The contributions of social entrepreneurship and transformational leadership to performance: Insights from rural tourism in Iran

PurposeThe exploration of performance determinants in social enterprises has gained increasing relevance among researchers and practitioners, particularly in rural tourism. The purpose of this paper is to analyze the contributions of transformational leadership and social entrepreneurship to the performance of social enterprises in the context of rural tourism. Further, the mediating roles of social capital, creativity and social value were investigated.Design/methodology/approachData were gathered through a survey of 168 employees of social enterprises operating in the rural tourism setting. Eight surveyors were sent out to conduct the survey. Data were analyzed by structural equation modeling (SEM) using AMOS 18.0.FindingsThe results of the SEM suggested that transformational leadership is positively associated with social value, social capital and performance of social enterprise. In addition, social entrepreneurship had a significant influence on social value, social capital and performance of social enterprise. Creativity and social value predicts the performance of social enterprise. Further, social capital was found to have a positive relationship with creativity. Finally, the mediating roles of social capital, creativity and social value were also confirmed. The findings thus highlight the power of the social value creation and social capital in the social enterprises operating in the rural destinations.Social implicationsThe findings assert that social entrepreneurship and transformational leadership are key sources of social value creation, social capital and creativity in rural tourism context indicating the need for additional efforts on this kind of entrepreneurial activity. The findings can motivate policymakers to promote social entrepreneurship in rural tourism destinations as a means of stimulating bottom-up social capital and social value creation.Originality/valueThis study is among the first to examine the hypothesized relationships focusing on tourism social enterprises.