Value co-creation as a mediator between strategic planning and social enterprise performance

Abstract

PURPOSE – The purpose of this study is twofold. The first was to explore the relationship between strategic planning (SP) and social enterprise performance (SEP). The second was to ascertain the mediation of value co-creation (VCC) to the relationship between SP and SEP. DESIGN/METHODOLOGY/APPROACH – This study followed a quantitative methodology using a survey conducted with 147 social enterprises (SEs). The location of the study was the Eastern Cape, a province in South Africa. Respondents to the study occupied the status of key decision-makers who either owned or managed a SE. FINDINGS – The findings show that a relationship exists between SP and VCC; VCC and SEP; and finally SP and SEP. Concerning the mediation, results show that VCC had a fairly weak positive and significant mediating effect on the relationship between SP and enterprise performance. ORIGINALITY/VALUE – There are renewed calls for research that focuses on understanding issues related to the management of SEs, especially within the South African context. Such calls stem from the high dependence on state support to alleviate challenges experienced by communities. The role of SEs in such a context is thus heightened. The findings give support to issues that assist not only in understanding the decision-making capability but also in understanding the role of VCC.