Effects of the Entrepreneurial Strategic Orientation of Social Enterprises on Organizational Effectiveness: Case of South Korea

Abstract

This study aims to empirically verify whether the entrepreneurial strategic orientation of social enterprises has any effect on organizational effectiveness with the mediation of dynamic capabilities. In the consideration of social enterprises’ features, strategic orientation consisted of social value orientation, entrepreneurial orientation, and market orientation. Dynamic capabilities consisted of absorption capacity and coordination capacity, and organizational effectiveness was comprised of job satisfaction and organizational commitment. An online questionnaire survey targeted 228 employees of Korean social enterprises. The survey results were analyzed using a structural equation. As a result of the analysis, entrepreneurial orientation and market orientation significantly affected absorption capacity, but social value orientation did not affect it. Social value orientation and market orientation significantly affected coordination capacity, but entrepreneurial orientation did not affect it. Absorptive capacity and coordination capacity affected organizational effectiveness, and the hypotheses were adopted. Consequently, it was revealed that market orientation had the most significant effects on social enterprises’ dynamic capabilities and organizational effectiveness. It was confirmed that social value orientation and entrepreneurial orientation revealed differences depending on the absorptive capacity and coordination capacity of dynamic capabilities.

The Influences of Supportive Leadership and Family Social Support on Female Managers’ Organizational Effectiveness: The Mediating Effect of Positive Spillover between Work and Family

“…For instance, Campbell [ 26 ] organized the components of organizational effectiveness into economic, administrative, and psychological indicators, and measured job satisfaction, organizational commitment, and motivation as sub-factors [ 27 , 28 ]. Job satisfaction and organizational commitment are useful sub-factors of organizational effectiveness [ 22 , 29 , 30 ]. Many researchers present organizational commitment and job satisfaction as indicators of organizational effectiveness because organizational effectiveness is related to the behavior and measurability of organization members [ 30 ].…”

“…Meanwhile, Eisenberger et al [ 38 ] stated that organizational commitment refers to the passion of an organization’s members for said organization, including their relationships with others, groups, and organizations. Organizational commitment plays an important role in explaining organizational effectiveness because it represents individuals’ devotion and commitment to their organizations; this highlights the importance of managing and increasing organizational commitment [ 29 , 39 ].…”

Effects of Teleworking and Strategic Orientations on Resilience in the Post-Pandemic Period

“…They allow the organization's resources to be focused to achieve desired results. Strategic orientations play a leading role in the organization's strategy formation processes in challenging competitive conditions, and they are at the center of the decision-making process at organizations (Cho et al, 2022).…”

Antecedents and Consequences of Three Selling Strategies in Social Enterprises

“…Social enterprises are embedded in different sectors, they vary in size and they have different capabilities (Cho et al, 2022;Thompson & Doherty, 2006). Several of them face challenges such as optimizing their selling capability and deploying a sales strategy that allows them to be financially healthy, while achieving the desirable social impact (Ge et al, 2019).…”