Skip to main content

Advertisement

SpringerLink
Log in

The Role of Sustainable Entrepreneurship and Corporate Social Performance on Social Innovation: the Case of the Private Industrial Sector in Saudi Arabia

  • Published:
Journal of the Knowledge Economy Aims and scope Submit manuscript

Abstract

This study seeks to identify and measure the association linking sustainable entrepreneurship and social innovation, through corporate social performance as a mediating variable. To assess the research model, five determinants of sustainable entrepreneurship are identified which can generate social innovation. The hypothesis test is based on a quantitative approach in which data was gathered through a questionnaire distributed to 180 SMEs in Saudi Arabia. The study applies a structural equation model in order to verify the relative importance of corporate social performance, alongside its mediating effect. The results demonstrate a mediating effect from corporate social performance between sustainable entrepreneurship extrinsic motivation and sustainable entrepreneurship outcome as determinants, and social innovation. This mediating effect seems to be less important for other determinants such as knowledge resource acquirement. The results define a critical pathway for social innovation in order to facilitate its definition and try to operationalize the process of its generation. In fact, this study provides an operationalized approach for social variables.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig.1

Source: Osburg (2013)

Fig. 2
Fig. 3

Similar content being viewed by others

References

  • Baron, R. M., & Kenny, D. A. (1986). The moderator-mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51, 1173–1182

    Article  Google Scholar 

  • Bell, J. & Stellingwerf, J. (2012). Sustainable entrepreneurship: the motivations and challenges of sustainable entrepreneurs in the renewable energy industry. Master’s Thesis, Jonkoping International Business School, Jonkoping, Sweden

  • Belz, F. M., & Binder, J. K. (2017). Sustainable entrepreneurship: a convergent process model. Business Strategy and the Environment, 26(1), 1–17

    Article  Google Scholar 

  • Benko, G., & Lipietz, A. (2000). La richesse des régions. Presses Universitaires de France

    Google Scholar 

  • Boons, F. & Lüdeke-Freund, F. (2013). Business models for sustainable innovation: state-of-the-art and steps towards a research agenda. Journal of Cleaner Production, 45, 9–19. Retrieved from https://doi.org/10.1016/j.jclepro.2012.07.007

  • Bulut, C., Hakan, E., & Duygu Seckin, H. (2013). Social innovation and psychometric analysis. Procedia - Social and Behavioral Sciences, 82, 122–130

    Article  Google Scholar 

  • Carroll, A. B. (1979). A three-dimensional conceptual model of corporate performance. Academy of Management Review, 4(4), 497–505

    Article  Google Scholar 

  • Carroll, A. B. (2015). Corporate social responsibility (CSR) is on a sustainable trajectory. Journal of Definition Management, 5, 132. https://doi.org/10.4172/2167-0374.1000132.

    Article  Google Scholar 

  • Chandler, G. N., & Jansen, E. (1992). The founder’s self-assessed competence and venture performance. Journal of Business Venturing, 7(3), 223–236

    Article  Google Scholar 

  • Clarkson, M. E. (1995). A stakeholder framework for analyzing and evaluating corporate social performance. Academy of Management Review, 20(1), 92–117

    Article  Google Scholar 

  • Cloutier, J. (2003). Qu’est-ce que innovation sociale? Cahiers du CRISES, Collection Working papers, no.0314. Centre de recherche sur les innovations sociales

  • Cohen, B., & Winn, M. I. (2007). Market imperfections, opportunity and sustainable entrepreneurship. Journal of Business Venturing, 22(1), 29–49. https://doi.org/10.1016/j.jbusvent.2004.12.001

    Article  Google Scholar 

  • Cohen, D. A., Dey, A., & Lys, T. (2004). Real and Accrual-Based Earnings Management in the Pre- and Post-Sarbanes Oxley Periods. The Accounting Review, 83. https://doi.org/10.2139/ssrn.813088.

  • Crals, E., & Vereeck, L. (2007). Sustainable entrepreneurship in SME’s. Theory and Practice

  • Dai, S., Xue, H., Jiang. Y., Zhang, W. & Zhang, X. (2018). Sustainable entrepreneurship team scale development: a complex systems perspective. Sustainability, 10, 4199. https://doi.org/10.3390/su10114199

  • Djellal, F., & Gallouj, F. (2012). Innovation sociale et innovation de service: première ébauche d’un dialogue nécessaire. Innovations. Cahiers d’économie de l’innovation, 2(38), 37–66

    Google Scholar 

  • Eller, F. J., Gielnik, M. M., Wimmer, H., Thölke, C., Holzapfel, S., Tegtmeier, S., & Halberstadt, J. (2020). Identifying business opportunities for sustainable development: longitudinal and experimental evidence contributing to the field of sustainable entrepreneurship. Business Strategy and the Environment, 29(3), 1387–1403. https://doi.org/10.1002/bse.2439

    Article  Google Scholar 

  • Fiandrino, S., Devalle, A., & Cantino, V. (2019). Corporate governance and financial performance for engaging socially and environmentally responsible practices. Social Responsibility Journal, 15(2), 171–185

    Article  Google Scholar 

  • Fichter, K., & Tiemann, I. (2020). Impacts of promoting sustainable entrepreneurship in generic business plan competitions. Journal of Cleaner Production, 267, 122076. https://doi.org/10.1016/j.jclepro.2020.122076

    Article  Google Scholar 

  • Fontan, J. M. (2004). Innovation et société: pour élargir l’analyse des effets territoriaux de l’innovation. Géographie, économie, société, 2(6), 115–128

    Article  Google Scholar 

  • Fontan, J. M., Klein, J. L., & Lévesque, B. (2003). Reconversion économique et développement territorial: le rôle de la société civile. Presses de l’Université du Québec

  • Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50

    Article  Google Scholar 

  • Gagnon, M. A. (2012). Sustainable minded entrepreneurs: developing and testing a value-based framework. Journal of Strategic Innovation and Sustainability, 8(1), 9–25

    Google Scholar 

  • Garcia, E. A., Sousa-Filho, J. M., & Gama Boaventura, J. M. (2017). The influence of social disclosure on the relationship between corporate financial performance and corporate social performance. Accounting and Finance Review, 29(77), 229–245

    Google Scholar 

  • Graham, P. J. (2010). Testimonial entitlement and the function of comprehension. In A. Haddock, A. Millar, & D. Pritchard (Eds.), Social Epistemology. Oxford: Oxford University Press

  • Grice, J. C., Davies, A., Robert, P., & Norman, W. (2012). The Young Foundation social innovation overview. A deliverable of the project: the theoretical, empirical and policy foundations for building social innovation in Europe"(TEPSIE), European Commission-7th framework Programme. Brussels: European Commission, DG Research

  • Hair, J. F., Hult, G. T., Ringle, C., & Sarstedt, M. (2014). A primer on partial least squares structural equation modeling (PLS-SEM). Sage Publications

    Google Scholar 

  • Hall, J. J. K., Daneke, G. A. G., & Lenox, M. J. M. M. J. (2010). Sustainable development and entrepreneurship: past contributions and future directions. Journal of Business Venturing, 25(5), 439–448

    Article  Google Scholar 

  • Horisch, J. (2015). The role of sustainable entrepreneurship in sustainability transitions: a conceptual synthesis against the background of the multi-level perspective. Administrative Sciences, 5(4), 286–300. Retrieved from https://doi.org/10.1016/j.jclepro.2012.07.007

  • Kai, H., & Wüstenhagen, R. (2010). Greening Goliaths versus emerging Davids—theorizing about the role of incumbents and new entrants in sustainable entrepreneurship. Journal of Business Venturing, 25, 481–492

    Article  Google Scholar 

  • Krueger, N. F. (2005). Sustainable entrepreneurship: broadening the definition of opportunity. 19th National Conference of United States Association for Small Business and Entrepreneurship (USASBE), California, USA

  • Lévesque, B., Bourque, G. L., & Forgues, E. (2001). La nouvelle sociologie économique. Desclée de Brouwer

  • MacCallum, R. C., Widaman, K. F., Preacher, K. J., & Hong, S. (2001). Sample size in factor analysis: the role of model error. Multivariate Behavioral Research, 36, 611–637

    Article  Google Scholar 

  • Majid, I. A., & Koe, W. L. (2012). Sustainable entrepreneurship (SE): a revised model based on triple bottom line (TBL). International Journal of Academic Research in Business and Social Sciences, 2(6), 293–310

    Google Scholar 

  • Majid, I. A., Kamaludin, M. H., Saad, M. S. M., & Aziz, N. A. (2012). Sustainability-driven entrepreneurship: the mediating effect of opportunity-based management structure on the relationship between entrepreneurial orientation and environmental sustainability management of SMEs: a conceptual framework. European Journal of Business and Management, 4(13), 148–155

    Google Scholar 

  • Matten, D., & Moon, J. (2008). “Implicit” and “explicit” CSR: a conceptual framework for a comparative understanding of corporate social responsibility. Academy of Management Review, 33(2), 404–424

    Article  Google Scholar 

  • Muñoz, P., & Cohen, B. (2018). Sustainable entrepreneurship research: taking stock and looking ahead. Business Strategy and the Environment, 27(3), 300–322. https://doi.org/10.1002/bse.2000

    Article  Google Scholar 

  • Nunnally, J. (1978). Psychometric methods. (3rd ed.). McGraw-Hill

    Google Scholar 

  • Oppenheim, J., Bonini, S., Bielak, D., Kehm, T., & Lacy, P. (2007). Shaping the new rules of competition: UN Global Compact Participant Mirror. McKinsey & Company

    Google Scholar 

  • Osburg T. (2013). Sustainable entrepreneurship: a driver for social innovation. In: Weidinger C., Fischler F., Schmidpeter R. (eds), Sustainable Entrepreneurship. CSR, Sustainability, Ethics & Governance. Berlin: Springer

  • Phills, J. A., Deiglemeier, K., & Miller, D. T. (2008). Rediscovering social innovation. Stanford Social Innovation Review, 6(4), 33–43

    Google Scholar 

  • Raderbauer, M. (2011). The importance of sustainable business practices in the Viennese accommodation industry. Master’s Thesis, University of Exeter

  • Rodgers, C. (2010). Sustainable entrepreneurship in SMEs: a case study analysis. Corporate Social Responsibility and Environmental Management, 132(March), 125–132. Retrieved from https://doi.org/10.1002/csr.223

  • Salazar, J., Husted, B. W., & Biehl, M. (2012). Thoughts on the evaluation of corporate social performance through projects. Journal of Business Ethics, 105(2), 175–186

    Article  Google Scholar 

  • Schaltergger, S., & Burrit, R. (2014). Measuring and managing sustainability performance of supply chain : review and sustainability chain management framework. Supply Chain Management, 19(3), 232-241.

  • Schaltegger, S., & Wagner, M. (2011). Sustainable entrepreneurship and sustainability innovation: categories and interactions. Business Strategy and the Environment., 20, 222–237

    Article  Google Scholar 

  • Schaltegger, S., & Wagner, T. (2008). Types of sustainable entrepreneurship and conditions for sustainability innovation: from the administration of a technical challenge to the management of an entrepreneurial opportunity. In R. Wüstenhagen, J. Hamschmidt, S. Sharma, & M. Starik (Eds.), Sustainable Innovation and Entrepreneurship. (pp. 27–48). Edward-Elgar.

    Google Scholar 

  • Schlange, L. E. (2006). What drives sustainable entrepreneurs? 3rd Applied Business and Entrepreneurship Association International (ABEAI), Conference, Kona, Hawaii

  • Senge, P. M. (1990). The fifth discipline: the art and practice of the learning organization. Doubleday/Currency

    Google Scholar 

  • Shevchenko, A., Levesque, M., & Pagell, M. (2016). Why firms delay reaching true sustainability. Journal of Management Studies, 53(5), 911–935

    Article  Google Scholar 

  • Szegedi, K., Fülöp, G., & Bereczk, A. (2016). Relationships between social entrepreneurship, CSR and social innovation: in theory and practice. World Academy of Science, Engineering and Technology International Journal of Social, Behavioral, Educational, Economic, Business and Industrial Engineering 10(5)

  • Tardif, C. (2005). Complémentarité, convergence et transversalité: la conceptualisation de l’innovation sociale au CRISES. Cahier du CRISES

  • Terán-Yépez, E., Marín-Carrillo, G. M., del Pilar Casado-Belmonte, M., & de las Mercedes Capobianco-Uriarte, M. (2020). Sustainable entrepreneurship: review of its evolution and new trends. Journal of Cleaner Production, 252, 119742. https://doi.org/10.1016/j.jclepro.2019.119742

    Article  Google Scholar 

  • Tilley, F., & Young, W. (2009). Sustainability entrepreneurs: could they be the true wealth generators of the future? Greener Management International, 55, 79–92

    Google Scholar 

  • Turban, D., & Greening, D. (1996). Corporate social performance and organizational attractiveness to prospective employees. Academy of Management Journal, 40(3), 658–672

    Google Scholar 

  • Vuorio, A. M., Puumalainen, K., & Fellnhofer, K. (2018). Drivers of entrepreneurial intentions in sustainable entrepreneurship. International Journal of Entrepreneurial Behavior and Research, 24(2), 359–381

    Article  Google Scholar 

  • Wei-Loon, K., Roaimah, O. & Juan, R. S. (2015). Factors influencing propensity to sustainable entrepreneurship of SMEs in Malaysia. Global Conference on Business & Social Science-2014, GCBSS-2014, 15th & 16th December, Kuala Lumpur, Procedia - Social and Behavioral Sciences, 172(2015), 570–577

  • Wood, D. J. (1991). Corporate social performance revisited. Academy of Management Review, 16(4), 691–718. https://doi.org/10.5465/AMR.1991.4279616

  • World Business Council for Sustainable Development (2012). Annual review, Greece

  • Xie, J., Nozawa, W., Yagi, M., Fujii, H., & Managi, S. (2019). Do environmental, social, and governance activities improve corporate financial performance? Business Strategy and the Environment, 28(2), 286–300

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Business Administration, College of Business Administration, Majmaah University, 11952, Majmaah, Saudi Arabia

    Abdullah Abdulmohsen Alfalih

Authors
  1. Abdullah Abdulmohsen Alfalih
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Abdullah Abdulmohsen Alfalih.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Alfalih, A.A. The Role of Sustainable Entrepreneurship and Corporate Social Performance on Social Innovation: the Case of the Private Industrial Sector in Saudi Arabia. J Knowl Econ 13, 1928–1943 (2022). https://doi.org/10.1007/s13132-021-00798-7

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s13132-021-00798-7

Keywords

Search

Navigation