M.K. Nandakumar
Indian Institute of Management, Kozhikode, India
Title: Business Model Configuration, Hybridity, and Social Impact of Social Enterprises
Biography
Biography: M.K. Nandakumar
Abstract
BM configuration is critical during the emergence of start-ups since it helps entrepreneurs gain insights into the value creation and value capture process. In the extant literature, the role of BMs was primarily examined in the context of commercial organizations. However, some scholars have extended this stream of research to the domain of social enterprises (SEs). The nature of the value creation process in SEs is different from the value creation in commercial enterprises (CEs), and hence the BM configuration becomes quite challenging. Some SEs function as not-for-profit organizations and rely entirely on grants and donations for their sustenance. However, some SEs have a completely for-profit model, and others have revenue streams based on profits generated and other channels like grants and donations. The business model configurations of the above three categories of SEs vary due to the significant differences in their revenue streams. Primarily the performance of SEs is not assessed using financial parameters. Social impact is considered to be the fundamental measure of the performance of SEs. The type of social impact created by SEs across different domains varies. However, profit-generating SEs, have to strive hard to achieve the desired level of financial performance and create social impact. These dual objectives result in hybridity creating tension in SEs. A good understanding of the business model configuration of SEs is necessary to critically assess the intricacies relating to their hybridity and social impact. In this study, we thoroughly examine the business model configurations of SEs operating in various domains in India and discuss their value creation, value capture, the tensions they experience due to hybridity, and their social impact. We have done interview-based qualitative research by interviewing the founders/CEOs of 43 SEs located in various parts of India. We have thoroughly analyzed the interview transcripts using the NVivo software package. Our study is one of the few research studies that have examined these crucial aspects relating to SEs, and hence, it substantially contributes to the existing body of knowledge. In addition, social entrepreneurs and the other stakeholders associated with SEs will find our study immensely useful