Social enterprise performance in South Africa : the role of strategic planning and networking capability

Abstract

The study examined the factors of social enterprise performance, accounting for the role of strategic planning and networking capability. The data was collected using a self-administered questionnaire of 147 respondents serving as owners/managers of social enterprises. Structural equation model (SEM) was used for statistical analysis. The partial least square (SmartPLS) technique was utilised to ascertain the effect of (a) strategic planning on social enterprise performance; (b) networking capability and social enterprise performance; and (c) the mediating effect of networking capability on the relationship between strategic planning and social enterprise performance. The findings reveal the existence of relationships between (a) strategic planning and social enterprise performance; (b) networking capability with social enterprise performance; and c) strategic planning with social enterprise performance. Finally, and concerning mediation, networking capability had a fairly weak positive and significant mediating effect on the relationship between strategic planning and social enterprise performance. This research provides new insights into the management for performance of social enterprises, especially in a developing country context. Emphasis is placed on paying attention to the development of strategic planning and networking capabilities. Managers within social enterprises can potentially benefit from such findings assisting their managerial practice.