Doing social good on a sustainable basis: competitive advantage of social businesses

2015 ◽  
Vol 53 (6) ◽  
pp. 1355-1374 ◽  
Author(s):  
Kaushik Roy ◽  
Amit Karna
Keyword(s):  
Competitive Advantage ◽  
Business Model ◽  
Institutional Environment ◽  
Emerging Market ◽  
Theoretical Development ◽  
Content Type ◽  
Social Good ◽  
Environmental Support ◽  
Study Approach ◽  
Social Value Creation

Purpose – The purpose of this paper is to investigate the capabilities of social entrepreneurship (SE) firms and how they achieve competitive advantage while engaging in social value creation. The authors employ a business model perspective to understand the (self-) sustaining mechanism for social good. Design/methodology/approach – The authors carry out an in-depth investigation of three SE ventures. The authors analyse the history of these ventures to determine how they achieved competitive advantage. The cases are analysed based on the internal development in the context of environmental support. Findings – The authors find that SE ventures, like all other organisations, achieve competitive advantage based on available resources such as reputation and network of the founder, managerial experience and other corporate resources within the firm. The authors also find that the competitive advantage often comes from innovate usage – a practice that is reinforced by the support from institutional environment. Research limitations/implications – Due to the case study approach, the research is aimed at theoretical development within the social business literature. The approach makes it difficult for the findings to be universally generalisable. The authors therefore envisage future researchers to test the theoretical propositions. Practical implications – Based on the analysis, the authors conclude that distinct capabilities of social businesses help them achieve competitive advantage, and that policy makers should institutionally support these ventures. The findings stress the importance of resources in sustainability and effectiveness of emerging market SE. Originality/value – The application of a business model perspective in SE is unique, and advances the understanding of social businesses from a strategic management perspective.

Exploring business model innovation for competitive advantage: a lesson from an emerging market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Natasha Saqib ◽  
Mir Shahid Satar
Keyword(s):  
Emerging Markets ◽  
Competitive Advantage ◽  
Customer Service ◽  
Business Model ◽  
Service Sector ◽  
Business Models ◽  
Current Knowledge ◽  
Emerging Market ◽  
Business Model Innovation ◽  
Content Type

Purpose Emerging markets are witnessing rapid changes in their economy owing to the ongoing liberalization and globalization. India, as one of the emerging markets in south Asia, is also experiencing a dramatic change in its business ecosystem. This poses huge opportunities to the companies, both start-ups and established ones. In this direction, the business model innovation offers a strategic renewal mechanism. The study aims to explore the practices of an online transport network company (OLA) creating a distinctive place for itself in Indian taxi service sector. Design/methodology/approach Methodologically, an exploratory case study of an India-based online transport company (OLA) business model innovation is reported. Findings This paper reveals that OLA has been able to gain competitive advantage in the Indian emerging market by developing an innovative business model with its distinctive features of personalised customer service, asset sharing, usage-based pricing, collaborative ecosystem, agile and adaptive organising and successful expansion strategies. Research limitations/implications This study adds to current knowledge concerning the theoretical foundations and antecedents of business model innovation as a competitive advantage. The paper is explorative in nature because the analysis is mostly based on literature review. Furthermore, in consideration of the analysis of business model of a single company, further research is required to generalize the results. Practical implications The understanding of the intricacies of business model innovation can be of great concern to existing and prospective managers and entrepreneurs of emerging markets. Originality/value The paper discusses the features of innovative business models and how firms can make their business models more relevant to the competitive markets. As such, the study is hopeful to aid practitioners engaged in the pursuit of beating the competition with innovation driven business models.

The role of ecological modernization principles in advancing circular economy practices: lessons from the brewery sector

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Simone Sehnem ◽  
Ana Beatriz Lopes de Sousa Jabbour ◽  
Diogo Amarildo da Conceição ◽  
Darciana Weber ◽  
Dulcimar José Julkovski
Keyword(s):  
Circular Economy ◽  
Institutional Environment ◽  
Alcoholic Beverage ◽  
Pollution Prevention ◽  
Ecological Modernization ◽  
Full Potential ◽  
Sustainable Operations ◽  
Content Type ◽  
Social Good ◽  
Data Saturation

PurposeThere is no literature that sought the revision and integration of ecological modernization of theory (EMT) and circular economy (CE). This article aims to answer the questions: How have companies developed circular economy practices within their operations? Why have companies invested in circular economy practices? Based on the answers to these questions, it would be possible to understand how the assumptions of EMT explain the adoption of CE practices.Design/methodology/approachThe research method is based on multiple case studies with Brazilian craft brewery companies.FindingsCompanies studied have pursed the adoption of circular economy practices, but the full potential of the use of biological cycles within their processes of production has been hampered by the lack of external policies and clear governance toward circular economy. Thus, pollution prevention policies may be an important driver for organizations be able to advance in circular economy practices.Research limitations/implicationsResearch limitations are coverage only of organizations located in an emerging country. A second limitation is that the data saturation was partially achieved in some of the analyzed cases, especially by the limitation of the time period surveyed (transversal research). The longitudinal evaluation is timely for circular economy surveys.Practical implicationsThe formulation of a regulatory framework through a participative, interactive and decentralized process, capable of delegating responsibilities and incentives to all entities, to contemplate a tax restructuring for the alcoholic beverage sector, could corroborate to create a new standard of action for the sector.Social implicationsThis document highlights how the principles of ecological modernization can contribute to the advancement of the circular economy. The understanding can help in the design of processes that provide circular and sustainable operations as a social good in a effective value.Originality/valueThe principles from EMT, such as the development of an institutional environment towards corporate environmental proactive, could enhance the adoption of circular economy practices within the brewery sector. Despite of the class association of the brewery sector has supported the companies studied to move forward in other matters, a clear governance is necessary to guide organizations towards circular economy practices.

A dynamic business model for Turkish techno parks: looking through the lenses of service perspective and stakeholder theory

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gülçin Polat
Keyword(s):  
Business Model ◽  
Stakeholder Theory ◽  
Business Models ◽  
Institutional Environment ◽  
Content Type ◽  
Dynamic Framework ◽  
Business Model Canvas ◽  
Functional Differences ◽  
Theoretical Perspectives ◽  
Service Perspective

Purpose The purpose of this paper is to analyze the business model of techno parks (TPs) in Turkey and shed light on the value co-creation in TPs in the light of the service perspective and stakeholder theory. Design/methodology/approach In this conceptual paper, a generic business model canvas for Turkish TPs has been elicited based on an in-depth review of the literature. Then, the functioning of the model and the nature of value co-creation have been viewed through the lenses of service perspective and stakeholder theory, and then the relationships and flows between the components of the business model have been visualized with a dynamic model. Findings The institutional environment leads Turkish TPs to have similar business models with functional differences. The value is co-created by stakeholders in TPs and value co-creation depends on the skills, competencies and cooperative efforts of all actors involved in the functioning of the business model. Practical implications This paper provides insight for TP management companies to improve their business models, for policymakers to refine institutional framework to enable effective functioning of TPs and for stakeholders to understand their role in value co-creation. Originality/value This paper provides a dynamic framework and a model for understanding business models of TPs and the value co-creation process, which is an understudied area, especially in a developing country context. It also extends the business model and value co-creation literature in the context of TPs by integrating multiple theoretical perspectives.

IKEA Inc.: the India way

2020 ◽  
Vol 10 (1) ◽  
pp. 1-9
Author(s):  
Neetu Yadav
Keyword(s):  
Emerging Markets ◽  
Competitive Advantage ◽  
Learning Outcomes ◽  
Emerging Market ◽  
Local Environment ◽  
Global Strategy ◽  
International Strategy ◽  
Content Type ◽  
Academic Level

Learning outcomes Learning outcomes are as follows: to learn about the application of Bartlett and Ghoshal’s model of international strategy; to compare and contrast the global strategy of IKEA in India and China; and to understand how adaptability can create a new competitive advantage in emerging markets. Case overview/synopsis The case study enables discussion about the global strategy of a well-established multi-national company, IKEA in an emerging market. IKEA is a well-established and well-known brand in the international market in furniture retailing. It has decided to make a debut in India in 2017 with its first store in Hyderabad. However, it was yet to open it in 2018. The case emphasizes upon understanding the global strategy of IKEA, positioning itself in the fragmented Indian furniture industry, managing differences in emerging markets and adapting to the local environment of the particular country. The case highlights how adaptability can create a new competitive advantage in managing global strategy in different countries of emerging markets. Complexity academic level This case study is developed for post-graduate management programs as an MBA, Executive MBA and executive development programs. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 11: Strategy.

Resistance toward dominant US work practices in emerging markets

2019 ◽  
Vol 15 (4) ◽  
pp. 323-340
Author(s):  
Paresha N. Sinha ◽  
Dharma Raju Bathini
Keyword(s):  
Migrant Workers ◽  
Fast Food ◽  
Multinational Enterprises ◽  
Emerging Market ◽  
Working Environment ◽  
Work Practices ◽  
Content Type ◽  
Study Approach ◽  
Effect Theory ◽  
Local Firms

Purpose The purpose of this study is to apply the dominance effect theory and postcolonial notions of “otherness” to critically study the enactment of mimicry at IndianBread, an Indian fast-food chain that has adopted work practices typically found in US fast-food multinational enterprises (MNEs). Design/methodology/approach The authors used an interpretive sensemaking case study approach and collected qualitative data drawing on observations, notes from the company policy manual and in-depth interviews with eight staff at an IndianBread outlet. Data were also collected during informal interactions with staff at three other IndianBread outlets. The analysis focused on the enactment of mimicry and studied the postcolonial dynamics between managers and migrant workers to explain their resistance to the adoption of US work practices. Findings Work practices of US fast-food MNEs such as the standardization of workers’ appearance and basic “Englishization” such as greeting customers in English had been adopted at the IndianBread outlet. However, migrant workers resisted enforcement by contesting the superiority and relevance of these US work practices. The workers’ resistance was accommodated by local managers to pacify and retain them. Research limitations/implications The analysis contributes to a deeper understanding of the dynamics of resistance to the dominant influence of US work practices in emerging market firms. It expands current notions of “otherness” by presenting the perspective of “local” managers and migrant workers. The authors show how worker resistance embedded in their “identity work” involves contesting notions of “inferiority” of local work practices and selves. In the case of managers, accommodating resistance maintains their “legitimacy of dominance”. To that end, the study explains how the need to mimic US work practices is enforced, contested and ultimately diluted in competitive local firms in rising India. Practical implications The organizationally grounded data show how managerial accommodation of workers’ resistance to US practices creates a more flexible working environment that dilutes migrant workers’ sensitivity to their exploitation at the fast-food outlet. Social implications The findings identify the link between mimicry and resistance by the “other,” the ambivalence of the colonizing agent and the ongoing material exploitation within emerging economies. Originality/value To that end, the study explains how the need to mimic the US work practices is enforced, contested and ultimately diluted in the context of the competitive local firms in India.

Last mile farm inputs: farm shop delivers

2016 ◽  
Vol 9 (3) ◽  
pp. 1-22
Author(s):  
Monica C. Diochon ◽  
Yogesh Ghore
Keyword(s):  
Business Model ◽  
Social Marketing ◽  
Social Entrepreneurship ◽  
Social Enterprise ◽  
Business Models ◽  
Emerging Market ◽  
Sub Saharan Africa ◽  
Theory Of Change ◽  
Content Type ◽  
Farm Inputs

Subject area The subject areas are social entrepreneurship and marketing in social enterprises. Study level/applicability This study is applicable to undergraduate or MBA-level courses; possibly executive programs as well. Case overview Farm Shop was established in 2012 as a not-for-profit trust, with an aim of developing a distribution platform for poor, rural communities across sub-Saharan Africa so that smallholder farmers could get the farm inputs and services needed to increase their productivity and income. Attempting to reach scale, this social enterprise is in the process of building a micro-franchise network. Unlike franchises in industrialized countries where the franchisor starts with a vetted and replicable turnkey business, Farm Shop was created from scratch. After prototyping the shop concept and validating the business model in Kiambu County of Kenya, Farm Shop has 10 fully operational shops and is keen to start its growth phase, aiming to have 120 shops in its network within the next 12-18 months. It is only at that point that break-even will be achieved. Recognizing the key role of marketing in Farm Shop’s growth efforts, the founders are now focused on finalizing their go-to-market (GTM) strategy. Having initiated and measured the results of a number of marketing activities over the past six months, it is now time to decide which of these activities should be incorporated into their micro-franchise system. The management team knows that to provide advice, training and quality products to farmers, they first needed to develop awareness, interest and desire for what Farm Shop has to offer, not to mention the need to gain the farmers’ trust. Fundamentally, farmers needed to be convinced that Farm Shop can help them improve their productivity and income. Expected learning outcomes The study enables to gain an overall understanding of the range of challenges and opportunities associated with establishing a micro-franchise in an emerging market context; to gain a better understanding of social marketing, including the four types of behavioral influence it attempts to achieve and the similarities and differences between social and commercial marketing; to introduce the “theory of change” concept, providing a framework for understanding how and why change will occur; to introduce the concept of business models and explore the differences between “traditional” and “social entrepreneurship” business models; to understand how a competitive advantage is created; to introduce basic marketing concepts and the GTM concept and its role and application in a business model for a new social enterprise and to understand how marketing contributes to the social enterprise’s strategic goals and sustainability, thereby gaining an understanding of how “social marketing” is differentiated from commercial marketing. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 3: Entrepreneurship.

Building a business model for a new form of hospitality: the albergo diffuso

2020 ◽  
Vol 32 (1) ◽  
pp. 307-323
Author(s):  
Silvia Fissi ◽  
Alberto Romolini ◽  
Elena Gori
Keyword(s):  
Business Model ◽  
Value Creation ◽  
Structured Interviews ◽  
Content Type ◽  
Business Opportunity ◽  
Study Approach ◽  
Multiple Case ◽  
Local Traditions ◽  
First Time ◽  
The Village

Purpose In recent years, tourists have become more interested in discovery the authenticity of a destination. The albergo diffuso (AD) is a response to this new requirement of tourist experience. The AD indeed is based on an accommodation solution with rooms distributed in various buildings across a village. The purpose of this study is to analyze the AD business model supporting the development of this emerging business opportunity in the accommodation industry. Design/methodology/approach The research is conducted with a multiple case study approach, collecting data from different sources such as semi-structured interviews and archival research. The cases are all located in Italy where the AD was applied for the first time. Findings The AD business model is based on business idea, value creation and innovation. The business idea is based on the aim to contribute to the renaissance of a village with an emotional link between the entrepreneur and the village. Regarding the value creation, the AD is a form of accommodation that offers more than a hotel experience. The tourist can live like a resident and experiencing local traditions and culture. The innovation is indeed related to the services that are totally different from a traditional hotel. Originality/value Considering the previous studies, this research tries to fill the gap concerning the necessity to define the characteristics of the AD business model and to understand the key elements at the base of this hospitality approach.

Networks, institutional environment and firm internationalization

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sussie C. Morrish ◽  
Anna Earl
Keyword(s):  
Institutional Environment ◽  
Secondary Data ◽  
Wine Industry ◽  
Personal Networks ◽  
Internationalization Process ◽  
Structured Interviews ◽  
Content Type ◽  
Study Approach ◽  
Brand Authenticity ◽  
Firm Networks

Purpose The purpose of this study is to investigate the influence of network relationships and institutional environment on premium winegrowers’ internationalization process. Design/methodology/approach This study uses a case study approach to examine two premium wine producers engaged in internationalization. The data sources consist of semi-structured interviews, observations at three major events and secondary data sourced from industry reports and materials that are available online. Findings Findings illustrate that both personal and inter-firm networks help wineries to internationalize. Inter-firm networks play a significant role in gaining international legitimacy. Personal networks were found to be more important in establishing brand authenticity that facilitates wineries in their internationalization process. Gaining international legitimacy and establishing brand authenticity are crucial in the successful internationalization of premium wineries. Research limitations/implications This study provides an explanation of how networks can be put into institutional context. Future studies could map out the formal and informal institutions within the wine industry and investigate the closer dynamics among the different actors in the whole network. A whole network is formally structured and governed, yet still built on the relationships among members, making it a very complex phenomenon. This would allow the evaluation of multilateral ties that link firms and actors within the network and how this affects the internationalization process. Practical implications This paper provides managers with insights on how they can capitalize on their inter-firm and personal networks to help them deal with domestic and international institutional environments when embarking on internationalization activities. Originality/value This paper adds to the existing literature on networks relationships and provides an important link between networks, institutions and internationalization.

Design leaps: business model adaptation in emerging economies

2016 ◽  
Vol 10 (2) ◽  
pp. 105-124 ◽  
Author(s):  
Sunil Sharma ◽  
Mukund R. Dixit ◽  
Amit Karna
Keyword(s):  
Boundary Conditions ◽  
Emerging Markets ◽  
Business Model ◽  
Emerging Economies ◽  
Emerging Market ◽  
Model Adaptation ◽  
Design Features ◽  
Content Type ◽  
Business Opportunities ◽  
Contextual Intelligence

Purpose Firms take design leaps when they imitate an established business model developed either by another firm or in another market to create business opportunities. While recent research has suggested the use of contextual intelligence for imitation, the exact process of adaptation of a business model is not fully understood. The purpose of this paper is to outline the process through which an emerging market firm adapts a developed market business model for creating business opportunities in the local market. Design/methodology/approach This paper investigates the journey of Air Deccan, the pioneer low-cost airline in India, from its founding until its successful adaptation of a (Western) business model and eventual failure. The authors use a qualitative case-based approach to study business model adaptation. Findings The authors find that adaptation involves the incorporation of following design features: novelty to overcome problem of institutional voids, elasticity to exploit unexpected increase in demand and efficiency to serve large volumes. Based on the evidence, the authors suggest the introduction of global efficiency measures as the boundary conditions of business model adaptation in emerging markets. Research limitations/implications The paper contributes to the literature on business models by suggesting elasticity as a unique design feature relevant for emerging markets. This paper provides granular understanding of business model toxicity. Practical implications Entrepreneurs and managers – looking to enter emerging markets through opportunity creation – should focus on providing contextually novel design features in the adapted business model. The authors also caution practitioners against the perils of toxicity arising out of combining contextual novelty with efficiency. Originality/value Recent literature suggests that multinationals need contextual intelligence to successfully monetize their investment in emerging economies. This paper provides rich description of the challenges faced by entrepreneurs in emerging markets, local innovations used to overcome them and boundary conditions.

Radical innovation of a business model

2016 ◽  
Vol 26 (2) ◽  
pp. 132-146 ◽  
Author(s):  
Sarah Philipson
Keyword(s):  
Competitive Advantage ◽  
Business Model ◽  
Business Performance ◽  
Radical Innovation ◽  
Sustainable Competitive Advantage ◽  
Tacit Knowing ◽  
Content Type ◽  
Service Firm ◽  
Dominant Logic ◽  
Structural Capital

Purpose – This paper aims to investigate key antecedents to the use of radical innovation of the business model of a service firm to achieve competitive advantage. “Business model” emerged fairly recently as an academic concept, competing with “sustainable strategic competitiveness”, “strategic fit” (Porter, 1996) and “dominant logic” (Prahalad and Bettis, 1986) to give key explanatory understanding of firm performance. Design/methodology/approach – The article is based on action research, in which the re-engineering of a service business turned into radical innovation of the business model. Findings – Radical innovation (conceived of as a new dominant logic) of the business model of a service firm is shown to give sustainable competitive advantage. It shows how fundamental the concept of business model is to understanding the nature of the business and links it to fundamental academic discussion of recent decades around concepts such as “sustainable competitive advantage”, “structural capital” and “tacit knowing”. Research limitations/implications – This is based on a case, and more research is needed to generalize the findings. Practical implications – In contrast to the knowledge management and structural capital evangelization, much tacit knowing cannot be converted to structural capital. Originality/value – Business model is a central concept to understand business performance, but must not be conceived as all-encompassing. We give a model for what the concept should cover and contrast it with other important models.We show the role of tacit knowledge in a business model.

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