From Social Value to Social Cognition: How Social Ventures Obtain the Resources They Need for Social Transformation

Abstract

Academic and popular discussions of social entrepreneurship often point to the importance of social value creation in contributing to a social venture's success. Implied in these discussions is the assumption that the more pressing the social problem addressed by the mission or the greater the social value generated, the more successful and attractive the venture will be. The present theoretical framework uses social cognition theory to examine the link between dimensions of the social mission and the venture's appeal to resource providers, and suggests that the magnitude of social value created is only one of a broader set of mission characteristics that influence social venture outcomes, such as resource acquisition from potential resource providers. Theoretical and practical implications are discussed.

Keywords:

• Mission appeal
• resource providers
• social cognition
• social entrepreneurship
• social mission

Acknowledgements

We are grateful for the insightful comments and constructive suggestions from Alex Nicholls, Jeff McMullen, Tom Lumpkin, and Phil Phan.

Disclosure statement

No potential conflict of interest was reported by the authors.