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.
