The Effect of Value Co-Creation on Social Enterprise Growth: Moderating Mechanism of Environment Dynamics

Abstract

The traditional approach to demonstrate the growth processes of social enterprise still relies heavily on an internal perspective of resource and capability accumulation. However, it is insufficient to explain why some social enterprises grow quickly while other social enterprises do not. Based on the theory of value co-creation, this paper proposes a theoretical framework of the effect of value co-creation on social enterprise growth. A survey was conducted in China across 29 provinces and municipalities from October 2015 to March 2016, through the efforts of a market research group. The final number of usable questionnaires was 172. Specifically, by employing hierarchical regression models, this paper partially confirms the positive impact of value co-creation on social enterprise growth, while environment dynamics have a negative moderating effect on the relationship between value creation and the growth of social enterprises.

The Influence of Marketing Capability in Mexican Social Enterprises

“…However, economic value creation is indispensable, not only for the survival of a social enterprise, but also because the economic value created by a company arises from the innovative use of valuable and scarce resources [35]. Given that social enterprises in developing countries face more resource constraints in the economic environment, it is more difficult to attract resources, develop capabilities, and generate innovation [96]. A possible explanation for this result could be related to the tension or conflict that some companies face regarding the social-economic duality [97], thus striving not to sacrifice social value to capture economic value, or not be perceived as users of a social mission as an exploitative opportunity to achieve economic goals [98].…”

How Gender, Age and Education Influence the Entrepreneur’s Social Orientation: The Moderating Effect of Economic Development

“…Therefore, social entrepreneurs can be defined as change agents that employ entrepreneurial means to find systemic solutions to social and environmental problems [24]. They must have a clear and specific social goal that prioritizes social value creation [8], although the initiative of social entrepreneurship can come both from the business sector (business approach motivated by a mission) and nonprofit organizations (earned income school of thought) [25]. Thus, this type of entrepreneurship can comprise a rather broad range of organizations, such as (1) traditional nonprofit organizations, which have a clear social mission and which are not dependent on market income (the commercial activities undertaken in this type of business can produce profits that will enable the business to maintain its operations), (2) for-profit organizations that have a clear mission to seek both social and economic objectives, and (3) hybrid organizations whose motives are both not-for-profit and for-profit.…”

“…Entrepreneurship is determined by a different set of variables: The personal characteristics of an individual, including socio-demographics and personality traits, the economic environment and institutions, and sociological variables [8,13]. Social entrepreneurship research, which has been mostly theoretical [8] or qualitative thus far [26], tends to follow these research streams.…”

“…Analyzing the significance of creating economic or social value for the entrepreneur enables the classification of entrepreneurs on a continuum that ranges from those whose only priority is to earn money (economic entrepreneurs), to those whose only objective is to create social value (social entrepreneurs) [8]. This continuum depends on the individual entrepreneur's social orientation [9].…”

“…Therefore, we can have a more or less entrepreneurial social orientation, and can decide the intensity with which entrepreneurs prioritize social over economic objectives. However, it is important to remember that the economic objectives of social entrepreneurs are regarded as subordinate and a necessary condition rather than a dominant aim [8].…”