STRATEGIC RESOURCES AND CAPABILITIES OF SOCIAL ENTERPRENEURS REQUIRED FOR BOTH SOCIETAL AND FINANCIAL VALUE TRHOUGH PARTNERSHIPS
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Аннотация
INTRODUCTION 6
CHAPTER 1. LITERATURE REVIEW ON STRATEGIC RESOURCES AND CAPABILITIES OF SOCIAL ENTERPRENEURS REQUIRED FOR BOTH SOCIETAL AND FINANCIAL VALUE
TRHOUGH PARTNERSHIPS 9
1.1. Definitions of social entrepreneurship and duality of a concept 9
1.2. Advantages and disadvantages related to this duality 12
1.3. The concept of partnership between social entrepreneurs and large corporations 15
1.4. Resource and core capabilities required for partnerships 25
CHAPTER 2. RESEARCH METHODOLOGY 32
2.1. Research design and data collection 32
2.2. Research methods and tools 33
2.3. Interview results 34
2.4 Summary of the chapter 40
CONCLUSION 43
REFERENCES 46
APPENDICES 52
Appendix 1. Interview questions design for social enterprises 52
Appendix 2. Interview questions design for corporation representatives 55
Appendix 3. Example of an interview trascription in Russian 57
Appendix 4. Example of an interview trascription in English 66
INTRODUCTION 6
CHAPTER 1. LITERATURE REVIEW ON STRATEGIC RESOURCES AND CAPABILITIES OF SOCIAL ENTERPRENEURS REQUIRED FOR BOTH SOCIETAL AND FINANCIAL VALUE
TRHOUGH PARTNERSHIPS 9
1.1. Definitions of social entrepreneurship and duality of a concept 9
1.2. Advantages and disadvantages related to this duality 12
1.3. The concept of partnership between social entrepreneurs and large corporations 15
1.4. Resource and core capabilities required for partnerships 25
CHAPTER 2. RESEARCH METHODOLOGY 32
2.1. Research design and data collection 32
2.2. Research methods and tools 33
2.3. Interview results 34
2.4 Summary of the chapter 40
CONCLUSION 43
REFERENCES 46
APPENDICES 52
Appendix 1. Interview questions design for social enterprises 52
Appendix 2. Interview questions design for corporation representatives 55
Appendix 3. Example of an interview trascription in Russian 57
Appendix 4. Example of an interview trascription in English 66
The concept of social entrepreneurship has been drawing the attention of business specialists as well as wide audience since it became clear that the well-being of societies among all depends on resolving its social, cultural and environmental problems. People have developed a strong interest in discovering efficient ways of approaching these issues through different lens. Social business is one of the instruments that relevantly attracts and integrates business entities into the process of creating financial and societal value, while enhancing the welfare of communities and nations by addressing social problems. This idea takes the root from the concept of creating shared value where companies integrate social and environmental agenda in their corporate strategy and attain competitive advantage through it (Porter & Kramer, 2011).
Moreover, due to its dualistic nature, the notion of social business combines the pursuit of generating profits while achieving a social change and making a profound impact (Samer Abu- Saifan, 2012). Therefore, there are certain struggles that social entrepreneurship faces in recent years in relation with finding the perfect balance between two equally important goals. The experts provide numerous reasons stating why it is critically important to support this type of business, as it may become a fundamental pillar of economy (Al-Qudah et al., 2021; Jilenga, 2017). Hence, there is a necessity to research the opportunities as well as possible pitfalls caused by this duality.
Finally, it is fair to assume that people can achieve even greater results in creating societal and financial value by establishing synergy through partnership. Particularly, when one actor cannot solve some particular social issues, collaboration becomes an efficient answer. Partnership between social entrepreneurs and large corporations can come in different forms and formats. It is important to explore types of partnerships in which social entrepreneurs are usually involved and how they create value through them. Since there are not enough studies that demonstrate, what social entrepreneurs need to attract such partnerships and, in fact, the question that remains unanswered in general is what the success drivers in the existing collaborations. The main idea of the research is to come up with applicable recommendations about particular core competences and strategic capabilities that will promote collaboration and help any business succeed in achieving goals of sustainability and resolving socially significant problems.
Research gap:
Although there are very successful cases of collaboration between social entrepreneurs and large corporation, many social businesses struggle to identify key resources and capabilities that are needed to establish a long-term efficient relation that enable them to create value. There is a lack of system and understanding of the integral factors that will allow social entrepreneurs enhance their social and financial performance through partnerships.
Research questions:
Which resources and capabilities help social entrepreneurs to establish partnerships with large corporations? Which combinations of resources and capabilities facilitate the creation of societal and financial value through these collaborations? How can social entrepreneurs develop these resources and capabilities?
Research goal:
Identify the key strategic resources and capabilities that help social entrepreneurs create societal and financial value while establishing efficient and long-term partnerships with large corporations.
Research objectives:
1. Based on literature review regarding strategic resources and capabilities of social entrepreneurship, the dualistic nature of social entrepreneurs and types of partnership with large corporations that social business establish, select appropriate framework that describes resource and capability management techniques and develop questions for interviews based on them.
2. Collect primary data from social entrepreneurs and representatives from large corporations via interviews.
3. By conducting descriptive analysis of the interviews and performing qualitative analysis, find out which resources and capabilities social entrepreneurs need to establish partnerships with large corporations.
4. Make propositions regarding which strategic resources and capabilities or their combinations facilitate the creation of societal and financial value through partnerships between social entrepreneurs and large corporations.
The paper consists of two main chapters. The first chapter is dedicated to the theoretical research on the social entrepreneurship and types of partnerships between them and large corporations. It includes overview of the definitions, analysis of different types of partnerships, identification of key strategic resources and capabilities that social entrepreneurs usually possess as well as literature review on social entrepreneurship and relevant theoretical frameworks. The second chapter is dedicated to the empirical part of research. It includes paragraphs on research design and data collection, interview results, descriptive analysis of the survey data, description of the constructs and Qualitative Comparative Analysis. In the last part of the paper the author makes conclusions, describes theoretical and practical implications, limitations and suggestions for future research.
Moreover, due to its dualistic nature, the notion of social business combines the pursuit of generating profits while achieving a social change and making a profound impact (Samer Abu- Saifan, 2012). Therefore, there are certain struggles that social entrepreneurship faces in recent years in relation with finding the perfect balance between two equally important goals. The experts provide numerous reasons stating why it is critically important to support this type of business, as it may become a fundamental pillar of economy (Al-Qudah et al., 2021; Jilenga, 2017). Hence, there is a necessity to research the opportunities as well as possible pitfalls caused by this duality.
Finally, it is fair to assume that people can achieve even greater results in creating societal and financial value by establishing synergy through partnership. Particularly, when one actor cannot solve some particular social issues, collaboration becomes an efficient answer. Partnership between social entrepreneurs and large corporations can come in different forms and formats. It is important to explore types of partnerships in which social entrepreneurs are usually involved and how they create value through them. Since there are not enough studies that demonstrate, what social entrepreneurs need to attract such partnerships and, in fact, the question that remains unanswered in general is what the success drivers in the existing collaborations. The main idea of the research is to come up with applicable recommendations about particular core competences and strategic capabilities that will promote collaboration and help any business succeed in achieving goals of sustainability and resolving socially significant problems.
Research gap:
Although there are very successful cases of collaboration between social entrepreneurs and large corporation, many social businesses struggle to identify key resources and capabilities that are needed to establish a long-term efficient relation that enable them to create value. There is a lack of system and understanding of the integral factors that will allow social entrepreneurs enhance their social and financial performance through partnerships.
Research questions:
Which resources and capabilities help social entrepreneurs to establish partnerships with large corporations? Which combinations of resources and capabilities facilitate the creation of societal and financial value through these collaborations? How can social entrepreneurs develop these resources and capabilities?
Research goal:
Identify the key strategic resources and capabilities that help social entrepreneurs create societal and financial value while establishing efficient and long-term partnerships with large corporations.
Research objectives:
1. Based on literature review regarding strategic resources and capabilities of social entrepreneurship, the dualistic nature of social entrepreneurs and types of partnership with large corporations that social business establish, select appropriate framework that describes resource and capability management techniques and develop questions for interviews based on them.
2. Collect primary data from social entrepreneurs and representatives from large corporations via interviews.
3. By conducting descriptive analysis of the interviews and performing qualitative analysis, find out which resources and capabilities social entrepreneurs need to establish partnerships with large corporations.
4. Make propositions regarding which strategic resources and capabilities or their combinations facilitate the creation of societal and financial value through partnerships between social entrepreneurs and large corporations.
The paper consists of two main chapters. The first chapter is dedicated to the theoretical research on the social entrepreneurship and types of partnerships between them and large corporations. It includes overview of the definitions, analysis of different types of partnerships, identification of key strategic resources and capabilities that social entrepreneurs usually possess as well as literature review on social entrepreneurship and relevant theoretical frameworks. The second chapter is dedicated to the empirical part of research. It includes paragraphs on research design and data collection, interview results, descriptive analysis of the survey data, description of the constructs and Qualitative Comparative Analysis. In the last part of the paper the author makes conclusions, describes theoretical and practical implications, limitations and suggestions for future research.
This thesis examines the resources and capabilities required for social entrepreneurs to establish long-term and efficient partnerships with large corporations. After thorough literature review, conceptualizing social entrepreneurship, partnerships and their types between social business and corporates, and investigating theories that motivate collaborations with the goal to create societal and financial value, we provided several new inputs to the topic.
As the first step of the research, the author designed a part of questionnaire for social entrepreneurs and large corporations’ representatives. 14 semi-structured interviews (five large corporations and nine social entrepreneurs) confirmed the interest and instance of partnerships between two different business entities. Moreover, the interviews have raised several important details that have not been discussed earlier and are related to the country specifics. One of the factors is the lack of motivation for social business to acquire an official legal status, which was not raised before due to the fact that most of the resources were international and talked about the western culture and economy reality. Another useful extract from the interviews is the additional emphasis on the importance of keeping balance for social entrepreneurs. The study revealed the risk of emotional burnouts and skewed business sense. Duality of social business that lies in the art of juggling between social and commercial force
Theoretical implications:
The study contributed to the underdeveloped field of research about the role of resources and capabilities required for social entrepreneurs to create value through partnerships with large corporations. This research brings together two perspectives on the matter of resources and capabilities - the attitude of representatives of social business and the one of large corporations. Most importantly, all the conclusions were drawn from real cases of partnerships and reflections on them. Investigating resources and competences of social entrepreneurs through the lens of existing collaborations with the eyes of both sides is an innovative approach that has never been explored before. New combinations and sets of resources and competences were proposed as possible success factors of long-term efficient partnerships that are especially relevant for collaborations between social entrepreneurs and large corporations. This research may spur the interest of scholars to create deeper analyses of resources and competences and compare them with the practices from different countries. Moreover, the findings from this study can be used as a basis for a similar quantitative research. Three propositions underlined in the conclusions give ground for further hypothesis testing and new research goals.
Practical implications:
The study brings new insights about resources and competences necessary for successful partnerships between social business and big corporations. It sheds light on the set of competences and the rationale for their development and acquisition. The solutions for social entrepreneurs were synthesized with solutions from the perspective of corporations, and the main competency and capability gaps were identified. These findings can be used to suggest recommendations to policymakers and support organizations for further development of partnerships that will allow social entrepreneurs create financial and societal value.
The first recommendation for policy-makers and support organizations is to focus on providing more opportunities to social entrepreneurs for education and understanding the policies and laws regarding the status of social entrepreneurship. In other words, it is crucial to popularize the importance of conducting business within the boundaries of the legal system and educate social entrepreneurs about the benefits and state support. These activities will not only result in improved ratings of officially registered organization but also will open the doors for a better collaboration opportunities with large business. It can be achieved by means of assigning ambassadors among social entrepreneurs, by creating campaigns to enhance the importance of legalizing social business or by adding this point to the agenda of regional and federal mass media channels with elements of digital or physical marketing.
Second practical recommendation is to provide education for social enterprises with participant from the side of corporates. It can be done through creating platforms that will integrate social business and corporations, educate social entrepreneurs, facilitate networking and give points of contact. It can be a good step for marketing and education on business mechanics and social impact opportunities.
Finally, practical managerial touch social entrepreneurs and give recommendations to focus on developing important intangible resources: customer-centricity, attentiveness to partners’ needs, flexibility, resilience, leadership and initiate. Moreover, it is crucial for social entrepreneurs to adopt business attitude, learn to how to communicate professionally and speak the language of benefit. Also, social entrepreneurs need to be able to do the research and target large corporations wisely, trying to match the already performed ESG projects. Most importantly, social entrepreneurs need to be aware of balance between social and commercial that they need to pay attention....
As the first step of the research, the author designed a part of questionnaire for social entrepreneurs and large corporations’ representatives. 14 semi-structured interviews (five large corporations and nine social entrepreneurs) confirmed the interest and instance of partnerships between two different business entities. Moreover, the interviews have raised several important details that have not been discussed earlier and are related to the country specifics. One of the factors is the lack of motivation for social business to acquire an official legal status, which was not raised before due to the fact that most of the resources were international and talked about the western culture and economy reality. Another useful extract from the interviews is the additional emphasis on the importance of keeping balance for social entrepreneurs. The study revealed the risk of emotional burnouts and skewed business sense. Duality of social business that lies in the art of juggling between social and commercial force
Theoretical implications:
The study contributed to the underdeveloped field of research about the role of resources and capabilities required for social entrepreneurs to create value through partnerships with large corporations. This research brings together two perspectives on the matter of resources and capabilities - the attitude of representatives of social business and the one of large corporations. Most importantly, all the conclusions were drawn from real cases of partnerships and reflections on them. Investigating resources and competences of social entrepreneurs through the lens of existing collaborations with the eyes of both sides is an innovative approach that has never been explored before. New combinations and sets of resources and competences were proposed as possible success factors of long-term efficient partnerships that are especially relevant for collaborations between social entrepreneurs and large corporations. This research may spur the interest of scholars to create deeper analyses of resources and competences and compare them with the practices from different countries. Moreover, the findings from this study can be used as a basis for a similar quantitative research. Three propositions underlined in the conclusions give ground for further hypothesis testing and new research goals.
Practical implications:
The study brings new insights about resources and competences necessary for successful partnerships between social business and big corporations. It sheds light on the set of competences and the rationale for their development and acquisition. The solutions for social entrepreneurs were synthesized with solutions from the perspective of corporations, and the main competency and capability gaps were identified. These findings can be used to suggest recommendations to policymakers and support organizations for further development of partnerships that will allow social entrepreneurs create financial and societal value.
The first recommendation for policy-makers and support organizations is to focus on providing more opportunities to social entrepreneurs for education and understanding the policies and laws regarding the status of social entrepreneurship. In other words, it is crucial to popularize the importance of conducting business within the boundaries of the legal system and educate social entrepreneurs about the benefits and state support. These activities will not only result in improved ratings of officially registered organization but also will open the doors for a better collaboration opportunities with large business. It can be achieved by means of assigning ambassadors among social entrepreneurs, by creating campaigns to enhance the importance of legalizing social business or by adding this point to the agenda of regional and federal mass media channels with elements of digital or physical marketing.
Second practical recommendation is to provide education for social enterprises with participant from the side of corporates. It can be done through creating platforms that will integrate social business and corporations, educate social entrepreneurs, facilitate networking and give points of contact. It can be a good step for marketing and education on business mechanics and social impact opportunities.
Finally, practical managerial touch social entrepreneurs and give recommendations to focus on developing important intangible resources: customer-centricity, attentiveness to partners’ needs, flexibility, resilience, leadership and initiate. Moreover, it is crucial for social entrepreneurs to adopt business attitude, learn to how to communicate professionally and speak the language of benefit. Also, social entrepreneurs need to be able to do the research and target large corporations wisely, trying to match the already performed ESG projects. Most importantly, social entrepreneurs need to be aware of balance between social and commercial that they need to pay attention....
