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How Social Entrepreneurs Affect Performance of Social Enterprises in Korea: The Mediating Effect of Innovativeness

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  • Changhwan Shin

    (Department of Social Welfare, Social Science College, Kyungpook Nationl University, 41566 Daegu, Korea)

Abstract

Schumpeter argued that entrepreneurship brings about creative destruction in capitalist economies. South Korea enacted the Social Enterprise Promotion Act in 2007 to promote corporate social enterprise. However, despite government support, social enterprises in Korea are not successful, especially in social and economic performance, which is defined as the social and economic value that social enterprises should pursue. A questionnaire survey was conducted among 100 social entrepreneurs, and the structural equation model was used as the research method. The results of the analysis are as follows. Openness and innovativeness have a positive direct impact on economic as well as social performance. In addition, openness and innovativeness play a mediating role not only in social performance, but also in economic performance. This paper suggests theoretical and policy implications based on the above analysis.

Suggested Citation

  • Changhwan Shin, 2018. "How Social Entrepreneurs Affect Performance of Social Enterprises in Korea: The Mediating Effect of Innovativeness," Sustainability, MDPI, vol. 10(8), pages 1-14, July.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:8:p:2643-:d:160326
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    References listed on IDEAS

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    Cited by:

    1. Rimsha Makeel & Jawaria Ashraf & Fitri Rini Ariyesti & Sumran Ali, 2022. "The influence of social supportive culture and performance-based culture on social enterprise performance: the mediation role of Social entrepreneurial orientation," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 12(1), pages 205-218, December.
    2. Changhwan Shin & Jungkyu Park, 2019. "How Social Entrepreneurs’ Value Orientation Affects the Performance of Social Enterprises in Korea: The Mediating Effect of Social Entrepreneurship," Sustainability, MDPI, vol. 11(19), pages 1-13, September.
    3. Judith Cavazos-Arroyo & Rogelio Puente-Diaz, 2019. "The Influence of Marketing Capability in Mexican Social Enterprises," Sustainability, MDPI, vol. 11(17), pages 1-15, August.
    4. Luc Phan Tan & Lan Xuan Pham & Trang Thanh Bui, 2021. "Personality Traits and Social Entrepreneurial Intention: The Mediating Effect of Perceived Desirability and Perceived Feasibility," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 30(1), pages 56-80, March.
    5. Jugend, Daniel & Fiorini, Paula De Camargo & Armellini, Fabiano & Ferrari, Aline Gabriela, 2020. "Public support for innovation: A systematic review of the literature and implications for open innovation," Technological Forecasting and Social Change, Elsevier, vol. 156(C).
    6. Ermanno C. Tortia & Florence Degavre & Simone Poledrini, 2020. "Why are social enterprises good candidates for social innovation? Looking for personal and institutional drivers of innovation," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 91(3), pages 459-477, September.
    7. Hardi Utomo & Sony Heru Priyanto & Lieli Suharti & Gatot Sasongko, 2019. "Developing social entrepreneurship: a study of community perception in Indonesia," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(1), pages 233-246, September.

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