The effect of network capabilities, trust and pricing and selling capabilities on the impact of social enterprise

Abstract

Purpose The purpose of this paper is to analyze the effect of structural and relational network capabilities on trust, and its effect on pricing and selling capabilities, as well as their influence on the enterprise social impact. Design/methodology/approach An explanatory and cross-sectional design was conducted, and 100 managers of Mexican social enterprises were surveyed. Findings Network structural capability did not affect trust, nevertheless network relational capability did. Likewise, trust influenced pricing and selling capabilities, and these affected the enterprise social impact. Research limitations/implications Although a sufficient number of entrepreneurs participated by responding to the survey, the results cannot be generalized to all social enterprises in Mexico. Practical implications Social enterprises should capitalize on the development of network relational capability and network structural capability because it facilitates access to scarce resources and positioning of the enterprise to act more actively as an agent of change in its network. Social implications This research identifies the relevance for social enterprises to develop and capitalize on networking and marketing capabilities in their management routines and activities, as this can significantly enhance their social impact. Originality/value The main research contributions revealed the importance of dynamic capabilities and their effects on the impact of social enterprises.