Does Digital Capabilities Foster Social Innovation Performance in Social Enterprises? Mediation by Firm-Level Entrepreneurial Orientation

Mir Shahid Satar (), Sager Alharthi, Ghadah Alarifi and Fandi Omeish
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Mir Shahid Satar: College of Administrative and Financial Sciences, Saudi Electronic University, Riyadh 11673, Saudi Arabia
Sager Alharthi: College of Administrative and Financial Sciences, Saudi Electronic University, Riyadh 11673, Saudi Arabia
Ghadah Alarifi: KAPSARC School of Public Policy, Riyadh 11672, Saudi Arabia
Fandi Omeish: E-Marketing and Social Media Department, Princess Sumaya University for Technology, Amman 11941, Jordan

Sustainability, 2024, vol. 16, issue 6, 1-23

Abstract: Social innovation as an outcome of social entrepreneurship represents the primary drive of social enterprises (SEs). In the emergent context of a digitally transforming entrepreneurship scenario, this study intends to investigate the role of digital capabilities (DC) in social innovation performance (SIP) in SEs while considering the underlying effects of a firm-level entrepreneurial orientation (EO). Utilizing a quantitative survey approach, the study acquired a total of 344 valid responses from SEs in Saudi Arabia. The data analysis performed through partial least square structural equation modeling (SmartPLS 3.0) revealed that DC have no direct impact on SIP in SEs. However, DC influence SIP through the full mediation effects of EO dimensions of social proactiveness, and social innovativeness. The mediation effects of social risk-taking on the DC-SIP relationship were not established. This work is the first to conceptualize and test a theoretical framework linking the DC and EO constructs concerning SIP in SEs. As a result, the study produces several academic and managerial implications underpinning social innovation amid the digitally transforming entrepreneurship context in SEs.

Keywords: digital capabilities; social enterprises; digitalization; social value creation; entrepreneurial orientation; social innovation; performance; social entrepreneurship (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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