Strategic responses of social enterprises to institutional pressures in China

ABSTRACT In China, the development of social enterprises based on Western concepts marked the entrance of an institutional innovation with strong institutional forces working against its survival. This study examines how social enterprises in China persisted in the face of high isomorphic pressures that urged their conformity with existing institutions Drawing on 41 surveys of social enterprises in China, we find that they survived by resisting negative institutional pressures while simultaneously conforming with others for increased legitimation. Thus, we extend existing theorization by testing an institutional innovation in a setting of strong isomorphic pressures with important implications for social enterprise stakeholders.