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This chapter emphasizes the importance of potential and realized capabilities in building and sustaining social innovations. We present an assessment of the drivers and barriers to the development of social innovation ecosystems through the use of internal (absorptive capacities) and external organizational capabilities (open social innovation). A particular emphasis is placed on social innovation outcomes and impacts. The capability approach is particularly useful for measuring social innovation impacts and investigating the “micro-meso-macro” of linkages that underlie the process of social innovation.

Our methodological approach measures social innovations’ outcomes and impact through an aggregative model, which takes into consideration different forms of capabilities that are engendered in the process of or as a result of social innovation. This methodology highlights the importance of social innovation drivers and contexts in which knowledge exploration and exploitation lead to the creation of capabilities that help social innovators to respond to unfulfilled social needs.

The research presented in this chapter provides a new perspective on how the capability approach can be used to assess and measure individual and collective actions when facing social challenges.

Our research supports and complements the findings of the EU project SIMPACT an acronym for “Boosting the Impact of SI in Europe through Economic Underpinnings,” by highlighting the processes and outcomes and SI impact measurement.

The measurement of social innovation outcomes and impact has gained importance for policy makers and constitutes a strategic tool for designing policies in support of social entrepreneurs, social investors, and private and public organizations which participate in cocreating and implementing innovative projects.

The research presented in this chapter sheds light on the “micro-meso-macro” linkages that foster social innovation ecosystems, and offer valuable tools and guidelines to researchers, practitioners, and policymaker in the field of innovation in general and social innovation in particular.

Tanjung Mas, an urban village located in the northern part of Semarang city, has been facing a major impact of coastal inundation occurring along North Java Coastline. This by-product of global climate change is also affecting a 37-hectares slum, one of the largest slums in Semarang city. As the coastal flood tends to escalate every year, the affected areas must have a coping ability to reduce its impact, while also having adequate resources to recover. Considering Tanjung Mas’ dense demographic condition and its function as the city’s seaport, social vulnerability and capability play a significant role in mitigating and recovering flood impacts, in supplement to local government’s effort of strengthening the Northern Java Seawall. Therefore, this study aims to scored and correlated Tanjung Mas’ social vulnerability index (SoVI) and community capability index to assess how well its population can recover from the tidal flood in the future.

This study used the SoVI framework analysis to synthesize relevant social vulnerability indicators and community capability indicators in Tanjung Mas. The two sets of indicators were correlated with Pearson R-squared correlation method to seek a possible non-causal relation. Bivariate indices mapping method exhibit the SoVI and community capability index spatially to show every area’s vulnerability and capability level.

The vulnerability and capability level in Tanjung Mas vary within its smaller area, as six combinations of social vulnerability and community capability level were found. The worst combination was found on areas closer to the coastline, with high social vulnerability and low community capability level. These areas need to be strengthened in both its capability and coping ability toward coastal flood to realize a resilient community.

This study will be useful for local governments as a supplement to the strategic spatial plan, predominantly in prioritizing vulnerable area treatment prior to the completion of Northern Java Seawall in 2025. This study provides information and a simplified quantitative scoring result of vulnerability and capability level in slum area that has been customized according to Indonesia’s demographic characteristic. These results and framework might be relevant to SoVI and capability scoring in developing countries.

The human development and capability approach (HDCA) and its associated participatory method is receiving growing attention as a useful conceptual development for comparative international education. HDCA challenges the economism so prevalent in world development thinking and, instead, looks at development as a process of enhancing persons’ incrementally achieved substantive freedoms from deprivations. The centrality of the person replaces the centrality of income growth.

The application of HDCA to the study of the role of education that promotes social justice change is illustrated by using an empowerment-capability framework to the long-term study of the benefits of village schooling for rural girls in western China.

Using HDCA to identify influences on social change, we derive a much more nuanced and valuable multi-dimensional view of human development, which enables us to draw broad implications for more effective policy. National policies should use a multi-dimensional informational base including equality, sustainability, and non-market dimensions of well-being as well as market production.

The social venture (SV) is an increasingly popular form of organization to pursue social goals using a commercial approach. Although marketing plays an important role in SV research and a key driver of the performance of SVs, how and the extent to which market conditions play a role remains understudied. This study examines if market turbulence can moderate marketing capabilities and performance relationships.

The authors developed several hypotheses rooted in the marketing literature and tested them using data collected from a sample of 109 SVs from East Asia (i.e. Hong Kong and Taiwan). Using multiple regression analysis and structural equation modeling, the authors analyzed the marketing capabilities and financial and social performance relationships and the positive moderating role of market turbulence.

The results suggested that market turbulence is a positive moderator which influences the effect of the marketing capabilities–financial performance relationship, but not the marketing capabilities and social performance relationship.

This paper attempts to interrogate the SV's marketing capabilities–performance relationship in the East Asian context and how market turbulence may enhance or weaken the relationship. This is one of the earliest papers in this research area. The key findings from this research offer valuable theoretical contribution to the study of SV performance.

The purpose of this study is to investigate the impact of corporate social responsibility (CSR) on innovation performance and examine the moderating role of social media strategic capability and big data analytics capability. Specifically, the authors explore the effects of both external and internal CSR on innovation performance.

The authors collected data from 221 senior, middle and research and development (R&D) managers of high-tech firms in China, using a questionnaire survey with a six-month interval.

The empirical results show that both external and internal CSR positively influence innovation performance. Furthermore, social media strategic capability has a positive moderating effect on the relationship between CSR and innovation performance, while big data analytics capability moderates the relationship between external CSR and innovation performance.

The data comes from high-tech firms in China, which may limit the generalizability and external validity of the findings. Future studies should replicate this study in other industries and types of organizations.

The study suggests that high-tech firms should engage in both external and internal CSR activities to promote innovation performance. Moreover, leveraging social media strategic capability and big data analytics capability can enhance innovation performance.

This study contributes to the literature on CSR outcomes by empirically exploring the effects of external and internal CSR on innovation performance, thus extending stakeholder theory. Additionally, by revealing the contingency effects of social media strategic capability and big data analytics capability, this study enriching the research on dynamic capabilities theory in the context of digital transformation.

The purpose of this paper is to analyze the effect of structural and relational network capabilities on trust, and its effect on pricing and selling capabilities, as well as their influence on the enterprise social impact.

An explanatory and cross-sectional design was conducted, and 100 managers of Mexican social enterprises were surveyed.

Network structural capability did not affect trust, nevertheless network relational capability did. Likewise, trust influenced pricing and selling capabilities, and these affected the enterprise social impact.

Although a sufficient number of entrepreneurs participated by responding to the survey, the results cannot be generalized to all social enterprises in Mexico.

Social enterprises should capitalize on the development of network relational capability and network structural capability because it facilitates access to scarce resources and positioning of the enterprise to act more actively as an agent of change in its network.

This research identifies the relevance for social enterprises to develop and capitalize on networking and marketing capabilities in their management routines and activities, as this can significantly enhance their social impact.

The main research contributions revealed the importance of dynamic capabilities and their effects on the impact of social enterprises.

The purpose of this paper is to gain insight into the reasons why most Tanzanian graduates do not consider entrepreneurship as an attractive career option despite dire labor market conditions, while a small number of them are able to benefit from local opportunities.

Utilizing insights from capability and social capital perspectives, a qualitative investigation based on interviews, group discussions and document analysis was undertaken to explore how this phenomenon can be explained and remedied.

This study shows that many graduates value entrepreneurship as a potential career but many find their way to be act upon these aspirations blocked. Indeed, actual entrepreneurial capability is only available to a minority of graduates with access to powerful connections who are able to benefit from technological and financial conversion factors. Most graduates cannot benefit from these conversion factors due to the lack of the necessary social capital to break through to the legal, tax, financial and cultural systems. Hence, the authors argue that social capital itself is actually a critical conversion factor toward developing entrepreneurial capability.

The insight formulated in this study are based on a qualitative analysis of the Tanzanian context and formulated specifically for this particular context. At the same time, the country shares many characteristics with other countries in Africa, many of which are struggling to move toward a more entrepreneurial society. Hence, the recommendations may partially be transferable beyond the specific Tanzanian situation. Theoretically, the notion that social capital should be considered as a key conversion factor enabling aspiring entrepreneurs in translating valued functionings into actualized functionings and thus toward enhancing entrepreneurial capability opens up novel avenues for empirical research into how entrepreneurship can be stimulated.

This study searches for conversion factors from the actual “functioning” toward the real “capability” allowing to succeed as a new graduate and find that social capital itself might act as the critical conversion factor. That brings the authors to the recommendations for policy makers, educators and media, argued in such a way that the entrepreneurial capability of young graduates and their ability to tap into relevant social capital can be enhanced.

The combination and integration of the Sen’s capability approach with social capital perspectives offers a novel way to explain difference in responses to the Tanzanian institutions and their ability to act upon a valued functioning such as opportunity-driven entrepreneurship.

Nowadays, the recent advances in information and communications technology and the advent of Web 2.0 technology have resulted in the increasing popularity of social media and provided enterprises and companies with new horizons in establishing an effective significant relationship with clients. Despite the recognized importance of social media in knowledge management (KM) and customer relationships, there is not any research to identify social media capabilities related to customer knowledge management (CKM). Therefore, the purpose of this study is to recognize the social media capabilities related to CKM effectively.

To obtain research objectives, literature review, focus group method and expert interview were applied to identify and categorize social media capabilities. Analytical hierarchy process (AHP) also used to prioritize capabilities important.

The results indicate social media capabilities such as conversation capability, sharing capability, groups/community capability, relationship capability, speed and ease of access for the public are the main capabilities related to exploit customer knowledge and manage it successfully.

The results highlight the different social media capabilities for CKM approach which will enhance customer insight and personalized services. Because of the newness of CKM and social media implementation in Iranian firms, empirical study was not conducted for a better understanding of their business value.

The main innovation of this study is identifying the social media capabilities related to CKM and prioritizing them which allow managers to select the most appropriate social media tools based on these results.

The purpose of this paper is to examine the relationships and influences of change enablers for social enterprises in organizations undergoing cultural change.

Data were collected through a survey of social enterprises in two Pacific Island nations, and analyzed with Pearson and regression analyses.

The study finds that social enterprises are better equipped to implement cultural change when they exploit a robust entrepreneurial capability while optimizing strategic, financial and adaptive capabilities. These capabilities should be aligned with the enterprise’s culture and processes associated with transitioning the organizational culture to access resources and achieve its mission. Based on these results, a Cultural Change Enabling (CCE) Framework is proposed to help social enterprises leverage the dynamic interactions between the enterprise, its capabilities and environment, and organizational change processes.

Using the CCE Framework will benefit leaders of public benefit organizations, including social enterprises, to identify their capabilities, and develop an enabling culture to advance their trading activities and social mission so that social enterprises might operate sustainably.

As one of the first studies to examine the readiness for organizational change in social enterprises, this study provides new insights on the capabilities for organizational change, and the dynamics of organizations undergoing cultural transformation.

This paper seeks to examine how dense and cohesive social networks can lead to pioneering. In this sense, the specific aim of this study is to analyse the mediating role placed by marketing and technological capabilities to explain the link among the structural social capital and the pioneering.

Focusing on a sample of 224 companies from the Spanish footwear industry, the authors used partial least squares (PLS) with PLS‐Graph software to analyse data.

The obtained results show how those firms with a dense and strong social network tend to develop pioneering. In this sense, a positive and significant relationship is found between structural social capital and pioneering. Furthermore, a strong positive relationship is found between structural social capital and marketing and technological capabilities, and of both kinds of capabilities with pioneering. The study also finds that the significant relationship between structural social capital and pioneering disappears under the effect of a firm's capabilities.

This study develops a cross‐sectional and non‐longitudinal approach. In any case, it is clear that the cross‐sectional approach of the study suffices for the proposed aims, having already been put to good use in other studies on entry timing.

It is demonstrated how in mature industries such as the footwear industry, albeit unhampered by strong entry and imitation barriers, marketing and technological capabilities position barriers can be established, which favour a firm's expectations of obtaining FMAs.

This study provides theoretical linkages between concepts of several theoretical approaches, social capital, RBV and the FMAs approach.