Social Capital and Social Enterprise Performance in Pakistan Social Innovation as a Proposed Mediator
Abstract
This conceptual paper is an attempt to understand the ways through which the social enterprises sustain and perform in resource poor environment of bottom of the pyramid (BOP) market Pakistan. An effort is made to understand the relationship between the key resource mobilization strategy i.e. social capital and social enterprise performance. Social capital can be explained as a key game plan of the social enterprises who gear up to address the gaps left by market and governments failures When surrounded by resources and institutional constraints without any political and regulatory support, the resources embedded in one’ s network plays a key role in achieving the double bottom line of the social ventures by introducing the novel solutions to the most pressing problem of the society. Lack of studies that treats social innovation as a mediator has led us to propose it as an important variable that can lead us to the achievement of the dual goals of profit making along with social impact of social enterprises. Therefore, social innovation plays the important role of a link in this proposed integrated model. The resource-based theory (RBT) is used as the under-pinning theory for this study. This study can give valuable insights to for profit and not for profit companies both, who are aiming to generate social impact by generating enough revenues as well, about the possible scaling up strategy.
References
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Busch, C. (2014). Substantiating social entrepreneurship research: Exploring the potential of integrating social capital and networks approaches. International Journal of Entrepreneurial Venturing, 6(1), 69-84.
Chmelik, E., Musteen, M., & Ahsan, M. (2015). Measures of performance in the context of international social ventures: An exploratory study. Journal of Social Entrepreneurship. doi:10.1080/19420676.2014.997781
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Day, S. W., & Jean-Denis, H. (2016). Resource Based View of social entrepreneurship: Putting the pieces together. Journal of Strategic Innovation and Sustainability, 11(2), 59-69.
Dees, J. G. (1998). Enterprising nonprofits: What do you do when traditional sources of funding fall short? Harvard Business Review, 55-67.
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Defourny, J., & Nyssens, M. (2010). Conceptions of social enterprise and social entrepreneurship in Europe and the United States: Convergences and divergences. Journal of Social Entrepreneurship, 1(1), 32-53.
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Gupta, S., Beninger, S., & Ganesh, J. (2015). A hybrid approach to innovation by social enterprises: lessons from Africa. Social Enterprise Journal, 11(1), 89-112.
Hasan, S. (2005). Social Capital and Social Entrepreneurship in Asia: Analysing the Links. Asia Pacific Journal of Public Administration,, 27(1), 1-17. doi:10.1080/23276665.2005.10779296
Hoang, H., & Antoncic, B. (2003). Network-based research in entrepreneurship: A critical review. Journal of Business Venturing, 18, 165-187. doi:10.1016/S0883-9026(02)00081-2
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Lin, N. (2001). Social Capital: A Theory of Social Structure and Action. New York, NY: Cambridge University Press.
Linaa, P. (2013). Bricolage as a means of innovating in a resource-scarce environment: A study of innovator-entrepreneurs at the BOP. Journal of Developmental Entrepreneurship, 18(3), 1350015-1350011-1350023. doi:10.1142/S1084946713500155
London, T., & Hart, S. L. (2004). Reinventing strategies for emerging markets: beyond the transnational model. Journal of International Business Studies, 35, 350-370.
Mair, J., & Marti, I. (2006). Social entrepreneurship research: A source of explanation, prediction, and delight. Journal of World Business, 41(1), 36-44. doi:10.1016/j.jwb.2005.09.002
Mulgan, G. (2006). The Process of Social Innovation. Innovations: Technology, Governance, Globalization, 1(2), 145-162.
Murray, R., Caulier-Grice, J., & Mulgan, G. (2010). The open book of social innovation. London.
Peredo, A. M. a., & Crisman, J. J. (2006). Toward a theory of community-based enterprise. Academy of Management of Review, 3(2), 309-328.
Prahalad, C. K. (2005). Fortune at the bottom of the pyramid: Eradicating poverty through profits. Upper Saddle River: NJ: Wharton School Publishing.
Putnam, R. D. (1995). Bowling alone: America's declining social capital. Journal of Democracy, 65-78.
Santos, F. M. (2012). A positive theory of social entrepreneurship. Journal of Business Ethics, 111, 335–351. doi:10.1007/s10551-012-1413-4
Short, J. C., Todd, W. M., & Lumpkin, G. T. (2009). Research in social entrepreneurship: past contributions and future opportunities. Strategic Entrepreneurship Journal, 3(2), 161-194. doi:10.1002/sej.69
Stam, W., Arzlanian, S., & Elfring, T. (2013). Social capital of entrepreneurs and small firm performance: A meta-analysis of contextual and methodological moderators. Journal of Business Venturing. doi:10.1016/j.jbusvent.2013.01.002
Tsai, W., & Ghoshal, S. (1998). Social capital and value creation: the role of intrafirm networks. The Academy of Management Journal, 41(4), 464-476.
Upadhyay, C. S., Rawal, P., & Awasthi, A. (2017). Uplifting society by providing innovative solutions: A study of social entrepreneurship in India. International Research Journal of Engineering and Technology (IRJET), 4(5), 941-951.
Weber, C., Kröger, A., & Demirtas, C. (2015). Scaling Social Impact in Europe Quantitative Analysis of National and Transnational Scaling Strategies of 358 Social Enterprises. Retrieved from Germany:
Wu, W.-p. (2008). Dimensions of social capital and firm competitiveness improvement: The mediating role of information sharing. journal of Management Studies, 45(1). doi:10.1111/j.1467-6486.2007.00741.x
Yasir, A., Ahmed, V., Khan, S., Adnan, M., Ahmed, S. S., Javed, A., . . . Hassan, D. (2016). Social enterprise landscape in Pakistan. Retrieved from Pakistan:
Zahra, S. A., Rawhouser, H. N., Bhawe, N., Neubaum, D. O., & Hayton, J. C. (2008). Globalization of social entrepreneurship opportunities. Strategic Entrepreneurship Journal, 2, 117-131. doi:10.1002/sej.43
Zhao, E. Y., & Lounsbury, M. (2016). An institutional logics approach to social entrepreneurship: Market logic, religious diversity, and resource acquisition by microfinance organizations. Journal of Business Venturing, 31, 643-662. doi:10.1016/j.jbusvent.2016.09.001
Zhao, L., & Aram, J. D. (1995). Networking and growth of young technology-intensive ventures in China. Journal of Business Venturing, 10, 349-370.
Austin, J., Stevenson, H., & Wei-Skillern, J. (2006). Social and commercial entrepreneurship: same, different or both? Entrepreneurship Theory and Practice, 30(1), 1-22.
Ayob, N., Teasdale, S., & Fagan, K. (2016). How social innovation ‘Came to Be’: Tracing the evolution of a contested concept. Journal of Social Policy, 45(4), 635-653. doi:10.1017/S004727941600009X
Bacq, S., Ofstein, L. F., Kickul, J. R., & Gundry, L. K. (2015). How creative resource mobilization fosters greater social impact. ENTREPRENEURSHIP AND INNOVATION, 16(4), 283-289. doi:10.5367/ijei.2015.0198
Baker, T., Miner, A. S., & Eesley, D. T. (2003). ‘Improvising firms: Bricolage, account giving, and improvisational competency in the founding process’. Research Policy, 32, 255-276.
Barney, J. B., Ketchen, D. J., & Wright, M. (2011). The future of Resource-Based theory: Revitalization or decline? Journal of Management, 37(5), 1299-1315. doi:10.1177/0149206310391805
Bhatt, P., & Altinay, L. (2013). How social capital is leveraged in social innovations under resource constraints? Management Decision, 51(9), 1772-1792.
Bocken, N., Fil, A., & Prabhu, J. C. (2016). Scaling up social businesses in developing markets. Journal of Cleaner Production, 139, 295-308. doi:10.1016/j.jclepro.2016.08.045
Bourdieu, P. (1986). The forms of capital (J. G. Richardson ed.). New York: Greenwood.
Busch, C. (2014). Substantiating social entrepreneurship research: Exploring the potential of integrating social capital and networks approaches. International Journal of Entrepreneurial Venturing, 6(1), 69-84.
Chmelik, E., Musteen, M., & Ahsan, M. (2015). Measures of performance in the context of international social ventures: An exploratory study. Journal of Social Entrepreneurship. doi:10.1080/19420676.2014.997781
Dacin, M. T., Dacin, P. A., & Tracey, P. (2011). Social Entrepreneurship: A Critique and Future Directions. Organization Science, 22(5), 1203-1213.
Dawson, P., Scott, J. M., Thompson, J. L., & Preece, D. (2011). The dynamics of innovation and social capital in social enterprises: a relational sense-making perspective. Paper presented at the Proceedings of the Massey University Social Innovation and Entrepreneurship Conference: extending theory, integrating practice.
Day, S. W., & Jean-Denis, H. (2016). Resource Based View of social entrepreneurship: Putting the pieces together. Journal of Strategic Innovation and Sustainability, 11(2), 59-69.
Dees, J. G. (1998). Enterprising nonprofits: What do you do when traditional sources of funding fall short? Harvard Business Review, 55-67.
Dees, J. G. (2007). Taking social entrepreneurship seriously: uncertainty, innovation, and social problem solving. Society, 44(3), 24-31.
Dees, J. G., & Anderson, B. B. (2006). Framing a theory of social entrepreneurship: Building on two schools of practice and thought. Research on social entrepreneurship: Understanding and contributing to an emerging field, 1(3), 39-66.
Defourny, J., & Nyssens, M. (2010). Conceptions of social enterprise and social entrepreneurship in Europe and the United States: Convergences and divergences. Journal of Social Entrepreneurship, 1(1), 32-53.
Desa, G. (2007). Social entrepreneurship: snapshots of a research field in emergence. Paper presented at the International Social Entrepreneurship Research Conference (ISERC), Copenhagen.
Desa, G., & Koch, J. L. (2014). Scaling Social Impact: Building Sustainable Social Ventures at the Base-of-the-Pyramid. Journal of Social Entrepreneurship, 5(2), 146-174. doi:DOI: 10.1080/19420676.2013.871325
Ebrahim, A., Battilana, J., & Mair, J. (2014). The governance of social enterprises: Mission drift and accountability challenges in hybrid organizations. Research in Organizational Behavior, 34, 81-100.
Ebrahim, A., & Rangan, V. K. (2014). What impact? A framework for measuring the scale & scope of social performance. California management review, 56(3), 118-141.
Frumkin, P. (2002). On being nonprofit: A conceptual and policy primer (2005 ed.). United States of America: Harvard University Press.
Gabriel, M. (2014). Making it Big: Strategies for scaling social innovations. from Nesta
Granados, M. L., & Rivera, A. M. (2017). Assessing the value dimensions of social enterprise networks. International Journal of Entrepreneurial Behavior & Research, 23(6). doi:10.1108/IJEBR-09-2016-0313
Gundry, L. K., Kickul, J. R., Griffiths, M. D., & Bacq, S. C. (2011a). Creating Social Change Out of Nothing: The Role of Entrepreneurial Bricolage in Social Entrepreneurs' Catalytic Innovations. In J. A. K. G.T. Lumpkin (Ed.), Social and Sustainable Entrepreneurship (Advances in Entrepreneurship, Firm Emergence and Growth (Vol. 13, pp. 1-24): Emerald Group Publishing Limited.
Gundry, L. K., Kickul, J. R., Griffiths, M. D., & Bacq, S. C. (2011b). Entrepreneurial bricolage and innovation ecology: Precursors to social innovation? Frontiers of Entrepreneurship Research, 31(19), 659-673.
Gupta, S., Beninger, S., & Ganesh, J. (2015). A hybrid approach to innovation by social enterprises: lessons from Africa. Social Enterprise Journal, 11(1), 89-112.
Hasan, S. (2005). Social Capital and Social Entrepreneurship in Asia: Analysing the Links. Asia Pacific Journal of Public Administration,, 27(1), 1-17. doi:10.1080/23276665.2005.10779296
Hoang, H., & Antoncic, B. (2003). Network-based research in entrepreneurship: A critical review. Journal of Business Venturing, 18, 165-187. doi:10.1016/S0883-9026(02)00081-2
Janssen, F., Fayolle, A., & Wuilaume, A. (2018). Researching bricolage in social entrepreneurship. Entrepreneurship & Regional Development, 30(3-4), 450-470. doi:10.1080/08985626.2017.1413769
Lin, N. (2001). Social Capital: A Theory of Social Structure and Action. New York, NY: Cambridge University Press.
Linaa, P. (2013). Bricolage as a means of innovating in a resource-scarce environment: A study of innovator-entrepreneurs at the BOP. Journal of Developmental Entrepreneurship, 18(3), 1350015-1350011-1350023. doi:10.1142/S1084946713500155
London, T., & Hart, S. L. (2004). Reinventing strategies for emerging markets: beyond the transnational model. Journal of International Business Studies, 35, 350-370.
Mair, J., & Marti, I. (2006). Social entrepreneurship research: A source of explanation, prediction, and delight. Journal of World Business, 41(1), 36-44. doi:10.1016/j.jwb.2005.09.002
Mulgan, G. (2006). The Process of Social Innovation. Innovations: Technology, Governance, Globalization, 1(2), 145-162.
Murray, R., Caulier-Grice, J., & Mulgan, G. (2010). The open book of social innovation. London.
Peredo, A. M. a., & Crisman, J. J. (2006). Toward a theory of community-based enterprise. Academy of Management of Review, 3(2), 309-328.
Prahalad, C. K. (2005). Fortune at the bottom of the pyramid: Eradicating poverty through profits. Upper Saddle River: NJ: Wharton School Publishing.
Putnam, R. D. (1995). Bowling alone: America's declining social capital. Journal of Democracy, 65-78.
Santos, F. M. (2012). A positive theory of social entrepreneurship. Journal of Business Ethics, 111, 335–351. doi:10.1007/s10551-012-1413-4
Short, J. C., Todd, W. M., & Lumpkin, G. T. (2009). Research in social entrepreneurship: past contributions and future opportunities. Strategic Entrepreneurship Journal, 3(2), 161-194. doi:10.1002/sej.69
Stam, W., Arzlanian, S., & Elfring, T. (2013). Social capital of entrepreneurs and small firm performance: A meta-analysis of contextual and methodological moderators. Journal of Business Venturing. doi:10.1016/j.jbusvent.2013.01.002
Tsai, W., & Ghoshal, S. (1998). Social capital and value creation: the role of intrafirm networks. The Academy of Management Journal, 41(4), 464-476.
Upadhyay, C. S., Rawal, P., & Awasthi, A. (2017). Uplifting society by providing innovative solutions: A study of social entrepreneurship in India. International Research Journal of Engineering and Technology (IRJET), 4(5), 941-951.
Weber, C., Kröger, A., & Demirtas, C. (2015). Scaling Social Impact in Europe Quantitative Analysis of National and Transnational Scaling Strategies of 358 Social Enterprises. Retrieved from Germany:
Wu, W.-p. (2008). Dimensions of social capital and firm competitiveness improvement: The mediating role of information sharing. journal of Management Studies, 45(1). doi:10.1111/j.1467-6486.2007.00741.x
Yasir, A., Ahmed, V., Khan, S., Adnan, M., Ahmed, S. S., Javed, A., . . . Hassan, D. (2016). Social enterprise landscape in Pakistan. Retrieved from Pakistan:
Zahra, S. A., Rawhouser, H. N., Bhawe, N., Neubaum, D. O., & Hayton, J. C. (2008). Globalization of social entrepreneurship opportunities. Strategic Entrepreneurship Journal, 2, 117-131. doi:10.1002/sej.43
Zhao, E. Y., & Lounsbury, M. (2016). An institutional logics approach to social entrepreneurship: Market logic, religious diversity, and resource acquisition by microfinance organizations. Journal of Business Venturing, 31, 643-662. doi:10.1016/j.jbusvent.2016.09.001
Zhao, L., & Aram, J. D. (1995). Networking and growth of young technology-intensive ventures in China. Journal of Business Venturing, 10, 349-370.