Dual Logic Integration by Social Enterprises: Exploring the Challenges & Strategies of Scaling in Pakistan.

Abstract

Social Enterprise is a type of business venture with a hybrid business model that operates both as a nonprofit and as a for-profit entity. Social Enterprises face specific challenges on the verge to integrate dual logic i.e. social and commercial and it is particularly evident in the scaling process. By considering Scaling as a tool for enhancing the social impact rather than the mere generation of financial returns, this study explores the challenges social enterprises in Pakistan face in terms of scaling social impact in the context of hybrid organizations. How they design and implement scaling strategies to address these challenges. The study is classified as exploratory qualitative research since it analyzes and problematizes the startup to scale up the transition of social enterprises and it aims to look into it through the lens of institutional logic across a range of internal and external factors to better understand the scaling challenges and strategies of social enterprises’ considering the local realities and context of Pakistan into account. It tends to enrich the understanding of theoretical concepts with experiences from practice. The findings reveal that social enterprises face additional challenges than their counter-commercial enterprises while scaling up in Pakistan as the ecosystem here isn’t very sophisticated such as in terms of the regulatory framework, securing funding, getting investments, etc. Nevertheless, this study has shown how social mission and commercial sustainability can be successfully integrated by social enterprises in a challenging environment and how these hybrid firms can take advantage of competing logic strategically.