Entrepreneurial agency—the individual power to change environments—is central to entrepreneurship research. Yet, from a social inequality perspective, beliefs in an entrepreneurial agency might differ based on the social class environments individuals are born into. Drawing on social cognitive theories, our findings across three data sets among students from Germany and entrepreneurs from the United States indicate that social class origins are associated with entrepreneurial self-efficacy (ESE) beliefs in adulthood. Exploring the underlying mechanisms, we find that students’ early entrepreneurial experiences in (...) education and practice are indicative of reproducing the class gap in ESE. When individuals collect mastery experiences such as social mobility or entrepreneurial success, their lower social class origins turn out to be associated with enhanced entrepreneurial agency beliefs. We discuss the implications for further research on social class, inequality, and entrepreneurship. (shrink)

Firms are central to wealth creation and distribution, but their role in economic inequality in a society remains poorly studied. In this essay, we define and distinguish value distribution from value creation and value appropriation. We identify four value distribution mechanisms that firms engage in and argue that shareholder wealth maximization approach skews the value distribution toward shareholders and top executives, which in turn contributes to rising economic inequalities around the world. We call on organizational scholars to study the value (...) distribution role of firms and its consequences for society, and introduce the articles in this volume of the special issue on economic inequality, business, and society. (shrink)

In settler societies, upward social mobility by Indigenous people is seen in the growth of successful professional and entrepreneurial classes where both wealth creation and social power are significant resources. Yet, public and academic discourses perpetuate the belief that social mobility impacts negatively on Indigenous people by placing cultural identity in conflict with capitalist business practices. Using data from an international comparison consisting of interviews with 220 Indigenous entrepreneurs in research sites across three countries, this article shows that the belief (...) is unfounded and reveals how this duality creates an impossible tension when Indigenous cultural identity is framed as “at risk” because of social mobility. A discursive colonial mind-set remains a central, enduring and problematic organizing principle of the field of Indigenous social mobility, one that requires a shift in the kinds of research questions that are asked and the ways in which social mobility is ultimately defined. (shrink)

The article addresses how societal inequalities shape market arrangements. While business scholars developed important work about the interplay of organizations and societal economic inequalities, less has been said about the embeddedness of markets in unequal social structures. We argue that this issue may be addressed by cross-fertilizing the sociological approach of Bourdieu and the Strategic Action Fields perspective. To demonstrate our view, we assessed the extreme case of polyethylene terephthalate (PET) recycling markets in Brazil, conducting a qualitative study based on (...) the precepts of abductive analysis and using data from different secondary sources, interviews, and participant observation. We verified the existence of correspondences between the power of strategic action fields and the positions the individuals controlling them occupy in what Bourdieu calls the social space and show how these differences enable inter field connections that tend to reproduce social hierarchies. (shrink)

Social entrepreneurship (SE) is gaining increasing legitimacy as a form of ethical business practice and a solution to various societal challenges. Despite the burgeoning interest in SE in the realms of ethical business scholarship and business ethics education, new pedagogical developments have been limited. To advance SE pedagogy, we produced a new multimedia-based tool consisting of two SE-focused comics and evaluated their efficacy in “winning the hearts and shaping the minds” of learners in an experimental setting. We tested the effects (...) of the two comics individually. Comic #1, a story of a gambling addict who transforms into a social entrepreneur, was used to examine the effects of using a comic on learners’ engagement and cognitive enhancement, while comic #2, a story of a teenage academic misfit who finds her passion in crafting objects and establishes a social enterprise, was used to interrogate the effects of using a comic on the relationship among SE self-efficacy, SE intent, and entrepreneurial passion. We also collected qualitative feedback in the form of learners’ comments about the second comic. Our results supported the two proposed models and suggested that comics show promise in enhancing SE teaching and learning. Our new contribution consists of the theoretical relationships examined in the models, our insights into why comics can be beneficial to learners, the scholarly artistic contribution of the comics, and the use of an experimental approach. We end the article with suggestions for designing, implementing, and evaluating future multimedia-based pedagogy in SE and ethical business teaching and learning. (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)

We examine the extent to which host country income inequality influences multinational enterprises’ (MNE) expansion strategy for foreign production investment, depending on their specific strategic objectives. Applying a transaction cost framework, we predict that national income inequality has an inverted U-shaped relationship with foreign production investment. As inequality increases, MNEs accrue lower transaction costs arising from interactions with various local actors, leading to higher probability of investment. As income inequality increases further, its effect on location attractiveness will become negative, as (...) its attraction effect is increasingly offset by additional monitoring, bargaining, and security costs owing to the more fractious nature of high inequality societies. In addition, we suggest that the impact of income inequality is contingent on investment objectives: The inverted U-shaped relationship is stronger for efficiency-seeking investment but weaker for market-seeking and competence-enhancing investments. We find substantial support for our hypotheses through an analysis of 27 years (1986-2012) of data on Japanese MNEs’ overseas production entries. (shrink)

Income inequality has increasingly become more ubiquitous within rather than across countries. Yet much of the theorizing has been at macro levels and does not sufficiently account for the firms within regions, which are primary sources of income inequality. Moreover, much of the research that does implicate firms, assumes that firms impact inequality equivalently. It neither accounts for the heterogeneity of firms within regions nor the potential for differential impact from that heterogeneity. Our study challenges these assumptions through a theory (...) that connects a firm’s life cycle and recruiting and compensation strategies to its impact on income inequality within and across regions. We incorporate a set of contingencies that also have the potential to alter the model’s predictions, which are based on external shocks and ownership of the firm. The paper concludes with a discussion of the implications of this model for theory, policy, and practice. (shrink)