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Entrepreneurial Traits, Relational Capital, and Social Enterprise Performance: Regulatory Effects of Cognitive Legitimacy

Author

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  • Xueying Tian

    (School of Management, Shanghai University of Engineering Science, Shanghai 201620, China)

  • Chunyang Zhao

    (School of Management, Shanghai University of Engineering Science, Shanghai 201620, China)

  • Xiaochun Ge

    (School of Business Administration, Zhejiang Gongshang University, Hangzhou 310018, China)

Abstract

Social enterprises, as a new form of organization where public welfare and business coexist, are gradually becoming an important power in innovating social governance. However, the development of social enterprises in China is still in its infancy. Social entrepreneurs have a profound impact on the growth of social enterprises and may bring advantages to the development of enterprises, while barriers to legitimacy commonly faced by social enterprises hinder the development of the enterprise to some extent. Social enterprise performance has always been a research focus in social entrepreneurship, on which many studies have been reported, while it is seldom investigated from the perspective of entrepreneurial traits. The research aims to clarify how entrepreneurial traits influence the growth of social enterprises in an institutional scenario. Taking 208 social enterprises in China as samples, the relationship among entrepreneurial traits, relational capital, cognitive legitimacy, and social enterprise performance was verified using SPSS 22.0 and methods including correlation analysis and regression analysis based on trait theory and relational capital theory. The results indicate that: (1) entrepreneurial traits exert a significant positive effect on both the economic and social performance of social enterprises; (2) relational capital plays a mediating effect between entrepreneurial traits and social enterprise performance; (3) cognitive legitimacy only positively regulates the relationship between relational capital and economic performance. The conclusions may enrich the theory of traits and provide new ideas allowing social enterprises to overcome the dilemma of resource constraints and improve their performance. Social entrepreneurs need to pay close attention to cultivating their entrepreneurial traits and actively establishing relational capital; governments should create an institutional environment conducive to social entrepreneurship, to promote improvement in social enterprise performance.

Suggested Citation

  • Xueying Tian & Chunyang Zhao & Xiaochun Ge, 2022. "Entrepreneurial Traits, Relational Capital, and Social Enterprise Performance: Regulatory Effects of Cognitive Legitimacy," Sustainability, MDPI, vol. 14(6), pages 1-22, March.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:6:p:3336-:d:769703
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    Cited by:

    1. Dongsheng Zhang & Hongwei Wang & Wenfu Wang, 2022. "The Influence of Relational Capital on the Sustainability Risk: Findings from Chinese Non-State-Owned Manufacturing Enterprises," Sustainability, MDPI, vol. 14(11), pages 1-18, June.
    2. Urszula Słupska & Zbigniew Drewniak & Rafał Drewniak & Robert Karaszewski, 2022. "Building Relations between the Company and Employees: The Moderating Role of Leadership," Sustainability, MDPI, vol. 14(14), pages 1-14, July.
    3. Dante Ayaviri-Nina & Jessica Cáceres-Guzmán & Gabith Miriam Quispe Fernández & Alba Isabel Maldonado-Nuñez, 2023. "The Determinants of Success in Entrepreneurship: A Study in the Urban Area of Ecuador," Sustainability, MDPI, vol. 15(6), pages 1-11, March.
    4. Min Zhao & Weijian Guo, 2022. "Does Land Certification Stimulate Farmers’ Entrepreneurial Enthusiasm? Evidence from Rural China," Sustainability, MDPI, vol. 14(18), pages 1-23, September.
    5. Kumudu Jayawardhana & Imali Fernando & Janaka Siyambalapitiya, 2022. "Sustainability in Social Enterprise Research: A Systematic Literature Review," SAGE Open, , vol. 12(3), pages 21582440221, September.

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