How dynamic capabilities facilitate the survivability of social enterprises: A qualitative analysis of sensing and seizing capacities

ABSTRACT

The purpose of this study is to identify how dynamic capabilities facilitate the survivability of social enterprises amid the tensions that these companies typically face. We employ an abductive analysis of 18 social enterprises in Germany and propose three capabilities: (1) establishing passive communication with the stakeholders enables inexpensive and direct sensing and shaping of opportunities; (2) selective signaling helps access critical resources and capitalize on the business model to seize opportunities, whereas (3) integrating collaborators expands the company’s reach and strengthens strategic decision-making. Finally, key implications are drawn for dynamic capabilities in social enterprises.

Notes

¹ Other terms such as hybrid business, social business, social ventures, and conscious capitalism are currently in contemporary currency. In this paper, we refer to the umbrella term of social enterprises and include insights from the domains of hybrid entrepreneurship, social business, etc., following Battilana and Lee (2014).

² Two of the case companies were not available for the second round of interviews. Both companies were still in operation. The two founders could not accommodate another interview due to time restrictions and because numerous researchers had approached them in the past. Nevertheless, we included these two cases in the analysis because the first round of interviews and the secondary material included rich data with relevant insights for this paper.

³ All quotes were translated by the authors. Both authors are fluent in English and German.