Learning with the market

Purpose Although the generation of social value is the focus of social entrepreneurship, little research attention is paid on how social value and transformation can be created. By adopting a market approach, this study aims to develop a framework showing how social enterprises in tourism/hospitality can generate social value and transformation. Design/methodology/approach A thorough literature review revealed that a market approach is an appropriate lens for understanding social entrepreneurship. Consequently, a framework based on “learning with the market” is proposed as a useful tool for identifying, managing and also creating (new) opportunities for social ventures. The justification and the theoretical underpinnings of the market-based framework are further supported by discussing various other theories and concepts. Findings The framework identifies three capabilities that social entrepreneurs need to develop for generating social value and transformation: network structure, market practices and market pictures. Several examples from tourism and hospitality social enterprises are analyzed for showing the applicability and usefulness of the framework. Research limitations/implications The paper proposes a conceptual framework as well as several research directions for further testing, refining and expanding it. Practical implications By applying the framework on several tourism and hospitality social enterprises, the paper provides practical implications about the capabilities that social enterprises should develop for engaging with other market actors to identify and exploit (new) market opportunities for social value co-creation, and influence market plasticity for forming new markets and driving social change. Social implications The suggested framework identifies the capabilities and the ways in which (tourism/hospitality) social enterprises can engage with and form markets for co-creating social value and escalating their social impacts through social transformation. Originality/value The paper provides a new marketing approach (that overcomes the limitations of traditional economic theories) for understanding how social enterprises can shape, manage and engage with social markets for generating social value.