The Trust Portfolio framework: A Systematic Literature Review of Trust-Building Strategies for Overcoming Credibility Gaps in Early-Stage Social Entrepreneurship

Abstract

Social entrepreneurs in resource-scarce environments face significant credibility gaps that impede stakeholder support and social impact. Unlike their conventional counterparts, they must establish dual legitimacy for both their business model and social mission while managing resource constraints. Their focus on high external social value often deters investors and talent, while the dual mission creates institutional ambiguity, intensifying competition for scarce resources. This paper examines how social entrepreneurs use trust-building strategies to overcome these early-stage credibility gaps. Integrating insights from signaling, institutional, social capital, and bricolage theories, we conceptualize trust as multi-layered, encompassing inter-organizational and institutional dimensions. We conducted a systematic literature review of 109 papers, primarily indexed in Scopus, to synthesize theoretical frameworks and empirical evidence, and to identify, synthesize, and analyze existing evidence on trust-building strategies in social entrepreneurship. Our analytical approach employs thematic synthesis, drawing on established principles of both meta-ethnography and grounded theory. It identifies key strategies: local embedding, visible frugal prototypes, strategic signaling (via third-party endorsements), transparent measurement, and impression management. These operate through mechanisms such as transferred reputation, demonstrated competence, external validation, accountability signals, and stakeholder sense-giving, often leveraging social capital. Institutional trust can, in some cases, substitute for interorganizational trust in resource acquisition. Through this SLR, we conclude that effective trust-building requires a multi-modal approach, blending pragmatic impact demonstration with strategic relationship-building. Entrepreneurs must sequence these efforts, prioritizing relational legitimacy early on, followed by market legitimacy during growth, while ensuring consistency across all stakeholder communications to maintain organizational stability.