The relationship of social value orientation and social entrepreneurial orientation on organizational performance: a study on small and medium enterprises in Egypt

Abstract

Although there is a growing interest in socially driven Small and Medium Enterprises (SMEs) and their importance for developing countries, there is still a lack of understanding of the importance of social value orientation (SVO) and social entrepreneurial orientation (SEO) and their contribution to organizational performance. The objectives of this research are to investigate the impact of social entrepreneurial orientation and social value orientation on organizational social and economic performance. The methodology used in this research is based on quantitative analysis by using a questionnaire to gather the required data. Structural equation model analyses (SEM) using AMOS software were used to analyze the data. The main conclusions drawn from this study are the direct effect between social value orientation and organizational performance (economic performance, social performance) is statistically significant, and the direct effect between social entrepreneurial orientation and organizational performance (economic performance, social performance) is statistically significant. The findings of this research have several implications for the development of socially driven small and medium enterprises: First, it highlights the importance of SVO and SEO in the success of socially driven SMEs, demonstrating that these orientations can positively impact organizational social and economic performance. Furthermore, the findings of this research serve as a basis for further research into the impact that SVO and SEO have on organizational performance and can provide guidance for academics, policymakers and practitioners. Finally, this research can also be used to inform the development of strategies and policies to promote the growth of socially driven SMEs in developing countries.