A profit with purpose: How profit orientation shapes organizational support and perceived product quality of social ventures

23 Pages Posted: 8 Dec 2023

See all articles by Jonas M. Horning

Jonas M. Horning

International School of Management

Jens Kai Perret

International School of Management

Horst Kutsch

International School of Management

Date Written: December 3, 2023

Abstract

Purpose
This research extends the existing literature by investigating the customer’s perception of organizational support and willingness to buy as well as perceived product quality, warmth, competence, and organizational greed; differentiating between for-profit and non-profit social ventures as well as for-profit ventures.
Methodology
An online experiment has been conducted by assigning each participant to one of three groups and have them rate an artificial product (socks) presented as being offered by one of the three types of ventures on the different scales.
Findings
The results support the hypothesis that for-profit social ventures are perceived as socially beneficial. They are not perceived as less socially beneficial than non-profit organizations when objectively providing similar value. The hypothesis that the quality of a for-profit venture’s product would be perceived to be higher, was not supported. Finally, for-profit social ventures ranked statistically higher in warmth and lower in greed than for-profit ventures. Differences regarding for-profit social ventures were found in terms of competence and warmth.
Originality
The articles provides a study of the differences between the three types of ventures with regard to a number of characteristics which are of significant importance to marketing and sales as well as company branding.

Keywords: social venture, entrepreneur, product quality, consumer behaviour, for-profit

JEL Classification: L26, O35

Suggested Citation

Horning, Jonas M. and Perret, Jens Kai and Kutsch, Horst, A profit with purpose: How profit orientation shapes organizational support and perceived product quality of social ventures (December 3, 2023). Available at SSRN: https://ssrn.com/abstract=4651719 or http://dx.doi.org/10.2139/ssrn.4651719

Jonas M. Horning

International School of Management

Otto-Hahn-Str. 19
Dortmund, 44227
Germany

Jens Kai Perret (Contact Author)

International School of Management ( email )

Otto-Hahn-Str. 19
Dortmund, 44227
Germany

Horst Kutsch

International School of Management ( email )

Otto-Hahn-Str. 19
Dortmund, 44227
Germany

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