The Relationship Between Intellectual Capital and Performance of Social Enterprises: A Literature Review

Abstract

There is a need for competition and having a competitive advantage for every enterprise. Moreover, a social enterprise is expected to maintain itself and expand exponentially through innovation and the application of technology. The need to survive implies the need for social innovation within the organizations. When the organization's goal is established, which is the prerequisite for starting a social enterprise, innovation aims to solve the problem. Innovation is a learning outcome that manifests itself into new product features, new products, or production methods. Social innovation is an incremental form of innovation because it emerges from the social needs of a community. The kind of innovation produced is oriented towards the community to provide a solution to their problem. Social enterprises have worked tirelessly to create solutions to the social issues that specific communities are facing. The findings in this research highlight intellectual capital as one of the most fundamental assets in a social enterprise. When discussed in terms of its three branches, intellectual capital's performance of social enterprises is significantly improved.

Received: 8 July 2021 / Accepted: 19 August 2021 / Published: 5 September 2021