Social entrepreneurship and enterprises have become more prevalent in the business landscape. They can drive growth and wealth creation beyond their organization, but also forpartners. This value creation may derive from tangible offerings of social enterprises, their goods and services; but also in intangible relational values and rents. One of these intangible value creation dimensions is social capital. Social enterprises can also contribute and build partner competitive advantage. Institutional and social capital theories can help us to understand how social enterprises can contribute and transform sustainable supply chains. That is, there are various social and intellectual capital diffusion mechanisms for building sustainability in supply chains through social enterprise involvement. Transforming supply chains by building social legitimacy and altering institutional norms are examples of providing competitive advantages to supply chains and supply chain partners of social enterprises. This chapter introduces a framework that seeks to understand social enterprise and entrepreneurship capabilities in transforming institutions to strengthen supply chain sustainability. In particular, it introduces research questions on various theoretical and practical issues around the emerging relationships.