Strategic response to COVID-19: how do social enterprises navigate crisis situations?

Abstract

Purpose Social enterprises (SEs) have experienced unprecedented uncertainty due to COVID-19, and it has challenged the fundamental assumptions underlying the SEs. Little is known about the strategic response of SEs when their fundamental characteristics are being challenged. The purpose of this paper is to explore – how do SEs respond to a crisis caused by the pandemic? Design/methodology/approach This paper adopts a case study approach and reports the response strategy of impulse social enterprises (ISE) from India. Data were collected through interviews, Webinars and organizational reports. To analyze the data, the authors examined the fundamental assumption on SE that was challenged by the pandemic. Findings The response strategy of ISE is driven by social and substantive rationality focusing on the relationship with the community and doing what is good for them. The role of communication was vital in gathering support and resources to continue with their function. ISE adapted a mindset of mission agility and created an alternative market for its product. Originality/value This study highlights the response strategy of SE in an emerging economy like India, which experienced one of the stringent lockdowns. It is probably one of the few studies that examined the responses of SE under a crisis that challenged their fundamental attributes by adopting the framework of Bacq and Lumpkin (2021).