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To cite this article: Mohammed Faiz Kamaludin, Jesrina Ann Xavier & Muslim Amin (2021): Social
Entrepreneurship and Sustainability: A Conceptual Framework, Journal of Social Entrepreneurship,
DOI: 10.1080/19420676.2021.1900339
ABSTRACT KEYWORDS
In the emerging field of academic research on social entrepre- social entrepreneurship;
neurship, studies linking social entrepreneurship to sustainability sustainability; concep-
is gaining interest due to the importance of connecting these tual framework
two constructs. The purpose of this study is to propose an
updated conceptual framework that links social entrepreneurship
to sustainability. A literature review of social entrepreneurship
journals was conducted, resulting in identifying four key dimen-
sions in social entrepreneurship which are social, economic,
behaviour and governance. These four dimensions have been cat-
egorised to have an effect on social entrepreneurship and sustain-
ability. Additionally, the theory of change and logic model are
business processes that have been identified, extending into the
measurement of social impact by using either the social return on
impact or balanced scorecard approach to complete the concep-
tual framework. Hence, this study is envisioned to provide original
work in the theoretical development of linking social entrepre-
neurship to sustainability that will benefit academicians and prac-
titioners alike.
Introduction
The issue of achieving sustainability is more relevant now than ever, as businesses,
including social enterprises, are facing the threat of a worldwide economic downturn
resulting from the global pandemic of the COVID-19 virus. There is an urgent need to
understand the underlying factors that influence social entrepreneurs in attaining sus-
tainability. In order to achieve this, it is pertinent to develop a conceptual framework
that links social entrepreneurship to sustainability by exploring four key dimensions
which are social, economic, behaviour, and governance. Although substantial research
on social entrepreneurship and sustainability have been studied, there is very little
research conducted in exploring these four specific dimensions to connect these two
constructs. This theoretical gap needs to be intricately examined as they have not
been extensively researched in previous studies and other theoretical approaches.
Other areas related to social entrepreneurship, such as the business processes and
measurement of social impact will also be explored to increase the understanding of
its effect on sustainability.
Various conceptual models have been developed to link social entrepreneurship to
sustainability by scholars in the past (Guleid 2014; Javed, Yasir, and Majid 2019;
Ketprapakorn and Kantabutra 2019; Priya and Venkatesh 2019; Zhang and Swanson
2014; Muralidharan and Pathak 2018; Rahdari, Sepasi, and Moradi 2016; Tien et al.
2020; Rey-Marti, Diaz-Foncea, and Alguacil-Mari 2020) to prove that both these con-
cepts are intercorrelated. The development of their process models, conceptual and
theoretical frameworks indicate a significant interest in this research field and empha-
sise the importance of understanding the relationship between sustainability and
social entrepreneurship. Consequently, this study provides the needed avenue to fur-
ther develop on their ideas and proposes an updated conceptual framework to
address issues and limitations highlighted by previous scholars in their concep-
tual models.
Therefore, this effort in conceptualising sustainability for social enterprises bears
merit by addressing weaknesses and gaps in previous papers to provide academicians
with a more comprehensive set of variables and process models in testing out new
theoretical propositions. Due to the growing interest by academicians to delve into
the link between social entrepreneurship and sustainability, the objective of this study
is twofold. Firstly, this study seeks to explore and understand this critical connection.
This vital phenomenon needs to be studied thoroughly to provide academicians and
practitioners with a platform to navigate through this nascent field of social entrepre-
neurship and sustainability. Secondly, the purpose of this study is to propose an
updated conceptual framework that links social entrepreneurship to sustainability.
Achieving both objectives will equip real-world businesses and social enterprises with
the required knowledge and capabilities to enhance their chances in attaining sustain-
ability for their ventures. This study is pivotal in its importance as it can be applied
now during a pandemic situation and in the ensuing years to help social enterprises
weather any perplexing global economic environment in the unforeseeable future.
Methodology
Defining social entrepreneurship can be a daunting task with the abundance of aca-
demic literature accessible in this unique and fast-emerging field. However, an analyt-
ical approach can be conducted methodologically. For this study, an initial search for
the definition of social entrepreneurship was carried out from online databases limited
to Google Scholar, Business Source Complete, JStor, and Taylor & Francis Online. These
databases comprise of relevant articles and journals in the field of business, manage-
ment, and social ventures.
To acquire the most relevant results, the method undertaken entails the review of
journals published in the latest year and then moving backwards. The second stage of
the process is to trace references and citations from journals considered pertinent to
the proposed study. This study intends to first investigate the current literature on the
definition of social entrepreneurship and to identify significant themes, followed by
JOURNAL OF SOCIAL ENTREPRENEURSHIP 3
Figure 1. Methodology.
developing an updated conceptual framework to add value to the field of social entre-
preneurship. The Journal of Social Entrepreneurship was identified as having the most
significant and relevant journals in extracting current literature and trend in research
within the scope of social entrepreneurship.
The first phase of search conducted in January 2019, resulted in 11 journals from
Google Scholar, 20 journals from Business Source Complete and JStor, and 20 journals
from the Journal of Social Entrepreneurship. Articles from the Journal of Social
Entrepreneurship were further divided into three categories. They are the latest articles,
most cited, and past volumes. Using the latest NVivo software for Mac, twelve themes
were discovered which are market orientation, theory development, human resource
development, economic, attitudes, operational effectiveness, motivation, leadership,
social network, performance measurement, sustainability and innovation. For ease of
reference, the phase one search is depicted in the following diagram (see Figure 1) with
the discovered themes as a result of the literature review and data analysis.
From these twelve discovered themes, research on the sustainability aspect of social
entrepreneurship proved to be an essential subject matter that required further inves-
tigation. For the second phase, a search was conducted using the term ‘sustainability’
with ‘social entrepreneur’ and ‘social entrepreneurship’. This search was conducted
using Google Scholar, Business Source Complete, JStor, Scopus, and Taylor & Francis
Online. In addition, other related publications within the field of social entrepreneur-
ship such as the Social Enterprise Journal by Emerald Sight and the International
Journal of Social Entrepreneurship and Innovation, from Inderscience Publishers were
included in the phase two search. As the literature review progressed, 121 relevant
journals were identified, reviewed and indexed for research. The 121 journals were for-
matted into a literature review matrix for ease of reference.
4 M. F. KAMALUDIN ET AL.
From this literature review matrix of articles, further analysis using the NVivo soft-
ware was conducted on social entrepreneur and social entrepreneurship, which
resulted in identifying four fundamental dimensions that will influence social entrepre-
neurial sustainability. These four dimensions identified were then categorised as social,
economic, behavioural, and governance. A conceptual framework was then developed
using the input-process-output model to link social entrepreneurship to sustainability.
The social business operations and social impact measurements were used as the pro-
cess and output models.
Social Entrepreneurship
Social entrepreneurship is gaining momentum in the fast-changing business land-
scape, where technology and innovation dominate the industry. According to
Seanor and Meaton (2007), a social enterprise has a strong social mission at the
heart of its business existence with the secondary objective of making a profit to
sustain its operations. In a study by Irawan, Suryanto, and Mashud (2019), they dis-
covered that most social entrepreneurs started out without having any prior expert-
ise or knowledge in the field of social entrepreneurship. By understanding their
social missions, social entrepreneurs can grow and learn from their social networks
to affect change that they desire. For social entrepreneurs, the primary purpose of
establishing a social enterprise is to create sustainable change in the lives of peo-
ple. According to Ebrashi (2013), this change should be at a community level
rather than on an individual level, concentrating more on social impact rather than
the desired outcomes. Additionally, Graikioti, Sdrali, and Kaminari (2020) state that
community development is essential in social entrepreneurship to address social
needs that have not been satisfied by the market. In order to create the desired
positive change in a community, social entrepreneurs must have a strong focus in
achieving their social goals while enduring any financial constraints to become
more sustainable.
However, social enterprises cannot drive social change by themselves. They require
governmental support and are dependent on policies to aid their development (Kadir
and Sarif 2016). Conversely, the emergence of social entrepreneurship is to address
unmet social needs resulting from governmental failures (Dufays and Huybrechts
2014). Similarly, Hill, Kothari, and Shea (2010) argued that weak, unresponsive, and
inefficient governmental institutions paved the way for social entrepreneurs to fill in
the social gap by being more market-orientated and nimble in employing more effi-
cient business models as compared to governmental institutions. A social entrepreneur
will employ a business acumen model to achieve that societal change. Their report
states that for non-profit organisations to transform into social enterprises, they must
change their structure to be more business-like.
reviewed over 307 documents and literature on social entrepreneurship, and created a
cluster map that produced 140 different definitions of a social enterprise (Alegre,
Kislenko, and Berbegal-Mirabent 2017). What is inherent in their effort is that there is
not any single unified definition that is agreed upon that defines what is social entre-
preneurship today. The lack of a standard definition and construct measurement, hin-
ders research and raises questions about which social or profit-making activities fall
within the spectrum of social entrepreneurship (Moss, Lumpkin, and Short 2008). In a
study by Abu-Saifan (2012, 25), the following definition was proposed. ‘The social
entrepreneur is a mission-driven individual who uses a set of entrepreneurial behav-
iours to deliver social value to the less privileged, all through an entrepreneurially ori-
ented entity that is financially independent, self-sufficient, or sustainable’. Lumpkin
et al. (2013, 762) defined social entrepreneurship as a ‘social value creation process in
which resources are combined in new ways to meet social needs, stimulate social
change, or create new organisations’. Their research indicates that the business proc-
esses of a commercial enterprise and a social enterprise are very similar and suggested
that having a social mission is the distinguishing feature of a social enterprise.
Social entrepreneurship can be defined by three characteristics, which are social
innovation, accountability, and sustainability. It is exercised when social entrepreneurs
create social value by taking advantage of opportunities through innovative solutions
and scarce resources (Peredo and McLean 2006). According to Mair and Marti (2006),
there are three known concepts and definitions in social entrepreneurship research
that should be differentiated. They are social entrepreneur, social entrepreneurship,
and social enterprise. The term social entrepreneur is referred to the founder of the
initiative, whereby social entrepreneurship is the process, and social enterprise is the
tangible outcome of the process or social vehicle of the initiative.
Sustainability
Academic journals on sustainability have surfaced from as early as the 1990s (Sarango-
Lalangui, Santos, and Hormiga 2018). The study on the subject of sustainability in social
entrepreneurship has garnered the interest of academicians worldwide by being the
pivotal challenge that is required in bringing about positive growth and development
of social enterprises. However, there are many misperceptions when addressing the
concept of sustainability and the term sustainable development. Diesendorf (2000)
addressed this issue and highlighted that both concepts are contestable and different.
Sustainable development as defined in the renown Brundtland Report as ‘development
that meets the needs of the present without compromising the ability of future genera-
tions to meet their own needs’ (World Commission on Environment and Development
1987, 41). Diesendorf (2000) defined it by stating that sustainable development com-
prises of various types of economic and social developmental initiatives that protect
and enhances the natural environment and social equity. With the abundance of litera-
ture on sustainable development, it will be moderated in this study as the concept of
sustainable development covers the four quadrants of the sustainability lens which are
resources, health, policy, and exchange. These broader topics on sustainable develop-
ment are areas set out by the United Nations to achieve their 2030 sustainable develop-
ment goals to eradicate poverty and protect the planet (Stenn 2017).
In the context of social entrepreneurship, sustainability has two facets. Firstly, it con-
cerns the need for social enterprises to survive and endure financially over time.
Secondly, sustainability can only be achieved after social enterprises have established
viability in running their businesses. In other words, social enterprises will not exhibit
sustainability until it has demonstrated the ability to achieve both impact and oper-
ational outcomes over a period of time (Burkett 2010). Previous research papers on social
entrepreneurial sustainability were centred on the integration of three components
which are social sustainability, environmental sustainability, and economic sustainability
(Seelos and Mair 2005; Harris 2003; Javed, Yasir, and Majid 2019). This concept was first
introduced and developed by Elkington (1998) and called the triple bottom line. Based
on Elkington’s triple bottom line framework, sustainability efforts are focussed on areas
concerning people, profit, and the planet. This visionary framework is also known as the
3Ps in business. This concept is being used extensively in the field of sustainability.
According to Weerawardena, McDonald, and Mort (2010), sustainability for social
purpose organisations primarily means being able to survive to serve their constituen-
cies. It is a process of fulfilling their commitments to their clients, patrons, and the
community in which they operate. A key to long-term sustainability in social entrepre-
neurship is to ensure proper management and control of our natural resources. This
goal can be achieved through community-driven initiatives and improvement of oper-
ational efficiencies (Rajput and Chopra 2014). Social entrepreneurial sustainability is
essential in the longitudinal path of creating social change in an ecosystem, as it
requires business endurance and the ability to persevere in the ever-changing and
unpredictable business climate (Alegre, Kislenko, and Berbegal-Mirabent 2017; Moss,
Lumpkin, and Short 2008). According to a report on the sustainability of social enter-
prises in Mexico, 38% of social enterprises are not able to sustain their business within
the first year of its operations. Subsequently, only 9% of social enterprises are
8 M. F. KAMALUDIN ET AL.
sustainable after five years, and a mere 5% of social enterprises are sustainable
beyond ten years of operations (Lopez-de-Alba et al. 2017). In support of this issue
concerning sustainability, it has been reported that as many as 40% of all new social
initiatives and programs are not sustainable beyond the first few years after its con-
ception and initial funding (Gimmon and Spiro 2013). Based on the above reports,
achieving sustainability in social entrepreneurship is a pertinent construct to explore
and pursue.
This alarmingly high rate of failures and a low percentage of sustainability of social
enterprises require deeper understanding by academicians in developing theoretical
approaches to generate sustainable social ventures (Dacin, Dacin, and Matear 2010).
With the current global threat of business failures inflicted by the COVID-19 pandemic,
there is a need to explore this vital connection between social entrepreneurship and
sustainability to help navigate through this unprecedented period.
their associations rather than empirically testing them. By applying the input-process-
output model, a conceptual framework can be developed to link social entrepreneur-
ship to sustainability. The input-process-output model is chosen as the model is best
suited in providing a well-organised way to study and record aspects of a transform-
ation process. (Rogelberg 2017). A conceptual framework on linking social entrepre-
neurship and sustainability has been designed by utilising four critical dimensions in
defining social entrepreneurship, social business processes, and methods of social
impact measurements (Figure 2).
method is categorised as outcome orientated, whereas the logic model method is cat-
egorised as process orientated. The theory of change differs from the logic model, as
it reflects a program theory. It underlines the basis of why outcomes can be expected
and the identification of the causal relations in achieving the desired outcomes. The
logic model method is more process orientated depicting program components and
detailing the processes so that activities will result in the social impact intended (Bacq
2017; Clark and Anderson 2004).
Theory of Change
The concept of theory of change first emerged in the 1990s in line with the rapid
development of the impact evaluation field for sustainable development. The theory
of change can best be defined as a process or method that can be applied for pro-
gramming planning (Weiss 1995). It is not the actual development of a theory in the
scientific meaning. The theory of change uses theories or empirical findings to define
how a program will work by providing evidence to support assumptions or presump-
tions in the intervention phase or program functions. The theory of change focuses on
the desired preconditions that need to be achieved by relying on empirical evidence
and identifying the interventions that are needed to be executed (Weiss 1997).
Information about a target group is gathered systematically by compiling findings,
studies, and observations to develop the interventions required to achieve the
social mission.
According to Mook, Chan, and Kershaw (2015) to understand the theory of change,
it uses a backward mapping process from the desired long-term goals and then identi-
fying the preconditions and interventions that are required to achieve that goal. The
theory of change lacks a standard structure, but in general, it graphically shows the
change process for an organisation concerning their planned activities. The visuals cre-
ated by the theory of change will depict various changes that are conceived to occur
in response to these activities, and the eventual outcomes the social mission is
designed to accomplish. It will illustrate the big picture of the processes required,
including issues that cannot be controlled. It will also show all the different other
paths that might lead to change even though some of the items depicted are not
related to the services offered by the said organisation (De Silva et al. 2014).
Jackson (2013) states that the theory of change is a cost-effective way to frame an
evaluation. It is a flexible tool that promotes analytical accuracy and attention. It can
be achieved by using a wide array of data collection and analysis methods.
Subsequently, areas of responsibilities may be identified, assigned, and delegated to
improve program development (Sullivan and Stewart 2006) Even though their initial
reports indicate that theory of change framework is gaining importance in the pro-
gram design stage, there are still setbacks encountered in employing the theory of
change framework. They cited that the evaluation process remains widely regarded as
an afterthought activity.
14 M. F. KAMALUDIN ET AL.
To further support this fact, research findings by Carman (2010) indicates that there
are design and implementation flaws by organisations when utilising the theory of
change framework. The implementation irregularities are caused by a large number of
evaluation tools employed, and additional reporting requirements imposed from rele-
vant stakeholders and funders to attain a measurable mission outcome. These unstan-
dardised methods of evaluation are the leading cause of disruption in the
implementation of the theory of change framework for social enterprises.
Logic Model
The Logic Model is defined as ‘a systematic and visual way to present and share your
understanding of the relationships among the resources you have to operate your
program, the activities you plan, and the changes or results you hope to achieve’ (W.
K. Kellogg Foundation 2004, 1). It is a graphical representation of how a program func-
tions theoretically under specific conditions to achieve the desired targets (Rauscher,
Schober, and Millner 2012). With the increasing need for social enterprises to operate
in a more result-orientated manner, the logic model has gained importance in promot-
ing accountability on the part of social organisations. The logic model will illustrate
essential program components in undertaking the task of completing a desired social
mission by listing the inputs, activities, outputs, outcomes, and impact (W. K. Kellogg
Foundation 2004).
According to Wilson (2009), the logic model can be considered as the starting point
of a more elaborate data collection system. The logic model is more widely used com-
pared to the theory of change method as investors and funders would generally
require a program logic model. They will often base program evaluation on adherence
to the logic model. The logic model is deemed as the minimum standard model for
defining the social impact (Smith 2010). The disadvantage of the logic model is that it
has been criticised for being too linear in form (Preskill 2009), but the framework
allows for more precise identification of the planned interventions that will affect the
outcomes and impact on the desired target group. To further develop the link
between social entrepreneurship and sustainability, it is essential to understand the
relationship concerning the measurement of social impact.
SIMPLE methodology, social audit, benefit-cost ratio, BACO ratio, cost-benefit analysis
(CBA), cost-effective analysis (CEA), and cost per impact (CHIP). With the vast array of
methods in measuring social impact that is being practised, comparison of perform-
ance can be complicated and ultimately resulting in unclear definition on what makes
a social initiative successful compared to other ventures (Short, Moss, and Lumpkin
2009). In their research, they discovered that most social ventures that were studied
did not provide details about the metrics of their performance and measurement of
social impact. This limitation can create difficulty for future research in the context of
social impact measurement.
To narrow down the most common and effective method of measuring impact,
results from the interviews employed by Chmelik, Musteen, and Ahsan (2016) on social
entrepreneurs revealed that the usage of the balanced scorecard method garnered 28
statements, which was the highest; followed by the social return on investment
method with 24 mentions. For this study on social entrepreneurship and sustainability,
only the social return on investment and the balanced scorecard methodologies will
be used for social impact assessment.
Balanced Scorecard
The balanced scorecard is an impact measurement method that focusses on internal
efficiency and the operational effectiveness of a social enterprise. It is a
‘multidimensional management tool that includes several perspectives including finan-
cial, customer, internal processes, learning and growth, and vision and strategy’
(Chmelik, Musteen, and Ahsan 2016, 77). According to Kaplan and Norton (1996), the
balanced scorecard method is a well-developed business analysis tool designed for
social enterprises and organisations that are socially orientated. In another context,
the balanced scorecard method was created based on a concept that other vital com-
ponents such as intellectual capital, exceptional customer orientation, and knowledge
creation are collectively more important than the efficient usage of investment capital
(Figge et al. 2002). Utilising the balanced scorecard methodology will help socially ori-
entated organisations conclusively demonstrate and present their values to relevant
stakeholders.
According to Somers (2005), the balanced scorecard method provides a map entail-
ing mission objectives, strategies, and outcomes. It will depict specific measurements
to each outcome, the personnel responsible for each outcome, and the measurement
associated with it. This methodology will ensure that strategies are executed effect-
ively and that the measurement of success is periodically evaluated. However, the bal-
anced scorecard framework has an apparent weakness as it must be integrated with
measurement techniques that are more robust because it is generally measured quali-
tatively (Kaplan 2001). Due to this evident disadvantage, social enterprises that have
adopted the balanced scorecard method to measure their performance are very few
in numbers. Research by Meadows and Pike (2010) indicate that the tracking of per-
formance utilising the balanced scorecard method by social enterprises is weak and
inadequate. They proposed the creation of an outcome tracking tool based on a longi-
tudinal approach where possible, which will enable better evidence of social impact
measurement.
JOURNAL OF SOCIAL ENTREPRENEURSHIP 17
Conclusion
It is imperative to conclude that research and literature which connects social entre-
preneurship to sustainability is gaining interest in academia. Despite the exponential
growth of published articles in the field of social entrepreneurship, there should be
more focus on linking social entrepreneurship to sustainability. This study addresses
the importance of this issue and proposes an updated conceptual framework linking
social entrepreneurship to sustainability. With the current effects of the COVID-19 pan-
demic on the global economy, conceptualising sustainability for social enterprises will
provide the needed avenue for researchers to test theoretical propositions in under-
standing sustainability. This conceptual framework will also help practitioners with the
option of applying changes within their operational structure to attain sustainability in
the social entrepreneurship sector.
Disclosure statement
No potential conflict of interest was reported by the author(s).
20 M. F. KAMALUDIN ET AL.
ORCID
Mohammed Faiz Kamaludin http://orcid.org/0000-0001-9981-8248
Jesrina Ann Xavier http://orcid.org/0000-0001-6376-6538
Muslim Amin http://orcid.org/0000-0003-0818-5663
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