Winter always comes: social enterprise in times of crisis

Abstract

Purpose This study aims to outline the importance of distinguishing between different types of societal crises and the role that plays in how social enterprises may respond to crises at hand. Design/methodology/approach Previous literature is used to distinguish between various types of societal crises discussed in the study. Social enterprise responses to the COVID-19 pandemic, economic recession and the racial uprising in the USA that all erupted at the start of the 2020 decade are explored to illustrate the need for different responses to each. Findings The origin and manifestation of crises differ in that they may have public health, natural, economic or even intentionally man-made origins. In addition, in times of crisis, social enterprises must be prepared to innovate, adapt or at least manage the effects of one or more crises on their organizations. These innovations may be social, technology or economic innovations. Research limitations/implications This study contributes to knowledge about the role and value of social enterprise as a tool for addressing societal issues. The three types of crises explored in this paper will likely reoccur and evolve to manifest in new ways. As such, it is imperative that research on the efficacy of social enterprises during times of crisis are conducted to inform practice, policy and future research. Practical implications This study aims to inform and encourage institutions, particularly social enterprises, to recognize that “winter always comes.” Crises always happen in life and how organizations respond to such crises will differ based on the type of crisis at hand. This study particularly contributes to knowledge by emphasizing the need for social enterprises to think about both economic uncertainty and the role they play in addressing crises in the long-term, not just when they occur. Originality/value To the best of the authors’ knowledge, this study is one of the first to explore the role and value of social enterprises as a tool for combatting major social crises such as racism, pandemics and recessions.

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

“…The RISE (R – Resilience, I – Intension, S – Sustenance, E – Endurance) is a four-stage model of organizational action in nonprofits that primarily adopts an open system approach to explore how nonprofits deal with their financial capacities during the pandemic. Weaver and Blakey (2022) observed that SEs are found to deploy rapid response in terms of social, economic and technology innovation. Our findings suggest that ISE also deployed rapid response through primarily economic innovations by creating alternative sources of revenue.…”

“…While there are crisis-response models available to understand organizational actions to manage a crisis (Bundy et al, 2017;Wenzel et al, 2020), they have limited applicability when it comes to SEs because of their unique features. Weaver and Blakey (2022) noted that there is limited research available on SE and crisis. Some of the existing work on SE and crisis covers issues like trauma, economic crisis, racial discrimination and natural crisis.…”

Organisational ambidexterity and social enterprise performance: A Ghanaian perspective

“…Thus, social enterprises are characterised by social mission and value creation, social innovation, social change, and entrepreneurial spirit. Farhoud et al (2021) stress that social entrepreneurs, as a result of the increasingly dynamic, volatile business environment, coupled with the unpredictable nature of government programmes and implementation of social interventions (Weaver & Blakey 2022), shift their enterprises' resources and capabilities between novel and current products and services to execute social missions. Social entrepreneurs not only identify and solve social matters but also explore social needs, determine social opportunities, and develop strategies to meet them (Davis & Bendickson 2021;Weaver & Blakey 2022).…”

“…The ability to act efficiently while being adaptive to the ever-changing, exacting, and tumultuous business environment has become a prerequisite for the survival of firms today more than ever before (Hölzl 2022;Weaver & Blakey 2022), rendering it a vital expedition in research to explore and determine the means to create and build organisational ambidexterity (OA) in companies (Hölzl 2022;Junni et al 2013). Indeed, Kafetzopoulos (2021:1) captures this reality well: 'Nowadays, a major topic for researchers and an important issue for almost all companies in the world is ambidexterity'.…”

“…However, to successfully deliver social and economic value to the world, social enterprises have to respond quickly and adaptively in times of crisis to the ever-increasing societal problems and concerns (Farhoud et al 2021;Weaver & Blakey 2022). In fact, Farhoud et al (2021) postulate that social enterprises must move swiftly to identify novel business roles and opportunities in today's exacting, turbulent marketplace.…”