A Typology of Competitive Strategies for Social Enterprises

This article tackles the limited theorising on social enterprises’ (SEs) decisions on the product or service mix, quality, pricing, and the targeted beneficiaries by proposing a typology of competitive strategies for them. The paper empirically observes how SEs react to the challenges faced by the marketisation of their fields. The context of this study is the supplementary education of the disabled in Turkey, a field where increased state coverage led to the entrance of many profit-focussed counterparts. Based on a Grounded Theory methodology and a longitudinal dataset including ten cases, the study developed a unique typology comprising three competitive strategies, i.e., innovator, enforcer, and includer. The findings illustrate various strategic responses to heightened competition from incumbent SEs. However, deviation of these strategic responses from the typology appeared to be detrimental in the long-term. By shedding light on the intricacies of the hybrid nature of SEs and considering changes in their competitive environment over time, this study concludes with a summary of contributions to theory, practice, and policy.