Dynamics of a Synchronized Business Model for Inclusive Business ^*

Abstract

A Novartis social business in India completely separated the activities of its social and business units—the former engaging in raising the health awareness of villagers and encouraging them to visit free health camps, while the latter developed affordable medicine delivered directly to village pharmacies. Connections between these units were made through open and fluid market-type mechanisms, and by appealing to the needs and interests of villagers with incentives. This synchronized business model was developed partly because Novartis believed in villagers' self-initiated behavior for health improvements, which made it not interfere into marginalized institutions, and more significantly because it used its internalized control and coordination systems with clear goals of social contribution in operating the business unit. Consequently, Novartis achieved economies of scale, business sustainability, and social contribution.

Citation

Okada, Y. (2021), "Dynamics of a Synchronized Business Model for Inclusive Business ^* ", Okada, Y. and Stanislawski, S. (Ed.) Institutional Interconnections and Cross-Boundary Cooperation in Inclusive Business, Emerald Publishing Limited, Leeds, pp. 49-84. https://doi.org/10.1108/978-1-80117-212-720211003