How Institutional Environment and Cultural, and Values Impact on Social Entrepreneurship Intention in Pakistan : The Role of Desirability, and Feasibility

The influence of the external environment on the individual, the process, and the organization has only received little attention in the social entrepreneurship (SE) literature. In particular, the role of quality of governance institutions, as well as the local culture and values play in enabling SE intention is yet to be seen. This study aims to explore the combined impact of institutional, cultural factors, and values on SE intentions in a mediated structural framework. For this, we propose a theoretical framework, modifying the Urban & Kujinga (2017) model to incorporate cultural factors and values. We argue that Institutional environments, comprising of three principal components, 1. The regulative, 2. Normative, and 3. Cognitive pillars, along with Hofstede’s (1980) cultural dimensions including power distance (PDI), Uncertainty Avoidance (UAI), Collectivism, and Masculinity, as well as Inglehart’s (1997) cultural dimensions of Traditional Rational Values (TSRV), and Survival Values (SSE), increase the Desirability and Feasibility of SE. These factors would in turn affect SE intentions. Empirical validity was established by conducting a survey using a close-ended questionnaire. Data were collected from 160 social entrepreneurs and analyzed using confirmatory factor analysis and structured equation modeling. The results suggested that a regulative environment, Traditional Rational Values, and Uncertainty Avoidance, seem to have a positive and significant impact on feasibility. Feasibility in turn seems to be affecting Social Entrepreneur Intentions positively. Hence, feasibility positively mediates the effect of regulative environment, TSRV, and UAI in SE intentions. On the other hand, Power distance seems to affect desirability but negatively. The effect of other factors remained inconclusive. The study has important implications for educators and policymakers who can influence the formation and development of social entrepreneurship intentions