Exploring micro-foundations of dynamic capabilities for social enterprises

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rohit Bhardwaj ◽  
Saurabh Srivastava ◽  
Rashi Taggar ◽  
Sunali Bindra

Purpose Social enterprises (SEs) operate with a primary goal of meeting a social purpose while creating economic wealth for the fulfillment of their primary mission. These organizations need to develop a certain set of capabilities that facilitates the successful pursuit of their dual mission goals. This paper aims at exploring the micro-foundations of dynamic capabilities (DCs) that enable SEs to recognize and exploit opportunities and reconfigure their resources to pursue their dual-mission goals and adjust with the environmental dynamics. Design/methodology/approach This study uses a multiple case design and an abductive research approach to conduct an in-depth and in-due course investigation of the development of DCs in two distinct SEs selected on the basis of theoretical-purposive sampling and availability of the richness of the information about them. Findings This study finds certain generic and exclusive micro-foundations of DCs that contribute to sensing opportunities, seizing opportunities and reconfiguring resources in SEs. The exclusive micro-foundations of DCs of SEs noted in this study are sustainability of beneficiaries, involving beneficiaries in decision-making, defining unique business models and selective suppliers for critical resources. Research limitations/implications The limitation of this study lies in its dependence on retrospective data, which may perhaps influence the comprehensiveness and accuracy of the acquired data. This study, although, implemented the measures to minimize the bias, by supplementing the interview data with archival sources. Practical implications To the researchers, this study proffers an in-depth and in-due course explanation of the micro-foundations of DCs that facilitate SEs to sense opportunities, seize opportunities and reconfigure their resources with time. To practitioners working in the area of social entrepreneurship, this process study is an outline of reference that answers the how and why concerning the importance of micro-foundations of DCs for SEs. Originality/value To the best of the authors’ knowledge, no prior study has explored the micro-foundations of DCs in the context of SEs from emerging economies. The exclusive micro-foundations of DCs for SEs found in this study are the unique and original contribution that outlines the path for future academic inquiry in this evolving research area.

2019 ◽  
Vol 41 (4) ◽  
pp. 55-61 ◽  
Author(s):  
Jacqueline Campos Franco ◽  
Dildar Hussain ◽  
Rod McColl

Purpose The purpose of this paper is to highlight critical sustainability challenges facing luxury fashion firms and to describe examples of best practice in responding to these challenges. Design/methodology/approach The research approach combines a detailed literature review with multiple-case examples. The paper adopts the triple bottom line framework for structuring the analysis and findings, which suggests reporting sustainability efforts in three categories of actions – social, environmental and economic. Findings Prior research suggests that luxury fashion marketing and principles of sustainability may represent contradictory philosophies. However, this paper of case examples suggests that this may no longer be the case. We identify six lessons in guiding future sustainability practices. Practical implications The findings have implications for managers operating in luxury fashion, but the findings are also pertinent to managers in other industries. Originality/value Prior research in luxury fashion has generally focused on the industry’s poor record in sustainability and how luxury and sustainability may be incompatible. In this paper, we conclude that most luxury fashion firms are aware of the need to integrate sustainability into their business models. By uncovering examples of best practice in sustainability, we demonstrate how luxury fashion firms have responded to these challenges with lessons for other industry sectors.


2018 ◽  
Vol 10 (2) ◽  
pp. 249-276 ◽  
Author(s):  
Karen Panum ◽  
Michael W. Hansen ◽  
Elder Davy

Purpose Based on six case studies of self-proclaimed social enterprises (SEs) in Kenya, this paper aims to critically assess the “SE” concept in a base of the pyramid (BoP) context. Design/methodology/approach The paper draws on multiple case studies to challenge traditional notions of SE. Six SEs operating at the BoP in Kenya are analysed. Interviews are conducted with entrepreneurs from each enterprise, during which the enterprises’ business models are mapped and scrutinised. Findings Based on the six case studies, the paper argues that the SE concept is challenged in a BoP context: the six Kenyan SEs viewed social and commercial orientation as equally important and mutually supportive; viewed social orientation as a competitive advantage; and did not consider social objectives as harmonious. These findings corroborate key claims of the BoP literature, e.g. that it is not possible meaningfully to distinguish social and commercial missions at the BoP as they are intertwined; that any company succeeding at the BoP will have a social impact; and that the pursuit of some social objectives may undermine the achievement of other social objectives. The overall conclusion of the paper is that in BoP environments, the concept of SE becomes illusive. Originality/value This paper adds perspective to existing literature on SE at the BoP and provides empirical evidence that can help shape the understanding of social business activities in East Africa. The paper demonstrates that in BoP environments, the boundaries between social and commercial enterprise become illusive.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sandeep Goyal ◽  
Anirudh Agrawal ◽  
Bruno S. Sergi

PurposeThe study addresses the crucial issue of sustainable development goals (SDGs) and institutional voids in the peri-urban geographies of India. The peri-urban geographies, though within a cosmopolitical city, lack basic amenities like drinking water, sanitation and waste management. We study social entrepreneurial strategies to address these issues and thereby illustrate strategies that could be used to address sustainable development goals.Design/methodology/approachThe article uses a multiple case study method to understand how social enterprises can provide scalable solutions addressing SDG related issues in India.FindingsThe research found three strategies that can help provide scalable solutions: First, the extensive use of the latest digital technologies to decrease cost and increase reach; second, extensive partnerships across the board; and finally, a focus on social innovations and business models that are accessible, affordable, available and known to the end-users.Originality/valueThe research contributes to institutional voids literature, SDGs literature and scaling of social enterprise literature. The research confirms that institutional voids are entrepreneurial opportunities. The research empirically shows how social enterprises are addressing SDGs at BoP. Finally, the core findings of the article contribute to the scaling of social enterprise literature.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Matin Mohaghegh ◽  
Andreas Größler

PurposeAdopting the dynamic capability perspective, this study aims at exploring which problem-solving capabilities result in fundamental solutions with a potentially low likelihood for problems to recur. This can also shed light on why, despite many attempts, process improvement programs often fail to produce such long-term solutions.Design/methodology/approachA case study is carried out to inductively describe and classify problem-solving in companies and to indicate why problem-solving efforts are typically bounded to short-term solutions. The empirical findings are triangulated with findings from the extant literature.FindingsFirst, the authors propose three problem-solving modes with different characteristics and potential impacts on operational performance: intuitive problem-solving, semi-structured problem-solving and systematic problem-solving. Second, by emphasizing dynamic capabilities' micro-foundations and with the focus on learning mechanisms, the authors show that, among these modes, only systematic problem-solving can serve as a dynamic capability with fundamental solutions. Third, based on insights from the case study, the authors address behavioral and organizational impediments that curb dynamic capabilities and limit systematic problem-solving adoption.Originality/valueThis study is an empirically informed attempt to understand systematic problem-solving as a dynamic capability. The authors uncover the micro-foundations and the learning mechanisms through which systematic problem-solving becomes a dynamic capability. By highlighting problem-solving orientation as a hardly investigated dimension of improvement programs, the authors show that a mixture of a static problem-solving approach and a set of impediments at both individual and organizational levels is the major reason of failures of improvement programs over time.


2019 ◽  
Vol 57 (6) ◽  
pp. 1399-1414 ◽  
Author(s):  
Martine Vézina ◽  
Majdi Ben Selma ◽  
Marie Claire Malo

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.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Liliana Ávila ◽  
Marlene Amorim

Purpose This paper aims to describe an exploratory study aiming to identify the mechanisms adopted by social enterprises for effective operations based on volunteer work. Design/methodology/approach An inductive multiple case study method was used addressing three social enterprises whose operations rely on a volunteer workforce. Findings Volunteer-based operations benefit from the establishment of a formal structure, involving different levels of volunteering complemented with other mechanisms, namely, educate and train, empower and connect. Special attention must be given to first-level volunteers, reinforcing the range of practices to motivate and engage them, as they serve as intermediaries between the paid employees and lower-level volunteers. Practical implications The study provides valuable insights for managers for the implementation of effective operations, building on volunteer work, aiming at the generation of social and economic value. Social implications Due to their innovative character, social enterprises are well-positioned to mobilize more and more qualified volunteers for a significant change in their communities. Adopting a more strategic and structured approach to volunteer management can enable these organizations to take advantage of it. Originality/value This study contributes to the literature on social enterprise by identifying a set of mechanisms adopted for effective volunteer-based operations. It also contributes to the literature on volunteer management by addressing an underexplored context.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sandra Figueira ◽  
Rui Torres de Oliveira ◽  
Daniel Rottig ◽  
Francesca Spigarelli

PurposeThis paper constitutes an explorative study into post-acquisition implementation of emerging market acquisitions in developed countries. More specifically, the study aims to better understand how low capability Chinese firms are able to capture value when acquiring high-capability targets in developed countries through a novel post-acquisition integration approach. In so doing, we set out to contribute to the literature on, and managerial insights into, the factors that determine the success of emerging market acquisitions, in general, and the context-specific use of post-acquisition implementation approaches, in particular.Design/methodology/approachThe study follows a qualitative analysis and multiple case study design based on a phenomenon-based research approach. Data and information were collected through semi-structure executive interviews, observations, secondary sources, company report and media accounts.FindingsBased on institutional theory, this study develops a conceptual framework for a tacit value approach toward the integration of acquisitions of developed market targets by emerging market acquirers.Originality/valueThe proposed tacit value approach of post-acquisition integration, which refers to the creation of intangible value over time, differs from the explicit value approach that is associated with the transaction-cost literature and more focused on the creation of tangible value in the short-term.


Author(s):  
Robert Martens ◽  
Susan K. Fan ◽  
Rocky J. Dwyer

PurposeThe purpose of this qualitative, multiple-case study was to explore the successful strategies that managers of light and high-tech small and medium-sized manufacturing companies in the Netherlands, use to adopt additive manufacturing (AM) technology into their business models.Design/methodology/approachA qualitative, multiple-case study approach was used. The participants for this study consisted of executive-level managers of light and high-tech manufacturing companies in the Netherlands. Company documents were studied, and individual interviews were undertaken with participants to gain an understanding of the strategies they used to adopt AM technology into their business models.FindingsThree significant themes emerged from the data analysis: identify business opportunities for AM technology, experiment with AM technology and embed AM technology.Research limitations/implicationsThe findings of this study could be of advantage to industry leaders and manufacturing managers who are contemplating to adopt AM in their business models.Originality/valueThis study may contribute to the further proliferation of AM technology. Industry leaders may also gain a clearer understanding of the effects of 3DP on local employment. The results of the study may also work as a catalyst for increased awareness for manufacturing firm leaders who have not yet considered the opportunities and threats AM technology presents to their organizations.


2015 ◽  
Vol 26 (3) ◽  
pp. 394-425 ◽  
Author(s):  
Ville Eloranta ◽  
Taija Turunen

Purpose – The purpose of this paper is to analyze how the service infusion literature explains competitive advantage through services. The four strategic management theories – competitive forces, the resource-based view, dynamic capabilities, and relational view – are applied in the analysis. Design/methodology/approach – A systematic literature review analyzes the links between the service infusion and strategy literature. Findings – The review reveals that although discussion of service infusion applies strategic management concepts, the stream lacks rigor with respect to construct definition and justification. Additionally, contextual variables are often missing. The result is an over-emphasis of contextually bound measures, such as technology, and focal actors. Research limitations/implications – The growing trends toward social networks, co-specialization, actor dependency and shared resources encourage service infusion scholars to focus on network-related and relational capabilities, co-opetition, open business models, and relational rent extraction. Furthermore, service infusion research would benefit from considering strategy-based theoretical discussions, constructs, and constraints that would improve the scientific rigor, impact and contribution. Originality/value – This paper represents a systematic attempt to link the service infusion literature with strategic management theories and thoroughly analyzes the knowledge gaps and possible misconceptions.


2019 ◽  
Vol 40 (3) ◽  
pp. 18-24
Author(s):  
Klavdia Markelova Evans ◽  
Ashley Salaiz

Purpose This paper aims to investigate how companies can retain their ability to recognize, seize and maintain opportunities. Design/methodology/approach This conceptual work is built on existing research about an organization’s dynamic capabilities and literature on judgment under uncertainty. Findings This study offers specific ways in which companies can develop the dynamic capability of identifying new opportunities and, most importantly, how firms can maintain this rare dynamic capability for significant periods, so that they can harvest the benefits offered by owning this capability. Practical implications This study’s specific insights equip practitioners with turn-key information on how to build or maintain a firm’s unique ability to sense and capture an opportunity via the enhancement of the firm’s portfolio of simple rules. Originality/value This research introduces a novel idea about micro-foundations of a firm’s dynamic capabilities and theoretically argues that a favorable organizational culture and individuals’ rules of thumb can form a company’s dynamic ability to sense and seize an opportunity in high-velocity markets.


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