Social Enterprises’ Social Orientation: The Impact on the Organizational Commitment of Employees

Abstract

This study investigates the relationship between social enterprises’ social orientation and the organizational commitment of their employees. The study also examines differences in organizational commitment between Millennial social enterprise employees and social enterprise employees of earlier generations. The findings from the study indicate that a social enterprise’s pursuit of social purpose, shared decision- making, and social performance are all positively associated with the organizational commitment of its employees. Additionally, the findings suggest that, in general, Millennials have a lower level of organizational commitment to their social enterprise employer than do earlier generations. Indeed, the organizational commitment of Millennials, we find, is primarily (and significantly) influenced only by shared decision-making. These findings contribute to the literature on social enterprise as well as to the literature on organizational commitment by providing insight into unseen aspects of social enterprise management from the perspective of employees. From a practical standpoint, these findings provide social entrepreneurs and managers of social enterprises with practical guidance on how to improve their employees’ organizational commitment.