Facilitating cultural change in social enterprises

Abstract

Purpose: The purpose of this paper is to examine the relationships and influences of change enablers for social enterprises in organizations undergoing cultural change. Design/methodology/approach: Data were collected through a survey of social enterprises in two Pacific Island nations, and analyzed with Pearson and regression analyses. Findings: The study finds that social enterprises are better equipped to implement cultural change when they exploit a robust entrepreneurial capability while optimizing strategic, financial and adaptive capabilities. These capabilities should be aligned with the enterprise’s culture and processes associated with transitioning the organizational culture to access resources and achieve its mission. Based on these results, a Cultural Change Enabling (CCE) Framework is proposed to help social enterprises leverage the dynamic interactions between the enterprise, its capabilities and environment, and organizational change processes. Practical implications: Using the CCE Framework will benefit leaders of public benefit organizations, including social enterprises, to identify their capabilities, and develop an enabling culture to advance their trading activities and social mission so that social enterprises might operate sustainably. Originality/value: As one of the first studies to examine the readiness for organizational change in social enterprises, this study provides new insights on the capabilities for organizational change, and the dynamics of organizations undergoing cultural transformation.