The role of reciprocity in the internationalization of social enterprises
Cross Cultural & Strategic Management
ISSN: 2059-5794
Article publication date: 17 October 2019
Issue publication date: 18 February 2020
Abstract
Purpose
The paper enhances our understanding of how small businesses with a strong social mission undergo international expansion. Building on the theoretical arguments on social exchange theory (SET), specifically on the literature on reciprocity, the purpose of this paper is to investigate the applicability of the Uppsala Internationalization Model to the context of a social enterprise (SE). The propositions argue that the strong social orientation of SEs encourages a reciprocal exchange with the stakeholders of the host country that limits the number of obstacles they may face during the internationalizing process.
Design/methodology/approach
The conceptual development bridges SET with bodies of knowledge on SE, Uppsala Internationalization Model and organizational embeddedness.
Findings
The theoretical arguments provide evidence of how the socially oriented mission of a small business aids it with overcoming obstacles presented by internationalization. Specifically, the authors show that socially oriented enterprises are uniquely equipped to conquer the lack of adequate information about a foreign market and a lack of adequate public support in a host country. A social mission, which ignites positive reciprocity with the local stakeholders, serves as a valuable asset in the process of internationalization. Moreover, since the propositions recognize that the norms of reciprocity differ from one national culture to another, they unfold how reciprocal exchanges may be altered because of the nuances of national culture.
Originality/value
This work makes three important contributions. First, it extends our understanding of why SEs can potentially internationalize more rapidly than organizations without a strongly pronounced social mission. Second, the investigation on the applicability of the U-Model to the context of SE answers scholars’ recent call for continuous work on advancing the U-Model. Third, the authors equip practitioners with a thorough understanding of how they can capitalize on the social aspect of a SE in the unique setting of a specific national culture.
Keywords
Acknowledgements
This paper forms part of a special section “Micro-foundations of small business internationalisation”.
Citation
Evans, K.M., Ermilina, V. and Salaiz, A. (2020), "The role of reciprocity in the internationalization of social enterprises", Cross Cultural & Strategic Management, Vol. 27 No. 1, pp. 75-91. https://doi.org/10.1108/CCSM-08-2018-0131
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited