Prospects of social enterprises from a framing perspective

Abstract

By integrating institutional theory, the threat-rigidity hypothesis and prospect theory, we propose avenues for the future development of social enterprises, and map out how the development of the organizations depends on whether social entrepreneurs perceive environmental shifts as threats or opportunities in relation to the legitimacy of their organizations. We examine the relevant literature and integrate the predictions of the theories to theorize the prospects of social enterprises. Our discussion of these predictions was built on evidence of the recent changes in the institutional environment where social enterprises are operating, which offers a roadmap for academics and social entrepreneurs to move beyond the heated debate on 'business-like' activities in social entrepreneurship through a richer and deeper understanding of the prospects of social enterprises.