Does social performance contribute to economic performance of social enterprises? The role of social enterprise reputation building. International Journal of Entrepreneurial Behavior & Research

Journal article

Kwong, C., Bhattarai, C.R., Bhandari, M.P. and Cheung, C. (2023). Does social performance contribute to economic performance of social enterprises? The role of social enterprise reputation building. International Journal of Entrepreneurial Behavior & Research. International Journal of Entrepreneurial Behavior & Research. https://doi.org/10.1108/IJEBR-12-2022-1106
AuthorsKwong, C., Bhattarai, C.R., Bhandari, M.P. and Cheung, C.
Abstract

Purpose
Literature on the relationship between social performance and economic performance of social enterprises has long been inconclusive. This paper aims to investigate whether and, if so, how social performance contributes to economic performance of social enterprises. Specifically, drawing from the resource-based view and signalling theory, the study examines how the development of reputation, which enables social enterprises to signal the enterprises' stakeholders' commitment towards social causes, mediates the relationship between the two.

Design/methodology/approach
Employing a quantitative research design, data were collected from a sample of 164 social enterprises in the UK and analysed using structural equation modelling (SEM).

Findings
The results illustrate that whilst the direct relationship between social and economic performance is inconclusive, social performance contributes indirectly to improve economic performance through improving social enterprise reputation.

Originality/value
To the best of the authors' knowledge, this study is the first of this kind in the context of social enterprises which sheds light on the long-standing conflicting literature on the relationship between the dual objectives (i.e. social and economic) by providing reputation as the mediating variable.

Year2023
JournalInternational Journal of Entrepreneurial Behavior & Research
PublisherEmerald
ISSN1355-2554
Digital Object Identifier (DOI)https://doi.org/10.1108/IJEBR-12-2022-1106
Web address (URL)https://www.emerald.com/insight/content/doi/10.1108/IJEBR-12-2022-1106/full/html?casa_token=YYle8FYItqkAAAAA:-KPXnLvlRpBVzyKDuicIuAXx-1w84f3Ihq1ltHau67n8I1rrbT1Jt6cetRK76XmjzncVMthtkOESup9HEKfTIAh17mnW4wp5zxMS2_fbdSDg9WK204o
Publication dates
Print15 Aug 2023
Publication process dates
Accepted15 Jul 2023
Deposited12 Oct 2023
Accepted author manuscript
License
File Access Level
Open
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