How do social entrepreneurs develop technological innovation?

Abstract

Purpose The present study attempts to analyze how social entrepreneurs (SEs) develop technological innovation in the face of diverse institutional logics, which are embedded in the National Systems of Innovation (NSI). Design/methodology/approach Based on the content analysis of Ashoka Fellows, the study compares SEs in developed and developing countries, which represent strong versus weak NSIs. Findings SEs selectively couple the elements of diverse institutional logics to ensure the resource inflow and legitimacy of their operations. However, SEs particularly at weak NSIs are also decoupling their profit and non-for-profit branches to address conflict among diverse logics. Moreover, the study finds that 12 out of 20 entrepreneurs who identify themselves as technologically innovative did not develop any new technological innovation. Practical implications The study shows that being technologically innovative depends on the acquisition of resources and the management of legitimacy challenges, SEs can diversify their innovations by creating more incremental, architectural and modular innovations to address competing demands among logics. Social implications The study reveals that SEs in weak NSIs interact with multiple institutional logics more frequently than their counterparts in strong NSIs. Although this context leads them to diversify their technological innovation, there is a need for improving the NSIs of SEs in developing countries to facilitate the continuity of resource inflow and ensure the legitimacy of their operations. Originality/value Integrating two complementary theoretical lenses, the study contributes to the literature by exploring the impact of the interaction between logics nested within a supra system and SEs’ ability to develop technological innovation.

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