Examining the Effect of Organisational Capability on Social Entrepreneurship and Sustainable Community Development in South Western Nigeria

Abstract

This study investigates the mediating effect of organisational capability on social entrepreneurship and sustainable community development in South Western Nigeria. The study employed quantitative approach using survey research method with a structured questionnaire and proportional stratified random sampling techniques to gather response from 507 regular household population comprising of individuals, Community Development Associations (CDAs) leaders and beneficiaries of social enterprise in South Western Nigeria. Partial Least Square of Structural Equation Modelling (PLS-SEM) was used for data analysis. The study revealed that commercial activities and social change intention does not have significant direct effects on sustainable community development. Conversely, inclusive governance and organisational capability have significant direct effect on sustainable community development. Organizational capability mediate the relationship from social change intention, commercial activities and inclusive governance to sustainable community development in South Western Nigeria. Thus, the study conclude that this findings provide an empirical backing for the mediating role of organizational capability in the model of the study. The implication of the findings illuminated that in an increasingly deprived environment where social problems are in persistent increase, addressing social issues requires organisational capability. The study recommend that social entrepreneurs should develop appropriate capacity to strengthen their organisational capabilities before embarking on social mission and change making activities in their communities.