This analysis reveals how causation and effectuation drive financial and social performance in social enterprises, suggesting synergistic benefits.
Purpose This study aims to explore how dual entrepreneurial logics – causation and effectuation – shape the hybrid performance of social enterprises (SEs) within nascent social entrepreneurship ecosystems. Design/methodology/approach Drawing on data from 155 SEs across Malaysia, Singapore and Vietnam, the research applies partial least squares structural equation modelling (PLS-SEM) and Importance-Performance Map Analysis (IPMA) to examine how these logics influence both financial and social outcomes. Findings The results reveal that effectuation enhances financial performance through adaptive strategies, while causation improves social performance via structured planning and accountability. Notably, financial performance significantly contributes to social outcomes, suggesting a reinforcing relationship rather than a trade-off. Originality/value These findings provide a decision-making framework for SEs operating in early-stage ecosystems, demonstrating how combining strategic foresight with entrepreneurial adaptability enables organisations to “flip the trade-off” and achieve integrated impact.
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Nguyen et al. (2025) studied this question.
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