THE EFFECT OF MARKET ORIENTATION AND MARKET DISRUPTION CAPABILITY ON SOCIAL ENTERPRISES’ PERFORMANCE
Article Sidebar
Main Article Content
Abstract
This academic article presents the concepts of social enterprise, Market orientation, and market disruption capability to examine the relationship between these concepts and answer the questions: Do market orientation and market disruption capability affect the performance of social enterprises, and how? This was studied through a literature review. and present the content in a synthetic descriptive form. The structural concept model from the literature synthesis results indicates that focusing on the market is a factor that affects social enterprises' business and social performance, while their ability to adapt to market disruptions is the only factor that directly affects business performance. Aside from that, Additional observations in this study found that integrating both factors together affects both the economic and social performance of social enterprises. And at the end of the article, suggestions are made on how to apply this framework for future research. To develop factors that positively affect the performance of both aspects of social enterprises, the conceptual model will be tested for consistency with empirical data. Therefore, it may be one way to give both variables more theoretical strength. In addition, interviews with social entrepreneurs and those involved in the social enterprise population ecosystem in Thailand It is another way to gain insights to support the creation of knowledge in many dimensions. For policy presentation and implementation of policies for further social and economic development.
Article Details
References
Alter, S. K. (2006). Social enterprise models and their mission and money. In In A. Nicholls (Ed.), Social entrepreneurship (pp. 205–232). Oxford: Oxford University Press.
Baden-Fuller, C. & Teece, D. J. (2020). Market sensing, dynamic capability, and competitive dynamics. Industrial Marketing Management, 89(3), 105-106.
Bagnoli, L. & Megali, C. (2011). Measuring performance in social enterprises. Nonprofit and Voluntary Sector Quarterly, 40(1), 149-165.
Baker, W. E., & Sinkula, J. M. (2009). The complementary effects of market orientation and entrepreneurial orientation on profitability in small businesses. Journal of small business management, 47(4), 443-464.
Barnett, W. P., et al. (2013). Social identity, market memory, and first-mover advantage. Industrial and corporate change, 22(3), 585-615.
Baron, R. A. (2007). Behavioral and cognitive factors in entrepreneurship: Entrepreneurs as the active element in new venture creation. Strategic entrepreneurship journal, 1(1‐2), 167-182.
Battilana, J., et al. (2015). Harnessing productive tensions in hybrid organizations: The case of work integration social enterprises. Academy of Management journal, 58(6), 1658-1685.
Bhattarai, C. R., et al. (2019). Market orientation, market disruptiveness capability and social enterprise performance: An empirical study from the United Kingdom. Journal of Business Research, 19(96), 47-60.
Bonfanti, A., et al. (2016). Social entrepreneurship and corporate architecture: evidence from Italy. Management Decision, 54(2), 390-417.
Christensen, C. M. (2006). The ongoing process of building a theory of disruption. Journal of Product innovation management, 23(1), 39-55.
Christensen, C. M., et al. (2003). Six keys to building new markets by unleashing disruptive innovation. Harvard Management: EEUU.
Christensen, C. M., et al. (2018). Disruptive innovation: An intellectual history and directions for future research. Journal of management studies, 55(7), 1043-1078.
Crucke, S., & Decramer, A. (2016). The development of a measurement instrument for the organizational performance of social enterprises. Sustainability, 8(2), 161.
Defourny, J. & Nyssens, M. (2017). Mapping social enterprise models: some evidence from the “ICSEM” project. Social Enterprise Journal, 13(4), 318-328.
Doherty, B., & Kittipanya-Ngam, P. (2021). The emergence and contested growth of social enterprise in Thailand. Journal of Asian Public Policy, 14(2), 251-271.
Doherty, B., et al. (2014). Social enterprises as hybrid organizations: A review and research agenda. International journal of management reviews, 16(4), 417-436.
Ebrahim, A., & Rangan, V. K. (2010). Putting the brakes on impact: a contingency framework for measuring social performance. Academy of Management, 10(1), 1-6.
Ecer, S., et al. (2017). The relationship between nonprofits’ revenue composition and their economic-financial efficiency. Nonprofit and Voluntary Sector Quarterly, 46(1), 141-155.
Eisenhardt, K. M. & Martin, J. A. (2000). Dynamic capabilities: what are they? Strategic management journal, 21(10-11), 1105-1121.
Etgar, M. (1978). Selection of an Effective Channel Control Mix: A study of the relative effectiveness of two kinds of channel control tools or power sources. Journal of Marketing, 42(3), 53-58.
González-Benito, et al. (2009). Role of entrepreneurship and market orientation in firms' success. European Journal of Marketing, 43(3/4), 500-522.
Grinstein, A. (2008). The relationships between market orientation and alternative strategic orientations: A meta‐analysis. European journal of marketing, 42(1/2), 115-134.
Hult, G. T. M., et al. (2005). Market orientation and performance: an integration of disparate approaches. Strategic management journal, 26(12), 1173-1181.
Jaworski, B. J. & Kohli, A. K. (1993). Market orientation: antecedents and consequences. Journal of marketing, 57(3), 53-70.
Kerlin, J. A. (2006). Social enterprise in the United States and Europe: Understanding and learning from the differences. Voluntas: International Journal of Voluntary and Nonprofit Organizations, 17(3), 247–263.
Kohli, A. K., & Jaworski, B. J. (1990). Market orientation: the construct, research propositions, and managerial implications. Journal of marketing, 54(2), 1-18.
Markides, C. (2006). Disruptive innovation: In need of better theory. Journal of product innovation management, 23(1), 19-25.
McDonald, R. E. et al. (2021). Nonprofit business model innovation as a response to existential environmental threats: Performing arts in the United States. Journal of Business Research, 125(March 2021), 750-761.
Narver, J. C., & Slater, S. F. (1990). The effect of a market orientation on business profitability. Journal of marketing, 54(4), 20-35.
O’Connor, N. G., et al. (2011). Competitive forces and the importance of management control systems in emerging-economy firms: The moderating effect of international market orientation. Accounting, Organizations and Society, 36(4-5), 246-266.
Peattie, K. & Morley, A. S. (2008). Social enterprises: Diversity and dynamics, contexts and contributions. Social Enterprise Coalition Research of Economic and Social Research Council, 5(1), 14-16.
Poledrini, S. & Tortia, E. C. (2020). Social enterprises: Evolution of the organizational model and application to the Italian case. Entrepreneurship Research Journal, 10(4), 1-26.
Ridley-Duff, R. J. & Bull, M. F. (2019). Solidarity cooperatives: the (hidden) origins of communitarian pluralism in the UK social enterprise movement. Social Enterprise Journal, 15(2), 243-263.
Short, J. C., et al. (2009). Firm and industry effects on firm performance: A generalization and extension for new ventures. Strategic Entrepreneurship Journal, 3(1), 47-65.
Slater, S. F., & Narver, J. C. (1994). Market orientation, customer value, and superior performance. Business horizons, 37(2), 22-28.
Tasavori, M., & Bhattarai, C. R. (2023). Understanding the impact of learning orientation and the mediating role of new product development capability on social enterprises' performances. International Journal of Entrepreneurial Behavior & Research, 29(2), 530-551.
Teasdale, S. (2010). How can social enterprise address disadvantage? Evidence from an inner city community. Journal of Nonprofit & Public Sector Marketing, 22(2), 89-107.
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic management journal, 18(7), 509-533.
Teece, D., & Leih, S. (2016). Uncertainty, innovation, and dynamic capabilities: An introduction. California management review, 58(4), 5-12.
Tellis, G. J., et al. (2009). Radical innovation across nations: The preeminence of corporate culture. Journal of marketing, 73(1), 3-23.
Weerawardena, J., et al. (2021). Business model innovation in social purpose organizations: Conceptualizing dual social-economic value creation. Journal of Business Research, 125(March 2021), 762-771.
Zietlow, J. T. (2001). Social entrepreneurship: Managerial, finance and marketing aspects. Journal of Nonprofit & Public Sector Marketing, 9(1-2), 19-43.