Social capital and business model innovation in SMEs: do organizational learning capabilities and entrepreneurial orientation really matter?

PurposeThis research aims to concentrate on the important concern that how social capital (SC) influences business model innovation (BMI) in the course of the mediating role of organizational learning capabilities (OLC) and the moderating role of entrepreneurial orientation (EO). In the context of small and medium enterprises (SMEs), this study empirically tested a theoretical model of BMI to advocate a mechanism for the analysis of its significant determinants.Design/methodology/approachIn order to achieve the objective of the research, survey method was utilized, and data were collected from 521 CEOs, MDs and the owners of ICT sector SMEs. Correlation, causal step approach and regression analysis were used to test the proposed model.FindingsFinding of the research advocates that OLC mediate the relationship between SC and BMI. In addition, stronger EO augments the association between OLC and BMI.Practical implicationsThe study adds to the literature by providing insights regarding the impact of SC, OLC and EO on BMI of small firms.Originality/valueThis research enriches the existing knowledge by testing a mediating role of OLC between SC-BMI link and, therefore, makes an important addition to the existing knowledge in the context of SMEs by concentrating on the relationship between SC, OLC, BMI and EO.