Social venture creation and the influence of commercial ventures

Social venture creation and the influence of commercial ventures PurposeThe purpose of this paper is to understand how social and commercial ventures interact with each other. It investigates how the entry, exit and prevalence of commercial ventures in a given region can influence the creation of social ventures.Design/methodology/approachMarket failure theory has been used as a framework for analysing the interaction between social and commercial ventures. The results of the theoretical analysis were further empirically examined using a large-scale database covering all 290 municipalities in Sweden from 1990 to 2014 and applying the panel-corrected standard errors method.FindingsThe results of this study, in general, reveal a competition between social and commercial ventures. Its specific results, however, are related to influences that the entry, exit and prevalence of commercial ventures can have on the creation of social ventures. The study’s results reveal that while the entry and prevalence of commercial ventures in a region negatively influence the creation of social ventures, commercial ventures’ exits have a positive influence.Originality/valueWithin social entrepreneurship literature, this is the first study that empirically investigates the influence of commercial ventures’ entry and exit on social venture creation and the second study to investigate the influence of commercial ventures’ prevalence on social venture creation. It is also the first of such studies in the Swedish context. The study is also unique due to the large-scale database it uses. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Social Enterprise Journal Emerald Publishing

Social venture creation and the influence of commercial ventures

Social Enterprise Journal, Volume 12 (3): 21 – Nov 7, 2016

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
1750-8614
DOI
10.1108/SEJ-02-2016-0006
Publisher site
See Article on Publisher Site

Abstract

PurposeThe purpose of this paper is to understand how social and commercial ventures interact with each other. It investigates how the entry, exit and prevalence of commercial ventures in a given region can influence the creation of social ventures.Design/methodology/approachMarket failure theory has been used as a framework for analysing the interaction between social and commercial ventures. The results of the theoretical analysis were further empirically examined using a large-scale database covering all 290 municipalities in Sweden from 1990 to 2014 and applying the panel-corrected standard errors method.FindingsThe results of this study, in general, reveal a competition between social and commercial ventures. Its specific results, however, are related to influences that the entry, exit and prevalence of commercial ventures can have on the creation of social ventures. The study’s results reveal that while the entry and prevalence of commercial ventures in a region negatively influence the creation of social ventures, commercial ventures’ exits have a positive influence.Originality/valueWithin social entrepreneurship literature, this is the first study that empirically investigates the influence of commercial ventures’ entry and exit on social venture creation and the second study to investigate the influence of commercial ventures’ prevalence on social venture creation. It is also the first of such studies in the Swedish context. The study is also unique due to the large-scale database it uses.

Journal

Social Enterprise JournalEmerald Publishing

Published: Nov 7, 2016

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