Chapter

Inclusive Business Models: Building Business Ecosystems for Resolving Deep-Rooted Sustainability Problems

Authors:
To read the full-text of this research, you can request a copy directly from the author.

No full-text available

Request Full-text Paper PDF

To read the full-text of this research,
you can request a copy directly from the author.

ResearchGate has not been able to resolve any citations for this publication.
Article
Full-text available
The service sector has the potential to play an instrumental role in the shift towards circular economy due to its strategic position between manufacturers and end-users. However, there is a paucity of supporting methodologies and real-life applications to demonstrate how service-oriented companies can implement circular economy principles in daily business practice. This paper addresses this gap by analysing the potential of service-oriented companies in the information and communication technology (ICT) sector to build and implement circular economy business models. To this end, the Backcasting and Eco-design for the Circular Economy (BECE) framework is applied in an ICT firm. BECE, previously developed and demonstrated for product-oriented applications, has been developed further here for applications in the service sector. By shifting the focus from a product-oriented approach to a user-centred eco-design, the paper shows how ICT firms can identify, evaluate and prioritise sustainable business model innovations for circular economy. The two most promising business model innovations are explored strategically with the aim of designing circular economy models consistent with the company's priorities of customer satisfaction and profitability. The findings suggest that ICT companies may be able to support the deployment of a circular economy in the service-oriented technology sector. Importantly, micro and small organisations can play a fundamental role if provided with macro-level support to overcome company-level barriers. Finally, the BECE framework is shown to be a valuable resource to explore, analyse and guide the implementation of circular economy opportunities in service-oriented organisations. Further research to verify the application of the findings to other service-oriented organisations is recommended.
Article
Full-text available
Until recently, it was commonly assumed that social enterprises – by virtue of the ingenuity of their founders – were extra-ordinarily capable to simultaneously pursue social and financial goals. However, an emerging body of literature considers that social enterprises face tensions and trade-offs as they pursue their divergent goals. While extant research has offered insights into tensions that social enterprises face between social and financial goals, it is not clear whether this is the only trade-off social enterprises face or whether they also have to balance other, related tensions that stem from their social mission. In case tensions and trade-offs manifest themselves in other ways too, how do social enterprises manage the various different tensions and trade-offs while keeping a coherent social mission? The aim of this study is to examine a social enterprise’s balancing act of addressing the various different tensions and trade-offs that arise when trying to deliver a multifaceted but coherent social mission. A qualitative research design was employed to examine tensions and trade-offs by focusing on the case of a German social enterprise from the organic food sector. The case study findings suggest that, initially, social enterprises face social-financial tensions. Yet, as they grow in size and scope, they also begin to experience tensions among their various social goals that we refer to as social mission design tensions. Regarding the management of tensions, we find that in contrast to the current tenor in the social enterprise literature, which espouses that redressing tensions is essentially an act of separation or integration of social and financial goals, we find that, at times, social enterprises accept and live with tensions instead of addressing them.
Article
Full-text available
This article reflects on the current state of the dynamically growing research and practice related to sustainable business models (SBMs), motivated by the question of whether dealing with SBMs is just a passing fancy or an emerging field, maybe even a field in its own right. We follow Ehrenfeld (2004), who asked a similar question for the field of industrial ecology in this journal, and reflect on the major beliefs and concepts underpinning SBM research and practice, tools and resources, authorities and the related community of actors. These elements are considered characteristics of a field and must be institutionalised in academia, industry and government for a field to emerge and progress. We therefore also identify some institutionalisation tendencies. As a result, we conclude that SBM research and practice show traits of an emerging field. It is however too early to foresee if it will develop as a sub-field within already established domains (“sub-field hypothesis”) or as a stand-alone field (“stand-alone hypothesis”). We argue that the sub-field and the stand-alone positioning may hamper the unfolding of the field's full potential. Instead, we propose that the SBM field needs to assume the role of an integrative field to break existing academic niches and silos and maximise practical impact (“integration hypothesis”). Our observations indicate that the SBM field is indeed developing into an integrative field and force. But we need to better understand and strengthen this development, for example by crafting a dedicated SBM research programme. A series of critical reviews could be a starting point for such an endeavour.
Article
Full-text available
The article examines the determinants of the growth aspiration of Venezuelan entrepreneurs. We use the GEM database and build an econometric model based on a set of exogenous variables grouped into three large categories: contextual or environmental factors, individual factors and business variables. Given the Venezuelan specific characteristics, we place a particular focus on understanding the differences between entrepreneurs belonging or not to the BoP. The primary findings of this work are the identification of the variables that explain growth aspiration, namely, belonging to the BoP, gender, education, motivation and years of study and some additional variables where individual factors interact with the contextual factor BoP. The second finding is that there are significant differences for the entrepreneurs belonging and not belonging to the BoP, with a threshold where the entrepreneurs of the BoP become averse to continuing to aspire to growth. Practical and policy implications are elaborated with the results.
Article
Full-text available
Eco-innovations, eco-efficiency and corporate social responsibility practices define much of the current industrial sustainability agenda. While important, they are insufficient in themselves to deliver the holistic changes necessary to achieve long-term social and environmental sustainability. How can we encourage corporate innovation that significantly changes the way companies operate to ensure greater sustainability? Sustainable business models (SBM) incorporate a triple bottom line approach and consider a wide range of stakeholder interests, including environment and society. They are important in driving and implementing corporate innovation for sustainability, can help embed sustainability into business purpose and processes, and serve as a key driver of competitive advantage. Many innovative approaches may contribute to delivering sustainability through business models, but have not been collated under a unifying theme of business model innovation. The literature and business practice review has identified a wide range of examples of mechanisms and solutions that can contribute to business model innovation for sustainability. The examples were collated and analysed to identify defining patterns and attributes that might facilitate categorisation. Sustainable business model archetypes are introduced to describe groupings of mechanisms and solutions that may contribute to building up the business model for sustainability. The aim of these archetypes is to develop a common language that can be used to accelerate the development of sustainable business models in research and practice. The archetypes are: Maximise material and energy efficiency; Create value from ‘waste’; Substitute with renewables and natural processes; Deliver functionality rather than ownership; Adopt a stewardship role; Encourage sufficiency; Re-purpose the business for society/environment; and Develop scale-up solutions.
Article
Full-text available
We explore how new types of hybrid organizations (organizations that combine institutional logics in unprecedented ways) can develop and maintain their hybrid nature in the absence of a "ready-to-wear" model for handling the tensions between the logics they combine. The results of our comparative study of two pioneering commercial microfinance organizations suggest that to be sustainable, new types of hybrid organizations need to create a common organizational identity that strikes a balance between the logics they combine. Our evidence further suggests that the crucial early levers for developing such an organizational identity among organization members are hiring and socialization policies.
Article
Full-text available
Purpose – The purpose of this paper is to introduce this special issue, conceptualized and realized by a group of scholars engaged in the Global Organizational Learning and Development Network (GOLDEN) for Sustainability programme. It aims to adopt the overarching research question of the GOLDEN research programme “How do firms learn to integrate and manage sustainability in their business models, including their organizational purpose, strategy, processes, systems and culture?” as the guiding principle for case selection. Design/methodology/approach – The paper first presents the key ideas underpinning the previous research question and illustrates the research approach and agenda of GOLDEN for Sustainability. Second, it introduces the eight case studies presented in this special issue. Findings – The cases offer good illustrations of the ongoing transition by both medium-sized and multinational corporations dealing with learning and change challenges posed by the identification and management of sustainability issues. The selected cases represent firms operating in diverse contexts and industries, and are developed by scholars specializing in various fields connected to corporate responsibility and sustainability. Originality/value – The paper presents cases of organizations that have made sense of the sustainability challenge and also the different approaches taken to tackle the challenge, and the results stemming from their efforts..
Article
Full-text available
The relationship of disability to poverty is of increasing interest to policy makers as persons with disabilities are being mainstreamed into national poverty reduction programs. However, previous reviews on disability and poverty have not systematically addressed the concept of poverty. This article examines the conceptual and empirical links of three definitions of poverty to disability: basic needs, capability, and economic resources. It is shown that different definitions of poverty have different implications when applied to disability and that however defined, it is defined, poverty is closely related to disability. By drawing attention to the limitations of existing studies, this article identifies areas for future research and their implications for policy.
Article
Full-text available
According to one perspective, organizations will only be sustainable if the dominant neoclassical model of the firm is transformed, rather than supplemented, by social and environmental priorities. This article seeks to develop a "sustainability business model" (SBM)-a model where sustainability concepts shape the driving force of the firm and its decision making. The SBM is drawn from two case studies of organizations considered to be leaders in operationalizing sustainability and is informed by the ecological modernization perspective of sustainability. The analysis reveals that organizations adopting a SBM must develop internal structural and cultural capabilities to achieve firm-level sustainability and collaborate with key stakeholders to achieve sustainability for the system that an organization is part of.
Article
Full-text available
In 1998-1999, Prahalad and colleagues introduced the Base/Bottom of the Pyramid (BOP) concept in an article and a working paper. This article’s goal is to answer the question: What has become of the concept over the decade following its first systematic exposition in 1999? To answer this question, the authors conducted a systematic review of articles on the BOP, identifying 104 articles published in journals or proceedings over a ten-year period (2000-2009). This count excludes books, chapters, and teaching cases. The review shows that the BOP concept evolved dramatically following Prahalad’s original call to multinational enterprises (MNEs). De-emphasizing the role of MNEs over time, published BOP articles portray a more complex picture, with wide variations in terms of BOP contexts, of BOP initiatives, and of impacts of the BOP approach. A simple framework for organizing the reviewed articles helps discuss findings, identify the gaps that still exist in the literature, and suggest directions for future research.
Article
Full-text available
In recent years, a considerable amount of research on adapted business for developing countries focused on the impact such endeavours have on the respective companies as well as on the affected people. However, the main emphasis within management sciences was on the economic outcomes or (even more distinct and often) on the question of how to integrate the poor into business models and value chains. Until now, further aspects of a dignified human existence were merely covered as a side note. The article focuses on the influence of inclusive business approaches on various aspects of human dignity and provides explorative insights as a basis for future theory building. The aim is to uncover how human dignity is affected by different business approaches for the poor including and beyond economic outcomes. After giving an insight into the essence and meaning of human dignity in connection to various human rights, the articles refers to a number of illustrative cases of inclusive business. The analysis culminates in the insight that dignity can be (and sometimes already is) assured and promoted by deliberately including the poor into relevant value-added business processes. If this is the case, an enhanced dignity is not merely the result of increased incomes but stems from a variety of effects. However, such positive effects are not an inevitable outcome of any inclusive business initiative.
Article
Full-text available
Social enterprise organizations (SEOs) arise from entrepreneurial activities with the aim to achieve social goals. SEOs have been identified as alternative and/or complementary to the actions of governments and international organizations to address poverty and poverty-related social needs. Using a number of illustrative cases, we explore how variation of local institutional mechanisms shapes the local “face of poverty” in different communities and how this relates to variations in the emergence and strategic orientations of SEOs. We develop a model of the productive opportunity space for SEOs as a basis and an inspiration for further scholarly inquiry.
Article
Full-text available
Although Fair Trade has been in existence for more than 40 years, discussion in the business and business ethics literature of this unique trading and campaigning movement between Southern producers and Northern buyers and consumers has been limited. This paper seeks to redress this deficit by providing a description of the characteristics of Fair Trade, including definitional issues, market size and segmentation and the key organizations. It discusses Fair Trade from Southern producer and Northern trader and consumer perspectives and highlights the key issues that currently face the Fair Trade movement. It then identifies an initial research agenda to be followed up in subsequent papers.
Article
Full-text available
The development of social enterprise is a rapidly emerging trend in Europe. And one sector where they have found a particularly important place is in work integration, addressing some of the more difficult problems of social exclusion in labour markets. The study on which this paper is based was a large scale comparative analysis of developments of these social enterprise in 12 European countries While there are clear differences in national contexts, there are also similarities in the forms and characteristics of these social enterprise across Europe. It is argued that this form of social enterprise has proved effective and is an important innovation to address problems of more marginalised groups and individuals, but there remain issues about how to sustain and promote the good models and good practices developed. Copyright CIRIEC, 2005.
Article
Full-text available
In a connected world, remote groups at the fringe of a firm's current operations can find common cause, exerting increasing pressure and calling into question the firm's legitimacy and right to operate - witness the recent debacles involving Monsanto, Shell, and Nike. Moreover, the knowledge needed to generate competitive imagination and to manage disruptive change increasingly lies outside the organization, at the periphery of firms' established stakeholder networks. Unfortunately, most companies still tend to focus management attention only on known, salient, or powerful actors to protect their advantages in existing businesses. In recognition of these challenges, we develop the concept of Radical Transactiveness (RT). RT is a dynamic capability which seeks to systematically identify, explore, and integrate the views of stakeholders on the "fringe"the poor, weak, isolated, non-legitimate, and even non-human - for the express purpose of managing disruptive change and building imagination about future competitive business models. RT consists of two complementary skills. First, by reversing the logic of traditional approaches focused on managing powerful stakeholders, firms fan out to identify voices at the fringe of their networks to both preempt their concerns and generate imaginative new business ideas. Second, by creating mechanisms for complex interaction and empathy with those on the fringe, firms fan in to integrate and reconcile this knowledge with existing know-how to design and execute disruptive new business strategies.
Article
Investigating the benefits of sustainable business models for our societies is an important and timely topic. This Special Volume contributes to current research by exploring a variety of sustainable models in use around the world. The accepted articles provide an overview of the various organizational forms, management mechanisms, sustainability solutions, challenges, theoretical lenses and empirical evidence, i.e. fundamental elements in the study of sustainable business models. In this introductory paper, the thirty-seven articles included in this Special Volume are presented, organized in four approaches to sustainable business models: 1/the generalist approach, 2/the technology-based approach, 3/the entrepreneurship and innovation approach and 4/the behavioral approach. In conclusion, avenues for future research are formulated, with a call for solid theory building, more sophisticated research methods, focus on the interplay of sustainable with existing conventional business models, and systemic consideration of the role of governments in advancing sustainable business models.
Article
Incorporating entrepreneurship and sustainability as complementary entities is challenging. Within a multi-disciplinary academic context and using a case-study research approach, this paper outlines the design and delivery of an entrepreneurship course to encourage participants' lateral thinking and incorporated intelligence when developing sustainable business models. Results underline the fact that teams, which include participants with a greater diversity of academic backgrounds, tend to think and act more creatively in the conceptualization of new business models compared to less diverse teams in a similar academic context. Participants’ ideas in diverse teams proved to incorporate a wider problem context in their problem-solution proposition. This underlines some conclusive evidence for a positive relationship between social learning and business development in fostering first and foremost intangible learning but also enable concrete tangible outcomes in creating new sustainability business models.
Article
Food waste is major problem in developed countries, with the latest studies pointing to one third of the food produced worldwide. This problem occurs throughout the food value stream and has economic, environmental and social consequences. This study focuses on a solution developed in Portugal for a specific type of waste, vegetables and fruits discarded by farmers due to aesthetic reasons. Although with the same quality, their appearance is not within the requirements set by the main retailers and therefore not commercialized and consumed. The project developed to tackle this problem is a non-profit co-op, called Fruta Feia (Ugly Fruit) that commercializes this type of products that farmers cannot sell through the conventional channels. Tested successfully in Lisbon region, is now being replicated in Porto region. This study aims at assessing the sustainability of this project and its business model regarding the three pillars of sustainability – economic, environmental and social. For this, Life Cycle Assessment, investment appraisal, Social-Life Cycle Assessment and Social Return on Investment methods are used and compared, aiming also at the discussion of the key success factors of Fruta Feia project. Results showed not only the sustainability of the project, but also the suitability of the methods applied to assess the sustainability of a business model.
Article
While the literature on social scaling adopts a linear perspective in which a social enterprise first tests and validates its business model and then scales it up to other settings, this study argues that in uncertain and volatile environments, a more iterative approach may be appropriate. We develop an in-depth case study of ViaVia Travellers Cafés, a social enterprise that has successfully scaled its operations to 16 locations covering four continents. Through document analyses and twelve interviews with internal and external stakeholders, we are able to map and analyze the development process of the ViaVia Travellers Cafés, with information covering a period of more than 25 years. We find that under uncertainty, the social business model does not need to be proven before scaling it up. In fact, ViaVia Travellers had not yet developed a replicable model when scaling activities were undertaken. It regarded each new expansion as an experiment, and developed the business model's economic and social elements by learning from the portfolio of its previous experiments. Overcoming uncertainty hence involved simultaneously developing and scaling the business model. Our study introduces insights from the literature on business model development under uncertainty to the research on sustainable business models and social scaling, while contributing relevant insights for social entrepreneurs trying to scale.
Article
The effort to build an EPR system for waste electrical and electronic equipment (WEEE) in China has created unexpected niches for innovation in business models for post-consumer recycling of e-waste as well as other recyclables in recent years. This study used action research to evaluate the performance of emerging business models for post-consumer recycling in urban China in recent years. We identified three categories of emerging models: (1) community-based programs targeting the garbage sorting behavior of consumers for all household waste, (2) reverse logistic systems with automatic vending machines attached to traditional commercial chains, and (3) pure internet solutions to bridge the transactions between the consumers and recyclers. All these business models share the common characteristic that they use internet technology, which is aggressively promoted in China as “Internet +” by both government policies and venture capital investment. The various business models serve as the link between the firm and the system level and reflect the diverse possibilities for the future evolution of the recycling system in China. We developed a qualitative evaluation framework with five elements including convenience for consumers, traceability for producers, profitability for recyclers, hybridity for collection, and reliability of the information used by the public to address the various values pursued by different actors involved in the recycling chains. The results reveal the dilemmas facing each business model in balancing among all the elements and highlight the governance challenge of integrating the EPR scheme with the municipal waste management system.
Article
The successful adaptation and creation of sustainable entrepreneurial ventures signi fi cantly in fl uences the ability to create more environmentally and socially integrated economic systems. Sustainable busi- ness models are a critical component towards this goal. However, the development of sustainable business models is a complex process that requires a supportive entrepreneurial ecosystem. Integrating literature on sustainable business models, network theory, and entrepreneurial ecosystems, we analyze the in fl uence of organizational-level (venture types and venture tenure) and individual-level factors (types of network actors and their demographic characteristics) that in fl uence the social network con- nectivity of ventures with sustainable and conventional business models. To this purpose, we modeled two municipal entrepreneurial ecosystems in the Southeast United States through a complex network of stakeholders (e.g. entrepreneurs, investors, institutional leaders) and analyzed the resulting social con- nectivity measures. Our results indicate that sustainable entrepreneurs were underrepresented when compared to conventional entrepreneurs, but that their networks were more densely connected. We also found that different social clusters emerged, based on type of venture and business model, venture tenure, type of network actor (e.g. entrepreneur or investor), or demographic characteristic. With this study, we contribute to the literature on entrepreneurial ecosystems and sustainable business models.
Article
The Triple Layered Business Model Canvas is a tool for exploring sustainability-oriented business model innovation. It extends the original business model canvas by adding two layers: an environmental layer based on a lifecycle perspective and a social layer based on a stakeholder perspective. When taken together, the three layers of the business model make more explicit how an organizations generates multiple types of value - economic, environmental and social. Visually representing a business model through this canvas tool supports developing and communicating a more holistic and integrated view of a business model; which also supports creatively innovating towards more sustainable business models. This paper presents the triple layer business model canvas tool and describes its key features through a re-analysis of the Nestlé Nespresso business model. This new tool contributes to sustainable business model research by providing a design tool which structures sustainability issues in business model innovation. Also, it creates two new dynamics for analysis: horizontal coherence and vertical coherence.
Article
The relevance of business models for corporate performance in general and corporate sustainability in particular has been widely acknowledged in the literature while sustainable entrepreneurship research has started to explore contributions to the sustainability transformation of markets and society. Particularities of the business models of sustainable niche market pioneers have been identified in earlier research, but little is known about the dynamic role of business models for sustainable entrepreneurship processes aiming at upscaling ecologically and socially beneficial niche models or sustainability upgrading of conventional mass market players. Informed by evolutionary economics, we develop a theoretical framework to analyze co-evolutionary business model development for sustainable niche pioneers and conventional mass market players aiming at the sustainability transformation of markets. Core evolutionary processes of business model variation, selection and retention, and evolutionary pathways are identified to support structured analyses of the dynamics between business model innovation and sustainability transformation of markets.
Article
Social entrepreneurship is a relatively new topic which is gathering researchers' attention because of the social input and the boom of this kind of business. The main aim of this article is to orient researchers in creating a theoretical framework and to guide researchers who are new in social entrepreneurship research so that they know which journals and authors to consult when studying this phenomenon. To do so, this study uses the Web of Science database to determine the research areas with the greatest research output, the countries and languages responsible for most social entrepreneurship research, the year in which research on social entrepreneurship began, the journals that publish most research, and the most relevant authors with publications on social entrepreneurship.
Article
While a consensus appears to have evolved among many sustainability researchers and practitioners that sustainable development at the societal level is not very likely without the sustainable development of organizations, the business model as a key initiating component of corporate sustainability has only recently moved into the focus of sustainability management research. Apparently, the usual approaches to sustainable development of philanthropy, corporate social responsibility, and technological process and product innovation are insufficient to create the necessary radical transformation of organizations, industries, and societies toward genuine, substantive sustainable development. More in-depth research is needed on whether both modified and completely new business models can help develop integrative and competitive solutions by either radically reducing negative and/or creating positive external effects for the natural environment and society.
Article
This introduction to the special issue on hybrid organizations defines hybrids, places them in their historical context, and introduces the articles that examine the strategies hybrids undertake to scale and grow, the impacts for which they strive, and the reception to them by mainstream firms. It aggregates insights from the articles in this special issue in order to examine what hybrid organizations mean for firms and practicing managers as they continue to grow in number and assume a variety of missions in developing and developed countries
Article
Which resources of partners determine the success of a partnership-based inclusive business model? The question arises from the practical importance of partnerships in establishing inclusive business models as well as from the theoretical approach of the resource-based view of competitive advantage. In the case of Casa Melhor, a furniture project by forestry company Masisa in the low-income market in Brazil, linkages with outside partners seem to have made the difference for the level of success of each of the three pilots with different partners. Capabilities also impacted on performance. Capital may have been a necessary factor, but was not sufficient. When selecting partners, a critical criterion should hence be their existing relationships with other important participants in the value chain.
Article
In this paper, I identify the bottom of the pyramid (BOP) markets as a new source of radical innovation. By focusing managerial attention on creating awareness, access, affordability, and availability (4As), managers can create an exciting environment for innovation. I suggest that external constraints can be utilized to build an innovation sandbox within which new products and business models can be created. Using a live example of such an innovation—the development of the biomass stove for the rural poor in India—I illustrate the process and the usefulness of the approach. Increasingly, global firms are recognizing the implications of innovations at the BOP for developed markets as well. A 2000-dollar car (Tata Nano); 50-dollar cataract surgery (Aravind Eye Care System); less than $0.01 per minute of cell phone time (Airtel); a modern, well-appointed 20-dollar hotel room (Ginger); and a supercomputer (Eka) that costs less than $40 million to develop: These are all part of an emerging phenomenon of innovations from the bottom of the pyramid (BOP). We will examine in this paper how and why these markets are becoming drivers of fundamental innovation—not just in products but also in the whole business system. To operate profitably in these settings, we have to transcend technology and product perspec-tives of innovation and focus on total delivery of value. As a result, we are forced to rethink the very source, the focus, and the processes of innovation.
Article
There is an impressive history associated with the evolution of the concept and definition of corporate social responsibility (CSR). In this article, the author traces the evolution of the CSR construct beginning in the 1950s, which marks the modern era of CSR. Definitions expanded during the 1960s and proliferated during the 1970s. In the 1980s, there were fewer new definitions, more empirical research, and alternative themes began to mature. These alternative themes included corporate social performance (CSP), stakeholder theory, and business ethics theory. In the 1990s, CSR continues to serve as a core construct but yields to or is transformed into alternative thematic frameworks.
Article
Business and society academics face an ongoing dilemma between the rigorous demands of good scholarship and the personal and pragmatic demands of constituencies and themselves. This dilemma is, above all, an ethical one, but it is partially solvable by paying closer attention to theory and methodology while acknowledging individual biases and desires and helping others in the field to do the same.
Article
This study undertakes an analytical comparisonbetween social and commercial entrepreneurship using a model from commercialentrepreneurship. It is an exploratory analysis of the extent that elementsapplicable to commercial entrepreneurship are transferable to socialentrepreneurship. Conversely, it explores the ways insights from social entrepreneurship canilluminate an understanding of commercial entrepreneurship. Socialentrepreneurship can be defined broadly or narrowly, but the authors define itas an innovative, social-value creating activity that can occur within oracross the nonprofit, business, or government sectors. The comparative analysis is guided by four theoretical propositions focusingon four variables: (1) market failure, (2) mission, (3) human and financeresource mobilization, and (4) performance measurement. These will createdifferences between social and commercial entrepreneurs. A commercial entrepreneurship model is proposed in order to approach thesocial entrepreneurship process more systematically and effectively. This modelstresses the dynamic fit among the people, the context, the deal, and theopportunity. For each element, the similarities and differences between socialand commercial entrepreneurship are examined. The analysis draws out lessonsuseful for both social and commercial entrepreneurs. Finally, a revised social entrepreneurship model is proposed. At the centeris a Venn diagram in which the intersection of opportunity, capital, and peopleis a core social value proposition. Surrounding the Venn diagram are the tax,regulatory, sociocultural, macroeconomy, political, and demographics forces. Todeliver the social value proposition effectively, all components must achieve astate of alignment. (TNM)
Article
We highlight business model innovation as a way for general managers and entrepreneurs to create and appropriate value, especially in times of economic change. Business model innovation, which involves designing a modified or new activity system, relies on recombining the existing resources of a firm and its partners, and it does not require significant investments in R&D. We offer managers and researchers a conceptual primer on business model innovation, emphasizing the importance of system-level thinking.
Article
Editor's Note: John Elkington's new book, Cannibals with Forks: The Triple Bottom Line of 21st-Century Business, has been hailed as “practical, compassionate and deeply informed, a brilliant synthesis of his genius for cutting through the thicket of tough issues–in the world of business and sustainability–and producing elegant solutions that can be applied today” (Paul Hawken). We are pleased to have the opportunity to publish a selection from this award-winning book. In this discussion of partnerships, Elkington explores how effective, long-term partnerships will be crucial for companies making the transition to sustainability and offers approaches and examples of keen interest. Special thanks to Capstone Publishers, U.K., for their gracious cooperation.
Article
The base of the pyramid (BoP) literature is grounded in the proposition of mutual value creation, an important but not yet well-tested relationship between business development and poverty alleviation. This paper begins to address this gap by assessing how business ventures serving BoP producers address local constraints and create mutual value. Using a case study methodology, sixty-four ventures are analyzed to identify the constraints faced by BoP producers. These are classified into productivity and transactional constraints. While the former set of constraints inhibits local value creation, the latter severely diminish the value capture potential of BoP producers. An in-depth analysis of eleven agricultural ventures provides insight into the strategies that ventures use to address constraints and enhance value creation and capture by BoP producers. The findings also indicate that alleviating constraints creates value not only for local producers, but also for the ventures themselves.
Article
Whenever a business enterprise is established, it either explicitly or implicitly employs a particular business model that describes the design or architecture of the value creation, delivery, and capture mechanisms it employs. The essence of a business model is in defining the manner by which the enterprise delivers value to customers, entices customers to pay for value, and converts those payments to profit. It thus reflects management's hypothesis about what customers want, how they want it, and how the enterprise can organize to best meet those needs, get paid for doing so, and make a profit. The purpose of this article is to understand the significance of business models and explore their connections with business strategy, innovation management, and economic theory.
Article
The goal of this dissertation is to find and provide the basis for a managerial tool that allows a firm to easily express its business logic. The methodological basis for this work is design science, where the researcher builds an artifact to solve a specific problem. In this case the aim is to provide an ontology that makes it possible to explicit a firm's business model. In other words, the proposed artifact helps a firm to formally describe its value proposition, its customers, the relationship with them, the necessary intra- and inter-firm infrastructure and its profit model. Such an ontology is relevant because until now there is no model that expresses a company's global business logic from a pure business point of view. Previous models essentially take an organizational or process perspective or cover only parts of a firm's business logic. The four main pillars of the ontology, which are inspired by management science and enterprise- and processmodeling, are product, customer interface, infrastructure and finance. The ontology is validated by case studies, a panel of experts and managers. The dissertation also provides a software prototype to capture a company's business model in an information system. The last part of the thesis consists of a demonstration of the value of the ontology in business strategy and Information Systems (IS) alignment.
Article
"Business model" was one of the great buzz-words of the Internet boom. A company didn't need a strategy, a special competence, or even any customers--all it needed was a Web-based business model that promised wild profits in some distant, ill-defined future. Many people--investors, entrepreneurs, and executives alike--fell for the fantasy and got burned. And as the inevitable counterreaction played out, the concept of the business model fell out of fashion nearly as quickly as the .com appendage itself. That's a shame. As Joan Magretta explains, a good business model remains essential to every successful organization, whether it's a new venture or an established player. To help managers apply the concept successfully, she defines what a business model is and how it complements a smart competitive strategy. Business models are, at heart, stories that explain how enterprises work. Like a good story, a robust business model contains precisely delineated characters, plausible motivations, and a plot that turns on an insight about value. It answers certain questions: Who is the customer? How do we make money? What underlying economic logic explains how we can deliver value to customers at an appropriate cost? Every viable organization is built on a sound business model, but a business model isn't a strategy, even though many people use the terms interchangeably. Business models describe, as a system, how the pieces of a business fit together. But they don't factor in one critical dimension of performance: competition. That's the job of strategy. Illustrated with examples from companies like American Express, EuroDisney, WalMart, and Dell Computer, this article clarifies the concepts of business models and strategy, which are fundamental to every company's performance.
Creating value for all: strategies for doing business with the poor. United Nations Development Programme
  • UNDP
The meaning of “Social Entrepreneurship
  • J G Dees