Management styles and tensions in social enterprises: a quantitative approach

Purpose This study aims to explore the influence of management styles on organizational tensions within social enterprises (SEs). By examining this relationship, the research provides insights into how participative and innovative leadership approaches can mitigate internal conflicts and enhance organizational effectiveness. Design/methodology/approach Drawing on a preliminary qualitative exploration and a subsequent survey, we analysed data from 346 Portuguese SEs using partial least squares structural equation modelling (PLS-SEM). The survey was based on the Social Business Initiative’s definition of SEs. PLS-SEM was used to examine the relationship between management styles and organizational tensions. Findings The study provides preliminary, exploratory evidence of a statistically significant yet modest negative relationship between participative or innovative management styles and organizational tensions. The results, interpreted as exploratory, suggest that fostering collaborative decision-making and creativity can contribute to a more harmonious work environment, reducing internal conflicts and improving overall organizational performance. These results should be interpreted as indicative rather than confirmatory, aligning with the pilot nature of the design. Research limitations/implications While the study provides valuable insights, its explanatory power is limited, with an R² of 0.058, and it is restricted to the Portuguese context. The qualitative pre-study was content-validation oriented (n = 4), and evidence is non-causal. The authors therefore frame the contribution as exploratory and recommend multi-country, longitudinal designs. Practical implications The study provides a practical framework to help SE leaders identify and manage organizational tensions. By adopting participative and innovative management styles, leaders can improve workplace harmony and enhance their leadership impact. We position this work as a pilot/exploratory test of these linkages, given the modest explanatory power and the instrument-refinement nature of the qualitative phase. Social implications By reducing internal tensions, SEs can operate more effectively and fulfil their social missions more efficiently, ultimately benefiting the communities they serve. Originality/value This study is among the first to quantitatively examine the relationship between management styles and organizational tensions in SEs. This exploratory research contributes to both management and SE literature by offering a mechanism-informed framework and measurement insights to guide future studies.