Abstract

The nature of emergent economies presents high complexity in the marketplace, where institutional voids hinder technology adoption and constrain innovation. Despite the acknowledged role of Open Innovation (OI) in driving economic growth, research on its application within social enterprises operating in resource-poor environments remains limited. This study examines how Thai social enterprises — predominantly urban-based organizations serving both urban and rural beneficiaries — apply inbound open innovation principles to co-produce socially meaningful innovation alongside financially sustainable business activities. A qualitative approach employing thematic analysis and integrating the Diffusion of Innovation (DOI) framework with the Resource-Based View (RBV) was applied to capture macro-dynamic and micro-dynamic innovation flows. Semi-structured in-depth interviews were conducted with 30 social enterprise founders and CEOs across diverse industry settings in Thailand. Findings reveal that these organizations have adopted a distinctive form of digital hybridity, strategically leveraging low-cost social networking platforms and online marketplaces to reduce market complexity while simultaneously deploying high-touch relational mechanisms. To bridge the digital divide — particularly among aged and rural populations — these enterprises combine high-technology capabilities with traditional trust-building practices, giving rise to what this study terms the Reverse-Hybrid Open Innovation model. Grounded in DOI and RBV and extended through New Schumpeterian and New Institutional Economics perspectives, the model is empirically situated within the Thai socio-cultural context of collectivism and regulatory fragmentation. The study contributes a conceptual framework for understanding the digital transformation of social entrepreneurship in Southeast Asia, with implications for practitioners, policymakers, and open innovation scholars in emerging economies.