The Determinants Of Social Enterprises Performance In Malaysia And Singapore
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Date
2018-05
Authors
Cheah, Sau Seng
Journal Title
Journal ISSN
Volume Title
Publisher
Universiti Sains Malaysia
Abstract
The ultimate mission of a social enterprise is to address the most pressing social or environmental issues in society. However, majority of the social enterprises in Malaysia and Singapore are confronted with the criticality of survival and low performance challenges, especially in financial sustainability. By integrating resource-based view and resource dependence theory, this empirical study established a framework to assess the influence of internal-oriented resources (i.e., entrepreneurial orientation, social salience and business planning), and external-oriented resources (i.e., financial support and training support), which moderated by socio-economic context, towards the financial and social performance of social enterprises. A quantitative method was applied on data collection and analysis. The findings revealed the entrepreneurial orientation of the leading teams, in terms of innovativeness, proactiveness and risk-taking, positively enhances their organisation’s financial performance. Whereas, social salience of the founding leaders only exhibits its negative effect on financial performance in low favorable socio-economic contexts (i.e. Malaysia). Noteworthy are the results revealing the financial and training support have no contribution to the financial or social performance of a social enterprise even if there is no improvement in their business planning practices. This study constitutes several original contributions, included conceptual, empirical and methodological contributions, and may advises the social enterprise practitioners on their organisation’s strategic direction and offer a guiding model to the social investors, policymakers and future researchers.
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Keywords
The determinants of social enterprises performance , in Malaysia and Singapore