A cognitive approach to the expected value of work integration social enterprises

Abstract Research Summary Oftentimes, social enterprises simultaneously pursue competing organizational goals. For example, this can mean having a goal (e.g., integrating vulnerable populations into the labor market) and commercial being profitable). I propose theory according to which for such enterprises, how they are perceived depends on their goals presented type of categorization process used by evaluating audience. These two factors together impact venture's legitimacy expected value. also show that these effects vary with level knowledgeability audience performing evaluation. Taken together, results paper have implications cognitive perspective strategic entrepreneurship as well literature categories in markets hybrid organizations. Managerial study different category primings influence customer's perception work integration (WISEs). either direct customers' attention toward comparability prototype (prototype‐based categorization), or customer (goal‐based categorization). find support idea that, depending is emphasized first foremost WISE commercial), activation priming impacts capacity create Ultimately, establishes foundations enterprises' competitive advantage showing vs. prototype‐based categorization) positively WISE's value function “who” targeted customers (less more knowledgeable customers) are.