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

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.