Determinants of social innovation in hybrid organisations: The moderating role of technology readiness

Michael Odei Erdiaw‐Kwasie and Matthew Abunyewah

Business Strategy and the Environment, 2024, vol. 33, issue 2, 1099-1112

Abstract: A balance between economic, social, and ecological performance has emerged as a key concern for organisations around the world. The modern era emphasises achieving eco‐friendly business outcomes to drive social needs along with higher financial performance. However, hybrid organisations in developing countries frequently progress in ecological and economic terms but struggle with social innovation. Based on this backdrop, this study aimed to investigate whether or not technological readiness, organisational learning, transformational leadership, and sustainability orientation influence social innovation within hybrid organisations. Data from 447 hybrid organisations in Ghana are used in the study. Study findings reveal that transformational leadership promotes social innovation among hybrid enterprises, while sustainability orientation decreases it significantly. Technology readiness also reduced the social outcome associated with sustainability orientation by moderating their negative effects. To maximise social innovation outcomes, this study recommends managers of hybrid organisations to adopt policies regarding the efficient use of internal resources and processes through technological readiness. Furthermore, the organisation's future learning processes, leadership structures, and sustainability orientation policies should be aligned with its social innovation goals.

Date: 2024
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