IDEAS home Printed from https://ideas.repec.org/a/wsi/jdexxx/v25y2020i01ns1084946720500053.html
   My bibliography  Save this article

Explaining Social Enterprise: Toward A Theoretical Model

Author

Listed:
  • ALEJANDRO MUNGARAY-LAGARDA

    (Autonomous University of Baja California, Faculty of Economy and International Relations, Tijuana, Mexico)

  • GERMÁN OSORIO-NOVELA
  • NATANAEL RAMIREZ-ANGULO

Abstract

This paper introduces the maximization of installed capacity instead of profit maximization, as an element that allows for understanding the economic behavior of Informal Social Enterprise (ISE) in the market. The reconsideration of the theoretical framework that explains the competitive behavior of this type of firm, according to the Social Business Type 2 (SB2) Yunus proposal or necessity-driven entrepreneurship, is important because they are recognized as a mechanism to mitigate the poverty effects of recessionary period faults in the distribution of wealth. The results obtained through the contrast between theoretical evidence and the essential assumptions of industrial organization theory suggests that ISEs have a Cournot competition behavior.

Suggested Citation

  • Alejandro Mungaray-Lagarda & Germán Osorio-Novela & Natanael Ramirez-Angulo, 2020. "Explaining Social Enterprise: Toward A Theoretical Model," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 25(01), pages 1-10, March.
    • Handle: RePEc:wsi:jdexxx:v:25:y:2020:i:01:n:s1084946720500053
    DOI: 10.1142/S1084946720500053
    as

    Download full text from publisher

    File URL: https://www.worldscientific.com/doi/abs/10.1142/S1084946720500053
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S1084946720500053?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. Colin C. Williams & Slavko Bezeredi, 2018. "An Institutional Theory Of Informal Entrepreneurship: Some Lessons From Fyr Macedonia," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 23(03), pages 1-22, September.
    2. Avner Shaked & John Sutton, 1982. "Relaxing Price Competition Through Product Differentiation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 49(1), pages 3-13.
    3. Y Georgellis & J G Sessions & N Tsitsianis, 2005. "Self-Employment Longitudinal Dynamics: A Review of the Literature," Economic Issues Journal Articles, Economic Issues, vol. 10(2), pages 51-84, September.
    4. Maria Figueroa-Armijos & Thomas G. Johnson, 2013. "Entrepreneurship In Rural America Across Typologies, Gender And Motivation," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 18(02), pages 1-37.
    5. Victor J. Tremblay & Carol Horton Tremblay, 2012. "New Perspectives on Industrial Organization," Springer Texts in Business and Economics, Springer, edition 127, number 978-1-4614-3241-8, August.
    6. Colin C. Williams & Sara Nadin, 2010. "Entrepreneurship And The Informal Economy: An Overview," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 15(04), pages 361-378.
    7. Natanael Ramírez. & Alejandro Mungaray. & José G. Aguilar. & Ramón Inzunza., 2017. "Una explicación de la rentabilidad y poder de mercado de las microempresas marginadas," Economía: teoría y práctica, Universidad Autónoma Metropolitana, México, vol. 46(1), pages 97-113, Enero-Jun.
    8. Richard P. Rumelt, 1991. "How much does industry matter?," Strategic Management Journal, Wiley Blackwell, vol. 12(3), pages 167-185, March.
    9. James Katzenstein & Barbara R. Chrispin, 2011. "Social Entrepreneurship And A New Model For International Development In The 21st Century," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 16(01), pages 87-102.
    10. David M. Kreps & Jose A. Scheinkman, 1983. "Quantity Precommitment and Bertrand Competition Yield Cournot Outcomes," Bell Journal of Economics, The RAND Corporation, vol. 14(2), pages 326-337, Autumn.
    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. Whinston, Michael D, 1990. "Tying, Foreclosure, and Exclusion," American Economic Review, American Economic Association, vol. 80(4), pages 837-859, September.
    2. Guillaume Roger, 2017. "Two-sided competition with vertical differentiation," Journal of Economics, Springer, vol. 120(3), pages 193-217, April.
    3. Zissimos, Ben & Wooders, Myrna, 2005. "Relaxing Tax Competition through Public Good Differentiation," Economic Research Papers 269630, University of Warwick - Department of Economics.
    4. Elizabeth Schroeder & Victor Tremblay, 2015. "A Reappraisal of Strategic Trade Policy," Journal of Industry, Competition and Trade, Springer, vol. 15(4), pages 435-442, December.
    5. Zissimos, Ben & Wooders, Myrna, 2008. "Public good differentiation and the intensity of tax competition," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1105-1121, June.
    6. Daniel Bennett & Wesley Yin, 2014. "The Market for High-Quality Medicine," NBER Working Papers 20091, National Bureau of Economic Research, Inc.
    7. Dimitra Petropoulou, 2008. "International Trade, Minimum Quality Standards and the Prisoners' Dilemma," CEP Discussion Papers dp0858, Centre for Economic Performance, LSE.
    8. Gibbens, R. & Mason, R. & Steinberg, Richard, 2000. "Internet service classes under competition," LSE Research Online Documents on Economics 23577, London School of Economics and Political Science, LSE Library.
    9. Horn, H. & Shy, O., 1993. "Local services and International Market Integration," Papers 11-93, Tel Aviv - the Sackler Institute of Economic Studies.
    10. Soham Baksi & Pinaki Bose & Di Xiang, 2017. "Credence Goods, Misleading Labels, and Quality Differentiation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(2), pages 377-396, October.
    11. Fabian Herweg, 2012. "Relaxing competition through quality differentiation and price discrimination," Journal of Economics, Springer, vol. 106(1), pages 1-26, May.
    12. Boccard, N. & Wauthy, X.Y., 2010. "Equilibrium vertical differentiation in a Bertrand model with capacity precommitment," International Journal of Industrial Organization, Elsevier, vol. 28(3), pages 288-297, May.
    13. Valeria Forlin, 2021. "Optimal Eco‐Label Standards in an Oligopolistic Setting," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(2), pages 682-701, March.
    14. De Fraja, Giovanni, 1996. "Product line competition in vertically differentiated markets," International Journal of Industrial Organization, Elsevier, vol. 14(3), pages 389-414, May.
    15. James A. Brander & Barbara J. Spencer, 2015. "Endogenous Horizontal Product Differentiation under Bertrand and Cournot Competition: Revisiting the Bertrand Paradox," NBER Working Papers 20966, National Bureau of Economic Research, Inc.
    16. Athanasios Geromichalos, 2012. "Directed Search and the Bertrand Paradox," Working Papers 243, University of California, Davis, Department of Economics.
    17. James A. Brander & Barbara J. Spencer, 2022. "Differentiated Entry or “Me-Too” Entry in Bertrand and Cournot Oligopoly," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 60(1), pages 1-27, February.
    18. Harald Gruber, 1995. "Strategic Process And Product Innovation," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 4(1), pages 17-26.
    19. Dimitra Petropoulou, 2013. "Vertical product differentiation, minimum quality standards, and international trade," Oxford Economic Papers, Oxford University Press, vol. 65(2), pages 372-393, April.
    20. Alan Roncoroni & Matus Medo, 2016. "Spatial firm competition in two dimensions with linear transportation costs: simulations and analytical results," Papers 1609.04944, arXiv.org.

    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:jdexxx:v:25:y:2020:i:01:n:s1084946720500053. 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/jde/jde.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.