Catalyst or Competitor: Unraveling the Influence of Commercial Ventures’ ESG Performance on Social Venture Population

This study draws on population ecology theory to explore whether the environment, social and governance (ESG) performance of commercial ventures functions as a catalyst or a competitor in the emergence of social ventures. Using a panel dataset from 31 provinces in China between 2010 and 2022, the empirical results reveal that the ESG performance of commercial ventures positively contributes to the population density of social ventures, indicating a possible catalytic effect through legitimacy spillovers. Furthermore, this study identifies three critical factors within the ecosystem that influence the interaction between commercial ESG and social ventures: government support and foundations weaken the positive spillover effect, while intermediary organizations strengthen it. This study enriches the literature on social venture emergence by clarifying the role of legitimacy spillovers from commercial ventures’ ESG activities and advances social economy ecosystem research by incorporating institutional moderators into the study of hybrid organizational populations. JEL codes: M14; L31