The role of reciprocity in the internationalization of social enterprises

2019 ◽  
Vol 27 (1) ◽  
pp. 75-91
Author(s):  
Klavdia Markelova Evans ◽  
Veronika Ermilina ◽  
Ashley Salaiz

Purpose The paper enhances our understanding of how small businesses with a strong social mission undergo international expansion. Building on the theoretical arguments on social exchange theory (SET), specifically on the literature on reciprocity, the purpose of this paper is to investigate the applicability of the Uppsala Internationalization Model to the context of a social enterprise (SE). The propositions argue that the strong social orientation of SEs encourages a reciprocal exchange with the stakeholders of the host country that limits the number of obstacles they may face during the internationalizing process. Design/methodology/approach The conceptual development bridges SET with bodies of knowledge on SE, Uppsala Internationalization Model and organizational embeddedness. Findings The theoretical arguments provide evidence of how the socially oriented mission of a small business aids it with overcoming obstacles presented by internationalization. Specifically, the authors show that socially oriented enterprises are uniquely equipped to conquer the lack of adequate information about a foreign market and a lack of adequate public support in a host country. A social mission, which ignites positive reciprocity with the local stakeholders, serves as a valuable asset in the process of internationalization. Moreover, since the propositions recognize that the norms of reciprocity differ from one national culture to another, they unfold how reciprocal exchanges may be altered because of the nuances of national culture. Originality/value This work makes three important contributions. First, it extends our understanding of why SEs can potentially internationalize more rapidly than organizations without a strongly pronounced social mission. Second, the investigation on the applicability of the U-Model to the context of SE answers scholars’ recent call for continuous work on advancing the U-Model. Third, the authors equip practitioners with a thorough understanding of how they can capitalize on the social aspect of a SE in the unique setting of a specific national culture.

2018 ◽  
Vol 25 (3) ◽  
pp. 401-424 ◽  
Author(s):  
Rizwan Tahir

Purpose Expatriate management is a popular theme in the field of international human resource management in light of the fact that expatriates play a crucial role in a MNC’s global operations. The purpose of this paper is to explore how MNCs select, train, deploy and support expatriate managers during and after their international assignment in the United Arab Emirates (UAE). Design/methodology/approach This qualitative study is based on in-depth interviews with 22 Western expatriate managers who are presently based in the UAE. However, in order the ensure a diverse sample among the participants with regards to their age, professional experience, gender and nationality, purposeful sampling was utilized while selecting the participants. Findings The results of the present study cast light on many shortcomings of the overall expatriation process as they are implemented by MNCs in the UAE. Accordingly, there is a pressing need for MNCs in the UAE to develop strategic expatriation processes, involving the following critical factors: the selection of the right person for the right job; specific and relevant pre-departure and post-arrival cross-cultural training (CCT); practical support for the expatriate employees and their trailing spouses in the host country; and lastly, a clear repatriation strategy to mark a successful conclusion of foreign assignments in the UAE. Research limitations/implications It is acknowledged that the results of this purely qualitative study, based on a relatively small sample size, cannot claim to represent the management theories, practices and realities of all the Western MNCs in the UAE. Moreover, these findings narrate the views and perceptions of this particular cohort of expatriate executives with relation to their selection, pre-departure CCT, adjustment in the UAE and the support and repatriation policies utilized by their companies for doing business in the UAE. Practical implications This study points to the fact that technical skills are mostly considered to be the predominant selection criteria for the expatriate selections in the MNCs. Other abilities, such as language skills and relational and perceptual adjustability are considered to be less important and do not feature overtly in the selection criteria for expatriate positions. The results demonstrate that distinctive features of adjustability, which include expatriates’ willingness to communicate, their social orientation, dynamic anxiety resistance and openness ability are all critical to the adjustment in the host country and should be given more emphasis. Originality/value Regardless of the presence of numerous MNCs in the UAE, it is indeed surprising to see that the topic of the expatriation management process in MNCs in the UAE has received little research attention. The objective of this study is to address this deficiency. Additionally, it is hoped that these findings may also be valuable to MNCs and consultants who are preparing expatriates for international assignments, especially in the Middle East and in particular in the UAE.


Author(s):  
Dana Brakman Reiser ◽  
Steven A. Dean

This chapter explores solutions to the trust deficit inhibiting social enterprises’ access to the retail investment market. Although the size of this market makes it an attractive source of capital, the chapter explains how securities regulation traditionally hindered small businesses from reaching it. It surveys the impact of reforms under the 2012 JOBS Act, identifying new pathways for retail investment in small businesses. Even with these changes, however, the chapter argues social enterprise’s access to retail investment will be stymied unless founders and investors can trust each other. It conceives a surprising solution: offering electing social enterprises a federal tax benefit linked to mission-driven expenditures, paired with an elevated tax burden on distributions of profits. The tax benefit would be broadly attractive, but only entrepreneurs and investors devoted to social mission would accept the associated tax burden. Entrepreneurs, investors and crowdfunding platforms could use election to identify trustworthy social enterprises.


2019 ◽  
Vol 34 (1) ◽  
pp. 46-60 ◽  
Author(s):  
Jonghun Sun ◽  
Jeong Won Lee ◽  
Young Woo Sohn

PurposeThe purpose of this paper is to examine the role of meaning of work as a linking mechanism between the perception of work context and turnover intention within the rarely studied context of social enterprises.Design/methodology/approachDrawing on meaning of work theories, an integrated research model was developed. Data were collected using questionnaires from 315 full-time employees at 114 social enterprises in Korea. Mediated and moderated structural equation models were used to assess the hypotheses.FindingsSocial mission was fully mediated by meaning of work to predict low turnover intention, and shared vision was partially mediated to predict the same. The authors also found that the positive relationship between social mission and meaning of work was stronger when shared vision was higher.Originality/valueThis study extends previous literature on managerial psychology (i.e. meaning of work and turnover) in the context of a new but increasingly prevalent organizational form, social enterprises. It also provides practical advice for managers seeking to retain employees and encourage the sustainability of the social enterprise sector.


2016 ◽  
Vol 6 (4) ◽  
pp. 1-32
Author(s):  
Sarah Babb ◽  
Tina Retief ◽  
Geoff Bick

Subject area The subject areas are marketing, entrepreneurship, strategy or organisational design, operating in emerging markets and social entrepreneurship. Study level/applicability The study is applicable to MBA students, masters-level students and students of executive education. Case overview The case outlines the context and current decisions and dilemma facing Essay Gifts, which is a successful enterprise based in Cape Town, South Africa, supplying a local market in corporate gifting since 2006. The emerging market is facing economic decline and rising unemployment sitting at 25 per cent and up to 48 per cent in the youth market. After seven years of operating from a home-based office, Beatrice has moved into an office block in an upcoming area in Cape Town as they anticipate bullish targets for the upcoming year. The decision facing her now is whether to also sign a lease for a vacant retail shop downstairs from her office to sell ready-made gifting solutions. To meet the social mission, Essay Gifts is using township-based suppliers to develop the products, and this is proving an often unreliable and inconsistent source of supply and the current orders may not even be met at this particularly busy end-of-year period. How does Beatrice scale the business and what business is she in after all? Is she an entrepreneur, striving to increase the size of her business and her revenue, or is she a social entrepreneur creating employment opportunities for others? Expected learning outcomes The paper enables to identify the determining features of a social enterprise and the dynamics involved in balancing the social and commercial missions; understand the complexities of entrepreneurial operations in emerging markets; identify scaling up and strategic growth strategy options for social enterprises and small and medium-sized enterprises; and distinguish entrepreneurial marketing strategies in contrast with traditional marketing strategies. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 3: Entrepreneurship.


2016 ◽  
Vol 33 (2) ◽  
pp. 246-275 ◽  
Author(s):  
Katharina Laufs ◽  
Michael Bembom ◽  
Christian Schwens

Purpose – Using arguments from the upper echelons perspective this paper aims to examine the impact of CEO characteristics on small and medium-sized enterprises’ (SMEs’) equity foreign market entry mode choice and how these associations are jointly moderated by geographic experience of the firm and host-country political risk. Design/methodology/approach – The empirical analysis draws on data gathered from German SMEs testing triple-interaction effects between CEO’s age, firm tenure and international experience, geographic experience of the firm (organizational level), and host-country political risk (environmental level). Findings – Empirical findings validate that the influence of CEO’s age and firm tenure on SME foreign market entry mode choice varies by managers’ level of managerial discretion (i.e. latitude of action) as determined by the SME’s geographic experience and the level of political risks prevailing in the foreign market. Practical implications – Empirical findings help SME owners and managers to understand how CEO’s age and firm tenure are related with individual’s risk-taking behavior and information-processing demands and how these contingencies vary by the context in which the individual CEO is nested. Originality/value – This study contributes to the growing body of literature focussing on SME foreign market entry mode choice by emphasizing the important role of CEOs in the decision to internationalize. More specific, this study contributes by an examination of the interactive effect of CEO’s age, firm tenure and international experience, geographic experience of the firm and host-country political risk and, therefore, emphasizes the context and boundary conditions under which the association between CEO characteristics and foreign market entry mode choice is more or less pronounced.


2019 ◽  
Vol 15 (3) ◽  
pp. 376-396 ◽  
Author(s):  
Saila Tykkyläinen

Purpose The purpose of this study is to extend theoretical understanding on social enterprises’ growth orientation. Inspiration is drawn from the fundamentals of prospect theory and threat-rigidity theory, as the role of external threats as a source of growth orientation is largely absent from the social enterprise growth literature. According to previous studies, social enterprises grow mainly because of their social mission and social opportunities. Design/methodology/approach The qualitative research is conducted by analysing thematic interviews from seven, growth-oriented social enterprises operating in Finland. Findings The study provides novel insights on social enterprises’ growth orientation by drawing attention to the plurality of growth motivations and showing the importance of perceived threats as the origin of their growth pursuits. Goals of growth are defined mainly in terms of organisational and financial performance of the firm. Practical implications Social enterprise managers and boards are encouraged to cooperate in analysing the significance of external threats and opportunities for their business and to concentrate on defining measurable social goals to ensure balanced growth. Originality/value The study demonstrates that the behavioural theories offer a beneficial departure point for studying social venture growth. By clarifying the role of the perceptions of the firm’s internal actors and showing that growth is sometimes seen as a response to external threats, the study increases theoretical understanding on social enterprises’ growth orientation.


2015 ◽  
Vol 38 (9) ◽  
pp. 970-991 ◽  
Author(s):  
Robert E. McDonald ◽  
Jay Weerawardena ◽  
Sreedhar Madhavaram ◽  
Gillian Sullivan Mort

Purpose – The purpose of this paper is to offer a sustainability-based typology for non-profit organizations and corresponding strategies to sustain the mission and/or financial objectives of non-profit organizations. The balance of mission and money, known in the non-profit literature as the double bottom line, is a challenge for professional managers who run non-profits and scholars who study them. Design/methodology/approach – Typologies are often used to classify phenomena to improve understanding and bring about clarity. In this paper, non-profit organizations are viewed from a social and fiscal viability perspective, developed from the long standing challenge of balancing mission and money. Findings – The typology developed in this paper identifies several normative strategies that correspond to the social and fiscal viability of non-profit organizations. In fact, the strategies offered in this paper can help non-profit managers achieve organizational sustainability, thus enabling them to continue what they are meant to do – to provide greater social value to their constituents. Research limitations/implications – The typology presented is a classification system rather than a theoretical typology. Its purpose is to help managers of non-profits to recognize threats to their organizations’ long-term survival and offer strategies that if adopted can move the organizations to less vulnerable positions. However, the recommended strategies are by no means exhaustive. Furthermore, the focus of the paper is on non-profit organizations, not profit-driven or hybrid entities. The sustainability-based typology of non-profit organizations and the corresponding strategies have implications for practitioners and academics. The typology and its contents can help managers assess their non-profits, competitive environment and their current strategies, plan their double bottom line strategies and last but not the least, develop and implement strategies for social and fiscal sustainability. In addition, our paper provides great opportunities for future research to subject our typology and its contents to conceptual and empirical scrutiny. Practical implications – The strategies described here are developed based on scholarly research and examples from successful non-profits. The typology and the related list of strategies provide a manager with the tools to accurately diagnose organizational challenges and adopt plans to improve the organization’s viability. Social implications – Non-profit organizations are an integral part of society that bolsters economic prosperity, environmental integrity and social justice. This paper may provide guidance for a number of non-profit managers to keep their organizations operating and serving important social missions. Originality/value – In the context of organizations for social mission, several typologies exist that looked at firms from the perspectives of ownership versus profit objectives, entrepreneurship conceptualizations of economists and origins and development paths of social enterprises. While these typologies provided foundations for theoretical and empirical work into social enterprises, our typology offers strategies for the sustainability of mission and/or money objectives of non-profits. The value of this research lies in integrating virtuous and pragmatic objectives of non-profit sustainability that, in turn, can ensure the social mission of non-profits.


2020 ◽  
Vol 16 (2) ◽  
pp. 159-177
Author(s):  
Lauren Elizabeth England

Purpose The aim of this paper is to develop understanding of how open-access (OA) studios as creative social enterprises (CSEs) can negotiate coexisting creative, social and economic missions, and manage the motivations of stakeholders. In particular, it explores how this affects management practices and ways in which diverse social actors engage with the organisation and each other. This paper expands on the existing literature on social enterprises in relation to multiple value and stakeholder management and also contributes to the makerspace and wider creative industries literature. Design/methodology/approach This paper uses a qualitative, single-case case study of an OA studio established as a social enterprise based on analysis of secondary texts, interviews and observation. Findings It is identified that a multifaceted value system creates both challenges and opportunities in relation to communal resource management and community development. Tensions between the creative and economic priorities of members and both the economic imperatives of the organisation and its social mission are also highlighted. It is suggested that despite these challenges, the OA model presents an opportunity to develop more collective forms of creative practice and support a reframing of the creative economy. Research limitations/implications As a single case study in the geographical context of the United Kingdom, limited generalisations on OA management in other countries can be made without further investigation. Practical implications There are practical implications for OA and other CSE founders in relation to resource and membership management and facilitating inclusive access. There are creative industries policy implications in the encouragement of more sustainable collaborative approaches. Originality/value This paper contributes to the literature on social entrepreneurship, makerspaces and the creative industries by developing the understanding of OA studios and CSE management and the internal dynamics that influence organisational and social outcomes.


2015 ◽  
Vol 28 (1) ◽  
pp. 57-71 ◽  
Author(s):  
Walter Mswaka ◽  
Olu Aluko

Purpose – The purpose of this paper is to explore the growth of social enterprise in the UK in the context of the renewed interest in the creative use of organisations with a social mission to complement public service delivery. Given the impact of globalisation and increased demands for effective social welfare interventions, this paper specifically focuses on the nature and type of social enterprise governance models and how they influence their outcomes. Design/methodology/approach – The study utilises a mixed method approach involving the complementary use of quantitative and qualitative data collection methods. Findings – The paper finds that the way in which the social enterprise governance structure is designed ultimately influences its outcomes. In particular, those with stewardship governance models tend to perform better than those with democratic models of governance. This leads to a conclusion that in the social context of the UK, social enterprise should aim for a paradigm shift in the design and selection of governance models. Research limitations/implications – Comparative regional experiences in other regions or social contexts could enrich our understanding of whether these results are applicable across the board. Practical implications – This paper is of potential benefit to researchers and particularly those designing policies for the governance of social enterprise. Originality/value – The study employs innovative analytical theoretical lenses not normally associated with the social economy, namely agency, stewardship and resource dependency theories to provide a more in-depth analysis of the governance of contemporary social enterprise.


Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
H. Mora ◽  
Mario R. Morales-Morales ◽  
Francisco A. Pujol-López ◽  
Rafael Mollá-Sirvent

Purpose Growing inequality and socioeconomic and environmental degradation concerns forces us to think about how innovative technologies can contribute to reduce this problem. This study aims to analyze the potential of social cryptocurrencies to enhance the community development and cooperation between small businesses of the near environment. The evolution of these technology-based schemes could be key factors for generating innovative social enterprises, improving the quality of life in the community; in this way generate a conceptual model to sustainable development, while being more transparent, efficient and scalable as they are supported by technological applications. Design/methodology/approach Based on an in-depth study of the relevant literature, a conceptual model was designed. The concept of social cryptocurrency is proposed as a new approach to virtual currencies for social purposes and sustainable development. Findings The key findings point out that actors such as innovation and social entrepreneurship will come together in a new generation of social currencies, extending cryptocurrency technology to social business domains. Research limitations/implications The impact of this will result in a better quality of life for society and the achievement of several sustainable development goals. However, a limitation would be that its scope depends on certain characteristics of the local environment. Furthermore, the proposed model will require validation in later phases through social experiments. Originality/value The main contribution of this paper is in structuring a formal model that, based on empirical experiences and the use of the technology that underlies cryptocurrencies, proposes a set of constituent elements and characterizes them to contribute to achievement of sustainable development.


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