Enhancing Social Enterprise Performance: The Role of Social Entrepreneurship Orientation and Business Planning
DOI:
https://doi.org/10.1229/tecempresarialjournal.v18i2.267Keywords:
Social Enterprise, Social Entrepreneurship Orientation, Business Planning, Social Performance.Abstract
Social organization has become a solution to solve social problems in society. However, in developing countries, social organization is still a concern. In this study, the researchers analyze the value of social entrepreneurship orientation in boosting social companies' overall performance. Business planning as mediation is eke explored in the current study. This research examines Indonesia's most significant social enterprise, namely village-owned enterprises. The objects in the study were 250 VOE in 4 regions, namely Kuansing, Rohil, Inhil, and Meranti Regencies. Quantitative study with the survey as the instrument was used to explore this study. Therefore, the questionnaire survey was administered to VOE management, and the results were compiled. A total of 422 VOE managers participated in this study. Data analysis with the structural equation model (SEM) shows that social entrepreneurship orientation influences business planning and social and financial performance. The social performance and business planning significantly impact an organization's financial performance. Additionally, business planning is a mediator between social entrepreneurial orientation and performance and financial performance. The present study contributes to the urgency of providing entrepreneurship training and business planning to increase business success.
References
Aldrich, H. E., & Pfeffer, J. (1976). Environments of Organizations. Annual Review of Sociology, 2(1), 79–105. https://doi.org/10.1146/annurev.so.02.080176.000455
Ali, G. A., Hilman, H., & Gorondutse, A. H. (2020). Effect of entrepreneurial orientation, market orientation and total quality management on performance: Evidence from Saudi SMEs. Benchmarking: An International Journal, 27(4), 1503–1531. https://doi.org/10.1108/BIJ-08-2019-0391
Ali, I., Balta, M., & Papadopoulos, T. (2023). Social media platforms and social enterprise: Bibliometric analysis and systematic review. International Journal of Information Management, 69, 102510.
Ambulkar, S., Arunachalam, S., Bommaraju, R., & Ramaswami, S. (2023). Should a firm bring a supplier into the boardroom? Production and Operations Management, 32(1), 28–44.
Ameer, F., & Khan, N. R. (2022). Green entrepreneurial orientation and corporate environmental performance: A systematic literature review. European Management Journal. https://doi.org/10.1016/j.emj.2022.04.003
Armstrong, R. M., & Grobbelaar, S. S. S. (2023). Sustainable business models for social enterprises in developing countries: a conceptual framework. Management Review Quarterly, 73(2), 787–840. https://doi.org/10.1007/s11301-022-00260-1
Babatunde, A., & Sanusi, M. (2020). Impact of strategic planning on organi-sational Performance in first bank Nigeria Plc, Osun State. Journal of Management and Social Sciences, 9(2). https://doi.org/10.53704/jmss.v9i2.321
Bandini, F., Boni, L., Fia, M., & Toschi, L. (2023). Exploring Tension in Hybrid Organizations in Times of Covid-19 Crisis. The Italian Benefit Corporations’ experience. Journal of Social Entrepreneurship, 1–22. https://doi.org/10.1080/19420676.2022.2162107
Barraket, J., McKinnon, K., Brennan-Horley, C., & De Cotta, T. (2022). Motivations and effects of ethical purchasing from social enterprise in a regional city. Social Enterprise Journal, 18(4), 643–659. https://doi.org/10.1108/SEJ-03-2022-0029
Barraket, J., McNeill, J., Campbell, P., & Carey, G. (2023). Navigating network governance: the role of social enterprise in local employment services. Public Management Review, 25(6), 1082–1103. https://doi.org/10.1080/14719037.2021.2005327
Basri, Y. M., Br Pinem, N. A., & Yasni, H. (2021). Improving Performance of Village Owned Enterprises: The Role of Human Capital, Organizational Culture, and Entrepreneurial Orientation. Journal of Accounting and Strategic Finance, 4(2), 256–273. https://doi.org/10.33005/jasf.v4i2.193
Basri, Y. M., Taufik, T., Yasni, H., & Putri, R. I. (2022). Institutional Pressure And Social Entrepreneurship Orientation: Their Impact On The Performance Of Social Enterprises. Jurnal Reviu Akuntansi Dan Keuangan, 12(3), 545–559.
Basri, Y.M., Yasni. H., Nurmayanti ,P.M., & Indrawati.N.(2023) Accountability in social enterprises: the role of institutional pressure and social performance. International Journal of Business Excellence, 31(1), 155-175. https://dx.doi.org/10.1504/IJBEX.2023.133579
Bocean, C. G., Nicolescu, M. M., Cazacu, M., & Dumitriu, S. (2022). The Role of Social Responsibility and Ethics in Employees’ Wellbeing. International Journal of Environmental Research and Public Health, 19(14), 8838. https://doi.org/10.3390/ijerph19148838
Boehme, T., Fan, J., Birtchnell, T., Aitken, J., Turner, N., & Deakins, E. (2023). Social enterprise housing supply chains for resource-constrained communities: a complexity lens approach. Supply Chain Management: An International Journal. https://doi.org/10.1108/SCM-02-2023-0113
Cardella, G. M., Hernández-Sánchez, B. R., & Sánchez-García, J. C. (2020). Women entrepreneurship: A systematic review to outline the boundaries of scientific literature. Frontiers in Psychology, 11, 1557. https://doi.org/10.3389/fpsyg.2020.01557
Chin, W. W. (1998). The partial least squares approach to structural equation modeling. In Modern methods for business research (Vol. 295, Issue 2, pp. 295–336). Mahwah, NJ.
Chundakkadan, R., & Sasidharan, S. (2020). Financial constraints, government support, and firm innovation: empirical evidence from developing economies. Innovation and Development, 10(3), 279–301. https://doi.org/10.1080/2157930X.2019.1594680
do Adro, F., Fernandes, C. I., Veiga, P. M., & Kraus, S. (2021). Social entrepreneurship orientation and performance in non-profit organizations. International Entrepreneurship and Management Journal, 17(4), 1591–1618. https://doi.org/10.1007/s11365-021-00748-4
Fauzi, M. A., Muhamad Tamyez, P. F., & Kumar, S. (2022). Social entrepreneurship and social innovation in ASEAN: Past, present, and future trends. Journal of Social Entrepreneurship, 1–23. https://doi.org/10.1080/19420676.2022.2143870
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement. Journal of Marketing Research, 18(1), 39–50. https://doi.org/http://dx.doi.org/10.2307/3151312
Gillespie, N., Anesa, M., Lizzio-Wilson, M., Chapman, C., Healy, K., & Hornsey, M. (2023). How do Sector Level Factors Influence Trust Violations in Not-for-Profit Organizations? A Multilevel Model. Journal of Business Ethics, 1–26. https://doi.org/10.1007/s10551-023-05429-6
Grossi, G., Vakkuri, J., & Sargiacomo, M. (2022). Accounting, performance and accountability challenges in hybrid organisations: a value creation perspective. Accounting, Auditing & Accountability Journal, 35(3), 577–597. https://doi.org/10.1108/AAAJ-10-2021-5503
Gumel, B. I. (2019). The Impact of Strategic Planning on Growth of Small Businesses in Nigeria. SEISENSE Journal of Management, 2(1), 69–84. https://doi.org/10.33215/sjom.v2i1.85 , 69-84
Hair, J. F., Black, W. C., Babin, J. B., & Anderson, R. E. (2010). Multivariate data analysis. Amazon.
Hair Jr, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2021). A primer on partial least squares structural equation modeling (PLS-SEM). Sage publications.
Haira, D., Sari, R. N., & Indrawati, N. (2022a). The Importance of Social Entrepreneurship Orientation and Social Salience on Hospital Performance: The Mediating Role of Business Planning. Journal of Accounting and Strategic Finance, 5(1), 40–65.
Haira, D., Sari, R. N., & Indrawati, N. (2022b). The Importance of Social Entrepreneurship Orientation and Social Salience on Hospital Performance: The Mediating Role of Business Planning. 5(1), 40–65.
Halberstadt, J., Niemand, T., Kraus, S., Rexhepi, G., & Kailerf, J. (2021). Social entrepreneurship orientation: Drivers of success for start-ups and established industrial firms. Industrial Marketing Management, 94. https://doi.org/10.1016/j.indmarman.2020.06.012
Henseler, Dijkstra, T. K., & Calantone, R. J. (2014). Common beliefs and reality about PLS: Comments on Rönkkö and Evermann (2013). Organizational Research Methods, 17(2), 182–209. https://doi.org/10.1177/1094428114526928
Hussain, M. R., Szabados, G. N., Muhammad, K. Bin, Omarli, S., Murtaza, S. A., & Molnár, E. (2023). Examining the convergence of dominant themes related to social entrepreneurship, NGOs and globalization–A systematic literature review. Plos One, 18(5), e0283093. https://doi.org/10.1371/journal.pone.0283093
Kamaludin, M. F., Xavier, J. A., & Amin, M. (2022). Social entrepreneurial sustainability during the COVID-19 pandemic. Social Enterprise Journal, 18(2), 344–363. https://doi.org/10.1108/SEJ-05-2021-0041
Khan, I., & Basir, T. (2020). Market Orientation, Social Entrepreneurial Orientation, and Organizational Performance: The Mediating Role of Learning Orientation. Iranian Journal of Management Studies (IJMS), 13(4). https://doi.org/10.22059/ijms.2020.289467.673800
Kotawaringinbaratkab.go.id. (2022). Waktunya Maksimalkan Potensi Desa Melalui BUMDes. https://mmc.kotawaringinbaratkab.go.id/berita/waktunya-maksimalkan-potensi-desa-melalui-bumdes
Leung, Z. C. S., Ho, A. P. Y., Tjia, L. Y. N., Tam, R. K. Y., Chan, K. T., & Lai, M. K. W. (2019). Social impacts of work integration social enterprise in Hong Kong–Workfare and beyond. Journal of Social Entrepreneurship, 10(2), 159–176. https://doi.org/10.1080/19420676.2018.1541007
Lin, Y.-H., Lin, F.-J., & Wang, K.-H. (2021). The effect of social mission on service quality and brand image. Journal of Business Research, 132, 744–752. https://doi.org/10.1016/j.jbusres.2020.10.054
Lohmöller, J.-B., & Lohmöller, J.-B. (1989). Predictive vs. structural modeling: Pls vs. ml. In Latent variable path modeling with partial least squares (pp. 199–226). Springer.
Lu, Y., Zhao, C., Xu, L., & Shen, L. (2018). Dual institutional pressures, sustainable supply chain practice and performance outcome. Sustainability (Switzerland), 10(9), 1–25. https://doi.org/10.3390/su10093247
Lückenbach, F., Schmidt, H. J., & Henseler, J. (2023). Building brand meaning in social entrepreneurship organizations: the social impact brand model. Journal of Brand Management, 30(3), 207–226. https://doi.org/10.1057/s41262-022-00299-1
Manjon, M.-J., Merino, A., & Cairns, I. (2022). Business as not usual: A systematic literature review of social entrepreneurship, social innovation, and energy poverty to accelerate the just energy transition. Energy Research & Social Science, 90, 102624. https://doi.org/10.1016/j.erss.2022.102624
Mansoori, Y., & Lackeus, M. (2020). Comparing effectuation to discovery-driven planning, prescriptive entrepreneurship, business planning, lean startup, and design thinking. Small Business Economics, 54, 791–818. https://doi.org/10.1007/s11187-019-00153-w
Masud, M. A. K., Rashid, M. H. U., Khan, T., Bae, S. M., & Kim, J. D. (2019). Organizational strategy and corporate social responsibility: The mediating effect of triple bottom line. International Journal of Environmental Research and Public Health, 16(22), 4559. https://doi.org/10.3390/ijerph16224559
Mbiru, J. E., Ayentimi, D. T., & Wickham, M. (2023). Does entrepreneurial project monitoring and controlling process matter in social enterprises? Evidence from a developing African country. International Journal of Project Management, 41(1), 102435. https://doi.org/10.1016/j.ijproman.2022.102435
McSweeney, M., Hayhurst, L., Wilson, B., Bandoles, E., & Leung, K. (2021). Colliding mandates of social enterprises: Exploring the financial strategies, environment, and social-market tensions of bicycles-for-development organizations. Sport Management Review, 24(5), 791–814. https://doi.org/10.1080/14413523.2021.1899721
Naderi, A., Vosta, L. N., Ebrahimi, A., & Jalilvand, M. R. (2019). The contributions of social entrepreneurship and transformational leadership to performance: Insights from rural tourism in Iran. International Journal of Sociology and Social Policy, 39. https://doi.org/DOI:10.1108/IJSSP-06-2019-0124
Nasir, M., Riadi, S., Simatupang, H., & Putra, P. D. (2019). Peran Kelompok Wanita Tani Dalam Meningkatkan Kesejahteraan Masyarakat Melalui Pemanfaatan Lahan Kecil. JPPM (Jurnal Pengabdian Dan Pemberdayaan Masyarakat), 3(1), 89. https://doi.org/10.30595/jppm.v3i1.3351
Pinheiro, P., Daniel, A., & Moreira, A. (2020). Social Enterprise Performance: The Role of Market and Social Entrepreneurship Orientations. International Society for Third-Sector Research, 32(1), 45–60. https://doi.org/10.1007/s11266-020-00266-x
Rajah, N., Amran, A., & Cheah, J. (2022). Determinants that Enhance Resilience and Performance of Social Enterprises in Malaysia: A Conceptual Framework. Journal of Governance and Integrity, 5(3), 297–307. https://doi.org/10.15282/jgi.5.3.2022.8981
Ralston, P. M., Schwieterman, M., Bell, J. E., & Ellram, L. M. (2023). The building blocks of a supply chain management theory: Using factor market rivalry for supply chain theorizing. Journal of Business Logistics, 44(1), 141–159. https://doi.org/10.1111/jbl.12320
Ramadani, V., Agarwal, S., Caputo, A., Agrawal, V., & Dixit, J. K. (2022). Sustainable competencies of social entrepreneurship for sustainable development: Exploratory analysis from a developing economy. Business Strategy and the Environment, 31(7), 3437–3453 https://doi.org/10.1002/bse.3093
Rosca, E., Agarwal, N., & Brem, A. (2020). Women entrepreneurs as agents of change: A comparative analysis of social entrepreneurship processes in emerging markets. Technological Forecasting and Social Change, 157, 120067. https://doi.org/10.1016/j.techfore.2020.120067
Scupola, A., & Mergel, I. (2022). Co-production in digital transformation of public administration and public value creation: The case of Denmark. Government Information Quarterly, 39(1), 101650. https://doi.org/10.1016/j.giq.2021.101650
Social entrepreneurship orientation and company success: The mediating role of social performance. (2020). 160, 120230.
Tian, X., Zhao, C., & Ge, X. (2022). Entrepreneurial traits, relational capital, and social enterprise performance: Regulatory effects of cognitive legitimacy. Sustainability, 14(6), 3336. https://doi.org/10.3390/su14063336
Tien, N. H., Anh, D. B. H., Ngoc, N. M., & Do Thi, Y. N. (2019). Sustainable social entrepreneurship in Vietnam. International Journal of Entrepreneurship, 23(3), 1–12.
Tortia, E. C., Degavre, F., & Poledrini, S. (2020). Why are social enterprises good candidates for social innovation? Looking for personal and institutional drivers of innovation. Annals of Public and Cooperative Economics, 91(3), 459–477. https://doi.org/10.1111/apce.12265
Waruwu, H., Asbari, M., Purwanto, A., Nugroho, Y. A., Fikri, M. A. A., Fauji, A., Shobihi, A. W. I., Hulu, P., Sudiyono, R. N., Agistiawati, E., & Dewi, W. R. (2020). The Role of Transformational Leadership, Organizational Learning and Structure on Innovation Capacity: Evidence from Indonesian Private Schools. EduPsyCouns: Journal of Education, Psychology and Counseling, 2(1), 378–397. https://ummaspul.e-journal.id/Edupsycouns/article/view/499
Yáñez-Valdés, C., Guerrero, M., Barros-Celume, S., & Ibáñez, M. J. (2023). Winds of change due to global lockdowns: Refreshing digital social entrepreneurship research paradigm. Technological Forecasting and Social Change, 190, 122454. https://doi.org/10.1016/j.techfore.2023.122454
Yunus, M., Biggeri, M., & Testi, E. (2021). Social economy and social business supporting policies for sustainable human development in a post-covid-19 world. Sustainability, 13(21), 12155. https://doi.org/10.3390/su132112155
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Tec Empresarial
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
