The Effects of Intangible and Tangible Resources on Performances of Social Enterprises:Dualities in Resources and Performances

EasyChair Preprint 1167

Abstract

Considering many social enterprises often depend on external financial support often from governments or non-governmental organizations, the resource dependency perspective suggests that acquirement of tangible and intangible resources become more critical particularly when governmental subsidies get reduced or terminated. Based on resource-dependency theory, this study aims to analyze how both tangible and intangible resources affect social performance and economic performances of social enterprises using the data collected from the data coded from annual management reports of 755 social enterprises disclosed by the Korea Social Enterprise Promotion Agency from 2012 to 2017. The statistical analyses suggest several important findings. First of all, clear social missions appear to have positive effect on achieving social performance such as employment of vulnerable workers as well economic performances while network capacities, one of major intangible resources of social enterprises have positive effect on economic performance. This result confirms previous research findings that resource characteristics of social mission of social enterprise might improve the multi-dimensional performance of social enterprise by providing legitimacy to gain resources. Second, the result also shows a positive effect of intangible resources on economic performance such as net profit during the term as well as mixed performance such social reinvestment. Finally, the size of private funding appears to have a positive effect on the size of social reinvestment. This study suggests that both tangible as well as intangible resources are critical to both economic and social performances of social enterprises. This also implies that tangible and intangible resources might have different effects on social and economic performances of social enterprises at different stages of their life cycles.

Keyphrases: Performance, intangible resources, social enterprise, tangible resource

@booklet{EasyChair:1167,
  author    = {Tae Hyung Kim and Odkhuu Khaltar and M. Jae Moon},
  title     = {The Effects of Intangible and Tangible Resources on Performances of Social Enterprises:Dualities in  Resources and Performances},
  howpublished = {EasyChair Preprint 1167},
  year      = {EasyChair, 2019}}