David Gras

Strategic Foci in Social and Commercial Entrepreneurship: A Comparative Analysis

Abstract We investigate whether the strategies deemed important by social entrepreneurs contrast with those of commercial entrepreneurs. We hypothesize that social entrepreneurs value externally-focused strategies more highly and internally-focused strategies less compared with commercial entrepreneurs. We test our hypotheses using cross-sectional time-series analyses on five waves of Panel Study of Entrepreneurial Dynamics II (PSED II) data. In support of our hypotheses, we find that strategies focused on serving missed customers, marketing/promotion, and intellectual property are deemed more important by social entrepreneurs. We further find that strategies focused on quality products and contemporary/attractive products are deemed more important by commercial entrepreneurs.

The Use of Secondary Data in Social Entrepreneurship Research: Assessing the Field and Identifying Future Opportunities

Abstract Purpose The purpose of this study is to assess the current prevalence of empirical research in the field of social entrepreneurship. Further, we identify secondary datasets and explain their relative strengths and weaknesses for use by social entrepreneurship scholars. Methods The authors conducted a search of academic articles in the EBSCO and ProQuest databases mentioning social entrepreneurship, social venture(s), social enterprise(s), or social entrepreneur(s) in the title, abstract, or keywords published from 2009 to 2013. Papers were coded and analyzed based upon the nature of their methods. Findings We find that while qualitative studies are still the norm, quantitative methods are increasing, thanks to the creation of large-scale datasets and the use of analysis techniques new to the field. Three such large-scale datasets – the PSED II, GEM, and nonprofit tax collections – are discussed in depth. We find several strengths and weaknesses for each dataset, yet each provides social entrepreneurship scholars with fruitful opportunities. Value of chapter Through a deeper understanding of empirical research and sources of social entrepreneurship data, scholars may be more attracted to social entrepreneurship, better equipped to conduct high-quality research and publish in high-quality outlets. Moreover, by moving beyond case studies and small-sample research to engaging larger pools of subjects and producing more generalizable findings, social entrepreneurship scholars will have the ability to impact a much broader scope of practitioners.

The Performance Effects of Pursuing a Diversification Strategy by Newly Founded Nonprofit Organizations

Product diversification is commonly seen as an expansion strategy firms adopt late within their life cycles. In this article, we elucidate the practice of employing a product diversification strategy from inception. We explore the performance effects of product diversification on newly created nonprofit organizations. Our findings suggest that being diversified from the start-up phase is, while detrimental to organizational efficiency, beneficial for organizational survival. We also find that the revenue strategy employed by the organization moderates the relationship between product diversification and survival. The study offers implications for researchers and practitioners regarding diversification as an entry strategy and performance assessment of new nonprofit organizations.

Going offline: broadening crowdfunding research beyond the online context

Abstract Crowdfunding is often touted as a recent innovation that unleashes entrepreneurial potential by connecting entrepreneurs to small amounts of money from a broad base of individuals. However, literature on the topic has largely neglected the rich history of crowdfunding and failed to make an interesting and salient distinction between online and offline crowdfunding. This paper explicates the historical roots and current practices of offline crowdfunding, compares and contrasts online and offline crowdfunding, develops theoretically grounded predictions linking each type of crowdfunding to entrepreneurship outcomes, and offers related future research opportunities. We hope to build a rich appreciation for offline crowdfunding, provide insight into how crowdfunding as a financing mechanism has evolved and persists in contemporary society, and lay a foundation for future scholarly work in the area.

When does it pay to stand out as stand-up? Competitive contingencies in the corporate social performance–corporate financial performance relationship:

We develop a competitive contingency model of the relationship between corporate social performance and corporate financial performance, focusing on the moderating effects of industry-based factors. We conceptualize corporate social performance as a form of strategic differentiation and predict that the positive link between corporate social performance and corporate financial performance is strongest when a firm competes in an environment that is not conducive to corporate social performance. Analyses of data from roughly 2500 publicly traded firms between 2002 and 2009 support the moderating effects of industry munificence and social orientation. We discuss the implications of our contingency model for firms seeking a competitive advantage through corporate social performance.

Competitive Advantages of Formality in the Informal Economy

In developed economies like the United States, formal firms arguably have the choice as to whether or not to compete against informal firms. In emerging economies like Africa, however, formal firms are often times pushed into competition with informal firms for market share. Informality can be a difficult context for formal firms to navigate. Prior research has emphasized the role of embedded social networks and cultural customs of doing favors as some of the disadvantages of the formal mode of doing business in developing and emerging economies. To compensate, some formal firms imitate the resource orchestration of informal firms. Informality, however, also has disadvantages. Building upon resource based theory, we hypothesize that informal firms pose less of a competitive threat to the formal firms that deploy formal information resources such as websites and national quality certifications. In other words, rather than imitating the informality that is prevalent in emerging economies, formal firms can substitute informal modes of doing business with strategic assets that informal firms are constrained from orchestrating. We empirically test and found support for our hypotheses using a large sample of 7,576 formal firms doing business in 18 Sub-Saharan African countries.

A Context of Contracts: Rethinking the Link between Corporate Social and Financial Performance

Extant research is equivocal as to the relationship between corporate social performance and corporate financial performance. We propose that this equivocality is largely based on the aggregation of many stakeholders within the corporate social performance construct. Drawing upon stakeholder theory, we hypothesize that social performance directed towards stakeholders with which the firm has a contractual relationship positively influences financial performance, while social performance directed towards non-contractual stakeholders does not. Through empirical analyses of 300 firms, we find support for our expectations.