scholarly journals Architectural dimensions of socially driven venture capital firms: social innovation in the capital markets

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Raymond J. Jones ◽  
Manjula S. Salimath
Keyword(s):  
Venture Capital ◽  
Capital Markets ◽  
Private Equity ◽  
Performance Metrics ◽  
Social Innovation ◽  
Social Enterprises ◽  
Social Orientation ◽  
Structural Factors ◽  
Socially Responsible ◽  
Content Type

PurposePrivate equity and venture capital (VC) firms in the capital markets sector invest capital with the primary goal of delivering economic value. However, some firms in the capital markets sector have started to shift this focus to create (i.e. invest in) social value. More specifically, traditional VC firms are starting socially oriented funds, while other firms have emerged to focus solely on investments in social enterprises. These VC firms are contributing to an interesting paradox – performance metrics are not measured by profit alone but also by social innovation. From an architectural perspective, the authors examine the implications of internal design, i.e. how specific strategic and structural factors influence the financial performance of VC firms with a social orientation to determine if these firms really can “do well and do good.”Design/methodology/approachSocial orientation was determined by content analysis of mission statements of the VC firms. Firm strategies, structures and performance were sourced from secondary data. A moderated mediation model was used to test relationships.FindingsResults suggest that (1) socially responsible VC firms adopt distinct foci of social investing that directs their strategic orientation and (2) these various foci have vastly differing effects on the firm's overall performance, strategic decisions made and the architecture of their structural design.Originality/valueThis study is among the first to explore socially responsible VC architectural dimensions, with implications for firm design based on blended measures of success.

Challenges and opportunities for social entrepreneurs in civil engineering in Brazil

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ernesto Ferreira Vasconcellos ◽  
Bernardo Henrique Leso ◽  
Marcelo Nogueira Cortimiglia
Keyword(s):  
Civil Engineering ◽  
Social Innovation ◽  
Social Enterprises ◽  
Exploratory Research ◽  
Social Entrepreneurs ◽  
Content Type ◽  
Challenges And Opportunities ◽  
Research Findings ◽  
Development Goals ◽  
The Government

Purpose This paper aims to identify challenges and opportunities for social enterprises (SE) in civil engineering in Brazil. Design/methodology/approach Starting from the transformative social innovation theory and inspired by grounded theory principles, this paper conducts three-stage exploratory research. First, this paper mapped the Brazilian SE civil engineering ecosystem. Next, this paper classified the SE initiatives along with an organizing framework. Finally, this paper conducted 11 interviews with key ecosystem actors and analyzed data through iterative, parallel and interrelated content analysis procedures. Findings The 37 SE found were classified along “Sustainability,” “Housing,” “Transportation” and “Sanitation” pillars, which are aligned with the United Nations’ social development goals. This paper found 50 challenges and opportunities, which were aggregated along seven dimensions. Three elements are particularly relevant as opportunities: opportunities for SE with ecosystem supporters, specialized investors and partnership with major companies; while government and early investment are the most relevant challenges. Research limitations/implications Research findings and conclusions cannot be extended to other sectors and countries. Usual limitations associated with exploratory qualitative research must also be highlighted. Practical implications The government should offer financial and technical support for civil engineering in working in partnership with ecosystem supporters. Academy could use SE content and ecosystem for its students and should offer diverse resources for network creation. Originality/value Focusing on civil engineering SE in Brazil, this study sheds light on a high-impact sector that has not been studied yet.

Structuring and financing private equity and venture capital transactions in Luxembourg

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bertrand Géradin
Keyword(s):  
Venture Capital ◽  
Design Methodology ◽  
Private Equity ◽  
Corporate Law ◽  
Efficient Manner ◽  
Equity Investment ◽  
Content Type ◽  
Key Issues ◽  
Practical Implications ◽  
Optimum Balance

Purpose Luxembourg is the jurisdiction of choice for many private equity and venture capital investors/funds. Though the optimum balance of financing instruments in relation to any structure varies according to its particular circumstances, one factor that all Luxembourg domiciled FDI structures have in common is the requirement for an appropriate level of equity investment. This article intends to summarize some of the topics frequently encountered in relation to equity structuring choices. Design/methodology/approach Author details the different steps and choices available to investors and funds. The article offers answers to questions to provide a broad, yet detailed, overview of the process and journey; from selecting the vehicle right through to distributing to investors, governance, and compliance. Findings To avoid an expensive mistake, it is paramount that the private equity or venture capital investors and management team receive detailed advice to ensure: (i) the deal is structured in the most tax efficient manner possible and the commercial deal is suitable for all parties, and (ii) the deal is structured in a manner which is effective under Luxembourg law, for both tax and legal purposes. Practical implications It is important that non-Luxembourg lawyers are able to identify key issues when negotiating the terms of the investment documents, in particular, the articles of association and shareholders' agreement. Originality/value Practical guidance from Luxembourg lawyer specializing in corporate law, mergers and acquisitions, venture capital and private equity transactions.

Understanding how social responsibility drives social innovation: characteristics of radically innovative projects

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Duygu Turker ◽  
Y. Serkan Ozmen
Keyword(s):  
Social Responsibility ◽  
Social Innovation ◽  
Socially Responsible ◽  
Content Type ◽  
Radical Innovations ◽  
Award Winning ◽  
Innovation Characteristics ◽  
Sustainability Challenges ◽  
Corporate Social ◽  
The Impact

PurposeThis study aims to analyze how corporate social responsibility (CSR) initiatives address sustainability challenges by focusing on the congruence between process and outcome variables of CSR.Design/methodology/approachFollowing a theory-driven model, a content analysis was conducted on 63 award-winning social responsibility projects.FindingsThe study reveals that the adoption of a proactive approach during environmental assessment, which manifests itself in a focus on emerging sustainability challenges with a deeper interest, affects the centrality of social responsibility initiative by increasing its learning and partnership potential and leads organizations to produce radical innovations.Practical implicationsThe findings provide a valuable understanding for practitioners on organizing the decision making process of CSR initiatives in order to unlock its learning potentials.Social implicationsRadically innovative projects with their higher levels of proactivity, centrality and generalizability are better than incremental ones at transferring and integrating company resources and capabilities to address emergent sustainability challenges.Originality/valueThe impact of CSR on society and nature has been a neglected area of literature. To reduce this gap, this study analyzes how the configuration of process variables shapes the outcomes of socially responsible initiatives on sustainability. It also provides a new typology on the relevance of CSR initiatives to company mission/model that can show how CSR can unlock organizational learning and innovation potentials.

Exploring the social innovation process in a large market based social enterprise

2019 ◽  
Vol 57 (6) ◽  
pp. 1399-1414 ◽  
Author(s):  
Martine Vézina ◽  
Majdi Ben Selma ◽  
Marie Claire Malo
Keyword(s):  
Social Transformation ◽  
Dynamic Capabilities ◽  
Social Innovation ◽  
Single Case ◽  
Innovation Process ◽  
Social Enterprises ◽  
Investment Fund ◽  
Content Type ◽  
Large Market ◽  
The Social

PurposeThe purpose of this paper is to investigate the organising of social innovation in a large market-based social enterprises from the perspective of dynamic capabilities and social transformation.Design/methodology/approachThis paper analyses the process by which Desjardins Group launched the Desjardins Environment Fund as the first investment fund in North America to integrate environmental screening. It uses longitudinal single case analysis and a theoretical framework based on Teece’s three dynamic capabilities.FindingsResults show that dynamic capabilities can be conceived as stages in the process of social innovation. Sensing refers to the capability to identify a societal demand for social transformation. Seizing capability is about shaping societal demand into a commercial offer. Reconfiguring concerns organisational innovation to integrate actual and new knowledge through innovative routines. Microprocesses of both path dependency and path building are in action at each of the three stages.Practical implicationsThis paper shows that managing dynamic capabilities is central to social innovation in the context of a large social business and provides genuine managerial input via an analysis of the microprocesses at work in the social innovation process.Originality/valueThis paper contributes to the operationalization of Teece’s dynamic capabilities model. In mobilising a framework in the field of management of innovation, it contributes to the understanding of the process of social innovation and develops the organisational mechanism for multiscalarity of social innovation as a condition for social transformation.

Social enterprises and organizational learning in South Africa

2018 ◽  
Vol 10 (1) ◽  
pp. 117-133 ◽  
Author(s):  
Boris Urban ◽  
Elena Gaffurini
Keyword(s):  
South Africa ◽  
Organizational Learning ◽  
Social Innovation ◽  
Emerging Market ◽  
Cross Sectional Study ◽  
Social Enterprises ◽  
African Countries ◽  
Cross Sectional ◽  
Content Type ◽  
The Impact

Purpose The purpose of this study is to determine the relationship between different dimensions of organizational learning capabilities (OLC) and levels of social innovation in social enterprises. Design/methodology/approach The empirical strategy adopted is a cross-sectional study based on primary survey data. Following a survey of social enterprises in South Africa, statistically analysis is conducted using regression analyses to test the study hypotheses. Findings The findings show that the OLC dimensions of knowledge conversion, risk management, organizational dialogue and participative decision-making all have a significant and positive relationship with social innovation. Research limitations/implications In many emerging economies, the notion of organizational learning appears to have considerable potential relevance, particularly as African countries are moving toward knowledge-based economies. By focusing on OLC, it is anticipated that social enterprises can configure and leverage the different factors in ways that enable them to overcome the constraints of the complex and unpredictable environments and increase their levels of social innovation. Originality/value The paper provides a pioneering empirical investigation into the impact that OLC has on levels of social innovation, in an under-researched emerging market context.

scholarly journals Social innovation drivers in social enterprises: systematic review

2020 ◽  
Vol 27 (5) ◽  
pp. 775-795 ◽  
Author(s):  
Iraci de Souza João-Roland ◽  
Maria L. Granados
Keyword(s):  
Systematic Review ◽  
Social Innovation ◽  
Social Enterprises ◽  
Local Context ◽  
Future Research ◽  
Generic Model ◽  
Social Entrepreneurs ◽  
Management Tools ◽  
Content Type ◽  
Starting Point

PurposeIdentify the drivers of social innovation (SI) that bring together the main management tools and approaches associated with the creation of SI in social enterprises (SEs).Design/methodology/approachA systematic review was developed in the Web of Science, Scopus and EBSCO databases, using the keywords: social innovation, social enterprise and management. After analysis of quality and application of inclusion and exclusion criteria, 54 articles were selected for full analysis.FindingsSI process was systemised into four steps: mapping and development, consolidation, scaling up and evaluation. The drivers of SI were mapped and classified into three main factors: contextual, organisational and managerial.Practical implicationsIn organisational factors, business model was emphasised, as well as partnerships, participatory culture and intrapreneurship, adequate levels of bricolage and continuous learning. The management factors included the characteristics of the entrepreneur/innovator and managerial practices, where those that facilitate teamwork and the participation of all involved are best suited. In contextual factors, the highlight was the need for support from policy makers; community participation and demand for innovations that consider local context and usability.Originality/valueThis study connects previously scattered knowledge in a generic model of SI, highlighting routines and processes used, and provides a starting point for innovators and social entrepreneurs in the complex, uncertain and often unknown process of SI. Additionally, several research gaps were identified to be addressed by future research in the context of SI management.

The roles of social enterprises in a Swedish labour market integration programme – opportunities and challenges for social innovation

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Helena Kraff ◽  
Eva Maria Jernsand
Keyword(s):  
Labour Market ◽  
Market Integration ◽  
Social Innovation ◽  
Innovation Process ◽  
Social Enterprises ◽  
Content Type ◽  
Course Content ◽  
Labour Market Integration ◽  
Work Integration ◽  
Set Up

Purpose The purpose of this paper is to explore the roles of work integration social enterprises (WISEs) in the Swedish establishment programme for newly arrived refugees, and how its set-up affects WISEs preconditions for social innovation. Design/methodology/approach The paper builds on a longitudinal and qualitative action research study of a WISE and its work in organising a course for labour market integration, in the context of the Swedish establishment programme. The authors were actively involved in the study as embedded researchers. Findings The exploration identifies a number of roles that WISEs take on in the establishment programme. It illustrates how WISEs hybrid character places participants at the centre of the innovation process, where their opinions and knowledge are considered crucial, and how this positively affects their ability to gain skills and confidence. However, the study also makes visible how issues of coordination between stakeholders in the programme lead to mismatches between course content and participant profiles, colliding activities and sporadic participation. In short, the bureaucracy embedded in labour market integration systems erodes the preconditions of WISEs to foster social innovation. Originality/value The embeddedness of the authors provides in-depth knowledge regarding how complex state systems affect WISEs in practice. Importantly, it also gives insights into the experiences of refugees, a group that is often mentioned in the literature on WISEs, although mainly in passing.

Solar turtle: searching for the game changer

2019 ◽  
Vol 9 (2) ◽  
pp. 1-20
Author(s):  
Boris Urban ◽  
Jabu Maphalala
Keyword(s):  
Learning Outcomes ◽  
Rural Areas ◽  
Social Innovation ◽  
Weather Conditions ◽  
Social Enterprises ◽  
Solar Panels ◽  
Public Governance ◽  
Content Type ◽  
Electricity Grid ◽  
Academic Level

Learning outcomes The learning outcomes are that at the end of the case discussion, the students should be able to evaluate the drivers of social innovation in an African context; discuss social entrepreneurship as a process-driven set of activities; assess the organisation–environment–opportunity fit when innovating; analyse and resolve practical issues in developing simple and affordable social innovations; appreciate how social enterprises are mission-based businesses rather than charities; and evaluate how an organisation may achieve social objectives and remain sustainable. Case overview/synopsis SolarTurtle is an award-winning South African social enterprise that manufactures and supplies secure, mobile, solar power stations and kiosks to communities where the electricity grid does not reach. The company converts shipping containers into housings for solar panels to protect them from theft and extreme weather conditions. These units are called “PowerTurtles”. Through the franchise model, the company supplies PowerTurtles to off-grid institutions in rural areas. PowerTurtles are also sold to private sector enterprises and are scalable to suit the energy needs of customers. With the successful launch of the AutoTurtle in 2018 (which folds away the solar panels automatically, where the PowerTurtle requires them to be folded away manually), the company started to develop a new lightweight, fibreglass, solar kiosk with roof-mounted solar panels called the MiniTurtle, and a mobile trolley version known as the BabyTurtle. Now, in 2018, Van der Walt hopes to develop the business to the point where it can sustain itself. Complexity academic level Post-graduate students of entrepreneurship, public governance and social welfare. Supplementary materials Teaching notes are available upon request for educators only. These teaching notes should be shared solely with the instructor and students should not have access to. Please contact your library to gain login or email [email protected] to request teaching notes. Subject code CSS 3: Entrepreneurship.

Social entrepreneurial sustainability during the COVID-19 pandemic

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammed Faiz Kamaludin ◽  
Jesrina Ann Xavier ◽  
Muslim Amin
Keyword(s):  
Business Processes ◽  
Social Innovation ◽  
Secondary Data ◽  
Social Enterprises ◽  
Structured Interviews ◽  
Social Entrepreneurs ◽  
Content Type ◽  
Sustainable Solutions ◽  
Entrepreneurial Strategies ◽  
Practical Implications

Purpose The purpose of this paper is to explore and understand the needed entrepreneurial actions required to attain sustainability during the COVID-19 pandemic. Social entrepreneurial sustainability is defined as the process of developing sustainable solutions for social, economic or environmental problems that are not being addressed by the market. This paper intends to get a clearer picture of how social entrepreneurial sustainability is affected by the exogenous shocks caused by the pandemic. Design/methodology/approach A qualitative exploratory approach using a case study design was used. Semi-structured interviews with five CEOs and founders of accredited social enterprises in Malaysia that have proven sustainable were conducted. Triangulation was applied in this study through three different data sources to confirm and validate the emerging findings. Findings The findings reveal various innovative revenue-generating activities and business processes taken by social entrepreneurs to be sustainable during the COVID-19 pandemic, such as pivoting and forging new partnerships. Themes such as technical innovation and social innovation are critical concepts that need to be differentiated and understood. The introduction of a new construct termed “mission agility” will be of significant interest to academicians studying social entrepreneurship and sustainability. Practical implications The practical implications of this study suggest that if social enterprises implement the recommended strategies, they may achieve both short-term and long-term social entrepreneurial sustainability during the pandemic crisis and progressively into the post-pandemic era. Originality/value This study is unique by using two methods of data collection. By providing vital empirical evidence through primary and secondary data, the paper will offer robust findings and proposes recommendations on entrepreneurial strategies to foster the recovery and sustainability of social enterprises during the COVID-19 pandemic.

Collective social enterprises for social innovation

2019 ◽  
Vol 57 (6) ◽  
pp. 1415-1440 ◽  
Author(s):  
Marta Rey-García ◽  
Nuria Calvo ◽  
Vanessa Mato-Santiso
Keyword(s):  
Competitive Advantage ◽  
Conceptual Framework ◽  
Social Transformation ◽  
Social Innovation ◽  
Social Enterprises ◽  
Future Research ◽  
Multiple Sources ◽  
Content Type ◽  
Managerial Efficiency

Purpose Cross-sector partnerships (CSPs) are one type of collective social enterprise that has gained importance as a vehicle for social innovation (SI). The purpose of this paper is to understand the sources of the competitive advantage of CSPs as a strategic option for SI. Design/methodology/approach The authors propose a conceptual framework that integrates two interrelated dimensions of CSP competitiveness – resources and coordination – and their corresponding indicators. Then, the authors apply it to an in-depth case study through qualitative enquiry of a large CSP in the field of work integration during its formation and implementation stages (2012–2016). The authors employ a case study design with process tracing methods for increased validity, analyzing structured data from multiple sources (documentary, in-depth interviews with field experts and key decision-makers in coordinating partner organizations, direct observations) through narrative and visual mapping strategies. Findings Results illustrate the dynamic interaction between the key dimensions and factors that shape the potential and limitations of CSPs for SI and evidence three types of tensions which management influences partnership outcomes: hierarchical/horizontal commitment; competition/collaboration; and managerial efficiency/social transformation. Originality/value This research highlights the pivotal role of product development for the organizing of SI in a CSP context and proposes a conceptual framework that paves the way for future research on the sources of competitive advantage of CSPs, facilitating the assessment of their performance in terms of socially innovative outcomes.

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