Entrepreneurial orientation in firms with a social mission - a mixed-methods approach

Abstract

This study explores entrepreneurial orientation (EO) in Finnish social enterprises in a social context using a mixed-methods approach. As a result, we propose that the generic dimensions of EO apply in a social context with minor refinements but suggest an additional dimension of persistence. The social enterprises take substantial financial risks although carefully avoid anything that may jeopardise the firms’ social impact. They exhibit highly innovative behaviour when developing new ways to serve the social purpose as well as when finding new ways to generate income. Furthermore, these enterprises exhibit remarkable persistence in adhering to a course of action despite their experienced difficulties.

Keywords:

• entrepreneurial orientation
• social entrepreneurship
• mixed-methods approach
• social innovation
• social enterprise
• persistence

PUBLIC INTEREST STATEMENT

Issues such as human poverty, social inequality, and environmental challenges call for innovative solutions, and social entrepreneurship has emerged as a potential model for resolving social and environmental problems. This study examines whether the creation of social value requires an entrepreneurial orientation other than economic value creation in Finnish social enterprises. As a result, we propose the generic dimensions of EO may be used in a social context with only minor refinements and additions. Furthermore, the results indicate that a social enterprise can be perceived as a stable player that neither easily abandons operations nor gives up the social mission when first encountering difficulty. This finding may pose implications for companies’ stakeholders, as those facts may affect the decisions stakeholders make—namely if they also highly prioritise the social mission as a reason for working for or cooperating with the social enterprise.

Correction

This article has been republished with minor changes. These changes do not impact the academic content of the article.

Additional information

Funding

The authors received for this no direct funding research.

Notes on contributors

Pasi Syrjä

The members of the research group are academic business researchers from LUT University, Finland and University of Skövde, Sweden. The research group consist of multi discipliner scholars and all researchers have a doctoral degree. They have published tens of academic articles in several international journals. Their research have focused on especially in the fields of entrepreneurship, innovations and management.