Local social value creation by neighborhood-based entrepreneurs: Local embeddedness and the role of social networks

Abstract

Purpose

This paper aims to explore local social value creation by entrepreneurs located in residential neighborhoods, what drives their behavior and the influence of their local social networks therein, both as a direct effect and through fostering local embeddedness.

Design/methodology/approach

In-depth interviews are conducted with 18 neighborhood-based entrepreneurs in the Netherlands to explore whether these entrepreneurs are active in local social value creation and the different drivers of their behavior in that regard (personality, organizational, contextual and issue characteristics) in relation to their local social networks. The research neighborhoods are selected based on social cohesion and collective efficacy scores.

Findings

Most interviewees are active in social value creation. Personality characteristics are the main drivers of local social value creation. Local social networks have a direct, indirect and moderating effect, but are not prerequisites for local social value creation to occur. Local embeddedness through emotional attachment to the neighborhood also drives local social value creation.

Research limitations/implications

The findings suggest that neighborhood-based entrepreneurship is a source of local social value, indicating the need for additional and large-scale quantitative research on this type of entrepreneurial activity.

Social implications

The findings of this study can motivate policymakers to promote entrepreneurship in neighborhoods as a means of stimulating bottom-up local social value creation.

Originality/value

This study contributes to the debate on the social value of entrepreneurship and considers the understudied group of neighborhood-based entrepreneurs. Furthermore, the paper offers a conceptual contribution by focusing on the local social networks as a driver of local social value creation.

Citation

de Beer, M. (2018), "Local social value creation by neighborhood-based entrepreneurs: Local embeddedness and the role of social networks", Social Enterprise Journal, Vol. 14 No. 4, pp. 450-469. https://doi.org/10.1108/SEJ-01-2018-0005