ABSTRACT
In the age of technological advancement, along with digital innovation and dynamic capabilities, the laws, regulations and policies implemented by government agencies and other public bodies require the social enterprise a legislative transformation which is a major challenge for the social enterprise. Firms that have remained competitive over time have received increasing interest from researchers. The study aims to explore whether dynamic capabilities play a role in the sustainable transformation of social enterprises encompassing the mediating role of digital innovation. The study interviews the social enterprises of Bangladesh and attempts to integrate dynamic capabilities and digital innovation for the sustainable transformation of social enterprise through an institutional entrepreneurship framework. The findings show that dynamic capabilities and digital innovation play a significant role in the sustainable transformation of social enterprises. Digital innovation also plays a crucial mediating role in the relationship between dynamic capabilities and sustainable transformation of social enterprises. The study provides valuable insights into the management of the social enterprises and regulatory bodies which help the enterprises formulate a sound policy to sustain in the competitive era.
