Tensions and Risks of Social Enterprises’ Scaling Strategies: The Case of Microfinance Institutions in China

Abstract

The scale-up of social enterprises is usually assumed to bring positive social change. Yet, the negative side, particularly the tensions and risks, in the scaling process is largely ignored. This research aims to explore the tensions and risks related to different scaling strategies. Based on a comparative case study on two leading Chinese microfinance institutions-Grameen China and CFPA Microfinancethat both adopt the Grameen Bank model, this research draws on the lens of institutional logics to understand the microfoundations of five types of tensions and three kinds of risks in the scaling process of the two microfinance institutions. This research provides an integrative framework that captures the nuanced sources, forms and challenges in the scaling of social enterprises.

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