The impact of social identity and social alliance on economic performance in social enterprise

Alternative Title

사회적 기업의 사회적 정체성과 사회적 협업 관계가 경제적 성과에 미치는 요인분석

Publication Type

Journal Article

Publication Date

6-2019

Abstract

The present study investigates the relationship between social competence and economic performance in social enterprises. Social enterprises simultaneously pursue social value creation and economic value creation, two of which are not easily compatible each other. This study explores the conditions under which these two values can synergize with each other and thereby, positively affect each other’s performance. In particular, I examine how two important social competences, that is, social identity and social alliance, influence economic performance of social enterprises. Using the secondary data on social enterprises from Korea Social Enterprise Promotion Agency, I run OLS regression analyses to test hypotheses. I find that investment on social value creation, only when it aligns with social identity, has a statistically significant and positive relationship with economic performance of social enterprises. Further, the study finds evidence that social alliance in and of itself does not affect economic performance of social enterprises. However, social alliance does have a positive influence on social enterprises’ economic performance, only when taking into account social alliance partners’ organizational attributes and a focal social enterprise’s degree of readiness to absorb expected gains from social alliance altogether. The present study improves our understanding on social entrepreneurship research by suggesting how social enterprises can enhance two seemingly incompatible values in a simultaneous manner. I also discuss potentially fruitful future research agenda based on the present paper’s findings.

Keywords

Social enterprises, Economic performance, Social identity, Social alliance

Discipline

Entrepreneurial and Small Business Operations

Research Areas

Strategy and Organisation

Publication

Asia-Pacific Journal of Business Venturing and Entrepreneurship

Volume

14

Issue

3

First Page

47

Last Page

58

ISSN

1975-7557

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