IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i6p2464-d1357908.html
   My bibliography  Save this article

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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Mir Shahid Satar & Sager Alharthi & Ghadah Alarifi & Fandi Omeish, 2024. "Does Digital Capabilities Foster Social Innovation Performance in Social Enterprises? Mediation by Firm-Level Entrepreneurial Orientation," Sustainability, MDPI, vol. 16(6), pages 1-23, March.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:6:p:2464-:d:1357908
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/6/2464/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/6/2464/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Francisco Adro & Cristina I. Fernandes & Pedro M. Veiga & Sascha Kraus, 2021. "Social entrepreneurship orientation and performance in non-profit organizations," International Entrepreneurship and Management Journal, Springer, vol. 17(4), pages 1591-1618, December.
    2. Danny Miller & Peter H. Friesen, 1982. "Innovation in conservative and entrepreneurial firms: Two models of strategic momentum," Strategic Management Journal, Wiley Blackwell, vol. 3(1), pages 1-25, January.
    3. Annarelli, Alessandro & Battistella, Cinzia & Nonino, Fabio & Parida, Vinit & Pessot, Elena, 2021. "Literature review on digitalization capabilities: Co-citation analysis of antecedents, conceptualization and consequences," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    4. Mir Shahid Satar, 2024. "Inspiring role model and compassion in nascent social entrepreneurs: does education matter?," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 36(7-8), pages 897-921, August.
    5. Jeffrey G. Covin & Kimberly M. Green & Dennis P. Slevin, 2006. "Strategic Process Effects on the Entrepreneurial Orientation–Sales Growth Rate Relationship," Entrepreneurship Theory and Practice, , vol. 30(1), pages 57-81, January.
    6. Gregory G. Dess & G. T. Lumpkin & J. G. Covin, 1997. "Entrepreneurial strategy making and firm performance: tests of contingency and configurational models," Strategic Management Journal, Wiley Blackwell, vol. 18(9), pages 677-695, October.
    7. Jonas Soluk & Ivan Miroshnychenko & Nadine Kammerlander & Alfredo De Massis, 2021. "Family Influence and Digital Business Model Innovation: The Enabling Role of Dynamic Capabilities," Entrepreneurship Theory and Practice, , vol. 45(4), pages 867-905, July.
    8. Bag, Surajit & Pretorius, Jan Ham Christiaan & Gupta, Shivam & Dwivedi, Yogesh K., 2021. "Role of institutional pressures and resources in the adoption of big data analytics powered artificial intelligence, sustainable manufacturing practices and circular economy capabilities," Technological Forecasting and Social Change, Elsevier, vol. 163(C).
    9. Raphael Amit & Paul J. H. Schoemaker, 1993. "Abstract," Strategic Management Journal, Wiley Blackwell, vol. 14(1), pages 33-46, January.
    10. Elia, Gianluca & Margherita, Alessandro & Passiante, Giuseppina, 2020. "Digital entrepreneurship ecosystem: How digital technologies and collective intelligence are reshaping the entrepreneurial process," Technological Forecasting and Social Change, Elsevier, vol. 150(C).
    11. William Wales & Erik Monsen & Alexander McKelvie, 2011. "The Organizational Pervasiveness of Entrepreneurial Orientation," Entrepreneurship Theory and Practice, , vol. 35(5), pages 895-923, September.
    12. Sergey Mikhailovich Vasin & Leyla Ayvarovna Gamidullaeva & Tamara Kerimovna Rostovskaya, 2017. "The Challenge of Social Innovation: Approaches and Key Mechanisms of Development," European Research Studies Journal, European Research Studies Journal, vol. 0(2B), pages 25-45.
    13. Jeffrey G. Covin & Danny Miller, 2014. "International Entrepreneurial Orientation: Conceptual Considerations, Research Themes, Measurement Issues, and Future Research Directions," Entrepreneurship Theory and Practice, , vol. 38(1), pages 11-44, January.
    14. Francesco Perrini & Clodia Vurro & Laura A. Costanzo, 2010. "A process-based view of social entrepreneurship: From opportunity identification to scaling-up social change in the case of San Patrignano," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 22(6), pages 515-534, October.
    15. Jacques Bughin & Nicolas van Zeebroeck, 2017. "The case for offensive strategies in response to digital disruption," iCite Working Papers WP021-2017, ULB -- Universite Libre de Bruxelles.
    16. Gouvea, Raul & Kapelianis, Dimitri & Kassicieh, Sul, 2018. "Assessing the nexus of sustainability and information & communications technology," Technological Forecasting and Social Change, Elsevier, vol. 130(C), pages 39-44.
    17. Demetris Vrontis & Ranjan Chaudhuri & Sheshadri Chatterjee, 2022. "Adoption of Digital Technologies by SMEs for Sustainability and Value Creation: Moderating Role of Entrepreneurial Orientation," Sustainability, MDPI, vol. 14(13), pages 1-19, June.
    18. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    19. Johanna Gast & Katherine Gundolf & Beate Cesinger, 2017. "Doing business in a green way: A systematic review of the ecological sustainability entrepreneurship literature and future research directions," Post-Print hal-02008555, HAL.
    20. Johan Wiklund, 1999. "The Sustainability of the Entrepreneurial Orientation—Performance Relationship," Entrepreneurship Theory and Practice, , vol. 24(1), pages 37-48, October.
    21. James Austin & Howard Stevenson & Jane Wei–Skillern, 2006. "Social and Commercial Entrepreneurship: Same, Different, or Both?," Entrepreneurship Theory and Practice, , vol. 30(1), pages 1-22, January.
    22. Gasparin, Marta & Green, William & Lilley, Simon & Quinn, Martin & Saren, Mike & Schinckus, Christophe, 2021. "Business as unusual: A business model for social innovation," Journal of Business Research, Elsevier, vol. 125(C), pages 698-709.
    23. Wynne W. Chin & Barbara L. Marcolin & Peter R. Newsted, 2003. "A Partial Least Squares Latent Variable Modeling Approach for Measuring Interaction Effects: Results from a Monte Carlo Simulation Study and an Electronic-Mail Emotion/Adoption Study," Information Systems Research, INFORMS, vol. 14(2), pages 189-217, June.
    24. Aleksandra Kuzior & Karolina Kettler & Łukasz Rąb, 2021. "Digitalization of Work and Human Resources Processes as a Way to Create a Sustainable and Ethical Organization," Energies, MDPI, vol. 15(1), pages 1-13, December.
    25. Jeffrey G. Covin & Dennis P. Slevin, 1989. "Strategic management of small firms in hostile and benign environments," Strategic Management Journal, Wiley Blackwell, vol. 10(1), pages 75-87, January.
    26. Carlo Borzaga & Riccardo Bodini & Chiara Carini & Sara Depedri & Giulia Galera & Gianluca Salvatori, 2014. "Europe in Transition: The Role of Social Cooperatives and Social Enterprises," Euricse Working Papers 1469, Euricse (European Research Institute on Cooperative and Social Enterprises).
    27. Ben Arfi, Wissal & Hikkerova, Lubica & Sahut, Jean-Michel, 2018. "External knowledge sources, green innovation and performance," Technological Forecasting and Social Change, Elsevier, vol. 129(C), pages 210-220.
    28. Kevin Zheng Zhou & Caroline Bingxin Li, 2012. "How knowledge affects radical innovation: Knowledge base, market knowledge acquisition, and internal knowledge sharing," Strategic Management Journal, Wiley Blackwell, vol. 33(9), pages 1090-1102, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wales, William J. & Kraus, Sascha & Filser, Matthias & Stöckmann, Christoph & Covin, Jeffrey G., 2021. "The status quo of research on entrepreneurial orientation: Conversational landmarks and theoretical scaffolding," Journal of Business Research, Elsevier, vol. 128(C), pages 564-577.
    2. Siriram, Rajenlall, 2022. "An innovative approach to overcoming technological challenges and improving firm performance in South Africa," Technology in Society, Elsevier, vol. 68(C).
    3. Michael H. Morris & Justin W. Webb & Rebecca J. Franklin, 2011. "Understanding the Manifestation of Entrepreneurial Orientation in the Nonprofit Context," Entrepreneurship Theory and Practice, , vol. 35(5), pages 947-971, September.
    4. Basco, Rodrigo & Hernández-Perlines, Felipe & Rodríguez-García, María, 2020. "The effect of entrepreneurial orientation on firm performance: A multigroup analysis comparing China, Mexico, and Spain," Journal of Business Research, Elsevier, vol. 113(C), pages 409-421.
    5. Danny Miller, 2011. "Miller (1983) Revisited: A Reflection on EO Research and Some Suggestions for the Future," Entrepreneurship Theory and Practice, , vol. 35(5), pages 873-894, September.
    6. Vishal K. Gupta & William J. Wales, 2017. "Assessing Organisational Performance Within Entrepreneurial Orientation Research: Where Have We Been and Where Can We Go from Here?," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 26(1), pages 51-76, March.
    7. Hernández-Perlines, Felipe & Covin, Jeffrey G. & Ribeiro-Soriano, Domingo E., 2021. "Entrepreneurial orientation, concern for socioemotional wealth preservation, and family firm performance," Journal of Business Research, Elsevier, vol. 126(C), pages 197-208.
    8. Katharina Fellnhofer, 2019. "The Complementary Effects Of Firms’ And Team Leaders’ Entrepreneurial Orientation On Innovation Success And Performance," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(05), pages 1-32, June.
    9. Izaias Martins, 2016. "Network Usage, Entrepreneurial Orientation and Their Effectiveness on SMEs Growth," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 25(1), pages 18-41, March.
    10. Mostafiz, Md Imtiaz & Ahmed, Farhad Uddin & Tardios, Janja & Hughes, Paul & Tarba, Shlomo Y., 2025. "Configuring international entrepreneurial orientation and dynamic internationalization capability to predict international performance," International Business Review, Elsevier, vol. 34(2).
    11. Michael Sheppard, 2020. "The relationship between discretionary slack and growth in small firms," International Entrepreneurship and Management Journal, Springer, vol. 16(1), pages 195-219, March.
    12. Jelica Rastoka & Saša Petković & Dragana Radicic, 2022. "Impact of Entrepreneurship on the Quality of Public Health Sector Institutions and Policies," IJERPH, MDPI, vol. 19(3), pages 1-25, January.
    13. Maryono & Imam Ghozali & Amie Kusumawardhani & R. Mahelan Prabantarikso & Firdaus Basbeth, 2020. "Entrepreneurial Orientation in Government-Owned Bank: Do They Improve Competitive Advantage?," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(2), pages 262-270, April.
    14. Zhang, Jing A. & O'Kane, Conor & Bai, Tao, 2024. "How do university-firm interactions affect firm innovation speed? The case of Chinese science-intensive SMEs," Research Policy, Elsevier, vol. 53(7).
    15. Cowden, Birton & Tang, Jintong, 2022. "Institutional entrepreneurial orientation: Beyond setting the rules of the game for blockchain technology," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    16. Bojan Morić Milovanović & Mirjana Grčić Fabić & Vjekoslav Bratić, 2023. "Strategic Approach to Configurational Analysis of Entrepreneurial Orientation, Strategic Networking, and SME Performance within Emerging Markets of Selected Southeast European Countries," Administrative Sciences, MDPI, vol. 13(2), pages 1-19, February.
    17. Antonio Rodríguez-Peña, 2021. "Assessing the impact of corporate entrepreneurship in the financial performance of subsidiaries of Colombian business groups: under environmental dynamism moderation," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-27, December.
    18. William E. Baker & Amir Grinstein & Marcelo G. Perin, 2020. "The Impact of Entrepreneurial Orientation on Foreign Market Entry: the Roles of Marketing Program Adaptation, Cultural Distance, and Unanticipated Events," Journal of International Entrepreneurship, Springer, vol. 18(1), pages 63-91, March.
    19. Sascha Kraus & Matthias Breier & Paul Jones & Mathew Hughes, 2019. "Individual entrepreneurial orientation and intrapreneurship in the public sector," International Entrepreneurship and Management Journal, Springer, vol. 15(4), pages 1247-1268, December.
    20. William Wales & Erik Monsen & Alexander McKelvie, 2011. "The Organizational Pervasiveness of Entrepreneurial Orientation," Entrepreneurship Theory and Practice, , vol. 35(5), pages 895-923, September.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:6:p:2464-:d:1357908. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.