Impact of Organisational Culture on Innovation Performance in Nascent Social Enterprises Through Entrepreneurial Orientation

Abstract

Social enterprises in emerging economies face persistent resource constraints and institutional voids that challenge their ability to sustain innovation while pursuing dual social and economic missions. This study examines how organisational culture influences innovation performance in nascent social enterprises, focusing on the mediating role of entrepreneurial orientation. Drawing on survey data from 253 early-stage social enterprises in Vietnam, the findings reveal that organisational culture enhances innovation performance primarily by fostering entrepreneurial orientation, which enables enterprises to act proactively, embrace calculated risk-taking and pursue innovative solutions under constrained conditions. The results further indicate that entrepreneurial orientation partially mediates the relationship between organisational culture and innovation performance, highlighting its role as a key internal mechanism for translating cultural resources into innovative outcomes. By integrating insights from dynamic capability theory and the hybrid organisation literature, this study provides context-sensitive evidence for entrepreneurship research in emerging economies. It offers practical implications for entrepreneurs, support organisations and policymakers seeking to strengthen innovation capacity in social enterprises.