Abstract

This paper aims to investigate the effects of entrepreneurial orientation (EO) and innovation capacity (IC) on the sustainable competitive advantage of social enterprises (SEs) within the context of Saudi Arabia. The data used to achieve this objective were collected through a questionnaire survey administered to 110 participants. The analysis of the data via SPSS indicated that entrepreneurial orientation positively affects both innovation capacity and competitive advantage. Moreover, the findings indicate that innovation capacity positively affects the sustainable competitive advantage of Saudi social enterprises. In addition, innovation capacity positively mediates the relationship between entrepreneurial orientation and sustainable competitive advantage. The findings of this study could be used by managers of social enterprises to define policies suited to help the achievement of sustainable competitive advantage, which is a target of the Saudi Vision 2030 plan.