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The Effect of Structural Capital for Human Capital Development and Management in Social Enterprises
Abstract
Social enterprises are a hybrid form of organizations that enact nonprofit and for-profit activities simultaneously. Like their nonprofit and for-profit counterparts, social enterprises are facing the same challenges, if not more, in a turbulent economy. This chapter aims to examine how structural capital assists social enterprises in the development and management of human capital in today's competitive environment. Based on 22 qualitative in-depth semi-structured interviews across 10 social enterprises and nonprofit organizations that perform social entrepreneurship in Australia, the findings suggest that structural capital helps social enterprises in facilitating human capital development and management for innovation. Thus, the study contributes to the literature by arguing that structural capital plays an essential role in social enterprises. Strategies should be developed for a more balanced development of intellectual capital if an intellectual capital-based view of the firm is to be fully integrated.
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