Theory and Empirical Research in Social Entrepreneurship Grahams HD:Users:Graham:Public:GRAHAM'S IMAC JOBS:14559 - EE - PHAN:PHAN 9781782546825 PRINT (M3302) (G) THE JOHNS HOPKINS UNIVERSITY SERIES ON ENTREPRENEURSHIP Series Editor: Phillip H. Phan, Johns Hopkins University, USA From its inception more than 130 years ago, The Johns Hopkins University has led the world in scientific discovery and innovation. Starting with the Master of Science in Management Science in 1916, the university has focused its lens on bringing the most up-to-date concepts to business education. In 2007, the university established the Johns Hopkins Carey Business School to transform business education through a uniquely humanistic, integrated approach to research. This series continues the tradition of discovery and innovation by bringing the best research in technological entrepreneurship and management in the form of book length original contributions and edited volumes on topics of contemporary interest and theoretical significance. Titles in the series include: The Competitive Dynamics of Entrepreneurial Market Entry Edited by Gideon Markman and Phillip H. Phan Theory and Empirical Research in Social Entrepreneurship Edited by Phillip H. Phan, Jill Kickul, Sophie Bacq and Mattias Nordqvist Grahams HD:Users:Graham:Public:GRAHAM'S IMAC JOBS:14559 - EE - PHAN:PHAN 9781782546825 PRINT (M3302) (G) Theory and Empirical Research in Social Entrepreneurship Edited by Phillip H. Phan Professor of Management, Johns Hopkins University, USA Jill Kickul Director, NYU-Stern Program in Social Entrepreneurship, New York University Stern School of Business, USA Sophie Bacq Assistant Professor, Entrepreneurship and Innovation, Northeastern University D’Amore-McKim School of Business, Boston, USA Mattias Nordqvist Professor of Business Administration, Jönköping International Business School, Sweden and Director, Center for Family Enterprise Ownership (CeFEO), Sweden THE JOHNS HOPKINS UNIVERSITY SERIES ON ENTREPRENEURSHIP Edward Elgar Cheltenham, UK • Northampton, MA, USA Grahams HD:Users:Graham:Public:GRAHAM'S IMAC JOBS:14559 - EE - PHAN:PHAN 9781782546825 PRINT (M3302) (G) © Phillip H. Phan, Jill Kickul, Sophie Bacq and Mattias Nordqvist 2014 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical or photocopying, recording, or otherwise without the prior permission of the publisher. Published by Edward Elgar Publishing Limited The Lypiatts 15 Lansdown Road Cheltenham Glos GL50 2JA UK Edward Elgar Publishing, Inc. William Pratt House 9 Dewey Court Northampton Massachusetts 01060 USA A catalogue record for this book is available from the British Library Library of Congress Control Number: 2013949869 This book is available electronically in the ElgarOnline.com Business Subject Collection, E-ISBN 978 1 78254 683 2 ISBN 978 1 78254 682 5 Typeset by Servis Filmsetting Ltd, Stockport, Cheshire Printed and bound in Great Britain by T.J. International Ltd, Padstow 3 0 Grahams HD:Users:Graham:Public:GRAHAM'S IMAC JOBS:14559 - EE - PHAN:PHAN 9781782546825 PRINT (M3302) (G) Contents List of contributors vii Introduction 1 Phillip H. Phan PART I THE EXTANT LITERATURE 1. Research in social entrepreneurship: from historical roots to future routes 11 Huriye Aygören PART II THEORIES AND EVIDENCE 2. A social exchange theory of non- governmental organizations as social entrepreneurs in rural entrepreneurship 73 Soo- Hoon Lee 3. A theoretical model for understanding the scalability of social impact 112 Christiana Weber, Arne Kroeger and Kathrin Lambrich 4. What really matters: a theoretical model for the assessment of social enterprise performance 154 Ann- Kristin Achleitner, Peter Heister and Wolfgang Spiess- Knafl 5. An empirical analysis of the missions, funding sources, and survival of social ventures 174 Albert V. Bruno, Jennifer L. Woolley and Eric D. Carlson 6. Crowdfunding, foundations, and impact investors as sources of financial capital for social entrepreneurs 191 John E. Clarkin v Grahams HD:Users:Graham:Public:GRAHAM'S IMAC JOBS:14559 - EE - PHAN:PHAN 9781782546825 PRINT (M3302) (G) vi Theory and empirical research in social entrepreneurship PART III APPLICATIONS 7. Social entrepreneurial leadership: creating opportunities for autonomy 223 Jeroen Maas, Anastasia A. Seferiadis, Joske F.G. Bunders and Marjolein B.M. Zweekhorst 8. Value creation at the individual, venture and societal levels of analyses through social venture competitions 256 Moriah Meyskens and Nadia Auch Conclusion 292 Phillip H. Phan Index 297 Grahams HD:Users:Graham:Public:GRAHAM'S IMAC JOBS:14559 - EE - PHAN:PHAN 9781782546825 PRINT (M3302) (G) Contributors Ann- Kristin Achleitner has held the Chair in Entrepreneurial Finance, supported by KfW Bankengruppe since 2001 and has served since 2003 as Scientific Director of the Center for Entrepreneurial and Financial Studies (CEFS), both at the Technische Universität München. She completed her undergraduate and doctoral studies in both economics and law as well as her lecturer qualification at the University of St. Gallen in Switzerland. From 1994 to 2000, she was a Professor of Banking and Finance at the European Business School in Oestrich- Winkel, Germany. She conducts research in the area of entrepreneurial finance. Nadia Auch is the Associate Director of the Center for Peace and Commerce at the University of San Diego. She directs the Center’s Social Innovation Challenge, among other activities. Nadia previously worked as a consultant at The Ohio State University and ran its 65th Anniversary of International Studies. Nadia has worked in South Africa and Peru. She holds a Master of Science from University College London in International Public Policy, where she received a distinction for her dissertation entitled Beyond Advocacy: the Microbicides Effort from a Delphi Technique Perspective. Huriye Aygören holds a master’s degree in Science, Technology and Society from Istanbul Technical University and Linköping University. She is continuing her Ph.D. program at Jönköping International Business School. Huriye has been involved in various research projects in the areas of innovation and technology management, social entrepreneur- ship, sociology of science/scientific knowledge. Currently, her research is in social entrepreneurship, women’s entrepreneurship and immigrant entrepreneurship. Sophie Bacq is Assistant Professor of Entrepreneurship and Innovation at at Northeastern University D’Amore-McKim School of Business. Sophie is the co- Director of the 9th Annual NYU Stern Conference on Social Entrepreneurship, the largest academic conference in the field of social entrepreneurship. She serves as a reviewer for the Journal of Social Entrepreneurship and Family Business Review. Sophie’s primary research interests include social entrepreneurship, governance and management issues in hybrid organizations, as well as international new ventures. vii Grahams HD:Users:Graham:Public:GRAHAM'S IMAC JOBS:14559 - EE - PHAN:PHAN 9781782546825 PRINT (M3302) (G) viii Theory and empirical research in social entrepreneurship Albert V. Bruno is the William T. Cleary Professor at Santa Clara University, where he was founding director of the Center for Innovation and Entrepreneurship. Professor Bruno earned his Ph.D. at the Krannert School of Management at Purdue University. His research focuses on the measurement of impact with applications in marketing and social entre- preneurship. His book, The Market Value Process: Bridging Customer and Shareholder Value, was published by Jossey-B ass in 1996 and republished in Germany in 1998. Joske F.G. Bunders is director of the Athena Institute for research on inno- vation and communication in Health and Life Sciences at VU University Amsterdam. She was appointed Professor of Biology and Society in 2000. Her specific field of interest is the linking of knowledge and expertise of end users with developments in modern science and (inter)national policy. Joske has published widely and has a specific interest in conducting research on methodology development to stimulate and facilitate interac- tive and transdisciplinary processes of problem solving, in which various stakeholders engage in a deliberative mutual search and learning process. Eric D. Carlson is a Senior Fellow at the Santa Clara University Center for Science, Technology, and Society. During the past 30 years, Carlson has worked in research, product development, and executive management in Silicon Valley for IBM, Convergent Technologies, Unisys, the ASK Group, and Silicon Graphics, retiring in 2004 as President and CEO of Telcontar, Inc. Eric has a Ph.D. in computer science and a master’s degree in City and Regional Planning from the University of North Carolina at Chapel Hill. John E. Clarkin is Associate Professor of Entrepreneurship at Northern Kentucky University. Formerly, he was director of the Tate Center for Entrepreneurship at the College of Charleston in South Carolina. He earned his Ph.D. in Entrepreneurship from the University of Stirling, Scotland and received his MBA from The Citadel. His academic career is built on more than 25 years of engineering, management, and consulting experience, which includes more than 15 years with Fortune 50 companies and more than 10 years of consulting with entrepreneurs. Peter Heister is active in the field of entrepreneurship and venture capital working for different companies and foundations. After his studies of economics he worked in leveraged finance before joining the Chair for Entrepreneurial Finance at the Technische Universität München as a doctoral student. He completed his doctoral thesis in 2010. His research focus lies in social entrepreneurship with an emphasis on the financing of social enterprises. Grahams HD:Users:Graham:Public:GRAHAM'S IMAC JOBS:14559 - EE - PHAN:PHAN 9781782546825 PRINT (M3302) (G) Contributors ix Jill R. Kickul joined the NYU Stern School of Business as a Clinical Professor of Management and Organizations in July 2008. She is the Director of the Program in Social Entrepreneurship in NYU Stern’s Berkley Center for Entrepreneurial Studies. Jill’s primary research areas of interest include innovation and strategic processes within new ventures, microfinancing practices and wealth creation in transitioning econo- mies, and social entrepreneurship. She is the author of Entrepreneurship Strategy: Changing Patterns in New Venture Creation, Growth, and Reinvention, and has published more than 50 publications in entrepreneur- ship and management journals. Arne Kroeger works and researches at the Institute of Management and Organizational Behavior at the Leibniz University of Hanover. His research interests are in the field of social entrepreneurship, in particular scaling social impact, social impact measurement, and impact invest- ments. In addition, he works as an analyst with the Social Venture Fund in Munich since January 2010. Arne holds a diploma in business administra- tion from the University of Hamburg. Kathrin Lambrich works and researches at the Institute of Management and Organizational Behavior at the Leibniz University of Hanover. Her research interests are in the field of social entrepreneurship, in particular scaling social impact, as well as corporate responsibility and sustainability. Kathrin holds a master’s degree in Entrepreneurship, Business Development and Innovation from the University of Wuppertal and a diploma in banking and finance from the Baden-W ürttemberg Cooperative State University. Soo- Hoon Lee is Associate Professor at the College of Business and Public Administration at Old Dominion University. She received her Ph.D. in Human Resources Management from the University of Washington Foster College of Business. Dr. Lee’s research interests include strategic human resource management, human resource management practices for entrepreneurial firms, and human resource management practices to attract and retain knowledge workers. Her most recent work involves the role of social capital in human capital capacity building in entrepreneurial economies. Jeroen Maas rejoined the Athena Institute at VU University Amsterdam as a project manager and researcher in 2009. Currently, his primary research topics are entrepreneurship in developing countries, and manag- ing health care organizations and systems. He teaches entrepreneurship, management of innovations and management of health care organiza- tions. Before, he worked as business consultant on organizational change Grahams HD:Users:Graham:Public:GRAHAM'S IMAC JOBS:14559 - EE - PHAN:PHAN 9781782546825 PRINT (M3302) (G) x Theory and empirical research in social entrepreneurship management and stimulating an entrepreneurial mindset in multinational companies (care organizations and industry). He was a policy writer at a Dutch Ministry and has worked for several organizations in Kenya. He received his master’s degrees in both Biology (2000) and in Business Studies (2001) from the VU University Amsterdam. Moriah Meyskens is Professor of Strategy and Entrepreneurship at the University of San Diego. She recently completed post-d octoral research at Babson College where she worked with the United States Global Entrepreneurship Monitor. Her dissertation was on the role of partner- ships in nascent social ventures. Moriah has published several book chapters, Global Entrepreneurship Monitor (GEM) reports and peer- reviewed articles. She has over eight years of professional experience in finance and microfinance. Moriah holds a Ph.D. from the Department of Management and International Business from Florida International University, and an MBA from NYU. Mattias Nordqvist is Professor of Business Administration at the Jönköping International Business School and Director, Center for Family Enterprise Ownership (CeFEO).. He is on the board of the International Family Enterprise Research Academy—IFERA—and on the scientific committee of the Center for Young and Family Enterprise (Cyfe) of the University of Bergamo, Italy. Mattias is the founding associate editor of the Journal of Family Business Strategy, and serves on the editorial board of the Family Business Review, Entrepreneurship Theory and Practice, and Journal of Small Business Management. His research focus is on family firms, with a particular focus on entrepreneurial, strategic, and govern- ance processes. Phillip H. Phan is Professor and Executive Vice-D ean at The Johns Hopkins University Carey Business School and Core Faculty of the Armstrong Institute for Patient Safety and Quality at the Johns Hopkins School of Medicine. He received his Ph.D. in Strategic Management from the University of Washington Foster College of Business. His research is in the management of innovation and entrepreneurship. He served two terms on the editorial board of the Academy of Management Journal, is senior editor of the Journal of Business Venturing, and associate editor of the Journal of Technology Transfer. His most recent work involves the impact of micro- capital on innovation in social entrepreneurship. Anastasia A. Seferiadis received her MSc in Biology from Université Joseph Fourier and MPhil from Cambridge University. She then gradu- ated with an MSc in Management in Policy Analysis and Entrepreneurship from VU University Amsterdam, where she studied food safety in Accra,