Fragile ties or sustainable partnerships? Linking social capital between community-based social enterprises and local governments

Community-based social enterprises (CBSEs) are increasingly recognised as important actors in addressing service gaps in deprived and rural areas. However, their effectiveness depends heavily on their relationships with local governments, particularly through linking social capital. This study examines conditions that shape the quality of linking social capital in CBSE–municipality relationships, adopting a public service ecosystem perspective. The multiple case study of three CBSE ecosystems identifies six interrelated conditions: accountability, recognition, fragmentation, conflicting logics, trust, and expectations, which shows that linking social capital is not a fixed resource but a dynamic and negotiated relational achievement. The study highlights that collaboration outcomes range from enabling to exploitative forms, depending on how these conditions are managed in practice. We contribute to the literature by showing how linking social capital manifests in CBSE–government relationships and provide practical insights for fostering more sustainable and reciprocal forms of collaboration in hybrid local governance contexts.