IDEAS home Printed from https://ideas.repec.org/a/bpj/erjour/v5y2015i2p127-154n1.html
   My bibliography  Save this article

Monetizing Social Value Creation – A Business Model Approach

Author

Listed:
  • Dohrmann Susanne

    (Otto-von-Guericke University, Faculty of Humanities, Cultural Engineering, P.O. Box 4120, Magdeburg 39016, Germany)

  • Raith Matthias

    (Otto-von-Guericke University, Department of Economics and Management, P.O. Box 4120, Magdeburg 39016)

  • Siebold Nicole

    (Otto-von-Guericke University, Department of Economics and Management, P.O. Box 4120, Magdeburg 39016)

Abstract

The creation of social value through entrepreneurial ventures occurs in various dimensions, which are often difficult to compare. From an economic standpoint, however, value creation requires resources and activities that lead to expenditures. The sustainability of social ventures, therefore, depends on how these expenditures are financed. We develop a general framework in which business models of diverse social ventures can be analyzed and categorized. Using a gallery of real-life case studies, we illustrate that social business models can be characterized and ordered by the degree to which they monetize social value creation and the level of generated market revenues in excess of expenditures. Our analysis reveals a positive correlation between the monetization of social value creation and financial output, and it shows that relatively simple changes in the business model can have a significant impact on monetization and market performance. Our framework thus yields several strategic implications for business modeling.

Suggested Citation

  • Dohrmann Susanne & Raith Matthias & Siebold Nicole, 2015. "Monetizing Social Value Creation – A Business Model Approach," Entrepreneurship Research Journal, De Gruyter, vol. 5(2), pages 127-154, April.
    • Handle: RePEc:bpj:erjour:v:5:y:2015:i:2:p:127-154:n:1
    DOI: 10.1515/erj-2013-0074
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/erj-2013-0074
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.1515/erj-2013-0074?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. G. Lumpkin & Todd Moss & David Gras & Shoko Kato & Alejandro Amezcua, 2013. "Entrepreneurial processes in social contexts: how are they different, if at all?," Small Business Economics, Springer, vol. 40(3), pages 761-783, April.
    2. Seelos, Christian & Mair, Johanna, 2005. "Social entrepreneurship: Creating new business models to serve the poor," Business Horizons, Elsevier, vol. 48(3), pages 241-246.
    3. Christoph Starke, 2012. "Serving the many or serving the most needy?," Economics of Governance, Springer, vol. 13(4), pages 365-386, December.
    4. Zahra, Shaker A. & Gedajlovic, Eric & Neubaum, Donald O. & Shulman, Joel M., 2009. "A typology of social entrepreneurs: Motives, search processes and ethical challenges," Journal of Business Venturing, Elsevier, vol. 24(5), pages 519-532, September.
    5. James Austin & Howard Stevenson & Jane Wei–Skillern, 2006. "Social and Commercial Entrepreneurship: Same, Different, or Both?," Entrepreneurship Theory and Practice, , vol. 30(1), pages 1-22, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Siebold, Nicole, 2021. "Reference points for business model innovation in social purpose organizations: A stakeholder perspective," Journal of Business Research, Elsevier, vol. 125(C), pages 710-719.
    2. Katrin M Smolka & Thijs H J Geradts & Peter W van der Zwan & Andreas Rauch, 2023. "Why bother teaching entrepreneurship? A field quasi-experiment on the behavioral outcomes of compulsory entrepreneurship education," Post-Print hal-04701309, HAL.
    3. Gupta, Parul & Chauhan, Sumedha & Paul, Justin & Jaiswal, M.P., 2020. "Social entrepreneurship research: A review and future research agenda," Journal of Business Research, Elsevier, vol. 113(C), pages 209-229.
    4. Douglas, Evan & Prentice, Catherine, 2019. "Innovation and profit motivations for social entrepreneurship: A fuzzy-set analysis," Journal of Business Research, Elsevier, vol. 99(C), pages 69-79.
    5. Barbara Bradač Hojnik & Katja Crnogaj, 2020. "Social Impact, Innovations, and Market Activity of Social Enterprises: Comparison of European Countries," Sustainability, MDPI, vol. 12(5), pages 1-15, March.
    6. Robin Stevens & Nathalie Moray & Johan Bruneel, 2015. "The Social and Economic Mission of Social Enterprises: Dimensions, Measurement, Validation, and Relation," Entrepreneurship Theory and Practice, , vol. 39(5), pages 1051-1082, September.
    7. Yeamduan Narangajavana & Tomas Gonzalez-Cruz & Fernando J. Garrigos-Simon & Sonia Cruz-Ros, 2016. "Measuring social entrepreneurship and social value with leakage. Definition, analysis and policies for the hospitality industry," International Entrepreneurship and Management Journal, Springer, vol. 12(3), pages 911-934, September.
    8. Adélie Ranville, 2019. "Redefining value(s) to understand social enterprises’ business models," Grenoble Ecole de Management (Post-Print) hal-04961353, HAL.
    9. Ignacio Alvarez de Mon & Jorge Merladet & Margarita Núñez-Canal, 2021. "Social Entrepreneurs as Role Models for Innovative Professional Career Developments," Sustainability, MDPI, vol. 13(23), pages 1-19, November.
    10. Paul Benneworth & Willem-Jan Velderman & Martin Stienstra, 2016. "Social Entrepreneurship and Shrinking Regions paper thoughts," CHEPS Working Papers 201604, University of Twente, Center for Higher Education Policy Studies (CHEPS).
    11. Sophie Bacq & Kimberly A. Eddleston, 2018. "A Resource-Based View of Social Entrepreneurship: How Stewardship Culture Benefits Scale of Social Impact," Journal of Business Ethics, Springer, vol. 152(3), pages 589-611, October.
    12. Adélie Ranville, 2019. "Redefining value(s) to understand social enterprises’ business models," Post-Print hal-04961353, HAL.
    13. Pradeep Kumar Hota, 2023. "Tracing the Intellectual Evolution of Social Entrepreneurship Research: Past Advances, Current Trends, and Future Directions," Journal of Business Ethics, Springer, vol. 182(3), pages 637-659, January.
    14. Adélie Ranville & Marcos Barros, 2022. "Towards Normative Theories of Social Entrepreneurship. A Review of the Top Publications of the Field," Journal of Business Ethics, Springer, vol. 180(2), pages 407-438, October.
    15. S. Chinju Chandran & S. Rajitha Kumar, 2024. "Industrial cooperatives: A sustainable business model for promoting social entrepreneurship," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 14(1), pages 1-10, December.
    16. Elisabet Ferri & David Urbano, 2010. "Environmental Factors and Social Entrepreneurship," Working Papers 1003, Departament Empresa, Universitat Autònoma de Barcelona, revised Sep 2010.
    17. Lortie, Jason & Cox, Kevin C. & Roundy, Philip T., 2022. "Social impact models, legitimacy perceptions, and consumer responses to social ventures," Journal of Business Research, Elsevier, vol. 144(C), pages 312-321.
    18. Geradts, Thijs H.J. & Alt, Elisa, 2022. "Social entrepreneurial action in established organizations: Developing the concept of social intrapreneurship," Journal of Business Research, Elsevier, vol. 151(C), pages 197-206.
    19. Iain A. Davies & Bob Doherty, 2019. "Balancing a Hybrid Business Model: The Search for Equilibrium at Cafédirect," Journal of Business Ethics, Springer, vol. 157(4), pages 1043-1066, July.
    20. Bonfanti, Angelo & De Crescenzo, Veronica & Simeoni, Francesca & Loza Adaui, Cristian R., 2024. "Convergences and divergences in sustainable entrepreneurship and social entrepreneurship research: A systematic review and research agenda," Journal of Business Research, Elsevier, vol. 170(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:erjour:v:5:y:2015:i:2:p:127-154:n:1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.