The Influence of Social Innovation and Digital Knowledge Sharing on Social Enterprise Sustainability: The Moderating Role of Community Engagement

Agniya Thahira and Najmudin Najmudin
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Agniya Thahira: Muhammadiyah Cyber University, Yogyakarta, Indonesia.
Najmudin Najmudin: Jenderal Soedirman University, Purwokerto, Indonesia.

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Abstract: Background: The development of social enterprises shows a shift from purely philanthropic organizations to hybrid models that combine social value, economic sustainability, and community innovation, where social innovation and digital knowledge sharing support sustainability, strengthened by community engagement despite challenges in maintaining participation, stable business models, and long-term social impact. Aims: This study aims to examine the influence of social innovation and digital knowledge sharing on social enterprise sustainability, as well as the moderating role of community engagement in strengthening these relationships. Place and Duration of Study: The study was conducted among social enterprise actors, community-based business groups, and social entrepreneurship organisations engaged in empowerment and digital knowledge-sharing activities during the research period. Methodology: This research employed a quantitative explanatory approach. Data were collected using a structured questionnaire with a five-point Likert scale. Respondents were selected through purposive sampling based on their involvement in social enterprise activities. The data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) to test the relationships between variables and the moderating effect of community engagement. Results: The findings reveal that social innovation has a positive and significant effect on social enterprise sustainability. Social enterprises capable of creating innovative social solutions and collaborative programs tend to achieve stronger sustainability performance. The study also found that digital knowledge sharing positively influences social enterprise sustainability, indicating that the use of digital platforms for sharing information, experiences, and business knowledge strengthens organisational and community capacity. Furthermore, community engagement significantly moderates the relationships between social innovation and sustainability, as well as between digital knowledge sharing and sustainability. The results indicate that active community participation enhances the effectiveness of innovation and digital knowledge-sharing practices in supporting long-term sustainability. Conclusion: This study concludes that social innovation and digital knowledge sharing are important determinants of social enterprise sustainability, while community engagement acts as a strengthening factor that enhances the effectiveness of both variables. Social enterprises that actively innovate, manage digital knowledge, and involve communities are more likely to achieve sustainable economic and social outcomes.

Date: 2026-05-30
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Published in Journal of Global Economics, Management and Business Research, 2026, 18 (3), pp.17-31

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