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From donation-based NPO to social enterprise: A journey of transformation through business-model innovation

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  • Reficco, Ezequiel
  • Layrisse, Francisco
  • Barrios, Andres

Abstract

Nonprofit organizations (NPO) have suffered from two interrelated bottlenecks: lack of funds and difficulties to grow and operate at scale. Business model innovation (BMI) has been found to be important to overcome those bottlenecks, but the extant literature is limited and lacks a solid empirical foundation. To explore this topic, we conducted a retrospective analysis of a single case study, tracking the evolution of an organization's business model as it went from being a traditional, donation-based NPO, to a dynamic sales-driven social enterprise (SE). As a result, the organization gained financial autonomy, scaled up operations and increased impact. Our findings add to the literature by identifying BMI change drivers and outcomes. We show how a platform-inspired business model can enhance value creation and value capture in a SE.

Suggested Citation

  • Reficco, Ezequiel & Layrisse, Francisco & Barrios, Andres, 2021. "From donation-based NPO to social enterprise: A journey of transformation through business-model innovation," Journal of Business Research, Elsevier, vol. 125(C), pages 720-732.
    • Handle: RePEc:eee:jbrese:v:125:y:2021:i:c:p:720-732
    DOI: 10.1016/j.jbusres.2020.01.031
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    References listed on IDEAS

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    2. Anja Gaudig & Bernd Ebersberger & Andreas Kuckertz, 2021. "Sustainability-Oriented Macro Trends and Innovation Types—Exploring Different Organization Types Tackling the Global Sustainability Megatrend," Sustainability, MDPI, vol. 13(21), pages 1-19, October.
    3. De Beule, Filip & Bruneel, Johan & Dobson, Kieran, 2023. "The internationalization of social enterprises: The impact of business model characteristics," International Business Review, Elsevier, vol. 32(6).
    4. Kaushik, Vineet & Tewari, Shobha & Sahasranamam, Sreevas & Hota, Pradeep Kumar, 2023. "Towards a precise understanding of social entrepreneurship: An integrated bibliometric–machine learning based review and research agenda," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    5. Dhir, Amandeep & Khan, Sher Jahan & Islam, Nazrul & Ractham, Peter & Meenakshi, N., 2023. "Drivers of sustainable business model innovations. An upper echelon theory perspective," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    6. Fortezza, Fulvio & Figueiredo, Bernardo & Scaraboto, Daiane & Del Chiappa, Giacomo, 2022. "Managing multiple logics to facilitate consumer transformation," Journal of Business Research, Elsevier, vol. 144(C), pages 377-390.
    7. Rengarajan, Srinath & Narayanamurthy, Gopalakrishnan & Moser, Roger & Pereira, Vijay, 2022. "Data strategies for global value chains: Hybridization of small and big data in the aftermath of COVID-19," Journal of Business Research, Elsevier, vol. 144(C), pages 776-787.
    8. Mikołajczak, Paweł, 2022. "Determinants of precarious employment in social enterprises in Central and Eastern Europe," Journal of Business Research, Elsevier, vol. 146(C), pages 398-408.

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