The impact of technologies on society through NPO-social enterprise value co-creation

The study addresses how technological factors shape value co-creation between Non-Profit Organizations (NPOs) and social enterprises, and how this co-creation impacts societal welfare. In cross-sector social interactions, collaborations range from philanthropic to transformational; the latter involve value co-creation and tend to generate higher social impact. The research question examines to what extent NPO innovation orientation, ICT use, and omnichannel practices determine value co-creation with social enterprises, and whether such co-creation improves macro-level social impact (relevance, feasibility, effectiveness, sustainability). The importance lies in advancing quantitative, generalizable evidence in a domain dominated by qualitative case studies, and in understanding technological enablers of co-creation with social enterprises whose dual social-economic missions may enhance transformative outcomes.

The paper situates value co-creation within Service-Dominant Logic, emphasizing co-production as a core dimension (Bharti et al., 2015; Ranjan & Read, 2016) with facets such as participation, reciprocity, learning, engagement. Transformational NPO–business collaborations co-create value and yield outcomes at micro, meso, and macro levels (Austin & Seitanidi, 2012). Social enterprises, due to their dual mission, are posited to strengthen the transformative impact of co-creation with NPOs. The authors propose seven hypotheses: H1: value co-creation positively affects social impact; H2: innovation orientation → ICTs; H3: innovation orientation → omnichannel; H4: innovation orientation → value co-creation; H5: ICTs → omnichannel; H6: ICTs → value co-creation; H7: omnichannel → value co-creation. Prior literature links innovation orientation to technology adoption and organizational performance, ICTs to interaction and co-creation, and omnichannel management to integrated stakeholder experiences, suggesting a technological pathway enabling co-creation and societal impact.

Design: Quantitative, cross-sectional study using Partial Least Squares Structural Equation Modeling (PLS-SEM) to test a structural model linking innovation orientation, ICT use, omnichannel strategy, value co-creation, and social impact. Constructs were modeled as Mode A composites; value co-creation was a second-order composite comprising engagement, learning, participation, and reciprocity. Sampling and data collection: An ad hoc census of 497 Spanish NPOs that potentially collaborated with social enterprises (compiled from ~20 secondary sources such as directories, platforms, awards, networks, and prior databases). Using the Tailored Design Method, organizations were contacted by phone and invited via email to complete an online survey addressed to senior managers. Data were collected December 2021–April 2022, yielding 222 valid responses; 104 NPOs reported co-creation with social enterprises and formed the analytical sample. Nonresponse bias checks comparing early vs. late respondents via independent t-tests showed no significant differences. Measures: 7-point Likert scales adapted from prior validated instruments. Value co-creation: Díaz-Perdomo et al. (2021), with four dimensions (participation and reciprocity based on Bharti et al., 2015; learning from Sanzo et al., 2012; engagement from Vivek et al., 2014). Omnichannel: items derived from Mato-Santiso et al. (2021) on integrating offline/online channels, interaction, service delivery, channel integration/synchronization, information access, identity, communication tools, and governing principles. Innovation orientation: scale adapted to nonprofits (Valero-Amaro et al., 2021) based on Chen et al. (2010), Gundry et al. (2016), Hurley & Hult (1998). ICT use: Sanzo et al. (2015a) based on Tippins & Sohi (2003). Social impact (macro level): based on Sanzo et al. (2015a) and Díaz-Perdomo et al. (2021); respondents identified the primary SDG linked to co-creation and rated relevance, feasibility, effectiveness, sustainability. PLS-SEM: SmartPLS v4.0.9. Indicator retention threshold loading ≥0.650 (eliminated OC_3, OI_1, OI_2 in first-order validation). Reliability: Composite Reliability (Rho_c) >0.7 and <0.95 across constructs; Rho_a >0.7. Convergent validity: AVE ≥0.50 for all constructs. Discriminant validity: Fornell-Larcker and HTMT criteria met. Structural assessment included VIF (<3), R², Q² (predictive relevance), path coefficients with bootstrapping (10,000 subsamples), goodness-of-fit (SRMR=0.075; d_ULS, d_G, NFI=0.829). Out-of-sample prediction assessed via PLSpredict (3 folds), showing superior predictive errors vs. linear benchmark across indicators.

- Measurement model: All constructs showed adequate reliability (CR>0.7), convergent validity (AVE≥0.5), and discriminant validity (Fornell-Larcker, HTMT). VIF values <3. - Explanatory and predictive power: R²(Social Impact)=0.617 (adj. 0.613), R²(Value Co-Creation)=0.456, R²(Omnichannel)=0.275, R²(ICT)=0.201. Q² positive for all endogenous constructs; medium predictive relevance for value co-creation and social impact. SRMR=0.075; bootstrapped d_ULS and d_G indicated acceptable fit. PLSpredict showed better errors than LM for all indicators. - Hypothesis tests (path coefficients, p-values): • H1: Value Co-Creation → Social Impact β=0.785, p<0.001; large effect (f²=1.609), explaining 61.7% of SI variance. • H2: Innovation Orientation → ICT β=0.457, p<0.001; moderate effect (f²=0.264); explains 20.9% of ICT variance. • H3: Innovation Orientation → Omnichannel β=0.305, p=0.005; small effect (f²=0.104); explains 13.9% of OMNIC variance. • H4: Innovation Orientation → Value Co-Creation β=0.130, p=0.099; not supported (ns); small effect (f²=0.023). • H5: ICT → Omnichannel β=0.324, p=0.003; small effect (f²=0.117); explains 15.0% of OMNIC variance. • H6: ICT → Value Co-Creation β=0.073, p=0.232; not supported (ns); very small effect (f²=0.007). • H7: Omnichannel → Value Co-Creation β=0.577, p<0.001; large effect (f²=0.448); accounts for 38.7% of VCC variance. - Comparative insight: The effect of co-creation on macro outcomes (β=0.785) is substantially larger than in prior NPO–commercial enterprise contexts (e.g., β=0.287 reported by Díaz-Perdomo et al., 2021).

The findings validate that NPO–social enterprise value co-creation has a strong, positive influence on societal outcomes, explaining a high proportion of social impact variance. The magnitude of this effect exceeds that observed in NPO collaborations with commercial enterprises, likely due to mission alignment and the dual social-economic aims inherent in social enterprises that foster synergistic co-creation outcomes. Contrary to expectations, innovation orientation and ICT use do not directly predict value co-creation; their direct explanatory power for co-creation is low and nonsignificant. However, both significantly drive omnichannel integration, which in turn strongly predicts value co-creation. This indicates an indirect pathway: fostering an innovation-oriented culture and ICT capabilities enhances omnichannel management, which then facilitates co-creation through seamless, integrated offline-online interactions across the co-creation journey. Thus, technology’s impact on co-creation is mediated by the extent of omnichannel implementation. The model shows solid explanatory and predictive validity, supporting the relevance of technological and channel-integration factors in shaping co-creation processes that translate into macro-level social benefits. Managerially, NPOs should emphasize omnichannel strategies and the four co-creation dimensions (participation, reciprocity, learning, engagement) to maximize societal impact.

This study develops and empirically validates a structural model linking technological antecedents to value co-creation and societal impact in NPO–social enterprise collaborations. Using PLS-SEM on data from Spanish NPOs, the research shows that value co-creation substantially enhances social impact. Innovation orientation and ICT adoption are important insofar as they enable omnichannel strategies, which are a strong direct driver of value co-creation. Theoretical contributions include: (1) quantitative evidence connecting co-creation with macro-level social impact in the NPO–social enterprise context; (2) clarification of technological factors’ roles, highlighting omnichannel as the proximal enabler of co-creation; and (3) generalizable insights complementing predominantly qualitative literature. Practical implications advise NPO managers to cultivate an innovation culture, invest in ICTs, and prioritize integrated omnichannel management to strengthen co-creation along dimensions of participation, reciprocity, learning, and engagement, thereby enhancing societal outcomes. Future research should examine additional mediators (e.g., relational norms), environmental contingencies, and efficiency/effectiveness drivers of co-creation to deepen understanding of pathways to social impact.

- Context and generalizability: Data stem from Spanish NPOs collaborating with social enterprises; results may vary across institutional and environmental contexts. - Model scope: Relational norms and other organizational/institutional factors were not included as potential mediators/moderators of technological effects on co-creation. - Outcome assessment: While macro-level social impact (relevance, feasibility, effectiveness, sustainability) was measured, further examination of how collaboration efficiency/effectiveness affects impact is needed. - Cross-sectional design: Causal inferences are limited; longitudinal analyses could assess stability under varying environmental conditions.