Leading for Organizational Impact: Navigating the Crossroads of Collaboration and Social Entrepreneurship ()
1. Introduction
In the rapidly evolving business and social impact landscape, collaborative leadership has emerged as a critical component of success, particularly within social enterprises (Archer & Cameron, 2009) . Social enterprise has become highly relevant in contemporary society due to its unique ability to address pressing social and environmental challenges (Santos, 2012) while nurturing economic sustainability (Sabella & Eid, 2016) . Traditional business models often fall short of providing holistic solutions in a world marked by increasing inequality, environmental degradation, competition for limited resources, and complex social issues. Social enterprising is an innovative approach combining entrepreneurial principles with a commitment to social impact, therefore creating a dual bottom line. It catalyzes positive change, allowing individuals and organizations to pursue meaningful, purpose-driven endeavors that contribute to societal well-being (Peredo & McLean, 2006) .
Leadership is crucial to the success and impact of social enterprise, because it plays a pivotal role in navigating the intricate dynamics of these organizations. Social enterprises require leaders who can inspire, collaborate, and strategically guide teams toward achieving both financial sustainability and social goals (Lee, 2022) . Effective leadership in social enterprise involves fostering a shared vision, building strong relationships with diverse partners, and navigating the delicate balance between profit and purpose (Mitzinneck & Besharov, 2019) .
Within the social enterprise market, leaders are expected to possess the agility to adapt to changing circumstances, have the empathy to understand the needs of the communities they serve, and possess the resilience to overcome challenges inherent in addressing societal issues (Hodges & Howieson, 2017) . Ultimately, leadership is the driving force that shapes the organizational culture, influences decision-making processes, and ensures that the mission of social enterprises aligns with their broader societal impact (Kickul & Lyons, 2020) .
The scarcity of models for entrepreneurial leadership is a notable gap in current research (Leitch & Harrison, 2018) . While there is a wealth of studies on general leadership principles and traditional entrepreneurial strategies, there is a lack of comprehensive models specifically tailored to the unique challenges and opportunities inherent to social entrepreneurial dynamics (Ilac, 2018) . Entrepreneurial leadership requires distinct skills, such as diplomacy, social sensitivity, and rapid adaptability, which traditional leadership models may not fully encompass (Harrison, Burnard, & Paul, 2018) . This scarcity of dedicated frameworks limits the guidance available to aspiring entrepreneurs and leaders in navigating the complexities of starting social ventures. Bridging this gap is crucial for fostering a deeper understanding of how entrepreneurial leadership operates, what practices are most effective, and how these leaders can drive innovation and sustainable growth in an ever-changing social landscape.
This paper aims to synthesize existing research and theoretical frameworks to explore the interplay between collaborative leadership and social enterprise. Exploring the interplay between collaborative leadership and social enterprise holds significant relevance in the contemporary landscape of organizational and societal development. Social enterprises, driven by a dual mission of financial sustainability and positive social impact, require innovative and adaptive leadership approaches to navigate the complexities they face. Collaborative leadership, which emphasizes multi-organizational decision-making and collective problem-solving, aligns closely with the values and objectives of social enterprises (Sullivan Mort, Weerawardena, & Carnegie, 2006) . Understanding how collaborative leadership shapes and is shaped by the challenges and opportunities within social enterprises is crucial for fostering effective leadership strategies in this unique context. Insights derived from such exploration can contribute not only to the success of individual social enterprises but also to the broader discourse on sustainable and socially responsible business practices, thus promoting positive societal change through collaborative and purpose-driven leadership paradigms.
2. Literature Review
This literature review explores the intersection of collaborative leadership and social enterprising, aiming to elucidate the key concepts, theories, and cases that underpin the relationship between effective leadership and the pursuit of social goals. It shows that effective collaborative forms of leadership play a crucial role in driving the quest for social value as it encompasses the ability to inspire and mobilize individuals and multiple supporting organizations towards a collective effort of positive change (Chrislip, 2002) . Leaders can build trust and credibility by championing transparency, accountability, and ethical conduct, which are essential for successful social initiatives (Ellis, 2010) . In other words, the relationship between collaborative leadership and the pursuit of social goals is symbiotic, as leaders who prioritize the well-being of their communities can drive meaningful, innovative, and sustainable change (Zaccaro & Horn, 2003) .
The more prevalent leadership models—albeit in various degrees—also seem somewhat apt for social enterprise’s unique challenges and objectives. For example, Transformational leaders inspire and motivate their teams by creating a compelling vision, fostering innovation, and encouraging personal growth. Transformational leadership can cultivate a sense of purpose and dedication among team members in social enterprises, where a shared commitment to a social mission is paramount (Hay, 2006) . Servant leaders prioritize the needs of others, emphasizing empathy, humility, and a commitment to serving the broader community (Eva et al., 2019) . In the context of social enterprises, where the focus is on societal impact, servant leadership can create a culture that places the well-being of stakeholders and the community at the forefront. Distributed leadership involves delegating decision-making and responsibilities across a team (Spillane, 2005) . This model is apt for social enterprises’ collaborative and diverse nature, where multiple stakeholders contribute to the organization’s success, and leadership is distributed based on expertise and context. Adaptive leaders excel in navigating change and uncertainty (DeRue, 2011) . Given the dynamic and evolving landscape of social enterprises, adaptive leadership helps address emerging challenges, seize opportunities, and ensure the organization’s resilience in the face of complex societal issues (DeRue, 2011) . Ethical leadership emphasizes values, integrity, and a commitment to ethical decision-making (Bull & Ridley-Duff, 2019) . In the socially conscious context of social enterprises, ethical leadership ensures that the organization maintains a strong moral compass, aligning actions with the mission and values while considering the broader impact on society. However, in practice, influential leaders of social enterprises often integrate aspects of multiple models to create an adaptive, inclusive leadership approach that is more contextual to the social mission (Smith, Gonin, & Besharov, 2013) .
Collaborative leadership stands out from other leadership models due to its unique emphasis on inclusive decision-making, shared responsibility, and promoting partnerships (Rubin, 2009) . Unlike other models, collaborative leadership actively involves members and partner organizations in the decision-making process, valuing their diverse perspectives, and optimizing the use of multiple resources (Archer & Cameron, 2009) . This approach places a premium on shared responsibility, distributing tasks among organizations to cultivate a sense of ownership and accountability (Clark, 2008) . Collaborative leadership places a strong focus on building and maintaining positive relationships, and fostering a cooperative and inclusive environment, especially when working with multiple external organizations in an environment without a single leader (Raelin, 2016) . While other leadership models may focus more on internal organizational dynamics, collaborative leadership uniquely prioritizes the power of collective efforts and shared contributions within and beyond its organizational boundaries (Linden, 2010) .
Since leadership is contextual (Bush, 2018; Oc, 2018) , collaborative leadership is relevant to social enterprises due to the intrinsic nature of socially oriented organizations, which often operate in complex, multi-stakeholder non-profit environments (Aray et al., 2023; Archer & Cameron, 2013) . In the sector of social enterprises, where pursuing financial sustainability, relationships with external entities, a quest for social impact that aligns with diverse interests, collaborative leadership rises above other models (Montgomery, Dacin, & Dacin, 2012) . Collaborative approaches facilitate the integration and coherency of diverse approaches and expertise (Kickul & Lyons, 2020) . The collaborative leadership framework, with its emphasis on inclusivity and cooperation within and among multiple organization services, thus emerges as a vital tool for navigating social enterprises toward success in their dual mission (Harrison, Burnard, & Paul, 2018) .
In general terms, social enterprising refers to applying traditional entrepreneurial principles to address social and environmental insufficiencies. It encompasses a spectrum of organizational models, but the distinctive attribute is emphasizing a social mission (Anderson et al., 2019; Littlewood & Khan, 2018) . Austin, Stevenson and Wei-Skillern (2006) observe that social enterprises aim to achieve a dual bottom line, that of balancing financial sustainability with a measurable social impact. Social enterprises face unique challenges, including resource constraints, conflicting partner organizational expectations, and complex regulatory environments. However, these challenges also present opportunities for cooperation and innovation. The work of Mair and Martí (2006) suggests that successful social enterprises leverage collaborative networks to amplify their impact and address systemic social privations.
The intersection of collaborative leadership and social enterprising is relevant due to the distinctive challenges and aspirations of networks committed to both economic viability and positive societal impact. Collaborative leadership principles, emphasizing collective decision-making and inclusive teamwork, align seamlessly with social enterprises’ complex, multi-stakeholder nature (Chrislip, 2002) . To address pressing collective and environmental issues, social enterprises require leaders who can navigate diverse and often conflicting interests, and build partnerships across multiple supporting organizations (Maak, 2007) . Research by Austin, Stevenson and Wei-Skillern (2006) contributes to the development of typologies for social enterprises, categorizing them based on their primary social and economic objectives. Furthermore, the emergence of hybrid organizations—entities that blend the pursuit of profit and social purpose—has further complicated the landscape, necessitating shared approaches (Battilana & Lee, 2014) . Leaders in social enterprises find themselves navigating the interests of diverse stakeholders, from investors and government services to community volunteers, requiring an emphasis on decision-making, coordination, and problem-solving (Park, 2020) .
Collaborative leadership, recognized alongside transformational, servant, and situational leadership models, underscores the contemporary understanding that effective leadership involves fostering cooperation, shared decision-making, and collective problem-solving within diverse organizational contexts. Transformational leadership is a prominent model that focuses on inspiring and motivating followers to achieve their full potential, fostering innovation and positive change. Servant leadership emphasizes leaders serving the needs of their team members, promoting collaboration and empathy. Authentic leadership centers on genuine, self-aware leaders who build trust through transparency and ethical behavior. Situational leadership recognizes that leadership styles should adapt to varying situations and the needs of followers. Distributed leadership involves shared decision-making and responsibilities among team members. Adaptive leadership addresses challenges by fostering agility and learning in the face of uncertainty. Collectively, these models highlight the importance of flexibility, ethical considerations, collaboration, and a focus on individual and collective well-being in modern leadership approaches. However, these models seem short in responding to circumstances and challenges of the social setting.
Collaborative leadership becomes a linchpin for harmonizing organizational strategies to effect positive societal change (Zhang, Yu, & Tian, 2023) . It fosters a culture of social responsibility within and beyond the organization (Diochon & Anderson, 2009) . Recognizing the interconnectedness of the collaborative leadership and social enterprising domains not only enhances the operational efficiency of social enterprises but also amplifies their capacity to make lasting contributions to communities and the environment.
3. Methodology
The approach used for this research is the case study method, a qualitative research method that involves the in-depth and detailed examination of specific cases within a real-world context (Hartley, 2004) . Case study research is used when researchers want to explore complex issues, understand the intricacies of a phenomenon, or examine a unique and specific instance in detail (Bennett, 2012) . A case study is considered a valid method for building theory and validating concepts (Woodside & Wilson, 2003) , and it has been previously applied to the study of leadership (Bryman, 2011) . However, it is fair to acknowledge that case studies also have limitations since they may not be readily generalizable to broader populations, and the subjective nature of qualitative data collection may introduce biases.
4. Cases Analysis
Several cases illustrate the application and value of collaborative leadership in social enterprising, showcasing how leaders leverage collective efforts and partnerships to drive positive social impact. The presentation of five thriving social enterprises provides the basis for demonstrating the value of collaborative leadership attributes.
4.1. Grameen Bank
The Grameen Bank, founded by Muhammad Yunus, exemplifies collaborative leadership by empowering communities through microfinance initiatives (Esty, 2017) . This emphasis on empowering local communities characterizes the collaborative leadership model at the Grameen Bank. Instead of a traditional hierarchical structure with a single point of contact to manage external influences, the bank operates on the principle of participatory decision-making in consideration of other agencies. Borrowers, primarily women from low-income households, form small groups, and decisions are made collectively. This collaborative approach democratizes the lending process and promotes a sense of shared responsibility and mutual support among borrowers. The Grameen Bank’s success in alleviating poverty and empowering communities is attributed to this collaborative model, which recognizes the agency and capabilities of individuals within the community and leverages their collective efforts for socio-economic advancement (Bhawuk, Mrazek, & Munusamy, 2017) . This collaborative approach has been instrumental in lifting many individuals out of poverty and promoting sustainable development (Hossain, 2013) .
4.2. Ashoka
Ashoka, a global organization, supports social entrepreneurs by fostering a collaborative community of change-makers and social innovators (Bega et al., 2021) . Their leadership model emphasizes the creation of networks where social entrepreneurs can share ideas, resources, and best practices. By connecting social innovators worldwide, Ashoka promotes a collaborative ecosystem that accelerates positive social change. Ashoka’s collaborative leadership model is built on the idea of creating and sustaining a network of social entrepreneurs and trailblazers. The organization operates as a global web that connects, supports, and empowers social visionaries. The collaborative leadership at Ashoka involves facilitating the exchange of ideas, resources, and best practices among its community of fellows. Ashoka leverages a decentralized model where these fellows, who are typically leaders among social entrepreneurs, contribute to a shared vision of creating a positive social impact beyond what is attainable through traditional non-profit and government agencies. By fostering collaboration and organizational partnerships across sectors, Ashoka catalyzes systemic change. This collaborative leadership style not only amplifies the impact of individual social entrepreneurs but also contributes to the development of a broader movement, accelerating positive societal transformation globally. The organization’s success in identifying, supporting, and connecting social innovators demonstrates the effectiveness of collaborative leadership in driving large-scale social change (Diochon & Anderson, 2009) .
4.3. B Lab
B Lab is a non-profit organization that certifies B Corporations, namely, businesses that meet rigorous standards of social and environmental performance (Hamermesh et al., 2016) . B Lab’s collaborative leadership involves working with businesses, governments, and investors to create a global movement that redefines success. The collaborative efforts aim to balance profit and purpose, emphasizing a triple-bottom-line approach, that of a commitment to social, environmental, and profit motives. The collaborative leadership model at B Lab is rooted in its mission to promote a global movement of businesses that balance profit with purpose. B Lab engages with a diverse range of stakeholders, including businesses, governments, investors, and consumers, to create an ecosystem that balances social and environmental impact. The organization fosters the collaborative development of rigorous standards and certification processes for B Corporations, encouraging companies to meet high social and environmental performance benchmarks. By bringing together a community of like-minded businesses, B Lab promotes knowledge-sharing, advocacy, and the exchange of best practices, thereby catalyzing a collective effort towards a more sustainable and inclusive global economy. The collaborative leadership at B Lab underscores the importance of building alliances and partnerships to drive positive change and environmental responsibility in the business sector.
4.4. Social Enterprise UK
Social Enterprise UK (SEUK) acts as a platform for social enterprises in the United Kingdom (https://www.socialenterprise.org.uk/). The organization facilitates collaboration by providing resources, networking opportunities, and advocacy for policy changes. Through collective efforts, SEUK enhances the visibility and impact of social enterprises, creating a supportive network of collaborative leadership within the sector. As a membership organization, SEUK plays a central role in bringing together a diverse range of partner organizations within the social enterprise ecosystem. The collaborative leadership model at SEUK is reflected in its efforts to advocate for favorable policy changes, provide resources and networking opportunities, and amplify the voice of social enterprises. Through initiatives like the Buy Social campaign, SEUK encourages collaboration between social enterprises and consumers, fostering a market that optimizes social impact.
4.5. Fair Trade USA
Fair Trade USA, a non-profit organization, collaboratively works with business organizations and producers to promote fair labor practices and sustainable supply chains (https://www.fairtradecertified.org/). Their collaborative leadership model involves engaging stakeholders across the entire supply chain, from farmers to consumers. By fostering partnerships, Fair Trade USA contributes to creating a more equitable and environmentally sustainable global marketplace. Fair Trade USA collaborates with a diverse range of participants, including farmers, producers, distributors, businesses, and consumers, to create a system that ensures fair wages, safe working conditions, and environmental sustainability. The collaborative leadership at Fair Trade USA is expressed through its process certification, which involves engaging with all stakeholders to develop and revise fair trade standards. The organization actively coordinates with businesses to encourage adopting equitable practices and certifies products that meet their rigorous standards. By facilitating partnerships between producers and businesses, Fair Trade USA empowers communities and promotes economic justice. The collaborative approach includes consumer education campaigns, encouraging individuals to purchase ethically. Fair Trade USA’s leadership model underscores the importance of collaborative efforts across the supply chain, fostering a collective commitment to social and environmental responsibility in a global marketplace.
These examples demonstrate how the value and application of collaborative leadership in social enterprising involves forging partnerships, empowering communities, and creating ecosystems where multiple partner organizations collectively contribute to addressing social challenges. Successful collaborative leaders in social enterprises recognize the value of cooperation and actively seek to build inclusive networks that amplify the positive impact of their social initiatives.
5. Summary of Findings
The study of these cases reveals that collaborative leadership contributes significantly to broader social movements by building alliances and promoting inclusivity. By emphasizing sustainability, collaborative leaders engage in social advocacy and cooperate with diverse external agencies to address multifaceted social challenges effectively. The key concepts identified in these cases highlight the transformative potential of collaborative leadership in creating synergies, fostering inclusiveness, and advancing sustainable social change through strategic partnerships and shared endeavors. Unlike traditional models that may emphasize top-down decision-making, collaborative leadership encourages shared decision-making, involving team members in the decision process. The focus of collaborative leadership goes beyond entrepreneurial success to augment social impact. Collaborative leaders often demonstrate flexibility and adaptability, adjusting their approach to suit changing social situations and demands.
The findings from these cases suggest the distinctive value of collaborative leadership and underscore its pivotal role in leveraging collective efforts to amplify social impact within and beyond an enterprise organization. While traditional leadership models often emphasize internal organizational dynamics more than explicitly addressing their impact on external factors and broader societal influences, collaborative leadership addresses them directly as an inherent attribute.
6. Future Directions and Conclusion
Research on collaborative leadership within the realm of social entrepreneurship presents a rich landscape for exploration. Scholars may explore the role of cross-sector partnerships, examining how collaborations between social entrepreneurs, non-profit organizations, governments, and private businesses impact the achievement of social missions. The study of leadership models that foster innovation, inclusivity, and community engagement in the context of social entrepreneurship can provide insights into effective practices. Research can also explore innovative metrics and evaluation frameworks tailored to the unique goals of social enterprises and focus on assessing the effectiveness of collaborative leadership on social impact. Plus, the advent of technology has transformed collaborative practices, introducing virtual collaboration platforms and social media applications, prompting additional research threads.
Collaborative leadership models hold immense value for social enterprises as they favor navigating an increasingly complex landscape of social and environmental challenges. In the realm of social entrepreneurship, where the pursuit of positive societal impact is paramount, collaborative leadership fosters collective intelligence, innovative problem-solving, and the ability to leverage diverse expertise and limited resources among multiple organizations. By leveraging stakeholder efforts from various sectors, including non-profits, governments, and businesses, collaborative leadership enhances the capacity to address multifaceted issues holistically. Furthermore, collaborative leadership engenders a culture of inclusivity, empowering individuals and fostering a sense of ownership. The emphasis on shared decision-making and transparent communication aligns with the core values of social enterprises, ultimately contributing to their resilience, adaptability, and the realization of meaningful, positive social change.