INTRODUCTION AND LITERATURE REVIEW
Background and Research Objectives
Social entrepreneurship has emerged as a significant concept in market economies, focusing on creating social value rather than merely capturing economic value This recent definition highlights the distinct nature of social entrepreneurship, differentiating it from traditional forms of entrepreneurship As a result, it represents a compelling and valuable area for research, addressing pressing social issues while fostering positive change.
However, social entrepreneurship term still has been poorly defined (Mair & Marti,
The concept of social entrepreneurship remains multifaceted and lacks a cohesive framework, similar to the challenges faced in defining entrepreneurship itself (Shane & Venkataraman, 2000) Despite the growing academic interest in this field, there is still a significant gap in the management literature regarding the economic significance and operational logic of social entrepreneurs (Dacin et al., 2010; Santos, 2012).
Social entrepreneurship is distinct from other forms or entrepreneurship (Dacin et al.,
In 2016, researchers were encouraged to explore various theoretical perspectives and combine different research methods, as highlighted by Mair and Marti (2006) This presents a unique opportunity for scholars from diverse fields, such as psychology, sociology, and organizational theory, to reassess existing concepts and assumptions Future research directions could focus on five key areas: institutions and social movements, networks, culture, identity and image, and cognition, as suggested by Dacin et al (2016).
In these aspects, examining the characteristics of social entrepreneurs (Certo & Miller,
2008) and the ideas of opportunity-recognition are encountered (Peredo & McLean,
Social entrepreneurship is primarily motivated by a mission, with social entrepreneurs often fueled by their passion and leadership skills Future research should explore the behaviors and processes that contribute to the success of social ventures, as well as investigate the personality traits and cognitive frameworks of social entrepreneurs.
A cognitive perspective on social entrepreneurs, encompassing traits such as empathy, passion, and leadership skills, is essential for understanding social entrepreneurship theory (Dacin et al., 2016) Recent research has increasingly focused on the roles of empathy and passion in this field.
Vietnam's transition to a low middle-income country presents new opportunities for growth, marked by increased capital and improved poverty levels However, this shift has prompted changes in humanitarian and social development policies, leading to the withdrawal of several bilateral organizations and a reduction in ODA funding as resources are redirected to poorer nations Continued reliance on external aid poses a risk of capital shortages for community development in the near future, especially given the limited mobilization of local funding A 2011 study by the Asia Foundation highlighted the significant potential for charitable contributions from individuals and businesses in Vietnam, yet the lack of formal charity channels and supportive policies has resulted in mostly spontaneous and small-scale charitable activities This funding deficiency creates considerable pressure on numerous Vietnamese NGOs and community development projects moving forward.
Social enterprises in Vietnam are diverse, operating across various industries, though their distribution is uneven A recent report highlights that agriculture is the leading sector, comprising 35% of these enterprises, followed by health and education at 9% each, and environmental initiatives at 7% Other sectors include childcare (5%), job skills training (4%), retail (4%), and business support (3%), among others Despite this diversity, the overall presence of social enterprises remains modest in terms of size, quantity, revenue, and societal impact, with a significant concentration still focused on agriculture.
Social entrepreneurship holds significant potential in developed countries, yet it remains underexplored in Vietnam Investigating social entrepreneurship in Vietnam is crucial for aligning with the country's sustainable development goals Research that emphasizes the empathy and passion inherent in social entrepreneurship in Vietnam is particularly compelling.
The purpose of this thesis is to clarify two separate research objectives which are developed in study 1 (paper 1) and study 2 (paper 2):
1 Exploring mechanism that how the empathy influence on the social entrepreneurship intention via prosocial behavior, and the moderating effects of opportunity evaluation, exploitation
2 Exploring mechanism that how the social entrepreneurs’ passion affect employee’s creativity via creative process engagement, which is moderated by mindfulness
For the first objective, we build the cognitive model with empathy, prosocial behavior and social entrepreneurship intention concept
Empathy plays a crucial role in social entrepreneurship, as highlighted by various academic studies (Mair & Noboa, 2006; Short et al., 2009; Hockerts, 2017) It encompasses both cognitive empathy, the ability to understand another's feelings, and emotional empathy, the tendency to respond compassionately (Hockerts, 2017) Social entrepreneurial behavior involves identifying opportunities to create social impact through market and nonmarket disequilibria (Hockerts, 2017) Consequently, researchers are increasingly focused on establishing a direct causal link between empathy and social entrepreneurial intention (Hockerts, 2017; Ip et al., 2017; Lacap et al., 2018).
Aure, 2018) Yet, research has left a fundamental question unanswered: through which mechanisms empathy is related to social entrepreneurial intention
This study aims to explore how empathy influences social entrepreneurial intention, grounded in altruistic motivation theory and the theory of planned behavior We propose that two interacting mechanisms are key to this relationship The first mechanism highlights the mediating role of prosocial behavior, defined as voluntary actions that benefit others, in linking empathy to social entrepreneurial intention.
“performed to benefit others, rather than to benefit the self” (Twenge et al., 2007, p
Recent literature has predominantly concentrated on the conditions under which individuals engage in prosocial behavior, highlighting empathy as a vital emotion that fosters such actions (Penner et al., 2005; Rameson et al., 2011) This study aims to broaden this perspective by investigating the mediating role of prosocial behavior in understanding how empathy influences social entrepreneurship.
This study introduces a second mechanism highlighting the moderating influence of entrepreneurial opportunity evaluation and exploitation on the mediating pathway We assert that the processes of evaluating and exploiting opportunities establish the necessary conditions for individuals to engage in social entrepreneurship.
A person also might choose to become a social entrepreneur although with a minimum level of empathy and prosocial behavior after facing a particular social problem (Mair
The existing literature lacks insight into how opportunity evaluation and exploitation contribute to the development of social entrepreneurship We propose that these processes foster conditions that encourage empathy and prosocial behavior, ultimately motivating individuals to engage in social entrepreneurship.
For the second objective, we build the model based on perception of entrepreneurial passion, creative process engagement and employee creativity concept
Employee creativity is crucial for company success, driving innovation, effectiveness, and long-term survival Defined as the generation of novel and valuable ideas, creativity plays a significant role in fostering a dynamic and competitive business environment.
In today's competitive landscape, companies from multi-billion dollar corporations like Apple Inc and Procter & Gamble to social ventures are increasingly relying on employee creativity for survival and success (Ng & Yam, 2019; Eleanor & Carter, 2007; Rostiani et al., 2014) Consequently, a key focus of creativity research is to uncover the factors that enhance employee creativity (Henker et al., 2015).
Literature Review
Social entrepreneurship is defined as "entrepreneurial activity with an embedded social purpose" (Austin et al., 2006) and has emerged as a significant global economic concept (Dacin et al., 2010; Mair & Marti, 2006; Zahra et al., 2008; Santos, 2012) It represents a process that integrates the creation of both economic and social value (Mair & Marti, 2006).
Social entrepreneurship encompasses a range of interpretations among researchers Some view it as a non-profit strategy aimed at generating social value, while others define it as commercial enterprises Additionally, another perspective sees social entrepreneurship as a means to address social issues and promote social transformation.
Social entrepreneurs typically decide between a non-profit or for-profit strategy based on their business model and the social needs they aim to address Currently, they can implement two primary business strategies: non-profit organizations that generate earned income and for-profit enterprises that adopt mission-driven approaches (Abu-Saifan, 2012).
The key distinction between business entrepreneurship and social entrepreneurship lies in the emphasis on social value creation over economic wealth generation In social entrepreneurship, the primary goal is to create social wealth, while ensuring that economic value is also generated to support development and achieve financial self-sufficiency.
Social entrepreneurship is defined as a process that combines innovative approaches and resources to address social needs Social entrepreneurs are the individuals who initiate these innovations, while social enterprises represent the tangible outcomes of social entrepreneurship (Mair & Marti, 2006).
Social entrepreneurship is a dynamic process where social entrepreneurs leverage limited resources to generate social value By identifying and seizing opportunities, they aim to address social needs and drive social change As a distinct category of entrepreneurs, social entrepreneurs focus on fostering innovation within organizations while providing impactful services and products.
“Social entrepreneurship is exercised where some person or persons recognizing and exploiting opportunities to create this value, employing innovation” (Peredo & McLean,
2006) Therefore, we support that it is necessary to elaborate about the entrepreneurs’ characteristics (empathy, passion), exploit opportunity, employees’ innovation in social entrepreneurship
Empathy, Prosocial Behavior, and Social Entrepreneurship Intention
Empathy is a complex construct encompassing both cognitive and emotional dimensions The cognitive aspect, known as perspective-taking, allows individuals to understand how others think and behave, while the emotional component, referred to as empathic concern, involves responding emotionally to others' experiences This emotional response can manifest as feelings of compassion, sympathy, and warmth Together, cognitive empathy enhances our understanding of others' needs and motivations, and emotional empathy fosters a genuine concern for their well-being, both of which can lead to altruistic behaviors.
Research highlights that empathy is crucial for motivating individuals to engage in prosocial behaviors, which are voluntary actions intended to benefit others (Prot et al., 2014; Eisenberg et al., 2006) This complex behavior can target various recipients, from family members to strangers, and is influenced by the helper's motivations, the context of the action, and the resources required (Carlo & Randall, 2002; Penner et al., 2005; Padilla-Walker & Fraser, 2014) Numerous studies consistently identify empathy as a strong predictor of diverse prosocial behaviors (Smith, 2010; Eisenberg & Spinrad, 2014; Van Noorden et al., 2015; Mestre et al., 2019).
Research by Penner et al (2005) highlights that arousal and affect, particularly empathic arousal, play a crucial role in motivating interpersonal helping behaviors This emphasizes the significance of emotions, such as empathic concern, in driving prosocial responses and altruistic motivations Studies indicate that both cognitive and emotional empathy serve as key motivators for prosocial behaviors, enhancing individuals' willingness to help others (Hoffman, 2000; Mestre, 2014; Mestre et al., 2019).
Empathy is essential for socially directed behaviors and is crucial for forming intentions in social entrepreneurship (Mair & Noboa, 2006; Miller et al., 2012) Although a unified definition of social entrepreneurship (SE) is lacking, Mair and Marti’s (2006) broad interpretation emphasizes SE as a process that creates value by innovatively combining resources to address social needs and stimulate change Unlike traditional entrepreneurship, SE prioritizes social value alongside economic benefits (Mair & Marti, 2006; Ahuja, Akhtar & Wali, 2019) Understanding the factors that influence social entrepreneurial intentions (SEI), which reflect an individual's desire to start a social business (Tran & Von Korflesch, 2016), is vital for policymakers and educators aiming to encourage greater participation in social entrepreneurship.
Social Entrepreneurial Opportunity Evaluation and Exploitation
Mair and Noboa (2006) suggest that individuals with low empathy and prosocial behavior can still become social entrepreneurs when they identify unmet social issues as entrepreneurial opportunities While evaluating new ideas and deciding how to allocate resources are crucial cognitive processes for entrepreneurial success (Grichnik, Smeja & Welpe, 2010), there is limited research on how social entrepreneurs assess and leverage social opportunities, as well as the connection between opportunity evaluation and exploitation in social entrepreneurship innovation (Mair & Marti, 2006).
The social entrepreneurship (SE) process consists of three interconnected phases: discovery, evaluation, and exploitation of new opportunities (Haynie & Shepherd, 2009) It begins with identifying a perceived social opportunity (Tiwari, Bhat & Tikoria, 2017), and the decision to start a business hinges on evaluating the opportunity's attractiveness, which informs the timing and method of exploitation (Shane & Venkataraman, 2000) Opportunity evaluation is a cognitive, future-oriented process that considers the resources needed for successful exploitation (Haynie & Shepherd, 2009) Wood and McKelvie (2015) define this evaluation as individuals' judgments regarding the feasibility of pursuing a desirable future course of action based on external stimuli Additionally, aspiring entrepreneurs must determine how to allocate their personal resources, such as human and financial capital, to effectively exploit the opportunity (Shane, 2003) Ultimately, opportunity exploitation involves decisive actions that allocate resources to develop new products or services, accompanied by inherent risks (Grichnik, Smeja & Welpe, 2010; Wood & McKelvie, 2015).
The theoretical model illustrated in Figure 1.1 proposes that empathy, encompassing perspective taking and empathic concern, influences social entrepreneurial intention through two key mechanisms Specifically, prosocial behavior mediates the relationship between empathy and intention, while opportunity evaluation and opportunity exploitation serve as moderating factors in this mediating process.
Employee Creativity and Entrepreneurial Passion
Employee creativity is linked to intrapreneurship, a concept that reflects entrepreneurial characteristics within organizations (Bierwerth et al., 2015; Gawke et al., 2017; Kuratko et al., 1990) These characteristics are multidimensional, encompassing elements such as risk-taking, innovativeness, proactiveness, and competitive energy (Dess et al., 1999; Felicio et al., 2017).
Intrapreneurship encompasses various dimensions, one of which is entrepreneurial passion—a crucial yet underexplored trait among employees (Cardon, 2008; Thornberry, 2003) Entrepreneurial passion is characterized as a powerful, positive emotion that is consciously recognized and felt by individuals engaged in entrepreneurial activities that resonate with their self-identity (Cardon, 2008; Cardon et al., 2009) Employees who possess strong entrepreneurial passion tend to experience heightened positive emotions, a sense of meaningfulness, and a deeper connection to their identity while participating in entrepreneurial endeavors within their organization (Cardon, 2008).
Research Methods
We used two separate research methods to solve the two separate research objectives proposed
The study examined a theoretical model proposing that empathy, through perspective taking and empathic concern, influences social entrepreneurial intention It found that prosocial behavior mediates this relationship, while opportunity evaluation and exploitation serve as moderating factors in the empathy-intention connection.
We utilized established scales to assess key constructs in our study Cognitive empathy, measured through three items, and emotional empathy, assessed with four items, were based on Wieseke et al (2012) Prosocial behavior was evaluated using nine items from Padilla-Walker & Fraser (2014) Opportunity evaluation was measured with seven items adapted from Keh et al (2002), while opportunity exploitation was assessed using three items from Grichnik et al (2010) Additionally, social entrepreneurial intention was gauged with three statements following Hockerts (2015) All measures, except for opportunity exploitation rated on an 11-point Likert scale (0% to 91-100%), employed 7-point Likert scales (1 = strongly disagree, 7 = strongly agree) Control variables such as age, gender, and education level were also included in the analysis.
Our study focused on undergraduate and postgraduate students majoring in Entrepreneurship and Business at a prominent public university in a metropolitan city in Vietnam, as well as members of the Vietnam Association of Management and Entrepreneurship interested in launching new ventures This sampling approach aligns with previous research on social entrepreneurship, which often utilizes student samples to investigate entrepreneurial intentions.
The original English survey questionnaire underwent a meticulous translation process into Vietnamese, followed by a reverse translation into English (Brislin et al., 1973) Two bilingual academics collaborated to compare and discuss both versions, ensuring accurate wording and conceptual equivalence After finalizing the survey items, in-depth interviews were conducted with ten business students specializing in Entrepreneurship Management to evaluate the questionnaire's understandability, clarity, relevance, and overall structure Data for the main survey was collected using an onsite interview method.
Step 1 The original English survey questionnaire was translated into Vietnames Step 2 The two bilingual academics then compared and discussed the two translated versions
The study 2 tested hypotheses of perceived entrepreneurial passion types have a differential impact on employees’ creativity via creative process
We used the the scale on entrepreneurs’ self-reported passion (Cardon, Stevens & Gregoire, 2009) to assess about the entrepreneurs’ passion of employees’ perception
The study explored the impact of passion on creativity, focusing on inventing, founding, and developing Engagement in the creative process was assessed using an 11-item scale from Amabile (1983) and Reiter Palmon and Illies (2004) Employee creativity was evaluated through a 13-item measure adapted from Zhou and George (2001), utilizing a five-point scale from “not at all characteristic” to “very characteristic.” Mindfulness was assessed based on the framework established by Brown and Ryan.
(2003) with 15 items We also used control variables such as age, gender, and education level
We collaborated with the Business Startup Support Centre and the Vietnam Social Entrepreneurship Association to engage with social businesses To ensure the questionnaire's relevance and clarity, we conducted in-depth interviews with three social entrepreneurs and seven employees directly involved with the ventures Additionally, we partnered with a research company to oversee and manage the entire data collection process.
Step 1 The original English survey questionnaire was translated into Vietnames Step 2 The two bilingual academics then compared and discussed the two translated versions
Step 4 Dyads of employees and supervisors or founders were sampled to fill out our survey (A professional research company was employed to monitor and manage the entire data collection process)
Contributions
This study enhances the existing literature on social entrepreneurship by integrating and expanding upon previous research It introduces a cognitive-affect model of social entrepreneurship, exploring the relationship between cognitive empathy, affective empathy, and social entrepreneurship intentions Additionally, it investigates the creative implications of entrepreneurship passion, characterized as an intense emotional state that influences cognitive and behavioral outcomes of significant personal value.
In Study 1, we explore the connection between empathy and social entrepreneurial intention, addressing a critical yet often overlooked area in social entrepreneurship research Our cognitive-affect model reveals that perspective taking and empathic concern are significant motivators of prosocial behavior, which subsequently enhances social entrepreneurial intention Additionally, we discover that opportunity evaluation and opportunity exploitation play a moderating role in the relationship between empathy and social entrepreneurial intention through prosocial behavior.
In Study 2, we expand existing research by showing that entrepreneurial passion enhances employee creativity through increased engagement in the creative process Our findings highlight the importance of mindfulness in fostering creativity, aligning with previous studies that confirm its effectiveness (Ostafin & Kassman, 2012; Agnoli et al., 2018; Lebuda et al., 2016) Furthermore, while mindfulness and entrepreneurial passion are widely embraced in various companies (Levin, 2017; Deeb, 2015), our research offers specific guidelines for management to effectively implement these concepts to boost creativity within their organizations.
Thesis structure
Chapter 1 – Introduction In this chapter, research problems, existing gaps, overall review, research methods and contributions are presented The thesis has two separate research objectives which are solved by two corresponding research methods
Chapter 2 – Study 1 is introduced with the title “When Giving is Good for Encouraging Social Entrepreneurship” The paper of the study 1 published in Australasian Marketing Journal Chapter 3 – Study 2 is introduced with the title “Improving Employee Creativity Through Entrepreneurial Passion and Mindfulness: An Insight from the Broaden-and- Build Theory” The latest revision of the study 2 that is submitted for the Australasian Marketing Journal (under review)
Chapter 4 – Conclusion In this section, key conclusions of the research are presented
At the end of this Chapter 4, some limitations and future research directions are introduced.
STUDY 1
Introduction
Empathy plays a crucial role in social entrepreneurship, as highlighted by various academic studies (Mair & Noboa, 2006; Short, Moss & Lumpkin, 2009; Hockerts, 2017; Pangriya, 2019) Defined as the ability to understand and share the feelings of others, empathy encompasses both cognitive and emotional dimensions (Hockerts, 2017) Social entrepreneurial behavior involves identifying opportunities to create social impact, balancing market and nonmarket dynamics (Hockerts, 2017) Consequently, researchers are increasingly motivated to explore the direct causal relationship between empathy and social entrepreneurial intention.
2017; Ip et al., 2017; Lacap et al., 2018; Aure, 2018) Yet, research has left a fundamental question unanswered: through which mechanisms empathy is related to social entrepreneurial intention
This study aims to explore how empathy influences social entrepreneurial intention through two key mechanisms based on altruistic motivation theory and the theory of planned behavior We propose that prosocial behavior serves as a crucial mediator in the relationship between empathy and social entrepreneurial intention, with prosocial behavior defined as voluntary actions aimed at benefiting others.
Prosocial behavior, defined as actions performed to benefit others rather than oneself, has been extensively studied in relation to empathy, which is recognized as a crucial emotional driver for helping behavior (Twenge et al., 2007; Penner et al., 2005; Rameson et al., 2011) Existing literature primarily explores the circumstances under which individuals engage in helping behaviors and the motivations behind them This study aims to expand the understanding of prosocial behavior by investigating its mediating role in how empathy influences social entrepreneurship.
This study highlights the moderating role of entrepreneurial opportunity evaluation and exploitation in the mediating pathway to social entrepreneurship We assert that effective evaluation and exploitation of opportunities foster the necessary conditions for individuals to engage in social entrepreneurship.
A person also might choose to become a social entrepreneur although with a minimum level of empathy and prosocial behavior after facing a particular social problem (Mair
Existing literature lacks insights on how opportunity evaluation and exploitation influence the development of social entrepreneurship We propose that these processes foster conditions that encourage empathy and prosocial behavior, motivating individuals to participate in social entrepreneurship.
This article reviews literature on empathy, prosocial behavior, and opportunity evaluation, examining their connection to social entrepreneurship intentions It develops research hypotheses and outlines the methods and results of testing a theoretical model The paper concludes with implications of the findings and offers recommendations for future research.
Literature review and research hypotheses
2.2.1 Empathy, prosocial behavior, and social entrepreneurship intention
Empathy is a crucial psychological trait defined as the ability to understand and share the thoughts and feelings of others (Wieseke, Geigenmüller & Kraus, 2012) It encompasses both cognitive and emotional dimensions (Davis, 1983; Bettencourt et al., 2001), with cognitive empathy, or perspective taking, allowing individuals to grasp how others think and behave In contrast, emotional empathy, or empathic concern, involves an emotional response to others' experiences, fostering feelings such as compassion and sympathy (Eisenberg, Spinrad & Sadovsky, 2006; Wieseke, Geigenmüller & Kraus, 2012) Together, these components promote altruistic behaviors by helping individuals recognize others' needs and express care for their well-being (Nguyen, Tran).
Research supports the altruistic motivation theory, highlighting that empathy is crucial for prompting individuals to take action for others, with those exhibiting higher empathy more likely to engage in prosocial behaviors (Prot et al., 2014) Defined as voluntary actions aimed at benefiting others (Eisenberg, Spinrad & Sadovsky, 2006; Mestre et al., 2019), prosocial behavior varies in target, motivation (egoistic or altruistic), level of analysis (interpersonal or organizational), and resource demands (Carlo & Randall, 2002; Penner et al., 2005; Padilla-Walker & Fraser, 2014) Literature consistently identifies empathy as a strong predictor of diverse prosocial behaviors (Smith 2010; Eisenberg & Spinrad, 2014; Van Noorden et al., 2015; Mestre et al., 2019) Penner et al (2005) suggest that empathic arousal and emotional responses play significant roles in motivating interpersonal helping, emphasizing the importance of emotions like empathic concern in fostering altruistic actions Both cognitive and emotional empathy have been shown to facilitate prosocial behaviors (Hoffman, 2000; Mestre, 2014; Mestre et al., 2019).
Empirical research consistently demonstrates a positive relationship between empathic concern and prosocial behavior across various contexts, including longitudinal studies of adolescents However, findings on the connection between perspective taking and prosocial behavior are mixed, with some studies indicating an insignificant relationship while others show significance or suggest an indirect impact through empathic concern This inconsistency highlights the need for further investigation into the roles of cognitive and emotional empathy in promoting prosocial behavior Previous studies suggest that individuals proficient in perspective taking are better equipped to assist others, while those with high empathic concern are more inclined to help alleviate others' distress.
Hypothesis 1: Cognitive empathy relates positively to prosocial behavior
Hypothesis 2: Emotional empathy relates positively to prosocial behavior
Empathy is essential for socially directed behaviors and is crucial for forming intentions in social entrepreneurship (Mair & Noboa, 2006; Miller et al., 2012; Forster & Grichnik, 2013; Pangriya, 2019) Although social entrepreneurship (SE) has been a significant area of academic research for over twenty years, it is still in its early stages (Short, Moss & Lumpkin, 2009; Miller et al., 2012; Hockerts, 2017) The literature lacks a unified definition of SE, but Mair and Marti’s (2006) broad definition has been emphasized for management scholars, framing SE as a vital concept in the field (Short, Moss & Lumpkin, 2009).
Social entrepreneurship (SE) is a process that creates value by innovatively combining resources to address social needs and stimulate social change Unlike traditional entrepreneurship, SE focuses more on generating social value alongside economic benefits Understanding the factors that influence social entrepreneurial intentions (SEI)—the belief and desire to start a social business—is crucial for policymakers and educators aiming to encourage greater participation in social entrepreneurship.
Mair and Noboa (2006) introduced a Social Entrepreneurial Intention (SEI) model based on the theory of planned behavior and the entrepreneurial event model, asserting that the intention to establish a social business arises from perceived desirability influenced by cognitive-emotional factors like moral judgment and empathy, alongside perceived feasibility supported by self-efficacy and social support Hockerts (2017) revised this model by incorporating prior experience with social issues as a precursor to SEI while removing perceived desirability and feasibility, proposing that the relationship between prior experience and SEI is mediated by empathy, moral judgment, self-efficacy, and social support However, empirical evidence regarding empathy's role in forming SEI remains inconsistent, as it shows a positive impact on corporate volunteering intentions.
Research indicates that empathy plays a crucial role in fostering social entrepreneurial intentions (SEI), yet findings remain inconsistent across different contexts While Hockerts (2017) showed mixed results among student samples, Ip et al (2017) confirmed empathy's significance for Hong Kong university students Conversely, Lacap et al (2018) found no such relationship among Filipino and Indonesian students Despite empathy being recognized as a key driver for social ventures, facilitating social value creation (Kraus et al., 2014) and community impact (Drayton, 2002), the mechanisms through which it influences engagement in social entrepreneurship are still not well understood (Bacq & Alt, 2018), contributing to the variability in empirical results.
Empathy is a defining characteristic of social entrepreneurs, setting the Social Entrepreneurial Intention (SEI) model apart from traditional entrepreneurial frameworks (Tiwari, Bhat & Tikoria, 2017; Bacq & Alt, 2018; Pangriya, 2019) While empathy is necessary for social entrepreneurship, it is not sufficient on its own, as not everyone with an empathic disposition becomes a social entrepreneur (Mair, Robinson & Hockerts, 2006; Ernst, 2011; Tiwari, Bhat & Tikoria, 2017) Research on personality traits does not significantly support individuals seeking to engage in social entrepreneurship (Hockerts, 2017), indicating that empathy, as a prosocial trait (Nga & Shamuganathan, 2010), may not directly affect SEI (Ip et al., 2018; Peng & Liang, 2019; Pangriya, 2019; Ahuja, Akhtar & Wali, 2019) Instead, other manipulable factors are needed to understand this influence Empathy has been linked to prosocial behavior, which aligns with the motivations driving SEI (Ruskin et al., 2016) Smith (2010) adapted the empathy-altruism-prosocial behavior model to explore why potential social entrepreneurs take action; however, equating prosocial behavior with SEI as parallel constructs may not be entirely accurate.
This article proposes that prosocial behavior mediates the relationship between empathy and social entrepreneurship intention (SEI) It asserts that individuals with higher empathy levels are more inclined to engage in prosocial actions, which in turn increases their likelihood of establishing social ventures While previous research supports the connection between empathy and prosocial behavior, the direct link between prosocial actions and SEI has been less explored Studies indicate that prosocial behaviors, such as volunteering and cooperation, aim to enhance societal well-being Furthermore, engaging in prosocial activities can benefit adolescents by improving their social skills and fostering positive attitudes toward community involvement Additionally, experiences in philanthropy and activism may enhance the desirability and feasibility of social entrepreneurship Ultimately, individuals who act prosocially are expected to develop a positive attitude towards social entrepreneurship, leading them to pursue social entrepreneurial endeavors.
Hypothesis 3: Prosocial behavior effects positively to social entrepreneurial intention
Hypothesis 4: Prosocial behavior mediates the effect of cognitive empathy on social entrepreneurial intention
Hypothesis 5: Prosocial behavior mediates the effect of emotional empathy on social entrepreneurial intention
2.2.2 Social entrepreneurial opportunity evaluation and exploitation
Mair and Noboa (2006) suggest that individuals with low empathy and prosocial behavior may still pursue social entrepreneurship upon identifying unmet social issues as opportunities While evaluating new ideas and resource allocation is crucial for entrepreneurial success (Grichnik, Smeja & Welpe, 2010), there is limited research on how social entrepreneurs assess and leverage social opportunities, as well as the connection between opportunity evaluation and exploitation in social entrepreneurial initiatives (Mair & Marti, 2006).
The social entrepreneurship (SE) process consists of three interconnected phases: discovery, evaluation, and exploitation of new opportunities (Haynie & Shepherd, 2009) It begins with recognizing a social opportunity (Tiwari, Bhat & Tikoria, 2017), and the decision to create a new business hinges on assessing the opportunity's attractiveness This evaluation process informs the timing and methods for exploitation (Shane & Venkataraman, 2000) According to Haynie and Shepherd (2009), opportunity evaluation is a forward-looking cognitive process that considers the potential outcomes of exploiting the opportunity, taking into account the necessary existing and future resources.
Wood and McKelvie (2015) define the evaluation of entrepreneurial opportunities as individuals' judgments and beliefs about how external stimuli relate to a personally desirable future Key factors influencing this evaluation include perceived risk, potential profit, and success probability (Forlani & Mullins, 2000; Shane & Venkataraman, 2000) Welpe et al (2012) demonstrate that cognitive evaluation processes significantly impact an individual's decision to pursue entrepreneurship Consequently, we hypothesize that variations in opportunity evaluation will affect the influence of prosocial behavior on social entrepreneurial intentions (SEI), with increased opportunity evaluation enhancing the positive effects of prosocial behavior, and decreased evaluation leading to negative moderation.
Hypothesis 6: Opportunity evaluation moderates the effect of prosocial behavior on social entrepreneurial intention
Potential entrepreneurs must evaluate how to allocate their personal resources, such as human and financial capital, to effectively seize opportunities (Shane, 2003) This process of opportunity exploitation involves making decisive actions and strategic decisions regarding the investment of these resources to create new products, services, or ventures, all while navigating inherent risks (Grichnik, Smeja & Welpe, 2010; Wood & McKelvie).
Access to entrepreneurial capital is vital for launching a start-up, but making informed resource allocation decisions significantly enhances the chances of successfully exploiting opportunities, which is the final and most challenging step in the entrepreneurial process.
According to Amirsardari and Martiz (2015), entrepreneurial intentions are cultivated when individuals engage in entrepreneurial actions like opportunity exploitation Therefore, we hypothesize that an increase or decrease in opportunity exploitation will enhance or diminish the impact of prosocial behavior on Social Entrepreneurial Intent (SEI), depending on whether the moderation is positive or negative.
Hypothesis 7: Opportunity exploitation moderates the effect of prosocial behavior on social entrepreneurial intention
Research methods
To assess the focal constructs, we utilized established scales, measuring cognitive empathy through three items and emotional empathy with four items, following the methodology of Wieseke, Geigenmüller, and Kraus (2012) Additionally, prosocial behavior was evaluated using nine items adapted from Padilla-Walker and Fraser.
In this study, we assessed opportunity exploitation using three items from Grichnik, Smeja, and Welpe (2010) and evaluated opportunities through a short case study, as previously employed by Keh, Foo, and Lim (2002) The case study included seven items to capture the complexities involved in business venture decisions To measure social entrepreneurial intention, we adopted a three-item scale from Hockerts (2015) Opportunity exploitation was rated on an 11-point Likert scale, while other measures utilized 7-point Likert scales Additionally, we controlled for age, gender, and education level The original English survey was translated into Vietnamese and back-translated to ensure accuracy, followed by discussions between two bilingual academics to maintain conceptual equivalence Finally, in-depth interviews with ten business students were conducted to evaluate the questionnaire's clarity, relevance, and overall structure.
We conducted a study involving aspiring entrepreneurs who attended a one-day workshop on starting a business, co-hosted by the Association of Management and Entrepreneurship and a leading public university in Vietnam's business and economics sector A team of trained research assistants administered an on-site survey to gather data from the participants.
615 participants who registered for the workshop Finally, we had 537 full filling responses of who started new venture or had entrepreneurship intention We received
The survey yielded 537 valid responses, with a gender distribution of 42.5% male and 57.5% female participants Educationally, 55.3% of respondents held undergraduate degrees, while 44.1% had postgraduate qualifications The majority of participants, accounting for 64.8%, were aged between 23 and 29 years Additional details regarding the survey respondents can be found in Table 2.1.
Table 2.1 Demographic characteristics of respondents (nS7)
Results
In our investigation of common bias effects that can lead to spurious relationships among variables, we utilized the marker-variable technique, focusing on SMAR1—respondents' confidence in using Microsoft Word—as the marker variable, which is theoretically unrelated to the main constructs of our proposed model The findings revealed an average absolute correlation of rm = 0.08 (p = 0.17) between the marker variable and other constructs Additionally, the average difference between the original and CMV-adjusted correlations was merely 0.07, indicating that common method bias was not present, as none of the original correlations significantly differed from their CMV-adjusted counterparts.
2.4.2 Psychometric assessment of focal constructs
We employed variance-based structural equation modeling (SEM) to assess the psychometric properties of key constructs, following the methodology outlined by Sarstedt et al (2019) The findings, detailed in Table 2.3, confirmed that the study's measures achieved both convergent and discriminant validity Notably, all factor loadings for the focal constructs were significant, falling between 0.64 and 0.87, surpassing the recommended cut-off value of 0.5 established by Hair et al (1998) Additionally, all composite reliability scores exceeded the acceptable threshold of 0.7, with values ranging from 0.76 to 0.94, as indicated by Nunnally and Bernstein.
The correlations between the main constructs ranged from 0.07 to 0.39, all of which were lower than the squared roots of the average variance extracted (AVE) values, which ranged from 0.72 to 0.83 Additionally, the Variance Inflation Factor (VIF) values for these correlations were significantly below the recommended threshold of 10, indicating that there is no evidence of multicollinearity.
Table 2.2 Construct means, standard deviations, and correlations
6 Social entrepreneurial intention 4.47 0.72 0.12 0.20 0.39 0.36 0.39 0.74 Note All correlations coefficients (off diagonal) are significant Bold diagonal entries show the square roots of the average variances extracted (AVE)
Table 2.3 Measurement model and results
Constructs and manifest variables Loadings
Cognitive empathy / Perspective taking, AVE = 56, CR = 79, 7-point scale (1=strongly disagree, 7=strongly agree)
1 I try to look at everybody’s side of a disagreement before I make a decision 0.74
2 When I am upset at someone, I usually try to ‘‘put myself in their shoes” 0.80
3 I believe that there are two sides to every question and try to look at them both 0.70
Emotional empathy / Empathic concern, AVE = 61, CR = 86, 7-point scale (1=strongly disagree, 7=strongly agree)
1 I would describe myself as a pretty soft-hearted person 0.64
2 If someone is unhappy, I quickly realize this, even if I do not know the person well 0.87
3 Other people’s misfortunes usually disturb me a great deal 0.77
4 I often have tender, concerned feelings for people less fortunate than me 0.83 Prosocial behavior, AVE=0.57, CR=.92, 7-point (1=not like me at all, 7= very much like me)
1 I help other people I don’t know, even if it is not easy for me 0.81
2 I really enjoy doing small favors for people I do not know 0.69
3 I try to cheer up people who seem sad, even if I do not know them 0.74
5 I help other people at work 0.66
6 I volunteer in programs to help others in need (like food drives or service groups) 0.65
7 I am involved in service at my workplace 0.81
8 I enjoy being kind to others, even if I do not know them 0.82
9 I watch out for other people at work, even if I do not know them 0.81
Opportunity evaluation, AVE = 68, CR = 94, 7-point scale (1=strongly disagree, 7=strongly agree)
1 The overall risk of the business is high 0.82
2 The probability of failure is high 0.80
3 The founder stands to lose a lot financially 0.79
4 There is a lot uncertainty when predicting how well the business will do 0.83
5 I will consider this business an opportunity 0.84
6 This business is worth considering 0.86
7 This business is feasible given the situation 0.83
Opportunity exploitation, AVE=.52, CR=.76, 11-point scale (0= 0%, 10-100%)
1 On what percentage of your own savings (1 billion VND 0%) would you be willing to invest in an increase in capital of a new business venture
2 On what percentage of a potential loan (1 billion VND 0%) would you be willing to invest in an increase in capital of a new business venture
3 What percentage of leisure time (4 hours = 100%) would you be willing to give up in order to exploit the new product innovation
Social entrepreneurial intention, AVE=.55, CR=.79, 7-point scale (1=strongly disagree, 7=strongly agree)
1 I expect that at some point in the future I will be involved in launching an organization that aims to solve social problems
2 I have a preliminary idea for a social enterprise on which I plan to act in the future 0.70
3 I do plan to start a social enterprise 0.78
Note AVE = average variance extracted; CR = composite reliability
The hypotheses were evaluated using the Baron and Kenny (1986) method across Model 1, Model 2, and the Full Model, as detailed in Table 2.4 Results indicated that both cognitive empathy (Model 1: β = 0.09, t-value = 1.98) and emotional empathy (Model 1: β = 0.18, t-value = 3.90) significantly enhance Social Emotional Intelligence (SEI) Furthermore, in Model 2, cognitive empathy (β = 0.17, t-value = 3.47) and emotional empathy (β = 0.35) continued to show a positive impact on SEI.
The study found that prosocial behavior significantly influenced social emotional intelligence (SEI), supporting Hypotheses 1, 2, and 3 Specifically, prosocial behavior had a positive effect on SEI (β = 0.36, t-value = 8.77) However, when prosocial behavior was included in the model, the effects of cognitive empathy (β = 0.03, t-value = 0.61) and emotional empathy (β = 0.05, t-value = 1.01) on SEI became insignificant This indicates that prosocial behavior fully mediates the relationship between cognitive and emotional empathy and SEI, thereby supporting Hypotheses 4 and 5.
The Full Model was designed to examine how opportunity evaluation and opportunity exploitation moderate the relationship between prosocial behavior and Social Entrepreneurial Intention (SEI) Results indicated that both opportunity evaluation (β = 0.27, t-value = 7.46) and opportunity exploitation (β = 0.34, t-value = 10.94) positively influence SEI Additionally, significant interaction effects were observed between prosocial behavior and opportunity evaluation (β = 0.17, t-value = 5.38) as well as between prosocial behavior and opportunity exploitation (β = 0.15, t-value = 4.81), thereby supporting Hypotheses 6 and 7.
Note: PB=Prosocial Behavior; OEV=Opportunity Evaluation; OEX=Opportunity Exploitation; SEI=Social Entrepreneurship Intention; ** p < 0.01, * p < 0.05
We validated the moderated mediation effects using the bootstrapping bias-corrected confidence interval procedure with the SPSS macro PROCESS, as outlined by Preacher & Hayes (2008) and Hayes et al (2017) This method employed OLS path analysis to estimate model coefficients, setting a 95% confidence interval and utilizing 5,000 bootstrap resamples The results of the path analysis, detailed in Tables 2.5 and 2.6, highlighted cognitive empathy and emotional empathy as the primary independent variables The findings indicated significant indirect effects of cognitive empathy (ab=0.06, p < 05; 95%).
The study revealed significant mediation effects of prosocial behavior on social emotional intelligence (SEI), with cognitive empathy (ab=0.0304, p < 05; 95% CI [0.0304, 0.0953]) and emotional empathy (ab=0.09, p < 05; 95% CI [0.0601, 0.1179]) Additionally, opportunity evaluation was found to moderate the influence of prosocial behavior on SEI, particularly in the cognitive empathy pathway (β=0.13, p < 05).
The study revealed a significant moderation effect of opportunity exploitation on the relationship between prosocial behavior and social emotional intelligence (SEI) Specifically, for cognitive empathy, the path coefficient was β=0.09 (p < 05; 95% CI [0.0610, 0.1210]), while for emotional empathy, the path coefficient was also β=0.09 (p < 05; 95% CI [0.0605, 0.1206]).
Table 2.5 Path analysis results with cognitive empathy a
Main effects Prosocial behavior Social entrepreneurship intention
Indirect effects Estimates LLCI UCLI
Cognitive empathy → Social entrepreneurship intention
Note a NS7, LLCI=lower level of the 95% confidence interval; UCLI=upper level of the 95% confidence interval The model was estimated simultaneously * p < 05; ** p < 01
Table 2.6 Path analysis results with emotional empathy a
Main effects Prosocial behavior Social entrepreneurship intention
Indirect effects Estimates LLCI UCLI
Emotional empathy → Social entrepreneurship intention
Note a NS7, LLCI=lower level of the 95% confidence interval; UCLI=upper level of the 95% confidence interval The model was estimated simultaneously
The results for Hypotheses 6 and 7 are illustrated in Figures 2.2 and 2.3, which depict the interaction effects as recommended by Aiken and West (1991), Dawson and Richter (2006), and Dawson (2014) Figure 2.2 demonstrates the interaction effect between prosocial behavior and opportunity evaluation on SEI, while Figure 2.3 presents the interaction of prosocial behavior and opportunity exploitation on SEI.
Figure 2.2 Interaction of prosocial behavior and opportunity evaluation on social entrepreneurship intention
Figure 2.3 Interaction of prosocial behavior and opportunity exploitation on social entrepreneurship intention
Low Prosocial Behavior High Prosocial Behavior
Low Prosocial Behavior High Prosocial Behavior
LowOpportunityExploitationHighOpportunityExploitation
Discussion and conclusion
This research explores the relationship between empathy and social entrepreneurial intention, addressing a crucial yet under-explored area in social entrepreneurship literature Our study introduces and empirically tests a cognitive-affect model, revealing that both perspective taking and empathic concern are vital drivers of prosocial behavior, which positively impacts social entrepreneurial intention Additionally, we find that opportunity evaluation and exploitation moderate the influence of empathy on social entrepreneurial intention through prosocial behavior This study enriches the existing social entrepreneurship literature by emphasizing the importance of integrating cognitive and emotional aspects of empathy in prosocial decision-making and is the first to investigate empathy's effect on prosocial behavior within an entrepreneurial context.
Our research enhances existing theories by emphasizing the critical role of prosocial behavior as a mechanism that connects perspective-taking and empathic concern to intentions in social entrepreneurship We clarify the significance of prosocial behavior in the empathy-intention relationship by demonstrating its mediating function Building on the work of Mair and Noboa (2006) and Hockerts (2017), we reveal that prosocial behavior transforms both cognitive and emotional empathy into intentions for social entrepreneurship.
Our study pioneers the exploration of empathy in social entrepreneurship by examining its influence not only on social entrepreneurial intention but also on opportunity evaluation and exploitation, which are critical yet often overlooked factors We hypothesize that the impact of empathy on social entrepreneurial intention, mediated by prosocial behavior, is amplified by higher levels of opportunity evaluation and exploitation This suggests that individuals are more likely to pursue social entrepreneurial intentions when they possess empathy and prosocial behavior, particularly when they positively assess and intend to capitalize on new business opportunities.
Our research highlights key managerial implications for business leaders, policymakers, and entrepreneurship educators It emphasizes the critical importance of understanding others' thoughts and feelings in identifying and nurturing promising social entrepreneurs To foster effective social entrepreneurship, it is essential for business leaders to provide opportunities for employees to enhance their skills in empathy and perspective-taking, enabling them to better connect with and respond to customer needs.
Managers should recognize that prosocial behavior plays a crucial role in linking empathy to social entrepreneurial intention, highlighting the need for targeted training programs to enhance this behavior Companies that prioritize entrepreneurial and socially responsible employees must emphasize cooperative values and norms To nurture a prosocial mindset, firms should implement both financial and non-financial initiatives that encourage employees to consider collective goals and prioritize the well-being of their teams.
Managers should recognize that opportunity contingencies significantly influence how prosocial behavior impacts social entrepreneurial intention, particularly through opportunity evaluation and exploitation The relationship between prosocial behavior and social entrepreneurial intention is enhanced when both evaluation and exploitation are high When individuals perceive a favorable outlook on the potential outcomes of seizing an opportunity, they are more inclined to pursue social business ventures Additionally, the findings highlight the importance of not only evaluating opportunities but also actively pursuing them through decisive actions, such as resource allocation for product development Effective resource allocation that considers the likelihood of successful opportunity exploitation creates a conducive environment for fostering social entrepreneurial intention.
The current study has several limitations that should be acknowledged Firstly, due to its cross-sectional design, we cannot draw conclusions about the causal relationships among the observed variables Nonetheless, we believe that our theoretical framework, empirical tests, and measures taken to mitigate common method bias support the validity of our findings Secondly, the study's focus on undergraduate and postgraduate students restricts the generalizability of the results; future research could extend this framework to include working adults Lastly, further investigations could deepen our understanding of empathy's indirect effects by exploring additional employee attitudes and behaviors.