Abstract
The hybridity of social enterprises – that is to say, their simultaneous pursuit of both economic and social value – has increasingly drawn the attention of scholars in the fields of social entrepreneurship and, more broadly, entrepreneurship. To date, there has been significant debate as to whether or how social enterprises are distinct from for- and non profit organizations and whether generating economic rents and achieving a social mission can complement or substitute for each other. To add nuance to this literature, this study focuses on the role of social entrepreneurs’ practical intelligence, seeking to understand how the practical intelligence of social entrepreneurs can contribute to creating both economic and social value. We generally find positive relationships between practical intelligence and the creation of both social and economic value. However, empirical evidence suggests that some dimensions of practical intelligence are closely related to the creation of economic value, whereas others are related to creating social value. Based on the findings, we discuss how practical intelligence can effectively help social entrepreneurs manage the hybridity of their social enterprises.
Acknowledgement
The author wishes to thank the Happiness Foundation for financial support (grant # G04160050). Any opinions and conclusions expressed in this manuscript are those of my own and do not necessarily represent the view of the Happiness Foundation. The author also appreciates the considerable work of Sung-Wook Huh in the data collection process.
References
Agafonow, A. 2014. “Toward a Positive Theory of Social Entrepreneurship: On Maximizing versus Satisficing Value Capture.” Journal of Business Ethics 125: 709–13.10.1007/s10551-013-1948-zSearch in Google Scholar
Alter, K. S. 2006. “Social Enterprise Models and Their Mission and Money.” In Social Entrepreneurship: New Models of Sustainable Social Change, edited by A. Nicholls, 205–32. New York: Oxford University Press.Search in Google Scholar
Amit, R., E. Muller, and I. Cockburn. 1995. “Opportunity Costs and Entrepreneurial Activity.” Journal of Business Venturing 10(2): 95–106.10.1016/0883-9026(94)00017-OSearch in Google Scholar
Aubert, C., A. de Janvry, and E. Sadoulet. 2009. “Designing Credit Agent Incentives to Prevent Mission Drift in Pro-Poor Microfinance Institutions.” Journal of Development Economics 90(1): 153–62.10.1016/j.jdeveco.2008.11.002Search in Google Scholar
Aupperle, K. E., A. B. Carroll, and J. D. Hatfield. 1985. “An Empirical Examination of the Relationship between Corporate Social Responsibility and Profitability.” Academy of Management Journal 28(2): 446–63.10.5465/256210Search in Google Scholar
Austin, J., S. Howard, and J. Wei-Skillern. 2006. “Social and Commercial Entrepreneurship: Same, Different or Both?” Entrepreneurship Theory and Practice 30(1): 1–22.10.1111/j.1540-6520.2006.00107.xSearch in Google Scholar
Baker, T., A. S. Miner, and D. T. Eesley. 2003. “Improvising Firms: Bricolage, Account Giving and Improvisational Competencies in the Founding Process.” Research Policy 32(2): 255–76.10.1016/S0048-7333(02)00099-9Search in Google Scholar
Baron, R. A. 2004. “The Cognitive Perspective: A Valuable Tool for Answering Entrepreneurship’s Basic “Why” Questions.” Journal of Business Venturing 19(2): 221–39.10.1016/S0883-9026(03)00008-9Search in Google Scholar
Baron, R. A., and G. D. Markman. 2003. “Beyond Social Capital: The Role of Entrepreneurs‘ Social Competence in Their Financial Success.” Journal of Business Venturing 18(1): 41–60.10.1016/S0883-9026(00)00069-0Search in Google Scholar
Battilana, J., M. Sengul, A.-C. Pache, and J. Model. 2015. “Harnessing Productive Tensions in Hybrid Organizations: The Case of Work Integration Social Enterprises.” Academy of Management Journal 58(6): 1658–85.10.5465/amj.2013.0903Search in Google Scholar
Baum, J. R., and B. J. Bird. 2010. “The Successful Intelligence of High-Growth Entrepreneurs: Links to New Venture Growth.” Organization Science 21(2): 397–412.10.1287/orsc.1090.0445Search in Google Scholar
Baum, J. R., B. J. Bird, and S. Singh. 2011. “The Practical Intelligence of Entrepreneurs: Antecedents and a Link with New Venture Growth.” Personnel Psychology 64: 397–425.10.1111/j.1744-6570.2011.01214.xSearch in Google Scholar
Bhide, A. 2000. The Origin and Evolution of New Businesses. New York: Oxford.Search in Google Scholar
Bidet, E., and H.-S. Eum. 2011. “Social Enterprise in South Korea: History and Diversity.” Social Enterprise Journal 7(1): 69–85.10.1108/17508611111130167Search in Google Scholar
Bieri, J., A. L. Atkins, S. Briar, R. L. Leaman, H. Miller, and T. Tripodi. 1966. Clinical and Social Judgment. New York: Wiley.Search in Google Scholar
Cassar, G. 2006. “Entrepreneur Opportunity Costs and Intended Venture Growth.” Journal of Business Venturing 21(5): 610–32.10.1016/j.jbusvent.2005.02.011Search in Google Scholar
Certo, S. T., and T. Miller. 2008. “Social Entrepreneurship: Key Issues and Concepts.” Business Horizons 51: 267–71.10.1016/j.bushor.2008.02.009Search in Google Scholar
Choi, N., and S. Majumdar. 2014. “Social Entrepreneurship as an Essentially Contested Concept: Opening a New Avenue for Systematic Future Research.” Journal of Business Venturing 29: 363–76.10.1016/j.jbusvent.2013.05.001Search in Google Scholar
Copestake, J. 2007. “Mainstreaming Microfinance: Social Performance Management or Mission Drift?.” World Development 35(10): 1721–38.10.1016/j.worlddev.2007.06.004Search in Google Scholar
Dacin, M. T., P. A. Dacin, and P. Tracey. 2011. “Social Entrepreneurship: A Critique and Future Directions.” Organization Science 22: 1203–13.10.1287/orsc.1100.0620Search in Google Scholar
Dees, J. G. 2012. “A Tale of Two Cultures: Charity, Problem Solving, and the Future of Social Entrepreneurship.” Journal of Business Ethics 111(3): 321–34.10.1007/s10551-012-1412-5Search in Google Scholar
Dees, J. G., and B. B. Anderson. 2003. “For-Profit Social Ventures.” International Journal of Entrepreneurship Education 2(1): 1–26.Search in Google Scholar
Dees, J. G., J. Emerson, and P. Economy. 2001. Enterprising Nonprofits: A Toolkit for Social Entrepreneurs: A Handbook for Social Entrepreneurs. New York: Wiley.Search in Google Scholar
Doherty, B., H. Haugh, and F. Lyon. 2014. “Social Enterprises as Hybrid Organizations: A Review and Research Agenda.” International Journal of Management Reviews 16: 417–36.10.1111/ijmr.12028Search in Google Scholar
Ebrahim, A., J. Battilana, and J. Mair. 2014. “The Governance of Social Enterprises: Mission Drift and Accountability Challenges in Hybrid Organizations.” Research in Organizational Behavior 34: 81–100.10.1016/j.riob.2014.09.001Search in Google Scholar
Ericsson, K. A. 2007. “Deliberate Practice and the Modifiability of Body and Mind: Toward a Science of the Structure and Acquisition of Expert and Elite Performance.” International Journal of Sport Psychology 38: 4–34.Search in Google Scholar
Fong, C. T. 2006. “The Effects of Emotional Ambivalence on Creativity.” Academy of Management Journal 49(5): 1016–30.10.5465/amj.2006.22798182Search in Google Scholar
Friedman, M. 1962. Capitalism and Freedom. Chicago: Chicago University Press.Search in Google Scholar
Galaskiewicz, J., and S. N. Barringer. 2012. “Social Enterprises and Social Categories.” In Social Enterprises, edited by B. Gidron, and Y. Hasenfeld, 47–70. London, UK: Palgrave Macmillan.10.1057/9781137035301_3Search in Google Scholar
Hedlund, J., G. B. Forsythe, J. A. Horvath, W. M. Williams, S. Snook, and R. J. Sternberg. 2003. “Identifying and Assessing Tacit Knowledge: Understanding the Practical Intelligence of Military Leaders.” Leadership Quarterly 14: 117–40.10.1016/S1048-9843(03)00006-7Search in Google Scholar
Hitt, M. A., and B. B. Tyler. 1991. “Strategic Decision Models: Integrating Different Perspectives.” Strategic Management Journal 12(5): 327–51.10.1002/smj.4250120502Search in Google Scholar
Hockerts, K. 2015. “How Hybrid Organizations Turn Antagonistic Assets into Complementarities.” California Management Review 57(3): 83–106.10.1525/cmr.2015.57.3.83Search in Google Scholar
Jay, J. 2013. “Navigating Paradox as a Mechanism of Change and Innovation in Hybrid Organizations.” Academy of Management Journal 56(1): 137–59.10.5465/amj.2010.0772Search in Google Scholar
Jin, B., and D. A. Kirsch. 2015. “Entrepreneurial Growth as a Process: Mechanism-Based Theorizing,” in Entrepreneurial Growth: Individual, Firm, and Region (Advances in Entrepreneurship, Firm Emergence and Growth, Volume 17), edited by A.C. Corbett, J.A. Katz, and A. Mckelvie,, 63–94. Bingley, United Kingdom: Emerald Group Publishing Ltd.10.1108/S1074-754020150000017010Search in Google Scholar
Jung, K., H. S. Jang, and I. Seo. 2016. “Government-Driven Social Enterprises in South Korea: Lessons from the Social Enterprise Promotion Program in the Seoul Metropolitan Government.” International Review of Administrative Sciences 82(3): 598–616.10.1177/0020852315586935Search in Google Scholar
Katre, A., and P. Salipante. 2012. “Start-Up Social Ventures: Blending Fine-Grained Behaviors from Two Institutions for Entrepreneurial Success.” Entrepreneurship Theory and Practice 36(Special Issue): 967–94.10.1111/j.1540-6520.2012.00536.xSearch in Google Scholar
Krippendorff, K. 2004. Content Analysis: An Introduction to Its Methodology, 2nd ed. Thousand Oaks, CA: Sage Publications, Inc.Search in Google Scholar
Kroeger, A., and C. Weber. 2014. “Developing a Conceptual Framework for Comparing Social Value Creation.” Academy of Management Review 39: 513–40.10.5465/amr.2012.0344Search in Google Scholar
Light, P. C. 2008. The Search for Social Entrepreneurship. Washington, D. C.: Brookings Institution Press.Search in Google Scholar
Lincoln, Y., and E. Guba. 1985. Naturalistic Inquiry. Beverly Hills, CA: Sage.10.1016/0147-1767(85)90062-8Search in Google Scholar
Locke, K. 2002. “The Grounded Theory Approach to Qualitative Research.” In Measuring and Analyzing Behavior in Organizations: Advances in Measurement and Data Analysis, edited by F. Drasgow, and N. Schmitt, 17–43. San Francisco, CA: Jossey-Bass.Search in Google Scholar
Mair, J., and C. Seelos. 2006. “The Sekem Initiative: A Holistic Vision to Develop People.” In The New Social Entrepreneurship: What Awaits Social Entrepreneurial Ventures?, edited by F. Perrini, 210–23. Cheltenham and Northampton, MA: Edward Elgar.10.1057/9780230625655Search in Google Scholar
Marquis, C., and A. Park. 2014. “Inside the Buy-One Give-One Model.” Stanford Social Innovation Review 12: 28–33.Search in Google Scholar
Mednick, S. A. 1968. “The Remote Associates Test.” Journal of Creative Behavior 2(3): 213–14.10.1037/t11859-000Search in Google Scholar
Mersland, R., and R. Ø. Strøm. 2010. “Microfinance Mission Drift?” World Development 38(1): 28–36.10.1016/j.worlddev.2009.05.006Search in Google Scholar
Mia, M. A., and H.-A. Lee. 2017. “Mission Drift and Ethical Crisis in Microfinance Institutions: What Matters?” Journal of Cleaner Production 164: 102–14.10.1016/j.jclepro.2017.06.176Search in Google Scholar
Moskowitz, M. 1972. “Choosing Socially Responsible Stocks.” Business and Society Review 1(1): 71–75.Search in Google Scholar
Nam, Han., and C. H. Lee. 2015. “The Immediate Incubation Effect on Creative Problem Solving: Using the Remote Association Task.” Psychologia 58(2): 98–113.10.2117/psysoc.2015.98Search in Google Scholar
Neuendorf, K. A. 2002. The Content Analysis Guidebook. Thousand Oaks, CA: Sage Publications, Inc.Search in Google Scholar
Pache, A. C., and F. Santos. 2013. “Inside the Hybrid Organization: Selective Coupling as a Response to Competing Institutional Logics.” Academy of Management Journal 56(4): 972–1001.10.5465/amj.2011.0405Search in Google Scholar
Phills, Jr, J. A. 2005. Integrating Mission and Strategy for Nonprofit Organizations. New York: Oxford University Press.10.1093/acprof:oso/9780195171280.001.0001Search in Google Scholar
Pirson, M. 2012. “Social Entrepreneurs as the Paragons of Shared Value Creation? A Critical Perspective.” Social Enterprise Journal 8(1): 31–48.10.1108/17508611211226575Search in Google Scholar
Quinones, M. A., J. K. Ford, and M. S. Teachout. 1995. “The Relationship between Work Experience and Job Performance: A Conceptual and Meta-Analytic Review.” Personnel Psychology 48: 887–910.10.21236/ADA388086Search in Google Scholar
Rawhouser, H., M. Cummings, and S. Newbert. 2019. “Social Impact Measurement: Current Approaches and Future Directions for Social Entrepreneurship Research.” Entrepreneurship Theory & Practice 43(1): 82–115.10.1177/1042258717727718Search in Google Scholar
Saebi, T., N. J. Foss, and S. Linder. 2019. “Social Entrepreneurship Research: Past Achievements and Future Promises.” Journal of Management 45(1): 70–95.10.1177/0149206318793196Search in Google Scholar
Santos, F. 2012. “A Positive Theory of Social Entrepreneurship.” Journal of Business Ethics 111: 335–51.10.1007/s10551-012-1413-4Search in Google Scholar
Sarasvathy, S. D. 2001. “Causation and Effectuation: Toward a Theoretical Shift from Economic Inevitability to Entrepreneurial Contingency.” Academy of Management Review 26(2): 243–63.10.5465/amr.2001.4378020Search in Google Scholar
Shane, S. 2000. “Prior Knowledge and the Discovery of Entrepreneurial Opportunities.” Organization Science 11(4): 448–69.10.1287/orsc.11.4.448.14602Search in Google Scholar
Short, J. C., T. W. Moss, and G. T. Lumpkin. 2009. “Research in Social Entrepreneurship: Past Contributions and Future Opportunities.” Strategic Entrepreneurship Journal 3: 161–94.10.1002/sej.69Search in Google Scholar
Sternberg, R. J. 1997. Successful Intelligence. New York: Simon & Schuster.Search in Google Scholar
Sternberg, R. J. 1999. “The Theory of Successful Intelligence.” Review of General Psychology 3: 292–316.10.1037/1089-2680.3.4.292Search in Google Scholar
Sternberg, R. J. 2004. “Successful Intelligence as a Basis for Entrepreneurship.” Journal of Business Venturing 19(2): 189–201.10.1016/S0883-9026(03)00006-5Search in Google Scholar
Sternberg, R. J., R. K. Wagner, W. M. Williams, and J. A. Horvath. 1995. “Testing Common Sense.” American Psychologist 50(11): 912–27.10.1037/0003-066X.50.11.912Search in Google Scholar
Stevens, R., N. Moray, and J. Bruneel. 2015. “The Social and Economic Mission of Social Enterprises: Dimensions, Measurement, Validation, and Relation.” Entrepreneurship Theory & Practice 39: 1051–108.10.1111/etap.12091Search in Google Scholar
Strauss, A., and J. M. Corbin. 1990. Basics of Qualitative Research: Grounded Theory Procedures and Techniques. Newbury Park, CA: Sage.Search in Google Scholar
Taatgen, N. A., D. Huss, D. Dickison, and J. R. Anderson. 2008. “The Acquisition of Robust and Flexible Cognitive Skills.” Journal of Experimental Psychology: General 137: 548–65.10.1037/0096-3445.137.3.548Search in Google Scholar
Tesluk, P. E., and R. R. Jacobs. 1998. “Toward an Integrated Model of Work Experience.” Personnel Psychology 51: 321–54.10.1111/j.1744-6570.1998.tb00728.xSearch in Google Scholar
Tracey, P., N. Phillips, and O. Jarvis. 2011. “Bridging Institutional Entrepreneurship and the Creation of New Organizational Forms: A Multilevel Model.” Organization Science 22(1): 60–80.10.1287/orsc.1090.0522Search in Google Scholar
Van Maanen, J. 1979. “The Fact of Fiction in Organizational Ethnography.” Administrative Science Quarterly 24: 539–50.10.4135/9781412986274.n5Search in Google Scholar
Venkataraman, S. 1997. “The Distinctive Domain of Entrepreneurship Research.” Advances in Entrepreneurship, Firm Emergence and Growth 3(1): 119–38.Search in Google Scholar
Wilson, F., and J. E. Post. 2013. “Business Models for People, Planet (& Profits): Exploring the Phenomena of Social Business, A Market-Based Approach to Social Value Creation.” Small Business Economics 40(3): 715–37.10.1007/s11187-011-9401-0Search in Google Scholar
Zampetakis, L. A., K. Kafetsios, N. Bouranta, T. Dewett, and V. S. Moustakis. 2009. “On the Relationship between Emotional Intelligence and Entrepreneurial Attitudes and Intentions.” International Journal of Entrepreneurial Behavior & Research 15(6): 595–618.10.1108/13552550910995452Search in Google Scholar
© 2019 Walter de Gruyter GmbH, Berlin/Boston