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Toward A Positive Theory of Social Entrepreneurship. On Maximizing Versus Satisficing Value Capture

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Abstract

In a recent issue of the Journal of Business Ethics, Filipe M. Santos posits that social entrepreneurs maximize not on value capture, but on value creation, only satisficing on value capture to fuel operations, reinvesting in growth, whatever the specific combination of institutional means is deemed appropriate. No doubt the analytical framework of value creation and value capture casts new light on the phenomenon of social entrepreneurship, but we think Santos is asking too much by advocating a shift in focus away from the organization. On the contrary, we maintain that by refocusing the theory on the organizational level and away from the system it is possible to understand that not all organizational solutions available to social entrepreneurs are able to create value and not all value capture strategies can serve a social goal. Indeed, there is only one form of organization that fulfills the criteria of maximizing on value creation, while satisficing on value capture and that is the social enterprise.

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Notes

  1. For a detailed account of these numerous definitions see: Roberts and Woods (2005); Peredo and McLean (2006); Short et al. (2009); Zahra et al. (2009); Dacin et al. (2010); Defourny and Nyssens (2010); Hoogendoorn et al. (2010); OECD (2010); Bacq and Janssen (2011).

  2. This was an issue originally raised by Samuelson (1954, 1955) and Musgrave (1959)

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  1. ESSCA School of Management, LUNAM Université, 1 rue Lakanal, BP 40348, 49003, Angers, France

    Alejandro Agafonow

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  1. Alejandro Agafonow
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Correspondence to Alejandro Agafonow.

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Agafonow, A. Toward A Positive Theory of Social Entrepreneurship. On Maximizing Versus Satisficing Value Capture. J Bus Ethics 125, 709–713 (2014). https://doi.org/10.1007/s10551-013-1948-z

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