How Social Innovation Enhances Community Well-Being: The Mediating Role of Social Enterprise Performance
Keywords:
Social Innovation, Social Enterprise Performance, Community Well-being, Social EntrepreneurshipAbstract
Community well-being has become a major concern in sustainable development, particularly in developing countries where social and economic challenges continue to affect quality of life. Social innovation is increasingly recognized as an effective approach to addressing societal problems by creating innovative solutions that generate social value and empower communities. This study examines the effect of social innovation on community well-being and investigates the mediating role of social enterprise performance in Indonesia. A quantitative research design was employed using survey data collected from 158 participants involved in social enterprise activities across various regions of Indonesia. Data were gathered through a structured questionnaire measured on a five-point Likert scale and analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS 3). The findings reveal that social innovation has a significant positive effect on social enterprise performance and community well-being. Social enterprise performance also significantly influences community well-being. Furthermore, social enterprise performance partially mediates the relationship between social innovation and community well-being through a significant indirect effect. The results indicate that innovative social initiatives contribute more effectively to community welfare when supported by strong organizational performance. This study contributes to the literature on social innovation and social entrepreneurship by providing empirical evidence from Indonesia and offers practical implications for policymakers and social enterprise leaders seeking to enhance community well-being through sustainable innovation strategies.
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