Published in: Journal of Business Venturing Insights
Cited as: Shoko Kato,
Social performance measurement adoption in nascent social enterprises: Refining the institutional model,
Journal of Business Venturing Insights, Volume 15, 2021, e00244, ISSN 2352-6734, https://doi.org/10.1016/j.jbvi.2021.e00244.
Based on institutional theory, Lall (2017) established a social performance measurement (SPM) adoption model for nascent social enterprises and found that internal factors (measuring to improve) are influential, while external factors (measuring to prove) have limited or no effects on the probability of adopting SPM. This finding contradicts the predictions of institutional theory; external factors, such as legitimacy and isomorphism, should exert strong influences on nascent social enterprises’ behavior. Using the same dataset as that used in Lall’s (2017) study, we find the missing influence of external factors, i.e., equity and grant funding-related behavior. This study contributes to entrepreneurship research by 1) refining the institutional SPM adoption model, 2) demonstrating the need for a theoretical SPM adoption model, and 3) highlighting the importance of replication studies.
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