Legitimation strategies of social enterprises in the dynamic ecosystem of developing countries: An institutional approach

Abstract

Social Entrepreneurship has been recognized by academia and practitioners as having the potential to contribute to solving societal grand challenges. Particularly in developing countries, social entrepreneurship can lead to the provision of fundamental necessities and contribute to inclusive growth. Nevertheless, the newness of the hybrid business model still creates barriers to organizational legitimacy. The main objective of this dissertation is to analyze the legitimation strategies of social enterprises by utilizing the theoretical framework of institutional theory and the entrepreneurial ecosystem framework in a developing country context. Specifically, this study (1) explores the current state of research on social enterprise legitimacy (O1), (2) conceptualizes what a social entrepreneurial ecosystem is, how it differs from the commercial entrepreneurial ecosystem model, and explores how social entrepreneurial ecosystems form and transform (O2), and (3) explores the process of how social enterprises achieve legitimacy for themselves and how they facilitate the process of legitimation for marginalized actors within their society (O3). The methodology used is qualitative applying established methodological procedures for grounded theory development. The primary data collection is based on a three-month-long field trip to Nepal, where interviews, participants, and direct observations were conducted. Combined with historical documentary material, this ethnographically informed data builds the basis for this research and results in several case studies that create novel theoretical and practical insights. Process methodology is used and results in chronological accounts that inform the developed analytical process models The main findings of this dissertation reveal the processes involved in building legitimacy and how informal and formal institutions can either accelerate or impede this process. These findings contribute to legitimacy theory by elucidating legitimization as an ongoing process that progresses through stages during continuous iterations of strategic activities. Additionally, the conceptualization of the social entrepreneurial ecosystem presents potential for future research. For practitioners, these findings offer guidance for creating frameworks and strategies to build legitimacy for themselves and the communities they aim to serve. For policymakers, the findings can inform the creation of support structures to promote social development.

Date of Award	2024
Original language	English
Supervisor	David Urbano Pulido (Director)