Does the Business Suit Fit? Drivers for Economic Performance in Social Enterprises

Abstract

Management culture shapes economic performance in social enterprises. Entrepreneurial orientation, taking care of the internal communication culture and a good anchoring of organisational goals and strategies lead to high achievement in a broad range of economic goals. These findings are based on a survey of 257 Swiss social enterprises. The statistical analyses reveal that the relevance of the elements of management culture differs from one performance criterion to another. This leads to important practical implications that are discussed in the light of a shifting welfare regime, in which SEs are increasingly under pressure to act in a pro‐business and pro-market manner.

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