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This study aims to examine the development of a social enterprise in China’s tourism industry by analyzing the coevolution of the social entrepreneur and the social system.

Purposeful sampling was used to select 1kg.org as a single-case study. Semistructured in-depth interviews of three informants were conducted to obtain organization-specific insights. Interview data were analyzed following structuration theory. Secondary data and interviews of other social entrepreneurs and experts were used to support the findings. Research findings were validated using triangulation and member-checking methods.

Because of the institutional environment, most nonprofit organizations in China do not have resource independence and clear legal identity. Meanwhile, social enterprise has emerged as a new organizational form with the objective of creating social value through profitable business operations.

Social enterprise is still in its infancy in China, particularly in the tourism field. This study reveals an innovative and sustainable model for nonprofit organizations in China facing institutional challenges and competitive funding environments. It provides recommendations to policymakers for improving mechanisms to increase social services through social enterprises.

This study proposes a new conceptual framework for studying social entrepreneurship by adapting structuration theory to address contemporary social and business issues.