The Moderating Effects of National Philanthropic Environment and Industry between Innovation Capabilities and Creating Shared Value in Social Ventures

Purpose: The purpose of our study is to identify the roles of national philanthropic environment and industrial type in the relationship between innovation capability and creating shared value in social ventures. Specifically, we aimed to present conditions in which innovation capability and creating shared value are distinguished from one another. Research design, data, and methodology: Employing the resource-advantage theory of competition, institute-based view, and industry-based view as fundamental frameworks, we generated a model that might explicate the moderating effects of national philanthropic environment and industry between innovation capability and creating shared value in social ventures. Results: The results of our study were as follows. First, social ventures’ innovation capability has an effect on the strength of creating shared value. Second, the philanthropic environment of the host countries positively moderates the impact of social venture’s innovation capability on the strength of creating shared value. Third, the industry type of social venture moderates the effect of innovation capability on the strength of creating shared value. Implications: Our study would be able to provide practical implications in the following respects. First, the results of this study could contribute to developing government policies by identifying the influence of national philanthropic environment on creating shared value. Second, our study could provide a framework for social ventures to better understand the impact of national philanthropic environment on the relationship between innovation capability and the strength of creating shared value.