Conceptualizing the Role of Market Learning in Social Innovation-Based Competitive Strategy

Abstract

With the increased recognition of the contribution of social purpose organizations (SPOs) to the economy, there has been a heightened academic and practitioner interest in social innovation and social value creation. Whilst the role of market learning in this process has received increased attention, many researchers have attempted to adopt the ‗market orientation‘ view that has primarily evolved within the for-profit context. These approaches will have a limited effect in advancing social innovation research as any attempt for theory building in this field must address the unique characteristics of SPOs which substantially differ from for-profit organization. Addressing this research gap this study attempts to conceptualize the constituent elements of market learning in SPO context and how such learning potentially relates to the types and degrees of social innovation. We draw on the organizational learning and the dynamic capabilities literature to conceptualize SPO market learning capability and its potential relationship with social innovation. We will also discuss theoretical implications of our conceptualization.