This paper explores the impact of clusters on the social performance of social enterprises. We argue that a critical element often overlooked in scaling social performance is the embeddedness of social enterprises within their region. Drawing on cluster theory, we propose that a social enterprise’s social performance is influenced by various cluster characteristics, including the presence of commercial enterprises, charities, universities, political orientation, and economic density. We test our hypotheses using a sample of 1027 U.S.-based social enterprises, examining how these characteristics shape overall social performance as well as its inward- and outward-oriented dimensions. By offering insights into the relationship between cluster characteristics and social performance, this research contributes to a deeper understanding of the dynamics that drive the success of social enterprises within regional clusters.
