Abstract
Based on the literature on social enterprises (SEs), this chapter aims to portray the internationalization of social enterprises by analyzing existing knowledge on the subject. To do so, a literature review addressed the steps and procedures required in the process: the drivers, main models and theories, scaling strategies, market selection decisions, among others. It was possible to conclude that SEs' internationalization is multifaceted, still at a growing stage, and needs to be addressed from several social perspectives.
TopSocial Enterprises
As previously mentioned, the internationalization of social enterprises “has gained limited attention in academia and empirical studies have been few” (Färdig & Håkansson, 2014, p.2). Hence, research specifically focusing on the internationalization of SEs is sparse (Alon et al., 2020).
Key Terms in this Chapter
Internationalization Process: A company’s trajectory in its transition from a national market to a particular foreign market. It normally involves several entry modes (exports, FDI, franchising, etc.) that have a critical influence on the subsequent trajectory, as well as on costs related to the internationalization process. The two most important theories explaining the internationalization process are the Uppsala model and the network-based approach.
Social Enterprises: Defined as a business with specific social objectives aiming to serve a primary purpose. Social enterprises seek to maximize social and environmental benefits, rather than maximize profits. Their profits are principally used to fund social programs. They can be profit- and non-profit oriented.
Globalization: A worldwide movement toward economic, financial, trade and communications integration. It is normally envisaged as a lack of trade barriers between nations, which are removed through free trade agreements throughout the world and between nation states. It implies the opening of local and nationalistic perspectives to a broader outlook of an interconnected and interdependent world with free transfer of capital, goods, and services across national frontiers, in which investment opportunities soar.
Uppsala Model: One of the most discussed dynamic theories in the Nordic School and International Business Studies. It explains the process of companies’ internationalization. It explains how organizations learn and the impact of learning on companies’ international expansion. This theory defends that companies’ internationalization process is carried out in stages, from non-regular exports to the establishment of companies abroad.
Internationalization: The process of companies’ increasing involvement in international markets. It involves a strategy carried out by firms that decide to compete in foreign markets. It involves cross-border transactions of goods, services, or resources between two or more firms or organizations in two different countries.