Psychological Capital of the Social Entrepreneur and Economic Performance of Social Enterprises in Tunisia: The Moderating Role of Social Performance

Abstract

Many researchers have investigated the reasons why some social entrepreneurs are more successful than others at leading businesses and fostering their growth in developed nations, but there have been few studies on the continent of Africa. This viewpoint is relevant to the study’s focus on Tunisia. This study analyzed the relationships between the psychological capital of social entrepreneurs and the performance of social enterprises. The purpose of this study was to examine the nexus between psychological capital, social performance and the economic performance of social enterprises. The study uses a quantitative approach based on questionnaires administered to 171 social entrepreneurs. Hypothesis testing was carried out using structural equation methods on PLS 4 software. The results confirm the positive effect of the social entrepreneur’s psychological capital on the economic performance of social enterprises. Social performance exerts a double positive effect on economic performance: A direct positive effect and an indirect positive effect by acting as a moderator on the relationship between the social entrepreneur’s psychological capital and the economic performance of social enterprises. The implication of the above findings is that psychological capital is a key determinant of the performance of enterprises. Thus, social entrepreneurs are encouraged to engage in activities that can boost their psychological capital.