The Role of Social Capital on Cocreating Value for Social Enterprises: The Service Dominant Logic Perspective

Abstract

The definition of a social enterprise makes it distinctive as a form of organizational hybrid. For a social enterprise, which goal is to create social value which benefits its stakeholders, it is important to highlight the process of value co-creation through interaction and integration of resources within and among service systems rather than merely measuring tangible outcomes. Value created on a social enterprise emphasizes the importance of sharing benefits among its stakeholders. This research aims to examine how social capital creates value for a social enterprise’s stakeholders. We employed Service-Dominant Logic to define service systems, and then analyzed the role of social capital on building collaborative competence which creates value for stakeholders. In this research, we used case study approach and conducted in-depth interview of three social enterprises’ key stakeholders including customers, business partners, and management. We summarize the findings to identify the factors affecting value creation for social enterprises.