The Impact of Entrepreneurial Orientation of Social Entrepreneurship Towards Social Capital and Organization Performance: A Case Study Of Precious One

*Corresponding Author E-mail: vera.rakhmani@ipmi.ac.id Copyright © 2020 Authors. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. Social enterprise social entrepreneurship social capital organization performance. International Journal of Business Studies Vol. 4 No. 2 ( February 2020)


INTRODUCTION
capital and organizational performance of P-1. Since P-One is a social enterprise which is run Accordingly, the research aims to investigate LITERATURE REVIEW entrepreneurial orientation as part of her One.
relationship with social capital which is owned Social Entrepreneurship by a social entrepreneur, the author would Based on the interview with the founder, the company is now facing performance issue from the disabled employees, where in this context means the organization didn't grow as much as they wanted. In the last 3 (three) years, P-One still grow their net income and number of customers between 10-20%. Their operational is no longer dependent on the donation. However, since the foundation shareholders expect higher growth rate, hey need to ind a way to improve their organization performance. It is important to do this, since the bigger the organization, the bigger also the impact on the disabled community. social entrepreneurship, and to see its like to see whether the founder has re lected by P-One, and its organization performance.
After more than 10 years, they are now serving many clients from domestic and international market. Some of their clients are well known companies, such as Fuji ilm, Kalbe, Iwan Tirta, ANZ, JungleLand, Permata Bank, Halo BCA, Jakarta Great Sale, and Inasgoc for Asian Games 2018. P-One also always tries to open new opportunities in empowering more disabled people from other types of disabilities, such as intellectual and sight. They run "I Can Do" program, where these disabled people are packing spoon and tissue, targeting restaurants and catering services. This program is conducted as communitybased activity, in several workshops. Other than that, P-One also hosted several non-pro it activities, such as Special Day for Special Children, Job Placement for Disabled People, Stop Bully Disabilities Campaign, and Everyone Can be a Hero.
To investigate the impact of social entrepreneurship on Not until recently, academic world has the interest in social entrepreneurship. According to Trivedi (2010) there are only little research in this area before 1989, which includes The Sociology of Social Movements written by J.A. Banks in 1972 and he Practice of Management written by P. Drucker in 1979. The irst introduced the term social entrepreneur and social entrepreneurship, while the latter introduced the social enterprise the impact of social entrepreneurship on social -57 - Saifan (2012) proposed another concept where social entrepreneurship is an arena where entrepreneurs link their activities with social value creation as their inal goal, with minimum intention of gaining personal pro it (Saifan 2012). Saifan de ined social entrepreneur as 'a missiondriven individual who uses a set of entrepreneurial behaviours to deliver a social value to the less privileged, all through an entrepreneurially oriented entity that is inancially independent, self-suf icient, or sustainable'.
One of social capital de initions is coming from Trip et al. (2009), which stated that social capital may be de ined as social networks, the norms of reciprocity and trust that arise from them, and the application of these assets in achieving mutual objectives. While OECD (2007) de ined that social capital is networks together with shared norms, values and understandings that facilitate cooperation within or among groups. Another de inition comes from Poteyeva (2019), which de ines social capital as a concept in social science that involves the potential of individuals to secure bene its and inven t solutions to problems through membership in social networks. Social capital revolves around three dimensions: interconnected networks of relationships between individuals and groups (social ties or social participation), levels of trust that characterize these ties, and resources or bene its that are both gained and transferred by virtue of social ties and social participation.
Another perspective comes from Tent (2015) in his journal, Social Entrepreneurship, which de ined social entrepreneurship as a gathering of many business people with solid experience in the ields of management, inance and human relations sharing their know-how and experience along with money and ideas, in order to generate social welfare by removing some of the existing problems.
Although social entrepreneurship is getting popular, there are a lot of confusion and uncertainties about this term since there is no exact de inition on social entrepreneurship. There are many different concepts which were de ined by many scholars.
concept while advocating corporate ethical responsibilities. Zahra et al. (2008) tried to extract the de inition of social entrepreneurship from over than 20 de initions into simple de inition, 'Social entrepreneurship encompasses the activities and processes undertaken to discover, de ine, and exploit opportunities in order to enhance social wealth by creating new ventures or managing existing organizations in an innovative manner' (p. 522).

Social Capital
According to Adler and Kwon (2002), the social capital concept was classi ied into three group of de initions, which are external view, internal view, and integrated view between external and internal view.
External view explains the relationship between social networks or among organizations.
Internal view de ines the relationship amongst individuals or groups. While the integrated view doesn't differentiate between internal and external aspects.
According to Fatoki (2011), a study on small and medium-sized enterprises in South Africa found that there was a signi icant positive relationship between human, social and inancial capital on the organizational performance. Another research also shows the effect of social capital on many dependent variables, where social capital directly impacts organizational performance, growth, or effectiveness (Cheng et al., 2007;Sherman, 2007;Smerek and Denison;Bratkovic et al. 2009;Chisholm and Nielsen, 2009;Fatoki, 2011;Gupta et al., 2011;Roxas and Chadee, 2011).

Organization Performance
Organizational performance shows the status of organizational competencies. There are so many factors which need to be considered, since organizational performance can be seen from many perspectives. Mention a few includes market caps, sales growth, and sustainability. Not to forget how to determine where it should be resides, Wood & Leighton (2010) de ined social value refers to the wider non-inancial impacts of programs, featuring organizations and interventions, including the wellbeing of individuals and communities, promotion of social capital, and protection of the surrounding environment, which are typically described as 'soft' outcomes. These outcomes are dif icult to be quanti ied and measured. Davis et al. (2010) found that organizations which prefer innovative, proactive, and risk-taking activities have more opportunity to compete with others. Basically, customers are more attracted in new products, services, and technologies, which may result in organizational growth. Social enterprises believe that they need to be innovative and proactive to thrive and grow in the market. Compared to passive organizations, proactive organizations can be seen as a leader which can Traditionally, organizational performance is associated with inancial performance, such as pro itability, sales, growth, return on investment, return on equity, and so on (Davis et al.,2010). However, inancial results have its downside. They only re lect historical condition of an organization, which was the impact of past actions. Financial results cannot re lect future condition of an organization (Norreklit, 2000). To compliment the inancial results, non-inancial performance should also be factored in, such as customer satisfaction, internal process, and organization's innovation and improvement activities (Kaplan and Norton, 1992).

signi icant in luence on social capital
Based on the literature reviews on social entrepreneurship, social capital, and organization performance, the framework theory which will be used for this research is shown in the following igure.
H1: Social Entrepreneurship has positive and the individuals, team, business unit, or corporation as a whole. Mair & Martı ́(2006) stated that the main concern of social enterprises is social value creation. The notion of "creating social value" which was developed by Porter & Kramer (2011) explains a deeper relationship between business and society, as well as stronger motivation to develop social enterprises. 'Shared value creation focuses on identifying and expanding the connections between societal and economic progress' (Porter & Kramer, 2011).

Hypothesis Development
In his study, Sookyuen Tepthong (2014) con irmed that social entrepreneurship has positive effect on social capital. His research showed the connection among social network and trust that are viewed as parts of social capital, and that social capital is strengthened by social entrepreneurship through social innovation activities, proactive behaviours, risk management.

Vera Andriana Rakhmani, Risa Bhinekawati / The Impact of Entrepreneurial Orientation of Social Entrepreneurship Towards Social Capital and Organization Performance: A Case Study Of Precious One / 56 -68
Sequential explanatory design was selected by the author to complete the study. Ivankova et al. (2006) mentioned that amongst many mixed-methods methodology, sequential explanatory design is highly popular among researchers.

METHODS
Sampling was usually taken since the population is considered too big to be researched, which will impact on the time, cost, and resources. However, since the population of the study object is considered small, then the author decided to use the whole P-One population (employees and owner) or commonly known as total population sampling. Total population sampling method is one of purposive sampling types, which is a nonprobability sampling method that is selected based on characteristics of a population and the objective of the study (Crossman, 2019).
For this mixed-method research, the author used two types of data, primary and secondary. To collect the data, the author prepared a questionnaire based on the variables and indicators that have been de ined in chapter two of this thesis. The questionnaire was prepared in two forms, online and hard copy (direct administration). Online platform was used for collecting data from the normal P-One employees, and the hard copy was used for collecting data from the disabled P-One employees. Direct administration method was performed due to understanding issue. Respondents from disabled group has dif iculty in understanding the question. Thus, a facilitated session was held for them, where they responded the questionnaires together at the same time. When they had question on particular questionnaire, the facilitator (one of This research is using mixed-approach as the tool to gather necessary data for the study. Mixedmethod is an approach to collect, analyze, and integrate quantitative and qualitative data within a single study, with the purpose of obtaining better understanding of the problem (Tashakkori and Teddlie 2003;Creswell 2005). By combining both, qualitative and quantitative method, stronger analysis is expected to be obtained by taking advantage of the strengths of each method (Green, Caracelli, and Graham 1989;Miles and Huberman 1994;Green and Caracelli 1997;Tashakkori and Teddlie 1998).
in luence on organization performance dominate the market.

H2: Social Entrepreneurship has positive
The relationships between human capital, social capital, inancial capital, and Small and Medium Enterprise (SME) performance were studied by Olawale Olufunso Fatoki in South Africa, in 2011, which one of the results was that social capital is positively associated with the SME performance (Fatoki, 2011). Furthermore, Chen et al. (2011), who studied the relationship between social capital, entrepreneurial orientation for new ventures, organizational resources for new ventures, and new venture performance, also con irming that there is positive relationship between social capital and new venture performance. Based on these studies, the following hypothesis for this research can be developed.

H3: Social capital has positive and signi icant in luence on organization performance
Referring to those studies, the following variable in would like to be researched further in Precious One: 1. Social entrepreneurship 2. Social capital 3. Organizational performance The conceptual framework of those variables is shown in the following igure.
-60 - On top of that, the author also conducted short face-to-face interview with related stakeholders of P-One, which are the owner, one of the normal employees, one of the disabled employees, one of the partners which also acted as customers. This data is collected as qualitative data, which can provide better understanding on the business and context and validate the quantitative results.
Secondary data was also gathered to enrich the research, which includes journals, online documents, reports, and books. the normal employees) could provide explanation or clari ication. By having this facilitated session, the result is more accurate.
The quantitative data analysis in this study is using Structural Equation Modelling (SEM). Structural equation models are complex, statistical models of linear relationships among latent (unobserved) variables and manifest (observed) variables (Sekaran and Bougie, 2016). According to Tepthong (2014), Hoyle (1995: 15) mentioned that the SEM approach is a more comprehensive method of research design than any other single statistical model. SEM approach provides more complex and speci ic testing.
This research in particular, is using Partial Least Square SEM (PLS SEM) method, which are able to process smaller data size and focuses on elaborating the variables during model examination (Hair et al. 2014).
There are several measurement and procedures for PLS-SEM analysis, which includes reliability and validity test, coef icient determination, and hypothesis testing.
As for qualitative approach, the data is collected from a direct, face-to-face interview with the respondents. Questions of the interview are made based on the survey questionnaire for the quantitative approach. The interview result is then summarized by each variable and indicators.

RESULTS
For quantitative approach, total respondents for quantitative data are 43 people, which are coming from P-One's environment. Most of the respondents are female, representing 77% of total respondents, while the remaining 23% population is male. The majority respondents are within the age group of 31-40 years old, represented by 15 people, followed by group age 18-30 years old with 13 people, 41-50 years old with 10 people, and >50 years old with 1 person.

Quantitative Approach Result
The reliability and validity test show that all variables, Social Entrepreneurship, Social Capital, and Organization Performance, shows Cronbach's alpha value more than 0,60 (0,895; 0,690; and 0,672 respectively). Referring to Sekaran and Bougie (2016) which stated tha t Cronbach's alpha value more than 0,6 is acceptable, we can conclude that all variables are reliable. Composite reliability test also shows that all variables are reliable since all constructs valued between 0.60 to 0.90 (Social Entrepreneurship 0,934; Social Capital 0,865; and Organization Performance 0,859).
Indicated by outer loading, which should have minimum value of 0,708, all loading factors ful illed the minimum value. It means all variables are reliable. This study is using Average Variance Extracted (AVE), which should have value above 0.50. The test result for all variables show value above minimum requirement, which means all variables are valid.
Cross-loading correlation analysis is used in this research. To be considered as valid, an indicator's outer loadings should be greater than all of its loadings on the other constructs.
As for qualitative data, 4 female respondents were interviewed in a face-to-face session. Each person represents each stakeholder, to provide 360 degrees perspective. 4 people includes 1 owner, 1 normal employee, 1 disabled employee, 1 business partner who is also acts as customer.
Since all constructs are reliable and valid, the research model can be used to test the formulated hypotheses.
R-square value is a representative of determination coef icient. It assesses the suitability of the regression model by measuring how accurate the regression line projects the real data. To describe the R-square value, each of the variable value shall be multiplied by 100%.
SEM-PLS method was used on the study to test the structural models, to see the coef icient of determination and path coef icient. This procedure was conducted to see the correlation signi icance between de ined variables.
After knowing the correlation between variables, bootstrapping method was conducted to test the prede ined hypotheses.   With positive original sample value, t-statistic 6,128 and p-value 0,000, the hypothesis that

As stated in
There are two indicators of hypotheses testing measured in this research, T-test and P-Value, as showed in Table 4 below:

Qualitative Approach Result
The qualitative research is conducted to ind the meanings of quantitative research. There are four (4) respondents which were invited to the indepth interviews, which are the founder (owner), one (1) normal employee representatives (ER1), one (1) disabled employee representatives (ER2), and one (1) partner which also acts as customer (PC). These people represent all 360-degree perspective for P-One.
or in other words, this hypothesis is accepted All of the respondents have been informed on the purpose of the interview prior the interview sessions, and agreed that the given information during the interview would be recorded, transcribed, and used in this research. Key questions were related to the de ined variables, social entrepreneurship, social capital, and organization performance, which were developed from the questionnaire questions.
All respondents responded that P-One has its business. One of the respondents, who "As a partner, happy to work with P-One since education background.
1. Social entrepreneurship and social capital re lected the value of being innovative, proactive, and willing to take risk in developing representing partner/customer said: I'm able to share knowledge on Macramé and I get a lot of help from P-One as P-One can supply the products, so I can have ready-stock products." values, P-One was quite successful in building its social capital. Their customers have good faith (socially trusted) and P-One has quite large networks to support their business. performance 2. Social entrepreneurship and organization As mentioned before, innovation is not an issue in P-One. Consequently, innovation leads to higher staff quality, be it production and nonproduction. If required, production staff can be reallocated to a new project without By demonstrating social entrepreneurship well-being. Trust is related with organization the owner mentioned: Networking helps P-One to get referrals from DISCUSSION the respondents: new employee for it. As mentioned by one of is an important indicator for organization's their organization performance. Thus, social and network, P-One has the opportunity to the case of P-One, where they receive many to another project." to work on special projects, such as Macrame.
set, so it's easy to switch between one project organizational performance.
By having people who have many skill-sets, 3. Social capital and organization performance Social trust, as one of the parts of social capital, commitment to their mission to the society, in this case speci ically to the disability communities.
repeat orders, they show that they are being trusted by their customer. During the interview, customers keep repeating their order which dif iculties, so P-One is not necessarily hiring the organization has the ability to improve entrepreneurship has indirect in luence to the "One of the indications is repeat order. Many P-One production staff has several crafting skill-means customers trust on P-One." "P-One has the ability to allocate their staff the existing customers, and broaden their existing network. By having more customers expand their business and capabilities, which Trust also relates with network building. In at the end will impact on the business growth.
The hypothesis testing resulted that social entrepreneurship has a positive impact on social capital. Further study showed that P-One re lected all elements of social entrepreneurship, which are innovative, proactive, and willing to take risk in developing itself. According to Tepthong (2014), the more existence of social entrepreneurship, the more social capital will be. Embracing social entrepreneurship, social entrepreneurs can create social capital activities such as social involvement and social network activities.
The interview also support the hypothesis. It showed that P-One takes bene it of network, be it for their own bene it to get more customers, or for its communities by partnering with other similar communities.
During his study, Sookyuen Tepthong (2014) provide the result that the relationship between social entrepreneurship and organizational performance doesn't have positive effect on organizational performance. In this study, on the contrary, this hypothesis was proven to be signi icant. Davis et al. (2010) found that organizations which prefer innovative, proactive, and risk-taking activities have more opportunity to compete with others. Basically, customers are more attracted in new products, services, and technologies, which may result in organizational growth. Social enterprises believe that they need to be innovative and proactive to thrive and grow in the market. P-One needs to ind a way to overcome their existing challenges (e.g. new products, price, and capacity) in order to improve their organization performance.

CONCLUSION
The objectives of this study-identifying the impact of social entrepreneurship on organizational performance, social entrepreneurship on social capital, and social capital to organizational performance -have been ful illed.
During the interview, all respondents agreed that P-One always try to be innovative, proactive, and risk-taker to improve its performance. Financially, their performance can be considered good, since their pro it increased up to twenty percent in the last three years. However, it is hard to say that certain element is the key to organizational performance. Further research which involve bigger population and more variables might need to be done to get more accurate and detail result.
The testing result of this hypothesis showed that social capital does have signi icant in luence on organization performance. P-One has obtained social trust and network, which have impacted on organization's success, even though it might not at the maximum result.
The study used mixed-method sequential explanatory strategy. This approach is performed by exercising quantitative method and followed by qualitative method. The data was gathered through questionnaires and interviews. The questionnaire was involving 43 respondents, while the interviews were conducted on the P-One stakeholders with 4 respondents to strengthen the questionnaire results.
Theoretically, this research contributes to the knowledge on how the entrepreurial orientation of a social entrepreneurs can impact the development of social capital among stakeholders involved in the business, thereby improve the enterprise's performance. Practically, the results of this research can provide a basis for social entreprenuers in improving their organization performance even further.
The second objectives, identifying the impact of social entrepreneurship on organization performance. The result is social entrepreneurship has signi icant impact on organization performance. It is supported by the inancial results which are increasing in the last three years.
The irst objectives, identifying the impact of social entrepreneurship on social capital in P-One through social innovations, proactiveness, and risk-taking, has signi icant result. Based on this result, the conclusion is that the behaviours of social entrepreneurs can give impact on the trust and networking. Existing customers gained more trust on P-One's products and missions, then they make repetition orders. They also make good voice to others, which opens another opportunity for P-One from new customers.
The data which were gathered during survey was then examined to see the causal relationship between de ined factors (social entrepreneurship, social capital, and organizational performance) by using Structural Equation Model (SEM). The test suggested that all factors it the model.
The third objectives, identifying the impact of social capital on organization performance, has been ful illed as signi icant relationship. The positive result of organization performance such as inancial result increment is an indicator of the strength of P-One social capital.
This research is not without limitation. This research only has one case which resulted on limited samples. To improve the research, next research can enlarge the scope of research, for example, get more disabled organizations/ -65 -