Networks with a social purpose: how social enterprises manage paradoxical tensions

Purpose This study explores how companies’ operations and supply networks can induce social impacts such as enhancing diversity, equity and inclusion (DEI). The study focuses on social enterprises’ supply networks and examines the effects of supply network characteristics on the creation and resolution of social–commercial objectives tension. Design/methodology/approach A supply network that is divided into five embedded cases, where each case is the supply network of a social enterprise, was studied. Forty-eight interviews at social enterprises, corporate customers, distributors, suppliers, non-governmental organizations and charities were conducted. Findings The study highlights how social enterprises use their supply networks to help disadvantaged people gain employment, truly balance DEI and efficiency objectives and manage paradoxical tensions. The results reveal three types of social purpose supply networks, dichotomized, paired and blended, that hybrid and for-profit organizations can adopt to jointly pursue multiple, potentially competing, objectives and resolve the paradoxical tensions in their supply networks. The creation and resolution of tension are also clarified by considering dyadic, triadic and tetradic tie structures. Originality/value The study contributes to the literature by extending the analysis of paradoxical tension between commercial and social welfare objectives such as DEI to the supply network level and revealing three social purpose supply network structures that depict social enterprises’ different ways to resolve paradoxical tensions. The study contributes to social network theory by describing the dynamic interaction between strong and weak ties in multi-tie structures.