The Impact of Public Service Motivation on Social Enterprise Performance: The Mediating Role of Business Model Innovation

Abstract

Abstract: Social enterprises play an important role in solving social problems, breaking welfare deadlock and promoting social sustainable development. How to improve the performance of social enterprises has attracted academic attention. Public service motivation, as the internal power that drives social entrepreneurs to develop social enterprises, has an important impact on the performance of social enterprises. However, the internal mechanism of how public service motivation of social entrepreneurs affects the performance of social enterprises has not been systematically explained and empirically studied. Based on the upper echelons theory, this study examines the mechanism of how social entrepreneurs' public service motivation influences social enterprise performance, including the mediating role of business model innovation and the moderating role of environmental dynamism. By analyzing the survey data from 198 social enterprises, we find that public service motivation has a positive effect on social enterprise performance. Novelty-centered business model innovation plays a mediating role between public service motivation and social enterprise performance. Efficiency-centered business model innovation mediates the relationship between public service motivation and economic performance of social enterprises. Environmental dynamism positively moderates the relationship between public service motivation and efficiency-centered business model innovation. Environmental dynamism significantly moderates the relationships between public service motivation and novelty-centered business model innovation. The results enrich the research on antecedents of social enterprise performance, and reveal the internal mechanism and the boundary condition of public service motivation affecting social enterprise performance. This study also provides practical implications for improving social enterprise performance.

Key words: social enterprise performance, efficiency-centered business model innovation, novelty-centered business model innovation, public service motivation, environmental dynamism

Wu Jianlin, Tao Yanni, Lv Ping. The Impact of Public Service Motivation on Social Enterprise Performance: The Mediating Role of Business Model Innovation[J]. Management Review, 2023, 35(8): 85-99.

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