IDEAS home Printed from https://ideas.repec.org/a/wsi/jecxxx/v24y2016i03ns0218495816500102.html
   My bibliography  Save this article

How to Grow Successful Social Entrepreneurship Firms? Key Ideas from Complexity Theory

Author

Listed:
  • Mary Han

    (Ted Rogers School of Management, Ryerson University, Toronto, M5G 2C5, Canada)

  • Bill McKelvey

    (UCLA Anderson School of Management, Los Angeles, California, USA)

Abstract

Social entrepreneurship (SE) is increasingly popular in academia and practice, but unified theoretical explanations about the performance of social entrepreneurship firms (SEFs) is missing (Santos, 2012). This deficiency motivates us to theorize about SE from a complexity science perspective. We draw from complexity science to analyze and explain how SEFs emerge, achieve performance, and grow. We link complexity science with SE so as to add explanatory value as well as offering guidelines for better SEF performance toward achieving social objectives while avoiding the chasm of chaos. Our theoretical framework offers complexity insights for building effective networks, and accountability, as well as for improving trust, legitimacy, and sound governance. Drawing on complexity theory to better explain the key elements necessary for improving SEFs’ performance and growth, enhances the probability of meeting the challenge of the so-called ‘double bottom-line’: achieving continuous positive social impacts while attaining financial health.

Suggested Citation

  • Mary Han & Bill McKelvey, 2016. "How to Grow Successful Social Entrepreneurship Firms? Key Ideas from Complexity Theory," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 24(03), pages 243-280, September.
  • Handle: RePEc:wsi:jecxxx:v:24:y:2016:i:03:n:s0218495816500102
    DOI: 10.1142/S0218495816500102
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S0218495816500102
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://libkey.io/10.1142/S0218495816500102?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. David Colander (ed.), 2000. "The Complexity Vision and the Teaching of Economics," Books, Edward Elgar Publishing, number 1955.
    2. Patricia Doyle Corner & Marcus Ho, 2010. "How Opportunities Develop in Social Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 34(4), pages 635-659, July.
    3. Minet Schindehutte & Michael H. Morris, 2009. "Advancing Strategic Entrepreneurship Research: The Role of Complexity Science in Shifting the Paradigm," Entrepreneurship Theory and Practice, , vol. 33(1), pages 241-276, January.
    4. Reynolds, Paul D. & Curtin, Richard T., 2008. "Business Creation in the United States: Panel Study of Entrepreneurial Dynamics II Initial Assessment," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 4(3), pages 155-307, January.
    5. Rory Ridley‐Duff, 2007. "Communitarian Perspectives on Social Enterprise," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(2), pages 382-392, March.
    6. Bill McKelvey & Benyamin B. Lichtenstein & Pierpaolo Andriani, 2012. "When organisations and ecosystems interact: toward a law of requisite fractality in firms," International Journal of Complexity in Leadership and Management, Inderscience Enterprises Ltd, vol. 2(1/2), pages 104-136.
    7. J. Carlos Jarillo, 1988. "On strategic networks," Strategic Management Journal, Wiley Blackwell, vol. 9(1), pages 31-41, January.
    8. Ishikawa, Atushi, 2006. "Pareto index induced from the scale of companies," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 363(2), pages 367-376.
    9. Burgelman, Robert A. & Grove, Andrew S., 2007. "Let Chaos Reign, Then Rein In Chaos--Repeatedly: Managing Strategic Dynamics For Corporate Longevity," Research Papers 1954, Stanford University, Graduate School of Business.
    10. Santiago, A. & Benito, R.M., 2008. "Connectivity degrees in the threshold preferential attachment model," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 387(10), pages 2365-2376.
    11. Pierpaolo Andriani & Bill McKelvey, 2007. "Beyond Gaussian averages: redirecting international business and management research toward extreme events and power laws," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(7), pages 1212-1230, December.
    12. Takayuki Mizuno & Wataru Souma & Tsutomu Watanabe, 2014. "The Structure and Evolution of Buyer-Supplier Networks," CARF F-Series CARF-F-339, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.
    13. Mary Han, 2006. "Developing social capital to achieve superior internationalization: A conceptual model," Journal of International Entrepreneurship, Springer, vol. 4(2), pages 99-112, September.
    14. Olav Sorenson, 2005. "Social networks and industrial geography," Springer Books, in: Uwe Cantner & Elias Dinopoulos & Robert F. Lanzillotti (ed.), Entrepreneurships, the New Economy and Public Policy, pages 55-69, Springer.
    15. M. Goldstein & S. Morris & G. Yen, 2004. "Problems with fitting to the power-law distribution," The European Physical Journal B: Condensed Matter and Complex Systems, Springer;EDP Sciences, vol. 41(2), pages 255-258, September.
    16. Frédérique Déjean & Jean-Pascal Gond & Bernard Leca, 2004. "Measuring the unmeasured : An institutional entrepreneur strategy in an emerging industry," Post-Print halshs-00151270, HAL.
    17. Filipe Santos, 2012. "A Positive Theory of Social Entrepreneurship," Journal of Business Ethics, Springer, vol. 111(3), pages 335-351, December.
    18. Jan Inge Jenssen & Harold F. Koenig, 2002. "The Effect of Social Networks on Resource Access and Business Start-ups," European Planning Studies, Taylor & Francis Journals, vol. 10(8), pages 1039-1046, December.
    19. repec:dau:papers:123456789/1478 is not listed on IDEAS
    20. Bill McKelvey, 1997. "Perspective---Quasi-Natural Organization Science," Organization Science, INFORMS, vol. 8(4), pages 351-380, August.
    21. Podobnik, Boris & Fu, Dongfeng & Jagric, Timotej & Grosse, Ivo & Eugene Stanley, H., 2006. "Fractionally integrated process for transition economics," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 362(2), pages 465-470.
    22. Weerawardena, Jay & Mort, Gillian Sullivan, 2006. "Investigating social entrepreneurship: A multidimensional model," Journal of World Business, Elsevier, vol. 41(1), pages 21-35, February.
    23. Mair, Johanna & Schoen, Oliver, 2005. "Social entrepreneurial business models: An exploratory study," IESE Research Papers D/610, IESE Business School.
    24. Takayuki Mizuno & Wataru Souma & Tsutomu Watanabe, 2014. "The Structure and Evolution of Buyer-Supplier Networks," PLOS ONE, Public Library of Science, vol. 9(7), pages 1-10, July.
    25. Lichtenstein, Benyamin B. & Carter, Nancy M. & Dooley, Kevin J. & Gartner, William B., 2007. "Complexity dynamics of nascent entrepreneurship," Journal of Business Venturing, Elsevier, vol. 22(2), pages 236-261, March.
    26. Manolova, Tatiana S. & Manev, Ivan M. & Gyoshev, Bojidar S., 2010. "In good company: The role of personal and inter-firm networks for new-venture internationalization in a transition economy," Journal of World Business, Elsevier, vol. 45(3), pages 257-265, July.
    27. Saito, Yukiko Umeno & Watanabe, Tsutomu & Iwamura, Mitsuru, 2007. "Do larger firms have more interfirm relationships?," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 383(1), pages 158-163.
    28. Julie M. Hite & William S. Hesterly, 2001. "The evolution of firm networks: from emergence to early growth of the firm," Strategic Management Journal, Wiley Blackwell, vol. 22(3), pages 275-286, March.
    29. Peter Witt, 2004. "Entrepreneurs’ networks and the success of start-ups," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 16(5), pages 391-412, September.
    30. Mizuno, Takayuki & Souma, Wataru & Watanabe, Tsutomu, 2014. "The Structure and Evolution of Buyer-Supplier Networks," Working Paper Series 27, Center for Interfirm Network, Institute of Economic Research, Hitotsubashi University.
    31. David Levy, 1994. "Chaos theory and strategy: Theory, application, and managerial implications," Strategic Management Journal, Wiley Blackwell, vol. 15(S2), pages 167-178, June.
    32. Ralph D. Stacey, 1995. "The science of complexity: An alternative perspective for strategic change processes," Strategic Management Journal, Wiley Blackwell, vol. 16(6), pages 477-495.
    33. James Austin & Howard Stevenson & Jane Wei–Skillern, 2006. "Social and Commercial Entrepreneurship: Same, Different, or Both?," Entrepreneurship Theory and Practice, , vol. 30(1), pages 1-22, January.
    34. Lechner, Christian & Dowling, Michael & Welpe, Isabell, 2006. "Firm networks and firm development: The role of the relational mix," Journal of Business Venturing, Elsevier, vol. 21(4), pages 514-540, July.
    35. Seelos, Christian & Mair, Johanna, 2005. "Social entrepreneurship: Creating new business models to serve the poor," Business Horizons, Elsevier, vol. 48(3), pages 241-246.
    36. Robert A. Burgelman & Andrew S. Grove, 2007. "Let chaos reign, then rein in chaos—repeatedly: managing strategic dynamics for corporate longevity," Strategic Management Journal, Wiley Blackwell, vol. 28(10), pages 965-979, October.
    37. Crawford, G. Christopher & Aguinis, Herman & Lichtenstein, Benyamin & Davidsson, Per & McKelvey, Bill, 2015. "Power law distributions in entrepreneurship: Implications for theory and research," Journal of Business Venturing, Elsevier, vol. 30(5), pages 696-713.
    38. Song, Dong-Ming & Jiang, Zhi-Qiang & Zhou, Wei-Xing, 2009. "Statistical properties of world investment networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 388(12), pages 2450-2460.
    39. Matteo Smerlak & Brady Stoll & Agam Gupta & James S Magdanz, 2015. "Mapping Systemic Risk: Critical Degree and Failures Distribution in Financial Networks," PLOS ONE, Public Library of Science, vol. 10(7), pages 1-15, July.
    40. S. Battiston & M. Catanzaro, 2004. "Statistical properties of corporate board and director networks," The European Physical Journal B: Condensed Matter and Complex Systems, Springer;EDP Sciences, vol. 38(2), pages 345-352, March.
    41. Souma, Wataru & Aoyama, Hideaki & Fujiwara, Yoshi & Ikeda, Yuichi & Iyetomi, Hiroshi & Kaizoji, Taisei, 2006. "Correlation in business networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 370(1), pages 151-155.
    42. Pierpaolo Andriani & Bill McKelvey, 2009. "Perspective ---From Gaussian to Paretian Thinking: Causes and Implications of Power Laws in Organizations," Organization Science, INFORMS, vol. 20(6), pages 1053-1071, December.
    43. Aoyama,Hideaki & Fujiwara,Yoshi & Ikeda,Yuichi & Iyetomi,Hiroshi & Souma,Wataru Preface by-Name:Yoshikawa,Hiroshi, 2011. "Econophysics and Companies," Cambridge Books, Cambridge University Press, number 9781107403482, September.
    44. Ashadun Nobi & Seong Eun Maeng & Gyeong Gyun Ha & Jae Woo Lee, 2013. "Network Topologies of Financial Market During the Global Financial Crisis," Papers 1307.6974, arXiv.org.
    45. 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.
    46. Neck, Heidi & Brush, Candida & Allen, Elaine, 2009. "The landscape of social entrepreneurship," Business Horizons, Elsevier, vol. 52(1), pages 13-19.
    47. Nicholls, Alex, 2009. "'We do good things, don't we?': 'Blended Value Accounting' in social entrepreneurship," Accounting, Organizations and Society, Elsevier, vol. 34(6-7), pages 755-769, August.
    48. Oecd, 2002. "Access for Business," OECD Digital Economy Papers 67, OECD Publishing.
    49. BILL McKELVEY, 2001. "Energising Order-Creating Networks Of Distributed Intelligence: Improving The Corporate Brain," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 5(02), pages 181-212.
    50. Hu, Sen & Yang, Hualei & Cai, Boliang & Yang, Chunxia, 2013. "Research on spatial economic structure for different economic sectors from a perspective of a complex network," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 392(17), pages 3682-3697.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Herman T. Wevers & Cosmina L. Voinea & Frank de Langen, 2020. "Social Entrepreneurship as a Form of Cross-Border Cooperation: Complementarity in EU Border Regions," Sustainability, MDPI, vol. 12(20), pages 1-23, October.
    2. Mallika Devi Pathak & Brajaballav Kar & Madhu Chhanda Panda, 2022. "Chaos and complexity: entrepreneurial planning during pandemic," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 12(1), pages 1-11, December.
    3. Bookhagen, Andrea & Seymour, Grit, 2019. "Sustainable-oriented Entrepreneurship: Sozial und ökologisch verantwortliches Handeln als Teil des unternehmerischen Selbstverständnisses," PraxisWISSEN Marketing: German Journal of Marketing, AfM – Arbeitsgemeinschaft für Marketing, vol. 4(01/2019), pages 112-126.

    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. Elena-Simina Lakatos & Bercea Oana Bianca & Laura Bacali, 2016. "The concept of innovation in social economy. A review and a research agenda," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 11(1), pages 32-50, June.
    2. Pierpaolo Andriani & Bill McKelvey, 2009. "Perspective ---From Gaussian to Paretian Thinking: Causes and Implications of Power Laws in Organizations," Organization Science, INFORMS, vol. 20(6), pages 1053-1071, December.
    3. Adélie Ranville & Marcos Barros, 2022. "Towards Normative Theories of Social Entrepreneurship. A Review of the Top Publications of the Field," Journal of Business Ethics, Springer, vol. 180(2), pages 407-438, October.
    4. Pradeep Kumar Hota & Balaji Subramanian & Gopalakrishnan Narayanamurthy, 2020. "Mapping the Intellectual Structure of Social Entrepreneurship Research: A Citation/Co-citation Analysis," Journal of Business Ethics, Springer, vol. 166(1), pages 89-114, September.
    5. 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.
    6. Bill McKelvey & Benyamin B. Lichtenstein & Pierpaolo Andriani, 2012. "When organisations and ecosystems interact: toward a law of requisite fractality in firms," International Journal of Complexity in Leadership and Management, Inderscience Enterprises Ltd, vol. 2(1/2), pages 104-136.
    7. Rocío Aliaga-Isla & Benjamin Huybrechts, 2018. "From “Push Out” to “Pull In” Together : An Analysis of Social Entrepreneurship Definitions in the Academic Field," Post-Print hal-02312230, HAL.
    8. 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.
    9. Sauermann, Miklas Pascal, 2023. "Social Entrepreneurship as a Tool to Promoting Sustainable Development in Low-Income Communities: An Empirical Analysis," MPRA Paper 116929, University Library of Munich, Germany.
    10. Patricio Osorio-Vega, 2019. "The Ethics of Entrepreneurial Shared Value," Journal of Business Ethics, Springer, vol. 157(4), pages 981-995, July.
    11. Lu, Jinfeng & Dimov, Dimo, 2023. "A system dynamics modelling of entrepreneurship and growth within firms," Journal of Business Venturing, Elsevier, vol. 38(3).
    12. 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.
    13. Gala, Kaushik & Schwab, Andreas & Mueller, Brandon A., 2024. "Star entrepreneurs on digital platforms: Heavy-tailed performance distributions and their generative mechanisms," Journal of Business Venturing, Elsevier, vol. 39(1).
    14. Yeamduan Narangajavana & Tomas Gonzalez-Cruz & Fernando J. Garrigos-Simon & Sonia Cruz-Ros, 2016. "Measuring social entrepreneurship and social value with leakage. Definition, analysis and policies for the hospitality industry," International Entrepreneurship and Management Journal, Springer, vol. 12(3), pages 911-934, September.
    15. 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.
    16. Siebold, Nicole, 2021. "Reference points for business model innovation in social purpose organizations: A stakeholder perspective," Journal of Business Research, Elsevier, vol. 125(C), pages 710-719.
    17. Hoogendoorn, B. & van der Zwan, P.W. & Thurik, A.R., 2011. "Social Entrepreneurship and Performance: The Role of Perceived Barriers and Risk," ERIM Report Series Research in Management ERS-2011-016-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    18. Vineet Kaushik & Shobha Tewari, 2023. "Modeling Opportunity Indicators Fostering Social Entrepreneurship: A Hybrid Delphi and Best-Worst Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 168(1), pages 667-698, August.
    19. 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.
    20. João J. Ferreira & Cristina I. Fernandes & Marta Peres-Ortiz & Helena Alves, 2017. "Conceptualizing social entrepreneurship: perspectives from the literature," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 14(1), pages 73-93, March.

    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:wsi:jecxxx:v:24:y:2016:i:03:n:s0218495816500102. 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: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/jec/jec.shtml .

    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.