Breaking Ground in Social Entrepreneurship: Insights from Lorraine M. Uhlaner’s Award-Winning Research

The role of institutions in fostering social entrepreneurship has been widely debated. Lorraine M. Uhlaner, a faculty member at the Prague University of Economics and Business (VSE), and her co-authors, Ute Stephan and Christopher Stride, challenged conventional views in their 2015 study titled “Institutions and Social Entrepreneurship: The Role of Institutional Voids, Institutional Support, and Institutional Configurations” earning the prestigious JIBS Decade Award. The award, to be presented at the next annual Academy of International Business (AIB) conference (2025), recognizes the most influential paper published in the Journal of International Business Studies (JIBS) in the past ten years. This article explores the key findings, implications for policymakers, and the evolving landscape of social entrepreneurship.

The Inspiration Behind the Research

Lorraine M. Uhlaner’s journey into exploring institutional impacts on social entrepreneurship began as a logical extension of her previous work. Together with Ute Stephan, one of her co-authors, professor Uhlaner had previously examined the relationship between culture and commercial entrepreneurship. The authors’ shared interest in social entrepreneurship led them to investigate how institutional voids and institutional support influence this growing field.

As defined and measured in the paper, social entrepreneurs are individuals either trying to start or currently owning and managing an activity or organization with a particular social, environmental, or community objective. “Our first study found a link between socially supportive culture and commercial entrepreneurship. We were intrigued to explore whether socially supportive culture might also predict social entrepreneurship,” says Uhlaner. The goal of the award-winning study expanded to focus on joint institutional configurations of formal and informal institutions.

Government Activism as a Catalyst

The study introduces a multi-level institutional configuration framework, emphasizing the interplay of regulatory systems, cognitive cultural values, and social norms. Unlike previous research that analyzed these factors in isolation, this approach provides a holistic view of how institutions collectively shape the social entrepreneurship landscape.

The study’s comprehensive analysis drew on publicly available data from multiple sources, including the Global Entrepreneurship Monitor (GEM), World Values Survey, and World Bank. Multi-level modeling, a relatively new method at the time, was pivotal in analyzing these diverse datasets.

Uhlaner’s findings emphasize that government activism—measured through progressive taxation and investments in healthcare, education, and social safety nets—creates fertile ground for social entrepreneurship. “Proactive government policies build a well-supported population, enabling individuals to channel resources into helping others,” she explains. This complementary relationship between public and private efforts refutes the idea that government action crowds out private initiatives. Configurations with higher nation-level government activism and a higher socially supportive culture tend to report individuals’ highest engagement in social entrepreneurship.

The research also highlights the importance of post-materialist cultural values in fostering social entrepreneurship. These values, characterized by a focus on self-expression, community, and pro-social attitudes, are consistent with the goals of social entrepreneurs. “Countries with stronger post-materialist values exhibit higher levels of social entrepreneurship,” notes Uhlaner, pointing to the connection between cultural attitudes and occupational choices. However, unlike the configuration of government activism and socially supportive culture, post-materialist values seem to compensate for lower nation-level government activism.

Challenging the Institutional Voids Perspective

A core research finding debunks a long-held assumption: that weaker government involvement creates gaps—or institutional voids—that social entrepreneurs will naturally fill. “Our study negates this assumption,” Uhlaner asserts. “Instead, we found that governments with progressive taxation and robust welfare spending actually stimulate more social entrepreneurship, aligning with the institutional support perspective.” This insight counters the notion often used by conservative governments to justify cuts in social services, highlighting instead the importance of proactive government engagement.

Implications for Policymakers

For policymakers, the study underscores the value of institutional support over institutional voids. Uhlaner emphasizes, “Our data from 26 countries and over 106,000 respondents clearly show that active government engagement is crucial for fostering social entrepreneurship.” She advocates for policies that enhance welfare state functions, enabling social entrepreneurs to thrive.

Lessons for International Social Entrepreneurs

Uhlaner’s research offers valuable insights for social entrepreneurs. A socially supportive culture, characterized by friendly, helpful interactions, can significantly enhance entrepreneurial success.

“Entrepreneurs often find inspiration and support in unexpected places—through casual connections at a gym or on a flight,” she observes. “Remaining open to such networks can be a major boost for social and commercial ventures alike.”

Looking Ahead: The Future of Social Entrepreneurship

As cultural values evolve slowly, shifts in government policies will likely play a more immediate role in shaping social entrepreneurship. Uhlaner believes that proactive government activism will remain a key driver of success in this field.

“While government approaches may change with political climates, our findings suggest that supporting a welfare state is vital for enabling social entrepreneurship,” she explains.

The JIBS Decade Award: A Personal Reflection

Receiving the JIBS Decade Award is a moment of pride for Uhlaner and her co-authors. “This recognition came as a pleasant surprise and is a great honor,” she says. “It’s a rewarding culmination of a successful career, and I look forward to exploring how our work has influenced the field over the past decade.”

Dr. Lorraine M. Uhlaner is a distinguished scholar currently serving at the Department of Strategy at the Prague University of Economics and Business (VŠE). She plays a pivotal role in advancing the university’s scholarly research program by mentoring PhD students and faculty, and by publishing her own work. Her core research interests include responsible ownership and corporate governance, exploring their impact on firm performance in family businesses and other privately-held firms. Additionally, she investigates topics such as corporate social responsibility, innovation, and knowledge management in SMEs, as well as business succession. Another key area of her work examines individual and social entrepreneurial behavior through multi-level research on cultural and institutional influences.