The contribution of IT-enabled dynamic capabilities towards social entrepreneurship business models

Abstract

The coronavirus disease 2019 (COVID-19) pandemic enduringly affected the world; its implication on society will have long-lasting adverse effects. The pandemic allowed social entrepreneurs to form strategic partnerships, develop innovative solutions, and replicate at scale to advance social influence (Lumpkin & Bacq, 2019). Social enterprises require dynamic capabilities to provide renewal capability, continuous exploration of opportunities for innovation, and improvement of practices to remain competitive and achieve long-term commitment to its social mission (Mikalef & Pateli, 2017). Adducing the social entrepreneurship (SE) business model theory and IT-enabled dynamic capabilities (ITDCs) theory, this study aimed to understand the contribution of IT-enabled dynamic capabilities to social entrepreneurship business models. A qualitative study was conducted. Data were collected and analysed from 11 in-depth interviews with experienced senior executive, managerial, and specialist levels in social enterprises across industries. The research findings support the extant body of literature, therefore, providing a solid theoretical support in ITDCs and SE business models. Little is known about the strategical influence of ITDCs on social enterprises and their business model decisions. The influence of factors is yet to be understood. These aspects include the strategic business orientation of social enterprises, legal and compliance framework, demographic dividend, the appointment of a chief information officer (CIO), the digital maturity of social enterprises and their environment, and the COVID-19 global crisis. This research contributes in multiple ways. It supports to the extant literature on ITDCs and SE business models. The study contributes to the social enterprises in understanding how ITDCs can be leveraged to improve organisational performance, strengthen social mission position, ways to overcome institutional barriers, and improve SE market participation, upscale social influence, and enhance business relevance for their long-term sustainability and growth.