Agency and collaboration: an analysis of the relationship between government-certified social enterprises and the public sector in South Korea

Abstract

Purpose Public sector institutional entrepreneurship efforts may contribute to addressing social challenges by creating an enabling regulatory environment that promotes social enterprise formation and fosters complementarity between the public sector and social enterprises. The outcomes of such public sector institutional entrepreneurship are explored in this study. To assess the outcomes of such public sector initiatives in South Korea, the perspectives of executives ( n = 40) of government-certified social enterprises are assessed. Design/methodology/approach Several research methodologies were combined, including purposive sampling with an 11-point Likert scale, hierarchical clustering and principal component analysis. The literature on government–nonprofit relations as well as public sector institutional entrepreneurship was leveraged. Findings This research results indicate that the enabling regulatory environment with entrenched funding and incubation mechanisms produces mixed-to-positive outcomes if framed with reference to public sector–social enterprise complementarity. The authors identified three perspective-based ideal types that have differential views of isomorphic regulatory pressures, the efficacy of incubation and scaling programs, participation in policymaking and other aspects of public sector patronage. Originality/value This study contributes to relating the literature on public sector institutional entrepreneurship and government–third sector relations by empirically assessing how social enterprises attracted by government demand-side signaling to become certified as social enterprises encounter and perceive an ostensibly enabling regulatory ecosystem, with its derivative policies and mechanisms, crafted by the public sector.