Building networks to mobilize resources How Dutch social entrepreneurs use networks to mobilize resources for their social enterprises related to media literacy. See http://www.linkedin.com/in/tmjpeeters Master thesis - Maastricht University - MSc International Business

1. Building networks to mobilize resources
How Dutch social entrepreneurs use networks to mobilize
resources for their social enterprises related to media literacy.
Master thesis - Summary
Maastricht University
MSc International Business
11 January 2013
Tom Peeters
nl.linkedin.com/in/tmjpeeters
Supervisor: Ir. B. Dormans
Second reader: Dr. W. Letterie
Key words: Social entrepreneurship, Social capital, Networks, Resource mobilization

2. 1-pager / Abstract
This multiple-case study advances research on social entrepreneurship and
social capital examining how these entrepreneurs use their network to
mobilize human and financial resources.
Investigating seven Dutch cases predominately related to media literacy,
the study proposes a model for future research including that (i)
partnerships mediate the relationship between networks and financial
resource mobilization; (ii) social entrepreneurs start a network themselves
to foster resource mobilization; and (iii) the moderators trust, reputation,
engagement in mission, opportunity identification and central network
position positively moderate the relationships studied here.
Besides these theoretical implications, the study demonstrates practitioners
how to deploy their network to influence resource flows at the benefit of
their social venture, especially indicating that starting networks themselves
may be a successful way to mobilize their resource-mix.
School of Business and Economics Sharing Success
Tom Peeters

3. Background & Research question
• Social entrepreneurs address social needs and create both social &
economic value.
• Gaps in current academic research*:
– Social entrepreneurship is an embryonic research field
– How social entrepreneurs build and leveraging networks is not well studied.
– Resource mobilization (or acquisition) is particularly challenging for social
entrepreneurs as they operate in resource-constrained environments
• Research question: How do social entrepreneurs use their network
to mobilize human and financial resources for their social enterprises?
• Relevance of study:
– Theoretical: Fits in current theoretical frameworks* and extends
geographical scope (Dutch research scope is rare).
– Political: EU incorporated policies concerning social enterprises; social
economy is 10% of the European economy based on GDP; Netherlands has
gaps to close on # of social enterprises for “Europe’s 2020 strategy”
– Practical: Supports social entrepreneurs & social managers to understand
how they can mobilize resources by making use of their network.
School of Business and Economics Sharing Success
Tom Peeters
* See e.g. Austin, Stevenson & Wei Skillern (2006), Dacin, Dacin, & Tracey (2011) and Seymour (2012,p.150)

4. ‘Social venture’ organizational form
Continuum of organizational forms
Purely Social Hybrid: Social Venture Purely Commercial
Motives Appeal to good-will Mixed motives Appeal to self-interest
Methods Mission driven Mission and market driven Economic value creation
Impact only: Social value Impact first: Social and Finance first: Economic value
Goals and priority
creation economic value creation creation
Key Stakeholders
Subsidized rates / mix of full
Beneficiaries Pay nothing Pay full market rates
players & those who pay nothing
Below market capital / mix of full
Capital Donations & grants Market rate capital
players & those who pay nothing
Below market wages / mix of
Workforce Volunteers Market rate compensation
volunteers & fully paid staff
Special discounts / mix of in-kind
Suppliers Make in-kind donations Charge market prices
donation & full price
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Table adapted from Dees (1998) Tom Peeters

5. Research methodology
• Research design: Multiple-case study
• Unit of analysis: social venture
• Selection of cases (purposeful selection): based on e.g. legal form
(“stichting”), social mission serves social need, and financial structure
shows venture undertakes core tasks in business context.
• Data collection: semi-structured interviews with social
entrepreneurs (primary data), unstructured interviews with experts
(primary data) documents & achieves
• Data analysis: field notes, coding (i.e. categorizing strategy), and
flowcharts (i.e. connecting strategy), with computer assisted
qualitative data analysis (MAXQDA)
• Ensure adequate quality of research design:
– Construct validity: triangulation, interviews were recorded, transcribed
later, and verified with informants for interpretations errors
– Internal validity: rival explanations were taken into account
– External validity: multiple case study research was based on replication
logic, and is not based on (statistical) generalization to populations
School of Business and Economics Sharing Success
Tom Peeters

6. Theoretical implications (1)
Theoretical implications (see model on next page)
• Social entrepreneurs use their network to mobilize volunteers (i.e. human
resources), and revenues of sales and grants (i.e. financial resources)
successfully.
• Partnerships mediate the relationship between network and financial resource
mobilization.
• Social entrepreneurs start a network to mobilize human and financial resources
successfully.
• Trust, reputation, engagement in mission, opportunity identification and
centrality positively moderate the relationship between (i) networks and
resource mobilization, (ii) networks and partnerships (used for resource
mobilization), and (iii) partnerships and resource mobilization.
Key limitations
• Grouping & generalizing moderating effects: Although data clearly indicated the
importance of the moderators stated above, moderators were not investigated
per case per relationship, but were grouped and generalized.
• Amount of data & informants per case: Not in all cases, secondary data could
not back up all interview’s findings
• Self-reported data bias: e.g. selective memory and attribution; bias; though
rather limited due to highly biased cases being offset by less biased cases
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Tom Peeters

7. Theoretical implications (2)
Model for future research
Weak ties &
Partnerships
Strong(er) Ties
Financial resources
- Revenue of sales
- Grants
Network
(i) Personal networks;
Start a network (ii) Network of social
venture; (iii) Formalized
networking (clubs)
Moderators
1. Trust Human Resources
Enhances 2. Reputation - Volunteers
Centrality 3. Engage in mission
4. Opportunity identf.
5. Centrality
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Tom Peeters

8. Practical implications
• Social entrepreneurs should start networks themselves
– … to mobilize human & financial resources. By starting networks, they
position themselves at the centre of the network, while at the same time
forming a large network of weak and stronger ties enabling them to mobilize
resources more successful at the benefit of their social venture.
• Social entrepreneurs should share their social enterprise’s mission and
aim to create engagement in their network
– … instead of getting involved in a ‘service provider - customer relationship’,
to foster human &financial resource mobilization (“co-creation”)
• Social entrepreneurs should generate ideas and proactively drop these
into their network.
– This fosters human & financial resource mobilization because other network
actors possessing resources, being connected to resources, or being able to
allocate resources, can acknowledge their ideas and help to realize them.
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Tom Peeters

9. Money
Volunteer
er
Board memb
Grant
s!
re source
I need
Help,
Keep in mind, social entrepreneurship is largely a matter of
connecting to the right nodes into a network, who have,
allocate or refer to the desired resource-mix.*
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* See e.g Steyaert & Hjorth (2006, p. 48) Tom Peeters