Individual capital and social entrepreneurship: role of formal institutions

Sreevas Sahasranamam, M. K. Nandakumar

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

Drawing on capital theory and institutional theory, we hypothesize the contingent role of a country's formal institutions (financial, educational, and political) on the relationship between individual capital (financial, human and social capital) and social entrepreneurship entry. Using the Global Entrepreneurship Monitor data, we find that all three forms of individual capital are important for social entrepreneurship entry. Moreover, we find that this relationship is contingent on the formal institutional context such that (i) philanthropy-oriented financial systems have a positive moderating effect on investment of financial capital; (ii) educational systems have a positive moderating effect on investment of human capital; and (iii) political systems have a positive moderating effect on investment of both human and financial capital. We make substantial contributions to the literature on social entrepreneurship by ascertaining the nature of contingent effects of formal institutions on the relationship between individual capital and the emergence of social enterprises.
LanguageEnglish
JournalJournal of Business Research
Early online date13 Sep 2018
DOIs
Publication statusE-pub ahead of print - 13 Sep 2018

Fingerprint

Formal institutions
Financial capital
Social entrepreneurship
Moderating effect
Human capital
Education
Human and social capital
Philanthropy
Institutional theory
Institutional context
Global Entrepreneurship Monitor
Financial system
Capital theory
Social enterprise
Educational system
Political system

Keywords

  • social entrepreneurship
  • institutional theory
  • capital theory
  • formal institutions
  • global entrepreneurship Monitor
  • entrepreneurship

Cite this

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abstract = "Drawing on capital theory and institutional theory, we hypothesize the contingent role of a country's formal institutions (financial, educational, and political) on the relationship between individual capital (financial, human and social capital) and social entrepreneurship entry. Using the Global Entrepreneurship Monitor data, we find that all three forms of individual capital are important for social entrepreneurship entry. Moreover, we find that this relationship is contingent on the formal institutional context such that (i) philanthropy-oriented financial systems have a positive moderating effect on investment of financial capital; (ii) educational systems have a positive moderating effect on investment of human capital; and (iii) political systems have a positive moderating effect on investment of both human and financial capital. We make substantial contributions to the literature on social entrepreneurship by ascertaining the nature of contingent effects of formal institutions on the relationship between individual capital and the emergence of social enterprises.",
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Individual capital and social entrepreneurship : role of formal institutions. / Sahasranamam, Sreevas; Nandakumar, M. K.

In: Journal of Business Research, 13.09.2018.

Research output: Contribution to journalArticle

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AU - Nandakumar, M. K.

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