Digital Capabilities and Social Enterprise Performance: The Mediating Effect of Digital Innovation

Social enterprises are driven by financial objectives to preserve social values and focus on attaining self-financial stability. Digital technologies increase awareness and opportunities for social entrepreneurs. The relationship between digital capabilities and social enterprise performance is associated with digital innovation in a broader social context. This study assesses the connection between digital capability and social enterprise performance. Furthermore, we consider how digital innovation mediates the way in which digital capability influences social enterprise performance. Data were gathered from 326 respondents from various small and medium social enterprises in Bangladesh. The deductive reasoning method was used, and the data were examined through structural equation modelling using IBM SPSS 25 and SmartPLS4. The results indicate that digital capability is positively correlated with social enterprise. In addition, digital innovation was determined to mediate the connection between digital capability and social enterprise performance.