Social Innovation and Public Sector Performance: The Mediating Role of Social Cohesion and Digital Inclusion

Abstract

Social innovation is increasingly recognised as a key driver of transformation in the public sector, particularly in addressing complex social challenges and improving the delivery of public services. However, the mechanisms through which social innovation generates a measurable and sustainable impact on public sector performance remain insufficiently understood. This paper examines the role of social cohesion and digital inclusion as mediating mechanisms between social innovation initiatives and improvements in public sector performance. It argues that the effects of social innovation are neither direct nor uniform, but are shaped by institutional and societal conditions that influence how innovative interventions are translated into outcomes. Drawing on the literature on social innovation and public governance, the study conceptualises impact as observable and relevant changes in the accessibility, efficiency, quality and equity of public services. The analytical framework is structured around a conceptual model that links social innovation initiatives to public sector performance through two principal mediators: social cohesion, understood in terms of civic participation, social capital and institutional trust; and digital inclusion, defined through access, skills and the meaningful use of digital public services. Methodologically, the study adopts a conceptual, analytical-interpretative approach focused on analysing institutional developments and the policy framework relevant to social innovation. The approach integrates a critical review of the literature with an examination of the governance framework and public policies, supporting the theoretical development of the proposed conceptual model. Through an analytical-interpretative perspective, the study seeks to identify the mechanisms through which social innovation is integrated into institutional processes and how these may shape outcomes at the public sector level, while also highlighting contextual variations and their dynamics. The proposed conceptual model suggests that social innovation may generate stronger and more sustainable impacts in contexts characterised by high levels of social cohesion and digital inclusion. Conversely, limited institutional capacity and restricted access to digital resources may constrain the effectiveness of innovative interventions. The contribution of the paper lies in developing a mechanism-based perspective on the impact of social innovation, shifting the focus from descriptions of innovation to the identification of the conditions under which it produces meaningful change. This perspective offers important implications for the design, scaling and institutionalisation of social innovation within the public sector.