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Peeters (2013) Master thesis: Building networks to mobilize resources
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Peeters (2013) Master thesis: Building networks to mobilize resources

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Building networks to mobilize resources …

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

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  • 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. LetterieKey words: Social entrepreneurship, Social capital, Networks, Resource mobilization
  • 2. 1-pager / AbstractThis multiple-case study advances research on social entrepreneurship andsocial capital examining how these entrepreneurs use their network tomobilize 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 financialresource mobilization; (ii) social entrepreneurs start a network themselvesto foster resource mobilization; and (iii) the moderators trust, reputation,engagement in mission, opportunity identification and central networkposition positively moderate the relationships studied here.Besides these theoretical implications, the study demonstrates practitionershow to deploy their network to influence resource flows at the benefit oftheir social venture, especially indicating that starting networks themselvesmay 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 CommercialMotives Appeal to good-will Mixed motives Appeal to self-interestMethods Mission driven Mission and market driven Economic value creation Impact only: Social value Impact first: Social and Finance first: Economic valueGoals and priority creation economic value creation creationKey Stakeholders Subsidized rates / mix of fullBeneficiaries Pay nothing Pay full market rates players & those who pay nothing Below market capital / mix of fullCapital Donations & grants Market rate capital players & those who pay nothing Below market wages / mix ofWorkforce Volunteers Market rate compensation volunteers & fully paid staff Special discounts / mix of in-kindSuppliers Make in-kind donations Charge market prices donation & full priceSchool of Business and Economics Sharing Success 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 populationsSchool 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 casesSchool of Business and Economics Sharing Success 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. CentralitySchool of Business and Economics Sharing Success 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. School of Business and Economics Sharing Success 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.*School of Business and Economics Sharing Success* See e.g Steyaert & Hjorth (2006, p. 48) Tom Peeters