Fostering Employee Innovative Behavior in Social Ventures and Social Enterprises: The Role of Commitment-based Human Resource Management and Social Mission

Unlike profit organizations, social ventures and social enterprises pursue social missions while simultaneously engaging in economic activities. They try to solve social problems with innovative approaches but usually operate with limited resources. Therefore, for social ventures to succeed, employees’ intentional behaviors in generating and implementing creative ideas (i.e., innovative behaviors) are essential. Drawing on HRM literature and social identity theory, the present research examined the effects of commitment-based human resource management (CHRM) in fostering employees’ innovative behaviors in social ventures along with the moderating effects of employees’ perceptions of their organizations’ social missions. Using survey data collected from 321 employees from 104 social ventures, this study yields several meaningful results. CHRM triggered positive impacts on both employee idea generation and implementation. Regarding the moderation effects of social missions, perception of organizations’ pursuit of social missions significantly strengthened the effects of CHRM on both idea generation and idea implementation, while perception of organizations’ success in carrying out social missions significantly strengthened the effect of CHRM on idea implementation but not the effect of CHRM on idea generation. These findings provide theoretical and practical implications and contribute to existing HRM and social venture literature.