Application of External Factors Influencing Competitive Advantages of Social Enterprises

Main Article Content

Sor Sirichai Nakudom
Rungrawee Jitpakdee

Abstract

This study determined external factors of social enterprises that can be applied to achieve a competitive advantage. Literature reviews and a case study through the participant observation method at the Cabbages & Condoms restaurant were used in this study. Twenty representatives from various related and selected social enterprises, including academic and business management persons, were interviewed in-depth. These interviews were also utilized to consider the qualifications of information providers. It clarified that a social enterprise’s competitive advantage differs from that of other businesses, in particular, profits management and social impact business. This study found that the external factors that had an influence for gaining a competitive advantage consisted of the following: (a) social capital, (b) awareness of the importance of consumers, (c) knowledge of local wisdom, (d) social networking, and (e) government support. All of these factors were applied in the following ways: (a) replacing monetary capital with social capital, (b) being aware of the importance of consumers for creating market share, (c) using knowledge of local wisdom to reduce costs, and (d) using social networking to expand marketing channels. This study can be useful in the development of a social enterprise’s competitive advantage and for other sectors to be acknowledged in social enterprises.

Article Details

Section
Research Articles

References

Alter, K. (2004) Social Enterprise Typology. Seattle, WA: Virtue Ventures.

Alvord, S. H., Brown, L. D. and Letts, C. W. (2004) Social entrepreneurship and societal transformation: An exploratory study. The Journal of Applied Behavioral Science 40(3): 260-282.

Anwar, K. (2016) Comparison between cost leadership and differentiation strategy in agricultural businesses. Custos E Agronegocio on Line 12(2): 212-231.

Barney, J. B. (1986) Organizational culture: Can it be a source of sustained competitive advantage? The Academy of Management Review 11(3): 656-665.

Bertotti, M., Harden, A., Renton, A. and Sheridan, K. (2012) The contribution of a social enterprise to the building of social capital in a disadvantaged urban area of London. Community Development Journal 47(2): 168-183.

Bourdieu, P. (1993) The Field of Cultural Production: Essays on Art and Literature. Cambridge, England: Polity Press.

Boyer, R. (2005) How and why capitalisms differ. Economy and Society 34(4): 509-557.

Conway, C. (2008) Business planning training for social enterprise. Social Enterprise Journal 4(1): 57-73.

Dees, J. G. (1998) Social enterprise: Private initiatives for the common good. Harvard Business Review 76(1): 54-58.

Defourny, J. and Nyssens, M. (2008) Social enterprise in Europe: Recent trends and developments. Social Enterprise Journal 4(3): 202-228.

Evelina, L. W. (2016) Vertical communication based on local wisdom: A Study of World Class University. Pertanika Journal of Social Science and Humanities 24 (Special Issue): 59-70.

Finlayson, E. and Roy, M. J. (2018) Empowering communities? Exploring roles in facilitated social enterprise. Social Enterprise Journal 15(1): 76-93.

Gitler, J., Kroch, G., Bellinsky, J. and Fiedler, D. (2017) Social enterprise business sustainability of the food banking model: The case of Leket Israel, Israel’s national food bank. Business Peace and Sustainable Development 9: 76-93.

Hackett, M. T. (2016) Solving ‘social market failures’ with social enterprises? Grameen Shakti (Village Energy) in Bangladesh. Journal of Social Entrepreneurship 7(3): 312-341.

Hartmann, M., Heinen, S., Melis, S. and Simons, J. (2013) Consumers’ awareness of CSR in the German pork industry. British Food Journal 115(1): 124-141.

Helen, H. (2005) A research agenda for social entrepreneurship. Social Enterprise Journal 1(1): 1-12.

Hoogendoorn, B., Pennings, H. P. G. and Thurik, A. R. (2010) What do we know about social entrepreneurship: An analysis of empirical research. International Review of Entrepreneurship 8(2): 71-112.

Huvila, I., Holmberg, K., Ek, S. and Widén-Wulff, G. (2010) Social capital in Second Life. Online Information Review 34(2): 295-316.

Hynes, B. (2009) Growing the social enterprise: Issues and challenges. Social Enterprise Journal 5(2): 114-125.

Jeong, B. (2015) The developmental state and social enterprise in South Korea: A historical institutionalism perspective. Social Enterprise Journal 11(2): 116-137.

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.

Klerk, S. and Kroon, J. (2008) Business networking relationships for business success. South African Journal of Business Management 39(2): 25-35.

Mulgan, G. (2006) Cultivating the other invisible hand of social entrepreneurship: Comparative advantage, public Policy and future research priorities. In Social Entrepreneurship: New Models of Sustainable Social Change, edited by A. Nicholls, pp.74-95. Oxford: Oxford University.

Palakshappa, N. and Grant, S. (2018) Social enterprise and corporate social responsibility: Toward a deeper understanding of the links and overlaps. International Journal of Entrepreneurial Behavior & Research 24(3): 606-625.

Picciotti, A. (2017) Toward sustainability: The innovation path of social enterprise. Annals of Public and Cooperative Economics 88(2): 233-256.

Raghda El, E. (2013) Social entrepreneurship theory and sustainable social impact. Social Responsibility Journal 9(2): 188-209.

Roy, K. and Karna, A. (2015) Doing social good on a sustainable basis: competitive advantage of social businesses. Management Decision 53(6): 1355-1374.

Schwenger, D. and Straub, T. and Borzillo, S. (2014) Non-governmental organizations: Strategic management for a competitive world. Journal of Business Strategy 35(4): 11-19.

Seanor, P. and Meaton, J. (2008) Learning from failure, ambiguity and trust in social enterprise. Social Enterprise Journal 4(1): 24-40.

Smith, A. D. (2007) Making the case for the competitive advantage of corporate social responsibility. Business Strategy Series 8(3): 186-195.

Solis, L. P. V. (2015) Reseña: ¿Hacia un capitalismo rentificado y patrimonializado? A propósito del libro “El capital en el siglo XXI” de Thomas Piketty. Revista Rupturas 5(2): 125-143.

Suswandari (2017) Incorporating beliefs, values and local wisdom of Betawi culture in a character-based education through a design-based research. European Journal of Contemporary Education 6(3): 574-585.

Talbot, C. and Harrison, K. (2002) Social Enterprise in Australia: An Introductory Handbook. Adelaide: Adelaide Central Mission.

The National Reform Council. (2015) Special reform agenda 1: Social enterprise. The National Reform Council. [Online URL: https://www.parliament.go.th/ewtadmin/ewt/parliament_parcy/download/parcy/004.pdf] accessed on August 24, 2018.

Thompson, J. L. (2004) The facets of the entrepreneur: Identifying entrepreneurial potential. Management Decision 42(2): 243-258.

Tugan-Baranowsky, M. V. (2000) Chapter I. The fundamental causes of crises in the capitalist economy. In Value, Capitalist Dynamics and Money (Research in Political Economy, Vol. 18, edited by Zarembka, P., pp. 53-80. Bingley: Emerald Group Publishing Limited.