Social Entrepreneurship Business Models: Incentive Strategies to Catalyze Public Goods Provision

309 Pages·2010·1.001 MB·English

by  Katharina Sommerrock (auth.)

Social Entrepreneurship Business Models
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Social Entrepreneurship
Business Models
Incentive Strategies to Catalyze Public
Goods Provision
Katharina Sommerrock
© Katharina Sommerrock 2010
Foreword © André Habisch 2010
Softcover reprint of the hardcover 1st edition 2010 978-0-230-27857-8
All rights reserved. No reproduction, copy or transmission of this
publication may be made without written permission.
No portion of this publication may be reproduced, copied or transmitted
save with written permission or in accordance with the provisions of the
Copyright, Designs and Patents Act 1988, or under the terms of any licence
permitting limited copying issued by the Copyright Licensing Agency,
Saffron House, 6–10 Kirby Street, London EC1N 8TS.
Any person who does any unauthorized act in relation to this publication
may be liable to criminal prosecution and civil claims for damages.
The author has asserted her right to be identified as the author of this work
in accordance with the Copyright, Designs and Patents Act 1988.
First published 2010 by
PALGRAVE MACMILLAN
Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited,
registered in England, company number 785998, of Houndmills, Basingstoke,
Hampshire RG21 6XS.
Palgrave Macmillan in the US is a division of St Martin’s Press LLC,
175 Fifth Avenue, New York, NY 10010.
Palgrave Macmillan is the global academic imprint of the above companies
and has companies and representatives throughout the world.
Palgrave® and Macmillan® are registered trademarks in the United States,
the United Kingdom, Europe and other countries.
ISBN 978-1-349-32637-2 ISBN 978-0-230-29803-3 (eBook)
DOI 10.1057/9780230298033
This book is printed on paper suitable for recycling and made from fully
managed and sustained forest sources. Logging, pulping and manufacturing
processes are expected to conform to the environmental regulations of the
country of origin.
A catalogue record for this book is available from the British Library.
Library of Congress Cataloging-in-Publication Data
Sommerrock, Katharina, 1979–
Social entrepreneurship business models : incentive strategies to
catalyze public goods provision / Katharina Sommerrock.
p. cm.
1. Social entrepreneurship. I. Title.
HD60.S658 2010
658.4'08—dc22 2010023930
10 9 8 7 6 5 4 3 2 1
19 18 17 16 15 14 13 12 11 10
Contents
List of Figures ix
List of Tables x
Foreword by André Habisch xi
Acknowledgements xii
List of Abbreviations xiv
PART I INTRODUCTION
Prologue 3
1 Introduction 7
Motivation and objectives 7
Classification in the philosophy of science, and
research strategy 10
Course of investigation 13
PART II THE SOCIAL ENTREPRENEURSHIP PHENOMENON
2 Evolution and Context 21
Origin and development 21
Historic examples 22
Growing demand and lack of solutions 23
Improving conditions 25
Positioning among the three sectors of society 27
Evolution of the three sectors 27
Positioning of social entrepreneurship 28
Delimitation to other organizations 29
3 Terminological Clarification 35
Constitutive elements 36
Entrepreneurship 36
The social mission 41
v
vi Contents
A comparison of entrepreneurship and social
entrepreneurship 45
Existing concepts 49
Different meanings 50
Two schools of thought 52
Definition overview and analysis 53
Part II Interim Summary and Working Definition 67
PART III THEORETICAL PERSPECTIVES
4 The Challenge of Public Goods Provision 75
Public goods theory 75
Characteristics of public goods 76
Market failure, free-riding and hidden preferences 77
The state as provider of public goods 80
Social capital as a specific public good 82
Social entrepreneurial organizations as catalysts of
public goods provision 85
Types of market failures addressed 86
Characteristics of goods provided 87
Social capital and social entrepreneurship 88
5 The Resource Dependency of Organizations 94
Resource dependency theory 94
Development and theoretical relations 95
Core statements 96
Dependency, uncertainty and power 97
Incentives 100
Social entrepreneurial organizations as resource
dependent organizations 102
Resource dependency and sustainability 103
Resource needs and related dependencies 106
Types of incentives used by social entrepreneurial
organizations 115
Part III Interim Summary 122
Contents vii
PART IV SOCIAL ENTREPRENEURIAL STRATEGIES TO
CATALYZE PUBLIC GOODS PROVISION
6 The Business Model as a Unit of Analysis 129
Background to the business model concept 129
Origin and current usage 129
Conceptualization in the literature 130
Adequacy of the business model as a unit of analysis 134
Business model dimensions 135
Overview of business model dimensions 136
Dimensions of the social entrepreneurial business model 137
7 Individual Incentive Strategies 144
Value proposition strategies 145
Social value creation with target group 146
Social value creation for target group 147
Hybrid social value creation 148
Product design and market definition strategies 149
Product design 149
Market definition 154
Strategies for the internal value creation architecture 158
Resources 159
Value chain 168
Structure 169
Growth 171
Strategies for the external value creation architecture 173
Customers 173
Value creation partners 175
Clusters in individual incentive strategies 179
Strategy clusters 179
Similarities regarding the context 180
8 Incentive Strategies from a Holistic Perspective 188
Methodological approach 188
The case study as a qualitative empirical research method 188
viii Contents
Application of case study methodology 190
Methodological approach and application in this
analysis 192
Case study analysis 196
Social value creation with target group: BISS eV 196
Social value creation for target group: Phulki 209
Hybrid value creation: Adopt-a-Business Ltd 221
PART V CONCLUSIONS AND IMPLICATIONS
9 Conclusions and Implications 245
Summary of results 245
Implications for research 252
Implications for practice 256
Appendix: Database of social entrepreneurial organizations 259
Bibliography 263
Index 281
List of Figures
3.1 The social value chain 43
3.2 The continuum of organizational objectives 49
3.3 The different meanings of social entrepreneurship 51
4.1 Game theory payoff matrix for public goods provision 80
5.1 Determinants of resource dependency 99
5.2 Determinants of uncertainty 100
5.3 Selected forms of financial capital 109
5.4 Main forms of physical capital 110
5.5 Overview of types of incentives 116
III.1 Conceptual perspective 124
6.1 Evolution of the business model concept 130
6.2 The social entrepreneurial business model 133
6.3 Business model dimensions 142
7.1 Structure and number of individual strategies 145
7.2 Value proposition strategies 149
8.1 Differentiation of research methods 189
8.2 Case study selection criteria 194
8.3 BISS eV: value chain steps 203
8.4 BISS eV: pillars of the BISS model 205
8.5 BISS eV: incentive structures 209
8.6 Phulki: services overview 213
8.7 Phulki: value chain 217
8.8 Phulki: incentive structures 221
8.9 Adopt-a-Business Ltd: approach 225
8.10 Adopt-a-Business Ltd: leadership development 226
8.11 Adopt-a-Business Ltd: value chain 228
8.12 Adopt-a-Business Ltd: incentive structures 233
9.1 Overview of individual incentive strategies 250
ix