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Bringing the founders back in: How does prosocial motivation affect social enterprises’ organizational legitimacy?

Author

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  • Xiao, Yingzhao
  • Hsu, Anna J.C.
  • Au, Kevin
  • Liu, Zhen

Abstract

Compared to institutional factors, prosocial motivation is arguably the most salient founder attribute held as a determinant of social enterprise (SE) legitimacy. Yet the process and the explanation remain unclear. We propose a mechanism involving resource bricolage as a mediator and social class as a boundary condition. Three studies with different stakeholders test a moderated mediation model regarding the mechanism: (1) a survey of 210 social entrepreneurs, (2) a measurement-as-mediation experiment with 203 public servants, and (3) a manipulation-as-mediation experiment with 630 potential consumers. The results reveal that resource bricolage explains why prosocial motivation is of importance in gaining legitimacy for SEs. Moreover, the effect of prosocial motivation on SEs’ legitimacy through resource bricolage is salient for social entrepreneurs from a higher social class but intriguingly not for those from a lower social class. Our findings contribute to the literatures on social entrepreneurship and business ethics in general.

Suggested Citation

  • Xiao, Yingzhao & Hsu, Anna J.C. & Au, Kevin & Liu, Zhen, 2026. "Bringing the founders back in: How does prosocial motivation affect social enterprises’ organizational legitimacy?," Journal of Business Research, Elsevier, vol. 204(C).
    • Handle: RePEc:eee:jbrese:v:204:y:2026:i:c:s0148296325006605
    DOI: 10.1016/j.jbusres.2025.115837
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