Examining the effect of social entrepreneurship on organizational sustainability of social enterprise: a quantitative evidence from emerging markets

Abstract

Purpose In the past, social entrepreneurship (SE) research has focused on what social entrepreneurs are doing; however, research capturing the behavioral orientation underlying social entrepreneurship, termed social entrepreneurship orientation (SEO), is limited in emerging markets. Therefore, this study aims to examine the effect of SEO on social enterprise sustainability in the Indian context. Design/methodology/approach After the extensive literature review and based on the theory of behavioral entrepreneurship, an SEO construct is presented to examine this effect on social enterprise sustainability. The research design of this research paper is a quantitative survey approach and a custom-made structured questionnaire is used to collect data. A total sample of 242 Indian entrepreneurs has been considered for research analysis. Convenient sampling techniques were used and to validate the construct’s model, confirmatory factor analysis (CFA) and structural equation modeling (SEM) were used. Findings The findings of the study show that four behavioral dimensions of SEO have a significant positive effect on social enterprise sustainability. Understanding the essential characteristics of SE highlights the importance of entrepreneurs’ behavioral orientation for the long-term viability of SE in emerging markets, thus beneficial to SE research and practitioners. Research limitations/implications This study enhances the academic understanding of social entrepreneur orientation theory by analyzing its attributes through a quantitative methodology in emerging markets such as India. Educational institutions and training firms can leverage this study to cultivate the personality traits of SEO, thereby fostering the growth of sustainable social enterprises. However, the cross-sectional design, reliance on self-reported data and focus on Indian social enterprises may limit the application of the study’s findings. Practical implications Policymakers should allocate resources to social venture incubators. Educational institutions should integrate SEO principles into the entrepreneurship curriculum. Originality/value This research contributes to the existing empirical findings on SE by identifying SEO as a distinct behavioral construct and provides significant insights into what motivates SEO in challenging socio-economic environments. Overall, the study clarifies the factors responsible for sustainable social enterprise, a critical need of our time.