Social innovation: relationships with social and human capitals, entrepreneurial competencies and growth of social enterprises in a developing country context

Abstract

Purpose This study aims to examine capital and competency variables – human capital, social capital and personal entrepreneurial competencies – in relation to social innovation development and growth of social enterprises in a developing country with an emerging social enterprise sector: Thailand. Design/methodology/approach A hypothetical-deductive approach was adopted and a quantitative survey by questionnaire was applied to collect data from owners/top management of 103 social enterprises in Thailand. The data were used to test hypotheses and further analysed using partial least squares technique. Findings The results revealed that there were positive direct and indirect (mediating) relationships between human capital, social capital, personal entrepreneurial competencies and social innovation development and growth of Thai social enterprises. Skills and training were key determinants of human capital, whereas social interaction, trust, social identification and shared knowledge were key determinants of social capital which affected social innovation development. Goal orientation, information seeking, opportunity seeking, persuasion and self-confidence were key determinants of entrepreneurial competencies that also affected social innovation development. This study ultimately revealed the mediating effects of social innovation development on the relationships between capital and competency variables and the growth of social enterprises. Originality/value This study fills the research gap, from the theoretical perspective, by identifying capital and competency variables as well as their additional determinants that are divergent from previous literature, which can potentially influence the social innovation development of social enterprises, and where only limited research is evidenced. From an empirical perspective, this study attempts to investigate the associations between these variables and growth indicators in the context of social enterprises in a developing nation, where its sector is in its infancy. This study further helps to clarify the existence of the direct and indirect (mediating) effects of social innovation development in the context of the economic and social accomplishments of social enterprises.