The reverse causality of social entrepreneurship and organisational performance

Abstract

The study examined the effect of social entrepreneurship (SE) on organisational performance. The study is premised on the idea there could be a two-directional flow between these two constructs due to their interactions. Employing the survey research design approach, 1,495 questionnaires were distributed to respondents in the service and manufacturing sectors. The PLS_SEM statistical tool for analysis was utilised in the study. The study reveals that a firm’s profitability is a significant predictor of SE while entrepreneurship is a driver of organisational performance. The implication of this is that SE drives organisational performance to the extent to which the firm embarks on entrepreneurial activities. The study recommends that firms invest in research and development to enhance their entrepreneurial capacity while acting as social entrepreneurs to increase their performance through increased market share.

 

Keywords: Entrepreneurship, organisational performance, entrepreneurial capacity, social entrepreneurs