The Importance Of Organizational Learning To Improve The Performance Of Social Enterprises: The Mediating Role of Organizational Sustainability

Abstract

Social enterprise is a business solution to improve people's welfare. However, many social enterprises still need to provide optimal benefits. Therefore this study aims to analyze how organizational learning affects social and financial performance in social enterprises. This study also examines the sustainability of the business as a mediation. Social performance is also tested for its effect on financial performance. The village-owned enterprise is the social enterprise under study. The research was conducted in 3 regions: Kuansing, Meranti, and Rokan Hulu Regencies. A total of 250 VOE managers filled out the questionnaires sent. According to test results with SEM-PLS, organizational learning directly affects social performance but not financial performance. This study reveals how the relationship between organizational learning, social performance, and financial success can be mediated by company sustainability In social enterprises, social performance also affects financial performance. The research contributes to the importance of organizational learning by providing training for managers of social enterprises.