Michael Braun, Benedetto Cannatelli and Mario Molteni
This paper aims to address risks inherent in business model innovation. The authors make the case that entrepreneurs and managers, in relying on sources of innovation when…
Abstract
Purpose
This paper aims to address risks inherent in business model innovation. The authors make the case that entrepreneurs and managers, in relying on sources of innovation when designing business models, need to pay heed to these hidden risks – or tripwires – that can prevent the venture from efficiently, effectively and profitably scaling. The authors provide a guiding framework to help entrepreneurs and managers identify four distinct tripwires in their business model underlying the sources of innovation.
Design/methodology/approach
The authors build a systematic framework of the four tripwires – structure, scaling, systems and strategy – underlying offer-driven, customer-driven, finance-driven and resource-driven business model innovations. By relying on academic research, the authors’ scholarly work on organizational decline, innovation and corporate turnaround and the authors combined experiences and observations in industry, this study makes explicit and highlights problem areas in the business model, providing examples of representative companies to illustrate the challenges and consequences of failing to identify and manage its tripwires.
Findings
The authors demonstrate that awareness and attention to the tripwires underlying sources of innovation can mitigate a business model’s future challenges. Business model innovations can and often do conceal hazards that become apparent only as a venture begins to grow. As such, it is essential that entrepreneurs and managers attend to these potential problem areas in the early stages of designing their business models. In bringing awareness to innovation-related tripwires, the authors offer a risk-management “patch” for managers and entrepreneurs when developing their business models.
Originality/value
Business model innovation is a powerful tool to help in identifying growth opportunities. Yet in launching, scaling or transforming their business models, entrepreneurs and managers can encounter unforeseen challenges. While sources of innovation in the business model prioritize the discovery of growth opportunities, this has often come at the expense of the potential risks underlying them. The authors provide a means to identify four distinct tripwires that may be triggered when implementing business model innovations.
Details
Keywords
Jane L.Y. Terpstra Tong, David A. Ralston, Olivier Furrer, Charlotte M. Karam, Carolyn Patricia Egri, Malika Richards, Marina Dabić, Emmanuelle Reynaud, Pingping Fu, Ian Palmer, Narasimhan Srinivasan, Maria Teresa de la Garza Carranza, Arif Butt, Jaime Ruiz-Gutiérrez, Chay Hoon Lee, Irina Naoumova, Yong-Lin Moon, Jose Pla-Barber, Mario Molteni, Min Hsu Kuo, Tania Casado, Yusuf M. Sidani, Audra Mockaitis, Laurie Milton, Luiza Zatorska, Beng Chia Ho, Modestas Gelbuda, Ruth Alas and Wade Danis
We examined the attitudes of millennial-aged business students toward economic, social and environmental corporate responsibility (CR). Currently, these individuals are of an age…
Abstract
Purpose
We examined the attitudes of millennial-aged business students toward economic, social and environmental corporate responsibility (CR). Currently, these individuals are of an age that they have entered the workforce and are now ascending or have ascended into roles of leadership in which they have decision-making power that influences their company’s CR agenda and implementation. Thus, following the ecological systems perspective, we tested both the macro influence of cultural values (survival/self-expression and traditional/secular-rational values) and structural forces (income inequality, welfare socialism and environmental vulnerability) on these individuals’ attitudes toward CR.
Design/methodology/approach
This is a multilevel study of 3,572 millennial-aged students from 28 Asian, American, Australasian and European societies. We analyzed the data collected in 2003–2009 using hierarchical linear modeling.
Findings
In our multilevel analyses, we found that survival/self-expression values were negatively related to economic CR and positively related to social CR while traditional/secular-rational values was negatively related to social CR. We also found that welfare socialism was positively related to environmental CR but negatively related to economic CR while environmental vulnerability was not related to any CR. Lastly, income equality was positively related to social CR but not economic or environment responsibilities. In sum, we found that both culture-based and structure-based macro factors, to varying extents, shape the attitudes of millennial-aged students on CR in our sample.
Originality/value
Our study is grounded in the ecological systems theory framework, combined with research on culture, politico-economics and environmental studies. This provides a multidisciplinary perspective for evaluating and investigating the impact that societal (macro-level) factors have on shaping attitudes toward businesses’ engagement in economic, social and environmental responsibility activities. Additionally, our multilevel research design allows for more precise findings compared to a single-level, country-by-country assessment.
Details
Keywords
Matteo Pedrini, Valentina Langella and Mario Molteni
Since the number of Entrepreneur Education Programs (EEPs) is constantly increasing, there is an ongoing debate on their effectiveness on entrepreneurial intention, but mixed…
Abstract
Purpose
Since the number of Entrepreneur Education Programs (EEPs) is constantly increasing, there is an ongoing debate on their effectiveness on entrepreneurial intention, but mixed results were found. This paper aims to analyse the impact of an EEP on the antecedents of the entrepreneurial intention in Ghana.
Design/methodology/approach
Following the theory of planned behaviour, we analysed the impact of the EEP on 30 participants of the “E4impact MBA” managed in Accra (Ghana), using an explanatory approach with a mixed-method quasi-experimental design featuring pre and post-testing as well as methods for measuring students’ self-perceived change.
Findings
Results show that EEPs strongly and positively affect some physiological characteristics, skills, and knowledge of participants, which are antecedents of entrepreneurial intentions.
Originality/value
The study offers a perspective of EEPs programs in a fast-expanding market, covering the lack of studies on entrepreneurship in these areas, and it is focus on a post-graduate program covering the lacks of studies on these level of education.
Details
Keywords
Giacomo Ciambotti, Matteo Pedrini, Bob Doherty and Mario Molteni
Social enterprises (SEs) face tensions when combining financial and social missions, and this is particularly evident in the scaling process. Although extant research mainly…
Abstract
Purpose
Social enterprises (SEs) face tensions when combining financial and social missions, and this is particularly evident in the scaling process. Although extant research mainly focuses on SEs that integrate their social and financial missions, this study aims to unpack social impact scaling strategies in differentiated hybrid organizations (DHOs) through the case of African SEs.
Design/methodology/approach
The study entails an inductive multiple case study approach based on four case SEs: work integration social enterprises (WISEs) and fair trade producer social enterprises (FTPSEs) in Uganda and Kenya. A total of 24 semi-structured interviews were collected together with multiple secondary data sources and then coded and analyzed through the rigorous Gioia et al. (2013) methodology to build a theoretical model.
Findings
The results indicate that SEs, as differentiated hybrids, implement four types of social impact scaling strategies toward beneficiaries and benefits (penetration, bundling, spreading and diversification) and unveil different dual mission tensions generated by each scaling strategy. The study also shows mutually reinforcing mechanisms named cross-bracing actions, which are paradoxical actions connected to one another for navigating tensions and ensuring dual mission during scaling.
Research limitations/implications
This study provides evidence of four strategies for scaling social impact, with associated challenges and response mechanisms based on the cross-bracing effect between social and financial missions. Thus, the research provides a clear framework (social impact scaling matrix) for investigating differentiation in hybridity at scaling and provides new directions on how SEs scale their impact, with implications for social entrepreneurship and dual mission management literature.
Practical implications
The model offers a practical tool for decision-makers in SEs, such as managers and social entrepreneurs, providing insights into what scaling pathways to implement (one or multiples) and, more importantly, the implications and possible solutions. Response mechanisms are also useful for tackling specific tensions, thereby contributing to addressing the challenges of vulnerable, marginalized and low-income individuals. The study also offers implications for policymakers, governments and other ecosystem actors such as nongovernmental organizations (NGOs) and social investors.
Originality/value
Despite the growing body of literature on scaling social impact, only a few studies have focused on differentiated hybrids, and no evidence has been provided on how they scale only the social impact (without considering commercial scaling). This study brings a new perspective to paradox theory and hybridity, showing paradoxes come into view at scaling, and documenting how from a differentiation approach to hybridity, DHOs also implemented cross-bracing actions, which are reinforcement mechanisms, thus suggesting connections and synergies among the actions in social and financial mission, where such knowledge is required to better comprehend how SEs can achieve a virtuous cycle of profits and reinvestments in social impact.
Details
Keywords
The purpose of this article is to define a logical process through which social needs can be investigated and integrated into corporate strategy, thus allowing management to meet…
Abstract
Purpose
The purpose of this article is to define a logical process through which social needs can be investigated and integrated into corporate strategy, thus allowing management to meet the expectations of its stakeholder.
Design/methodology/approach
The process has been defined on the basis of a review of international literature that helped to identify the main problems related to the recognition of social expectations by the company and the implications of these expectations on the overall competitive strategy.
Findings
The research has lead to the construction of a framework to address social needs: the social‐competitive innovation pyramid. It is shaped in order to help companies to understand their degrees of efficiency in responding to their partners' expectations. The pyramid identifies five efficiency levels. The highest one, named “social competitive synthesis”, shows the best response to stakeholders' needs; the lowest level, “temporary sacrifice of social expectations”, is the one where social expectations are sacrificed in the view of the companies strategy.
Originality/value
The paper presents corporate responsibility as an integral part of corporate strategy, so much so that it helps corporate management to find innovative solutions to fulfil stakeholder expectations. Therefore, corporate responsibility becomes a creative factor in developing competitiveness.
Details
Keywords
Mario Molteni and Matteo Pedrini
Starting from the premise that responsible managers utilize their competences and creativity to carry out projects which improve stakeholder satisfaction and economic performance…
Abstract
Purpose
Starting from the premise that responsible managers utilize their competences and creativity to carry out projects which improve stakeholder satisfaction and economic performance simultaneously, the paper aims to present a classification of these solutions, called socio‐economic syntheses, and the way to reach them.
Design/methodology/approach
The paper refers to literature on corporate social responsibility and sustainability, with special attention to contributions on the relationship between social performance and economic performance. In particular, the model presented highlights several successful case studies that have been studied or directly observed in large and medium‐sized firms.
Findings
The paper provides a classification of seven categories of socio‐economic syntheses, from solutions concerning operational management, often applicable in different industries, to projects with greater strategic value, which are typically firm‐specific. Moreover, two ways to achieve a win‐win solution are proposed: the first starting from an idea of activity aimed at improving economic performance; the second from the desire to better satisfy expectation of one or more stakeholder categories.
Practical implications
In this paper practitioners can find suggestions and opportunities for better introduction of win‐win solutions inside their firms, which could be the fruit of imitation or creativity.
Originality/value
The classification of the socio‐economic syntheses represents a new conceptualization that opens up paths for an increasing number of solutions that can improve economic and socio‐environmental performance simultaneously.