Abstract
This study examines the effect of hybridity on the innovation performance of social ventures that pursue social and financial missions simultaneously. This study proposes that organizational value orientation and profit reinvestment influence the innovation performance of a social venture in such a way that their influences on innovation performance are strongest when they are balanced between social and financial missions. However, dynamics exist in relationships among organizational value orientation, profit reinvestment, and innovation performance: Although a balanced value orientation would maximize its direct impact on innovation, it might fail to do so when profit reinvestment mediates the relationship between organizational value orientation and innovation performance. Analyses of 4,170 social ventures across 36 countries reveal significant relationships confirming the predictions of this study. The results of this study suggest the dynamics of the relationship between hybridity and innovation in the context of social entrepreneurship.