Antecedent of Social Enterprise Performance in Indonesia

Abstract

Dilatory economic growth, high unemployment rates, low levels of employment, and neglected marginal community need a Penta-Helix synergy solution with a high level of urgency. The existence of social entrepreneurship through social enterprise performance is claimed to be a solution to accelerating the economic growth of every country, especially Indonesia. This study aims to discover the best holistic model to improve social enterprise performance. This study also analyzes the direct and indirect effects of social entrepreneurship variables, entrepreneurial marketing religiosity, entrepreneurial marketing mix, market orientation, and determinants of government support, community support, networking, and partnerships that lead to increased social enterprise performance (SEP) measured in terms of social performance (SEPs) and economic performance (SEPe). Sampling was carried out using purposive sampling techniques in several parts of Indonesia including the provinces on the islands of Sumatra, Java, Bali, and West Nusa Tenggara. Based on the 440 respondents who were sampled, a total of 130 questionnaires were successfully collected and sample selection was carried out with three criteria i.e., the social entrepreneurship mission, source of income, and surplus utilization allocation. The result is that 102 samples meet the criteria. Hypothesis testing was carried out with a structural equation model (SEM) using SMART PLS software. The results showed that: (1) Social entrepreneurship has a positive and significant effect on social enterprise performance, (2) Social entrepreneurship has a positive and significant effect on the entrepreneurial marketing mix, (3) Entrepreneurial marketing mix has a positive and significant impact on social enterprise performance, (4 ) Social entrepreneurship has a positive and significant effect on market orientation, (5) Market orientation has a positive and significant effect on social enterprise performance, (6) Religiosity entrepreneurial marketing has a negative but significant effect on social enterprise performance, (7) Community support has a positive and insignificant effect on social enterprise performance, (8) Government support has a negative but significant effect on social enterprise performance, (9) Networking and partnerships have a positive but not significant effect on social enterprise performance, (10) Entrepreneurial marketing mix is able to positively and significantly mediate the influence of social entrepreneurship on social enterprise performance, and (11) Market orientation is positively and significantly able to mediate the influence of social entrepreneurship on social enterprise performance.