Social Business Models in the Digital Economy by Adam Jabłoński & Marek Jabłoński

Author:Adam Jabłoński & Marek Jabłoński
Language: eng
Format: epub
ISBN: 9783030297329
Publisher: Springer International Publishing

In the presented figure of the proposed model, the essence is the integration of social value, the economic value of the company and value creation. While the company ensures the delivery of an offer that meets the customer’s needs, it also creates social aspects. This may include the generation of direct values by a social enterprise as part of its value chain, intermediation services by means of which it provides transactions related to social benefits, the indirect generation of social values through the company’s impact on the environment or through social projects financed by the economic profits generated. Moreover, social enterprises focus on making their offer affordable and actively shaping the value chain in accordance with their overall values and mission, thereby strengthening their partners and contributing to community development.

The model presented clearly indicates that it is possible to generate economic value without detriment to the generation of social values, which in many cases cement the configuration and ensure the integrity of these business models. Social aspects are an indispensable element of creating a multidimensional and interdisciplinary construct of value creation. In order to better understand how social value is created by selected entrepreneurs, a reference framework should first be given on how social value can exist at a moderate level. The discussion about what constitutes social value includes financial, reputational and ethical values, consumer surplus, positive externalities and strengthening human capabilities as dimensions of creating social value. Not only does achieving financial value allow the company to survive its existence, but it also provides reinvestment opportunities that can be used by individuals directly involved in the original transactions. In addition, the reputation and ethical values achieved through the interaction of the enterprise with the environment can also help increase the scale of activities related to the creation of social values and bring benefits to people who are not directly involved in the original transactions. These dimensions of creating social values and positive externalities can be seen as an indirect creation of social value. The surplus of the consumer and the strengthening of human capabilities are direct forms of creating social value. It is also important to create social innovations treated as “an innovative solution to the social problem. (…) The main innovation criterion eligible as social innovation is the ability to benefit “by society or […] society as a whole—instead of private profits for entrepreneurs, investors and ordinary consumers (not at a disadvantage) (Sinkovics et al. 2014, p. 696).

Based on the literature on institutional complexity and social movements and the theory of paradoxes, H. Cherrier, P. Goswami and S. Ray explored the possibility of institutional complexity providing opportunities for social entrepreneurship. Their ethnographic case study based on a social enterprise in India shows that institutional complexity manifests itself in the form of overlapping and/or contradictory institutional logic and provokes a paradoxical tension. They identify four strategic responses to the complexity of the institution: appropriation, integration, differentiation and work. These strategies allow one to reach a wider group of stakeholders .

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