Evolution of Governance Structure in Social Venture Networks

Abstract

The objective of this study is to understand and describe the nature and role of governance mechanisms that social entrepreneurs employ while engaging with their networks, as their ventures evolve with time. Prior studies have extensively investigated the development of networks in the ‘commercial’ entrepreneurship process from various perspectives such as resource dependence view, organizational structure etc. However, very few of these studies have investigated social enterprises, specifically from a governance perspective. We try to bridge this gap through an exploratory study of two social ventures in India, with different organizational structures. We explore, describe and explain the network characteristics of social entrepreneurs as their ventures evolve from a contractual and relational view point. On the basis of the data collected, we offer a process model and propositions in the evolution of networks of social entrepreneurs in India from a governance perspective. The study is unique as its focuses on a longitudinal perspective of network evolution of social ventures from both relational and contractual viewpoints which previously has not been studied. Understanding governance mechanisms in social ventures shall offer an edge to budding social entrepreneurs so that they can manage their firms efficiently and increase their probability of success.