and utilization of a portfolio of sustainability-oriented partnerships. Drawing on a retrospective case study of Dong/Ørsted, a Danish energy company, we demonstrate the varying manifestations of the stability-change paradox during different phases of the company’s transition, influenced by both exogenous and endogenous factors. Furthermore, our findings reveal how Dong/Ørsted employed their partnership portfolio to implement diverse responses to manage the paradox. Based on these findings, (...) we argue that partnership portfolios can serve as spatiotemporal pockets, enabling organizations to effectively address and leverage the temporal and spatial aspects inherent in sustainability paradoxes. In addition, we highlight how partnership portfolios facilitate sustainability transitions by creating and leveraging different forms of collaborative value. (shrink)

This article maps existing research from 5,874 scholarly publications on social entrepreneurship (SE) utilizing scientometrics. The mapping indicates a taxonomy of five clusters: (a) the nature of SE, (b) policy implications and employment in relation to SE, (c) SE in communities and health, (d) SE personality traits, and (e) SE education. We complement the scientometric analysis with a systematic literature review of publications on SE in the Financial Times 50 list (FT50) and Business & Society and propose a multistage, multilevel (...) framework that highlights the clusters of existing research on SE based on their stage and level of analysis. This review study also helps outline a set of future research directions, including studies examining (a) the process stage at the micro-level and macro-level, (b) linkages across levels and stages, (c) linkages across stages over time or longitudinal studies, (d) SE in resource-constrained environments, (e) technological advancement and its impact on SE, (f) the types of social enterprises and their outcomes, and (g) various emerging topics in SE. (shrink)

Social innovations are urgently needed as we confront complex social problems. As these social problems feature substantial interdependencies among multiple systems and actors, developing and implementing innovative solutions involve the re-negotiating of settled institutions or the building of new ones. In this introductory article, we introduce a stylized three-cycle model highlighting the institutional nature of social innovation efforts. The model conceptualizes social innovation processes as the product of agentic, relational, and situated dynamics in three interrelated cycles that operate at the (...) micro, meso, and macro levels of analysis. The five papers included in this special issue address one or more of these cycles. We draw on these papers and the model to stimulate and offer guidance to future conversations on social innovations from an institutional theory perspective. (shrink)

Although early-stage finance is critical to the growth of most ventures, it is even more important for social ventures as they face the challenges of balancing their social and commercial objectives. Drawing on institutional logics and signaling theory, this study uses a panel data set of 3,401 nascent social ventures to investigate the important role philanthropic grant funding plays in the organizational and financial development of social ventures. We find mixed results, with positive effects on employment and subsequent access to (...) debt finance, but no effects on revenues and access to equity. Our findings connect these theories by suggesting philanthropic grants provide social ventures with flexibility to invest in human capital without pushing them to pursue short-term financial objectives, and that receiving a philanthropic grant provides a signal that is interpreted differently by debt and equity financiers. These findings are especially relevant as funders increasingly use grants to support social entrepreneurship. (shrink)

Although the simultaneous presence of multiple ambitions is inherent in hybrid venturing, pursuing social and/or environmental missions while securing commercial viability can generate ambivalence among stakeholders. In this study, we draw on the notion of “holism” to show how venture founders both embrace tensioned ambitions and sustain hybridity during critical venture development phases. Based on 6 years of data on The People’s Supermarket in the United Kingdom, we identify three distinct practices— fantasizing, bartering, and conjuring—used by founders to harness tensions (...) productively, without compromising their venture’s multiple ambitions. These practices demonstrate the founders’ ability to maintain a venture’s hybrid nature throughout the ideation, organizational, and scale-up phases, thereby shedding light on the application of “holism” within the realm of hybrid venturing. (shrink)

Recent work has emphasized the role of context in shaping the diversification strategies of social enterprises (SEs), but our understanding remains superficial. We identify two types of context-driven diversification strategies—market development diversification (MDD) and market functioning diversification (MFD)—depending on the type of voids being addressed. We then empirically test how these diversification strategies impact the performance of SEs on the twin dimensions of financial growth and social impact. Using a mixed-method approach of qualitative interviews and a longitudinal database of Indian (...) microfinance firms (MFIs), we find that while MFD positively impacts financial growth, MDD has a positive effect on social impact. Furthermore, we find that the strategic fit (or lack of it) between the SE’s legal form and the type of diversification enhances (undermines) financial growth. However, the strategic fit between the legal form and diversification choice does not amplify social impact. The study contributes to product diversification literature, which has paid limited attention to the role of context. (shrink)

This study draws on institutional theory to provide insights into how new forms of organizations gain legitimacy under institutional voids. Based on interviews with leaders of 42 Chinese social enterprises (SEs), we find that dominant stakeholders—the state—are ambivalent about new ventures’ agendas and practices, which is displayed in their being sometimes supportive and other times skeptical, even hostile. SEs favor the contingent engagement political strategy to develop mutually beneficial relationships with the state while keeping a healthy distance. This enables them (...) to gain sociopolitical legitimacy in a nonthreatening and acceptable way for survival and growth. The findings further highlighted the individual, organizational, and environmental factors that condition SE legitimation approaches, including the form of state control, leaders’ political capital, organizational social mission, and regional political environment. This study makes theoretical contributions to the institutional and SE literatures, highlighting stakeholder ambivalence as an essential characteristic of an institutional context fraught with institutional voids. (shrink)

Individuals start and join social enterprises to catalyze social impact but may not subjectively experience their work as impactful. In this article, we inductively uncover when social enterprise members question the impactfulness of their work and how they engage in sensemaking to experience their work as impactful. Exploring the experiences of members across two social enterprises with different missions, we provide insights into instances creating ambiguity of or discrepancies in impactfulness and unearth how individuals navigate these in different circumstances with (...) two distinct sensemaking practices: internalizing and compensating. We reveal the efforts required to experience work as impactful, highlight the heterogeneity and agency in maintaining this perception, and suggest a potential dark side for members and missions of social enterprises. (shrink)