The Motivational Dynamics of Social Entrepreneurial Intention: The Interactive Effects Between Monetary Rewards and Social Recognition

Despite increasing economic prosperity and growth, we continue to face problems like social inequality and poverty. Social enterprises are considered as resourceful policy tools in creating social impact due to their innovative nature in addressing social problems. Building on Ajzen’s theory of planned behavior, this study examines the role of social recognition in the motivational dynamics of social entrepreneurial intention. We analyze the relationship between perceived monetary rewards and non-monetary rewards, such as social recognition and their interactive effects on social entrepreneurial intention. Using the Korean Youth Panel ranging from 2008 to 2019, we find that negative effects of monetary rewards on social entrepreneurial intention are offset as the level of social recognition increases. Our findings suggest that policymakers and government managers should expand their activities that involve beyond monetary incentives and focus more on nurturing young talent in realizing one’s own inner motives such as altruism and self-efficacy.