IDEAS home Printed from https://ideas.repec.org/a/sae/sagope/v14y2024i2p21582440241249147.html
   My bibliography  Save this article

Social Entrepreneurship, Employment, and Financial Performance: A Latent Growth Modeling Approach

Author

Listed:
  • Cheol Young Kim

Abstract

The social value created by organizations has been in the spotlight during periods of rapid social change, such as COVID-19. However, the existing literature has been limited by the inability to demonstrate the cumulative effects of social value over time, which has led to academic and practical limitations. Drawing on stakeholder theory, socially responsible customer behavior, and institutional theory, the author collected data from 208 social enterprises in South Korea over 3 years, from 2017 to 2019, and tested hypotheses using latent growth modeling. This analytical technique, which uses structural equation modeling, estimates the latent growth rate of each data measure by year and analyzes the causal relationship between the growth rate of each variable. The results show that higher levels of social entrepreneurship are associated with higher growth rates of total employment and vulnerable worker employment, followed by higher growth rates of financial performance. The implications of this paper are as follows. First, this study reports that social entrepreneurship can help social enterprises develop sustainably by increasing financial performance. Second, this study overcomes the methodological limitations of the existing literature by reporting the relationship between growth rates. Third, this study reports that social enterprises can help solve employment problems for vulnerable populations, who are often the first to be affected by the economic crisis. Fourth, this study contributes to resolving the conflicting and contradictory perspectives of practitioners and academics on the relationship between social and economic value. Fifth, it offers suggestions for the future direction of the academic field.

Suggested Citation

  • Cheol Young Kim, 2024. "Social Entrepreneurship, Employment, and Financial Performance: A Latent Growth Modeling Approach," SAGE Open, , vol. 14(2), pages 21582440241, April.
    • Handle: RePEc:sae:sagope:v:14:y:2024:i:2:p:21582440241249147
    DOI: 10.1177/21582440241249147
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/21582440241249147
    Download Restriction: no
    File URL: https://libkey.io/10.1177/21582440241249147?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Aidin Salamzadeh & Zahra Arasti & Ghanbar Mohamadi Elyasi, 2017. "Creation of ICT-Based Social Start-Ups in Iran: A Multiple Case Study," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 25(01), pages 97-122, March.
    2. Bluedorn, John & Caselli, Francesca & Hansen, Niels-Jakob & Shibata, Ippei & Tavares, Marina M., 2023. "Gender and employment in the COVID-19 recession: Cross-Country evidence on “She-Cessions”," Labour Economics, Elsevier, vol. 81(C).
    3. Wright Mike & Zahra Shaker, 2011. "The Other Side of Paradise: Examining the Dark Side of Entrepreneurship," Entrepreneurship Research Journal, De Gruyter, vol. 1(3), pages 1-7, July.
    4. Ron Bird & Anthony D. Hall & Francesco Momentè & Francesco Reggiani, 2007. "What Corporate Social Responsibility Activities are Valued by the Market?," Journal of Business Ethics, Springer, vol. 76(2), pages 189-206, December.
    5. Johanna Mair & Ignasi Marti, 2006. "Social Entrepreneurship Research: A Source of Explanation, Prediction, and Delight," Post-Print hal-02311880, HAL.
    6. James J. Cordeiro & Joseph Sarkis, 1997. "Environmental proactivism and firm performance: evidence from security analyst earnings forecasts," Business Strategy and the Environment, Wiley Blackwell, vol. 6(2), pages 104-114, May.
    7. David Di Zhang & Lee A. Swanson, 2014. "Linking Social Entrepreneurship and Sustainability," Journal of Social Entrepreneurship, Taylor & Francis Journals, vol. 5(2), pages 175-191, May.
    8. Aidin Salamzadeh & Mohammad Ali Azimi & David A. Kirby, 2013. "Social entrepreneurship education in higher education: insights from a developing country," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 20(1), pages 17-34.
    9. Chris Ailman & Michelle Edkins & Kristi Mitchem & Ted Eliopoulos & Janine Guillot, 2017. "The Next Wave of ESG Integration: Lessons from Institutional Investors," Journal of Applied Corporate Finance, Morgan Stanley, vol. 29(2), pages 32-43, June.
    10. Jantje Halberstadt & Sascha Kraus, 2016. "Social entrepreneurship: the foundation of tomorrow's commercial business models?," International Journal of Entrepreneurial Venturing, Inderscience Enterprises Ltd, vol. 8(3), pages 261-279.
    11. Majid Mohammad Shafiee & Reihaneh Alsadat Tabaeeian & Mastoureh Mehri, 2020. "Performance excellence through spirituality, emotional labour and customer orientation in insurance industry," International Journal of Business Excellence, Inderscience Enterprises Ltd, vol. 21(4), pages 513-529.
    12. Zhi Tang & Clyde Eiríkur Hull & Sandra Rothenberg, 2012. "How Corporate Social Responsibility Engagement Strategy Moderates the CSR–Financial Performance Relationship," Journal of Management Studies, Wiley Blackwell, vol. 49(7), pages 1274-1303, November.
    13. Peredo, Ana María & McLean, Murdith, 2006. "Social entrepreneurship: A critical review of the concept," Journal of World Business, Elsevier, vol. 41(1), pages 56-65, February.
    14. Cherrier, Helene & Goswami, Paromita & Ray, Subhasis, 2018. "Social entrepreneurship: Creating value in the context of institutional complexity," Journal of Business Research, Elsevier, vol. 86(C), pages 245-258.
    15. Gali, Nazha & Niemand, Thomas & Shaw, Eleanor & Hughes, Mathew & Kraus, Sascha & Brem, Alexander, 2020. "Social entrepreneurship orientation and company success: The mediating role of social performance," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
    16. Mair, Johanna & Martí, Ignasi, 2006. "Social entrepreneurship research: A source of explanation, prediction, and delight," Journal of World Business, Elsevier, vol. 41(1), pages 36-44, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Diaz-Sarachaga, Jose Manuel & Ariza-Montes, Antonio, 2022. "The role of social entrepreneurship in the attainment of the sustainable development goals," Journal of Business Research, Elsevier, vol. 152(C), pages 242-250.
    2. Pradeep Kumar Hota, 2023. "Tracing the Intellectual Evolution of Social Entrepreneurship Research: Past Advances, Current Trends, and Future Directions," Journal of Business Ethics, Springer, vol. 182(3), pages 637-659, January.
    3. Gupta, Parul & Chauhan, Sumedha & Paul, Justin & Jaiswal, M.P., 2020. "Social entrepreneurship research: A review and future research agenda," Journal of Business Research, Elsevier, vol. 113(C), pages 209-229.
    4. Cucari Nicola & D’Angelo Eugenio & Esposito Eduardo & Ciasullo Maria Vincenza, 2020. "Assessing the Social Entrepreneurship Business Model: An Exploratory Case Study in the Italian Cultural Heritage Sector," Entrepreneurship Research Journal, De Gruyter, vol. 10(4), pages 1-31, October.
    5. Leitão, Maria Eugénia & Amaral, Miguel & Carvalho, Ana, 2024. "Reconceptualizing socio-tech entrepreneurship: A systematic literature review and research agenda," Technovation, Elsevier, vol. 134(C).
    6. Sayem Hossain & M. Abu Saleh & Judy Drennan, 0. "A critical appraisal of the social entrepreneurship paradigm in an international setting: a proposed conceptual framework," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-22.
    7. Kaushik, Vineet & Tewari, Shobha & Sahasranamam, Sreevas & Hota, Pradeep Kumar, 2023. "Towards a precise understanding of social entrepreneurship: An integrated bibliometric–machine learning based review and research agenda," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    8. Mir Shahid Satar & Deepanshi Aggarwal & Rohit Bansal & Ghadah Alarifi, 2023. "Mapping the Knowledge Structure and Unveiling the Research Trends in Social Entrepreneurship and Inclusive Development: A Bibliometric Analysis," Sustainability, MDPI, vol. 15(7), pages 1-28, March.
    9. Sayem Hossain & M. Abu Saleh & Judy Drennan, 2017. "A critical appraisal of the social entrepreneurship paradigm in an international setting: a proposed conceptual framework," International Entrepreneurship and Management Journal, Springer, vol. 13(2), pages 347-368, June.
    10. De Beule, Filip & Klein, Martin & Verwaal, Ernst, 2020. "Institutional quality and inclusive strategies at the base of the pyramid," Journal of World Business, Elsevier, vol. 55(5).
    11. Barbara Bradač Hojnik & Katja Crnogaj, 2020. "Social Impact, Innovations, and Market Activity of Social Enterprises: Comparison of European Countries," Sustainability, MDPI, vol. 12(5), pages 1-15, March.
    12. Inmaculada Buendía-Martínez & Inmaculada Carrasco Monteagudo, 2020. "The Role of CSR on Social Entrepreneurship: An International Analysis," Sustainability, MDPI, vol. 12(17), pages 1-22, August.
    13. Robin Stevens & Nathalie Moray & Johan Bruneel, 2015. "The Social and Economic Mission of Social Enterprises: Dimensions, Measurement, Validation, and Relation," Entrepreneurship Theory and Practice, , vol. 39(5), pages 1051-1082, September.
    14. David Bruce Audretsch & Maksim Belitski & Georg Maximilian Eichler & Erich Schwarz, 2024. "Entrepreneurial ecosystems, institutional quality, and the unexpected role of the sustainability orientation of entrepreneurs," Small Business Economics, Springer, vol. 62(2), pages 503-522, February.
    15. Geoffrey M. Kistruck & Paul W. Beamish, 2010. "The Interplay of Form, Structure, and Embeddedness in Social Intrapreneurship," Entrepreneurship Theory and Practice, , vol. 34(4), pages 735-761, July.
    16. Sebastian-Ion Ceptureanu & Eduard-Gabriel Ceptureanu & Mihai Cristian Orzan & Irinel Marin, 2017. "Toward a Romanian NPOs Sustainability Model: Determinants of Sustainability," Sustainability, MDPI, vol. 9(6), pages 1-26, June.
    17. Shr-Wei Kao & Pin Luarn, 2020. "Topic Modeling Analysis of Social Enterprises: Twitter Evidence," Sustainability, MDPI, vol. 12(8), pages 1-20, April.
    18. Portocarrero, Florencio & Newbert, Scott & Young, Maia & Zhu, Lily, 2025. "The affective revolution in entrepreneurship: an integrative conceptual review and guidelines for future investigation," LSE Research Online Documents on Economics 126090, London School of Economics and Political Science, LSE Library.
    19. Bhattarai, Charan Raj & Kwong, Caleb C.Y. & Tasavori, Misagh, 2019. "Market orientation, market disruptiveness capability and social enterprise performance: An empirical study from the United Kingdom," Journal of Business Research, Elsevier, vol. 96(C), pages 47-60.
    20. Angulo-Ruiz, Fernando & Pergelova, Albena & Dana, Leo Paul, 2020. "The internationalization of social hybrid firms," Journal of Business Research, Elsevier, vol. 113(C), pages 266-278.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:sagope:v:14:y:2024:i:2:p:21582440241249147. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.