Drivers of business model innovation in social enterprises

Document Type : Management & Entrepreneurship

Authors

1 University of Tehran,

2 Faculty member and Dean of the Faculty of Entrepreneurship, University of Tehran

10.22080/jem.2024.22693.3671

Abstract

Innovation is a key source of competitive advantage in social enterprises and their success depends on pursuing new innovations. Research in social business has accelerated in the past two decades but Previous research has focused more on how social businesses create and absorb value. Business model innovation has become one of the most important trends in business research but little research has been done on innovation in the social business model. Therefore, the present study was conducted to investigate the drivers of business model innovation in social enterprises. The phenomenological qualitative research method was used as the research method and 12 social companies were selected by purposive sampling. Data were collected using semi-structured interviews. Analysis of the collected data indicates that the drivers of business model innovation in social companies include two categories of factors. Environmental factors that including business environment, environmental dynamics, ICT development, target community, macro-environmental forces and key stakeholders. And internal factors that include business sustainability, corporate social responsibility, key resources, key activities, customer relations, and revenue. The findings of this study show that the drivers of innovation in the business model have different dimensions and applications which can be exploited from the perspective of researchers, policy makers as well as social companies.

Keywords

Main Subjects

References

Afuah, A. (2020). Innovation management-strategies, implementation, and profits.
Amit, R., & Zott, C. (2001). Value creation in e‐business. Strategic management journal, 22(6‐7), 493-520.
Bagheri Moghaddam, N., Mohamadpour, S. (2018). Explaining the Process of Development of Fuel Cell Technology in Iran by Using Innovation Motors Concept. Journal of Science and Technology Policy, 11(2), 57-72.  (In Persian).
Berrone, P., Fosfuri, A., & Gelabert, L. (2017). Does greenwashing pay off? Understanding the relationship between environmental actions and environmental legitimacy. Journal of Business Ethics, 144(2), 363-379.
Best, B., Miller, K., McAdam, R., & Moffett, S. (2021). Mission or margin? Using dynamic capabilities to manage tensions in social purpose organisations’ business model innovation. Journal of Business Research, 125, 643-657.
Castro-Spila, J., Torres, R., Lorenzo, C., & Santa, A. (2018). Social innovation and sustainable tourism lab: an explorative model. Higher Education, Skills and Work-Based Learning.
Colovic, A., & Schruoffeneger, M. (2021). Institutional voids and business model innovation: How grassroots social businesses advance deprived communities in emerging economies. Management and Organization Review, 17(2), 314-343.
de Souza João-Roland, I., & Granados, M. L. (2020). Social innovation drivers in social enterprises: systematic review. Journal of Small Business and Enterprise Development.
Dufays,F (2018) "Exploring the drivers of tensions in social innovation management in the context of social entrepreneurial teams", Management Decision,
Farmer, J., Carlisle, K., Dickson-Swift, V., Teasdale, S., Kenny, A., Taylor, J., ... & Gussy, M. (2018). Applying social innovation theory to examine how community co-designed health services develop: using a case study approach and mixed methods. BMC Health Services Research, 18(1), 1-12.
Foss, N. J., & Saebi, T. (2017). Fifteen years of research on business model innovation: How far have we come, and where should we go?. Journal of Management, 43(1), 200-227.Howaldt& && Schwarz,& 2011,Social innovation: towards a new innovation paradifm.
Gasparin, M., Green, W., Lilley, S., Quinn, M., Saren, M., & Schinckus, C. (2021). Business as unusual: A business model for social innovation. Journal of Business Research, 125, 698-709.
Geissdoerfer, M., Vladimirova, D., Van Fossen, K., & Evans, S. (2018). Product, service, and business model innovation: A discussion. Procedia Manufacturing, 21, 165-172.
George, G. & Bock, A. (2011). The business model in practice and its implications for entrepreneurship research. Entrepreneurship Theory and Practice 35(1), 83-111.
Gioia, D.A., Corley, K.G., Hamilton, A.L., )2013(. Seeking qualitative rigor in inductive research: notes on the Gioia methodology. Organization. Research Methods 16 (1), 15–31.
Grove, A., & Berg, G. A. (2014). Social business: Defining and situating the concept. In Social Business (pp. 3-22). Springer, Berlin, Heidelberg.
Shakeri, F., Tahari, M., Dehghan, H., Kavandi, R. (2011). Studying the Relationship between Organizational Climate and Process Innovativeness by Structural Equation Modeling. Journal of Production and Operations Management, 2(1), 29-46.  (In Persian).
mobenidekordi, A., keshtkarhafanaki, M. (2016). Transformation of social innovation models. Social Development & Welfare Planning, 8(26), 101-138. (In Persian).
Ibarra, D., Bigdeli, A. Z., Igartua, J. I., & Ganzarain, J. (2020). Business model innovation in established SMEs: A configurational approach. Journal of Open Innovation: Technology, Market, and Complexity, 6(3), 76.
Johnson, M. W., & Lafley, A. G. (2010). Seizing the white space: Business model innovation for growth and renewal. Harvard Business Press.
Khan, R., Rehman, A. U., & Fatima, A. (2009). Transformational leadership and organizational innovation: Moderated by organizational size. African journal of business management, 3(11), 678-684.
Ko, W. W., Liu, G., Wan Yusoff, W. T., & Che Mat, C. R. (2019). Social entrepreneurial passion and social innovation performance. Nonprofit and Voluntary Sector Quarterly, 48(4), 759-783.
Klein, S., Schneider, S., & Spieth, P. (2021). How to stay on the road? A business model perspective on mission drift in social purpose organizations. Journal of Business Research, 125, 658-671.
Kickul, J., Griffiths, M., Bacq, S., & Garud, N. (2018). Catalyzing social innovation: is entrepreneurial bricolage always good?. Entrepreneurship & Regional Development, 30(3-4), 407-420.
Lin, P., Zhang, X., Yan, S., & Jiang, Q. (2020). Dynamic Capabilities and Business Model Innovation of Platform Enterprise: A Case Study of DiDi Taxi. Scientific Programming, 2020.
Martin, R. L., & Osberg, S. (2015). Getting beyond better: How social entrepreneurship works. Harvard Business Review Press.
McDonald, R. E., Masselli, J. J., & Chanda, B. (2019). Nonprofit business model innovation as a response to existential environmental threats: Performing arts in the United States. Journal of Business Research.
Mulyaningsih, H. D., Yudoko, G., & Rudito, B. (2016). Knowledge-based social innovation process in social enterprise: A conceptual framework. Advanced Science Letters, 22(5-6), 1393-1397.
Osterwalder, A., Pigneur, Y., & Tucci, C. L. (2005). Clarifying business models: Origins, present, and future of the concept. Communications of the association for Information Systems, 16(1), 1–25.
Pasricha, P., & Rao, M. K. (2018). The effect of ethical leadership on employee social innovation tendency in social enterprises: Mediating role of perceived social capital. Creativity and Innovation Management, 27(3), 270-280.
Phillips, W., Alexander, E. A., & Lee, H. (2019). Going it alone won’t work! The relational imperative for social innovation in social enterprises. Journal of Business Ethics, 156(2), 315-331.
Reficco, E., Layrisse, F., & Barrios, A. (2021). From donation-based NPO to social enterprise: A journey of transformation through business-model innovation. Journal of Business Research, 125, 720-732.
Rezvani, M., Seyyedamiri, N., Mirzaee, B. (2020). Identifying the Effect of EWOM Marketing on Social Networks on Value Co-creation A Study on the Startup Tourism Industry. Journal of Executive Management,  12(23), 211-238.  (In Persian).
Sabatier, V., Medah, I., Augsdorfer, P., & Maduekwe, A. (2017). Social business model design and implementation in developing countries: Learning from an affordable medicine developed in Burkina Faso. Journal of Management Development.
Saebi, T., Foss, N. J., & Linder, S. (2019). Social entrepreneurship research: Past achievements and future promises. Journal of Management, 45(1), 70-95.
Siebold, N. (2021). Reference points for business model innovation in social purpose organizations: A stakeholder perspective. Journal of Business Research, 125, 710-719.
Svensson, P. G., & Hambrick, M. E. (2019). Exploring how external stakeholders shape social innovation in sport for development and peace. Sport Management Review, 22(4), 540-552.
Szijarto, B., Milley, P., Svensson, K., & Cousins, J. B. (2018). On the evaluation of social innovations and social enterprises: Recognizing and integrating two solitudes in the empirical knowledge base. Evaluation and Program Planning, 66, 20-32.
Tykkyläinen, S., & Ritala, P. (2021). Business model innovation in social enterprises: An activity system perspective. Journal of Business Research, 125, 684-697.
Voltan, A., & De Fuentes, C. (2016). Managing multiple logics in partnerships for scaling social innovation. European Journal of Innovation Management.
Weerawardena, J., Mort, G. S., Salunke, S., & Haigh, N. (2020). Editorial and research agenda: JBR special issue on business model innovation in social purpose organizations.
Yadolahi farsi, J., Aghajani afrouzi, A., Ahmadpour Dariani, M., Motevasseli, M. (2019). The Impact of Corporate Social Responsibility on Financial Performance of Family and Nonfamily Businesses. Journal of Executive Management, 10(20), 97-122.  (In Persian).
Yunus, M., Moingeon, B., & Lehmann-Ortega, L. (2010). Building social business models: Lessons from the Grameen experience. Long range planning, 43(2-3), 308-325.
Yi, Y., Wang, Y., & Shu, C. (2020). Business model innovations in China: A focus on value propositions. Business Horizons, 63(6), 787-799.

Files

History

  • Receive Date: 27 November 2021
  • Revise Date: 10 January 2022
  • Accept Date: 25 March 2024

Share

How to cite

Statistics