Learning from failure, resource orchestration and social enterprise growth performance: the moderating role of failure normalization

Restricted by unfavorable external environments and weak operational capabilities, social enterprises often fail. However, the issue of whether and how learning from failure affects social enterprise growth performance has not yet been sufficiently focused and effectively addressed. Based on resource orchestration theory, this study analyzes the mechanism between learning from failure and social enterprise growth performance using a two-stage sample of 189 Chinese social enterprises from Shandong and Beijing. We also explore the moderating role of failure normalization, which supplements research gaps and buffers Chinese social enterprise growth. The results show that learning from failure is significantly and positively related to social enterprise growth performance. Resource orchestration intervenes in the link between learning from failure and social enterprise growth performance. In addition, the contingency impact of failure normalization influences learning from failure and social enterprise growth. Our study underscores the significance of resource orchestration in the integration and application of commercial and social elements in social enterprises to achieve the co-development of economic and social performance. The findings not only reveal the mediating mechanism and contextual conditions under which learning from failure drives the growth performance of social enterprises but also provide insights into the survival and development of Chinese social enterprises in the context of economic transformation.