EFFECT OF THREE INNOVATION COMPONENTS IN BUSINESSES ON SOCIAL INNOVATION

Abstract

Purpose- The aim of this study is to provide a theoretical understanding of transformational leadership, dynamic capabilities and business model innovation processes that may be necessary for strategic management in enterprises, and to investigate the interaction of these factors and their effects on social innovation as a tool. In this context, the effects of dynamic capabilities and the contributions of transformational leadership in business model innovation processes were tried to be determined, the effect of intra-organizational dynamics on innovation and how the mentioned three innovation components shape social innovation were investigated. Methodology- Quantitative research method was used in the research and survey forms were used within the scope of the study. 198 employees working in SMEs in Istanbul were used as sample. In order to test construct validity of the study; factor analysis, correlation analysis were used to measure the severity and direction of the relationship between the variables and regression analysis was used to measure causality between variables. Findings- The transformational leadership variable does not explain the social innovation variable. The Business Model Innovation variable explains the social innovation variable by 8%. The Business Model Innovation variable explains the transformational leadership variable by 10%. Dynamic Capabilities variable explains social innovation variable by 10%. Although the Dynamic Capabilities variable explains the transformational leadership variable at a rate of 17%, its contribution was found to be weakly positive. Conclusion- Social innovation cannot be carried out only by social entrepreneurs, non-governmental organizations and the state. Businesses enable their employees to change their perspectives on life and integrate them with society. Therefore, individuals within the organization can be socially innovative as well as benefit directly or indirectly from social innovation. Based on this phenomenon, it is known that business model innovation, transformational leadership and dynamic abilities are meaningful among themselves in the business literature. This significance has been tested in social innovation in business organizations.

Keywords

• Transformational leadership
• business model innovation
• dynamic capabilities
• social innovation
• strategic management

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