Social enterprises pursue innovation to create socio-economic impact for the marginalized communities. The founders of social enterprises drive goal-oriented innovation, whereas, interactions with ecosystem is crucial to create and diffuse innovation. However, studies are scant on creation as well as diffusion of innovation emerging from social enterprises. This paper attempts to understand innovation emerging from social enterprises through an exploration of innovation focus, interactions with ecosystem, and measurement of innovation performance. A cross-sectional study is performed to understand the relationship between founders’ orientation and innovation performance, and the mediating role of innovation focus and ecosystem interactions. A cluster sampling across four states in India - Karnataka, Telangana, Maharastra and Tamil Nadu - resulted in participation from 207 social enterprises. The results of partial least squared structural equation modeling (PLS-SEM) demonstrate the positive complementary mediating role of innovation focus in the relationship between founders' orientation and innovation performance. Moreover, this paper illustrates that founders’ persistent focus on innovation creates positive results for social enterprises as well as beneficiaries.
Acs, Z.J., Boardman, M.C. and McNeely, C.L. (2013) The social value of productive entrepreneurship, Small Business Economics, Https://doi.org/10.1007/s11187-011-9396-6.
Adner, R. (2006) Match your innovation strategy to your innovation ecosystem, Harvard Business Review, 84(4), 98.
Ahuja, G. and Katila, R. (2001) Technological acquisitions and the innovation performance of acquiring firms: a longitudinal study, Strategic Management Journal, 22(3), 197-220.
Antadze, N. and Westley, F.R. (2012) Impact metrics for social innovation: barriers or bridges to radical change?, Journal of Social Entrepreneurship, 1-19, Doi:10.1080/19420676.2012.726005.
Austin, J., Stevenson, H. and Wei-Skillern, J. (2006) Social and commercial entrepreneurship: same, different, or both?, Entrepreneurship Theory and Practice, 1-22.
Bhattacharya, M. and Bloch, H. (2004) Determinants of innovation, Small Business Economics, 22(2), 155-162.
Brattström, A., Frishammar, J., Richtnér, A. and Pflueger, D. (2018) Can innovation be measured? a framework of how measurement of innovation engages attention in firms, Journal of Engineering and Technology Management, 48, 64-75.
Cajaiba-Santana, G. (2014) Social innovation: moving the field forward, a conceptual framework, Technological Forecasting and Social Change, 82(C), 42-51, Doi:10.1016/j.techfore.2013.05.008.
Calik, E. and Bardudeen, F. (2016) A measurement scale to evaluate sustainable innovation performance in manufacturing organizations, Procedia Cirp, 40, 449-454.
Chen, X., Zou, H. and Wang, D.T. (2009) How do new ventures grow? firm capabilities, growth strategies and performance, International Journal of Research in Marketing, 26(4), 294-303.
Choi, N. and Majumdar, S. (2014) Social entrepreneurship as an essentially contested concept: opening a new avenue for systematic future research, Journal of Business Venturing, 29(3), 363-376.
Corno, F., Lal, R. and Colombo, S. (2014) Entrepreneurship and new venture creation key elements of the entrepreneurial ecosystem facilitating the growth of ICT entrepreneurs in Italy, European Scientific Journal, ESJ September 2014, Special Edition, 2, DOI: http://dx.doi.org/10.19044/esj.2014.v10n10p%25p.
Dewangan, V. and Godse, M. (2014) Towards a holistic enterprise innovation performance measurement system, Technovation, 34(9), 536-545, Doi:10.1016 /j.tech novation.2014.04.002
Dutt, N. and Ganesh, U. (2014, August 11) The evolution of impact investment in India, Stanford Social Innovation Review, Https://ssir.org/articles/entry/the_evolution_of_ impact_investment_in_india.
Felício, J.A., Gonçalves, H.M. and DaConceição G.V. (2013) Social value and organizational performance in non-profit social organizations: social entrepreneur-ship, leadership, and socioeconomic context effects, Journal of Business Research, 66(10), 2139-2146.
García-Granero, E.M., Piedra-Muñoz, L. and Galdeano-Gómez, E. (2018) Eco-innovation measurement: a review of firm performance indicators, Journal of Cleaner Production.
Garud, R., Gehman, J. and Giuliani, A.P. (2014) Contextualizing entrepreneurial innovation: A narrative perspective, Research Policy, 43(7), 1177-1188.
Ghani, E., Kerr, W.R. and O'Connell, S. (2014) Spatial determinants of entrepreneur-ship in India, Regional Studies, 48(6), 1071-1089, Doi:10.1080/00343404.2013. 839869.
Giudici, G. and Paleari, S. (2000) The provision of finance to innovation: a survey conducted among Italian technology-based small firms, Small Business Economics, 14(1), 37-53.
Graham, S.J., and Higgins, M.J. (2007) The impact of patenting on new product introductions in the pharmaceutical industry, Available at SSRN 984628.
Hagedoorn, J. and Cloodt, M. (2003) Measuring innovative performance: is there an advantage in using multiple indicators?, Research Policy, 32(8), 1365-1379.
Hair, J.F.J., Hult, G.T.M., Ringle, C. and Sarstedt, M. (2016) A primer on partial least squares structural equation modeling (PLS-SEM) (2nd ed.), SAGE Publications, Https://doi.org/10.1016/j.lrp.2013.01.002
Jaworski, B.J. and Kohli, A.K. (1993) Market orientation: antecedents and consequences, Journal of Marketing, 57(3), 53-70.
Kerlin, J.A. (2010) A comparative analysis of the global emergence of social enterprise, Voluntas, 21(2), 162-179, Doi:10.1007/s11266-010-9126-8.
Kerlin, J.A. (2013) Defining social enterprise across different contexts: a conceptual framework based on institutional factors, Nonprofit and Voluntary Sector Quarterly, 1-26, Doi:10.1177/0899764011433040.
Kim, H.J. and Kim, B.K. (2016) An entrepreneurial paradox: the moderating effect of the external environment, Asian Journal of Technology Innovation, 1-12.
Kim, Y.D. and Yoon, S. (2012) Current status and policy implications for fostering social entrepreneur, American Journal of Economics and Business Administration, 4(3), 155.
Kirkman, D.M. (2012) Social enterprises: a multi-level framework of the innovation adoption process, Innovation Management Policy Practice, 1-14.
Le, T.P.V. and Phan, T.B.N. (2017) Capital structure and firm performance: empirical evidence from a small transition country, Research in International Business and Finance, 42, 710-726, Https://doi.org/10.1016/J.RIBAF.2017.07.012.
Lee, C., Lee, K. and Pennings, J.M. (2001) Internal capabilities, external networks and performance: a study on technology based ventures, Strategic Management Journal, 22(67), 615-640.
Lee, Y.K., Kim, S.H., Seo, M.K. and Hight, S.K. (2015) Market orientation and business performance: evidence from franchising industry, International Journal of Hospitality Management, 44, 28-37, Doi:10.1016/j.ijhm.2014.09.008.
Lepoutre, J., Justo, R., Terjesen, S. and Bosma, N. (2013) Designing a global standardized methodology for measuring social entrepreneurship activity: the global entrepreneurship monitor social entrepreneurship study, Small Business.
Liu, G., Takeda, S. and Ko, W.W. (2014) Strategic orientation and social enterprise performance, Nonprofit and Voluntary Sector Quarterly, 43(3), 480-501, Doi:10. 1177/0899764012468629.
Miller, D., Le Breton‐Miller, I. and Lester, R.H. (2011) Family and lone founder ownership and strategic behaviour: social context, identity, and institutional logics, Journal of Management Studies, 48(1), 1-25.
Nelson, A.J. (2009) Measuring knowledge spillovers: what patents, licenses and publications reveal about innovation diffusion, Research Policy, 38(6), 994-1005.
Nicholls, A. (2010) The legitimacy of social entrepreneurship: reflexive isomorphism in a pre-paradigmatic field, Entrepreneurship Theory and Practice, 34(4), 611-633.
Nicholls, A. and Cho, A.H. (2006) Social entrepreneurship: the structuration of a field, New Models of Sustainable Social Change, 1, 99-118.
Ozkaya, H.E., Droge, C., Hult, G.T.M., Calantone, R. and Ozkaya, E. (2015) Market orientation, knowledge competence, and innovation, International Journal of Research in Marketing, 1-43, Doi:10.1016/j.ijresmar.2014.10.004.
Pandit, V. and Tamhane, T. (2017) Impact investing: purpose-driven finance finds its place in India, Retrieved from https://www.mckinsey.com/~/media/mckinsey/ industries/private%20equity%20and%20principal%20investors/our%20insights/i.
Pfitzer, M., Bockstette, V. and Stamp, M. (2013) Innovating for shared value, Harvard Business Review, 91(9), 100-107.
Phills, J.A., Deiglmeier, K. and Miller, D.T. (2008) Rediscovering social innovation, Stanford Social Innovation Review, 6(4), 34-43.
Pitelis, C. (2012) Clusters, entrepreneurial ecosystem co-creation, and appropriability: a conceptual framework, Industrial and Corporate Change, 21(6), 1359-1388.
Prakash, R. and Tan, P. (2014) Landscape of social enterprises in Singapore, Asia Centre for Social Entrepreneurship and Philanthropy (ACSEP).
Roy, M.J., Donaldson, C., Baker, R. and Kerr, S. (2014) The potential of social enterprise to enhance health and well-being: a model and systematic review, Social Science and Medicine, 123(C), 182-193, Doi:10.1016/j.socscimed.2014.07.031.
Sabeti, H. (2011) The for-benefit enterprise, Harvard Business Review, 89(11), 98-104.
Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012, Retrieved from https://www.sebi.gov.in/sebi_data/attachdocs/1337601524196. pdf.
Shaw, E. and Carter, S. (2007) Social entrepreneurship: theoretical antecedents and empirical analysis of entrepreneurial processes and outcomes, Journal of Small Business and Enterprise Development, 14(3), 418-434.
Sonne, L. (2012) Innovative initiatives supporting inclusive innovation in India: social business incubation and micro venture capital, Technological Forecasting and Amp; Social Change, 79(4), 638-647, Doi:10.1016/j.techfore.2011.06.008.
Sonne, L. (2014) Regional social enterprise ecosystems in India - a conceptual framework, 1-32, Villgro-Okapi.
US National Advisory Board on Impact Investing (2014) Private Capital Public Good: How Smart Federal Policy Can Galvanize Impact Investing - and Why It’s Urgent, Retrieved from https://socialenterprise.georgetown.edu/newsroom/press-release/us-national-advisory-board-issues-policy-recommendations-encourage-impact.
Vander, H.R.P. and Rubalcaba, L. (2016) Social innovation research: an emerging area of innovation studies?, Research Policy, 45(9), 1923-1935.
Weerawardena, J. and Mort, G.S. (2006) Investigating social entrepreneurship: a multidimensional model, Journal of World Business, 41(1), 21-35, Doi:10.1016/ j.jwb.2005.09.001.
Westall, A. (2009) How can innovation in social enterprise be understood, encouraged and enabled?, Cabinet Office of Third Sector, UK, 1-24.
Westley, F., Olsson, P., Folke, C., Homer-Dixon, T., Vredenburg, H., Loorbach, D. and Banerjee, B. (2011) Tipping toward sustainability: emerging pathways of trans-formation, Ambio, 40(7), 762.
Wiklund, J. and Shepherd, D. (2005) Entrepreneurial orientation and small business performance: a configurational approach, Journal of Business Venturing, 20(1), 71-91.