Abstract
This study, based on Events Systems Theory and Social Cognitive Theory, examined how social entrepreneurial self-efficacy, market orientation, and the psychological effects of country default interact to influence social innovation in a highly disrupted environment. Responses from 203 social purpose organisations (SPOs) indicated a strong positive link between self-efficacy and social innovation. However, market orientation dampens this relationship. Notably, at higher levels of psychological impact from country default, the link between self-efficacy and social innovation is stronger for social entrepreneurs with high market orientation. These findings contribute to the literature by highlighting the influence of psychological implications of country default.
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