Untangling the Role of Government Support on the Financial Performance of Social Entrepreneurship: Application of Resource Dependence Theory

Abstract Acknowledging the potential of social entrepreneurship in addressing social and environmental issues, the government provides various forms of support, both directly to particular social enterprises and indirectly to foster social entrepreneurship overall. Nevertheless, prior research lags behind in illuminating the impact of government support on the financial performance of social enterprises. Using the Resource Dependence Theory and the sample from 267 social enterprises in South Korea, this study examined the effects of the government financial support and non-financial support on the financial performance of these enterprises. This study further explored the extent to which the tenure period of the CEO in the social entrepreneurship context affects these focal relationships. This study aims to contribute to the literature regarding social entrepreneurship performance and the role of government for this sector, while aiding policy makers in promoting social entrepreneurship.