Fostering social enterprise innovativeness: the interplay of learning, market orientation and stakeholder engagement within a capability framework

Abstract

Purpose Drawing on capability theory, this study aims to examine the interplay of learning orientation, market orientation and stakeholder engagement in fostering social enterprise innovativeness. Design/methodology/approach A survey of 1,044 Australian social enterprise executives and managers tested hypotheses in a mediated moderation model using structural equation modelling. Findings Nested model comparisons revealed key insights: market orientation partially mediates the relationship between learning commitment, open-mindedness and innovativeness. High stakeholder engagement hinders learning commitment’s effect on innovativeness while enhancing open-mindedness’ impact. Shared vision negatively affects innovativeness. Control variables highlight gender-based perceptions, with female executives viewing market orientation and innovativeness less favourably than male counterparts. This study underscores the importance of heightened market orientations in hostile business environments. Research limitations/implications Findings prompt further investigation into stakeholder engagement’s negative impact on learning commitment and shared vision’s effect on innovativeness. It is crucial to recognise gender perspectives in strategy and align internal practices with external conditions. Originality/value This study clarifies the interplay between learning orientation, market orientation and stakeholder engagement in fostering innovativeness amid contradictory findings. It advances social enterprise research by introducing a capability-based approach to cultivate innovativeness, challenging dominant customer-focused strategies to enhance organisational performance.