How does entrepreneur core self‐evaluation affect entrepreneurial orientation in social enterprises? Evidence from China

Abstract

With the global trend of sustainable development, traditional nonprofit organizations are facing the challenge of economic value creation. Entrepreneurship offers a possibility for nonprofit organizations to survive with innovative business methods. Entrepreneurial orientation (EO) reflects the degree of innovativeness, proactiveness, and risk‐taking in terms of organizational entrepreneurial behavior. Research on the mechanisms of EO formation in a social context is still in the exploratory stage. While a large number of studies have explored dimensional modifications to EO, it has yet to consider how EO in a social context is affected at the individual level. To address this gap, we explain the potential impact of social entrepreneurs’ core self‐evaluation (CSE) on EO from social cognitive theory using a sample of Chinese social enterprises. The findings suggest that CSE has a significant positive effect on EO. We also distinguish the partially mediating role played by the two approaches and avoidance motives. The findings also suggest that the high socioeconomic status of social entrepreneurs strengthens the relationship between CSE and EO, as well as the relationship between CSE and both motives. Our findings provide valuable insights into the decision‐making behavior of social enterprises for sustainable development.