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Article
Publication date: 12 November 2020

Francisco Layrisse, Ezequiel Reficco and Andrés Barrios

The purpose of this study is to identify how the value dynamics of the freemium business model (BM) play out in a social enterprise.

Abstract

Purpose

The purpose of this study is to identify how the value dynamics of the freemium business model (BM) play out in a social enterprise.

Design/methodology/approach

We draw on a multiple case study of two social enterprises –one nonprofit (Aravind Eyecare) in Asia and one for-profit in Latin America (Biodent)– to analyze the implications of applying the value architecture of a freemium BM to social enterprises.

Findings

The freemium BM departs from standard practice when applied in social enterprises. Meaningful differences include the feasibility/desirability of converting free users to paying ones, the presence of significant variable costs –which requires balancing the ratio of free and paying customers– and the use of nontraditional pricing schemes to enhance value capture. The social freemium BM can increase scalability, value creation and value capture. Under this model, “beneficiaries” can be more than passive recipients of value and contribute to a venture's success in various ways –such as lowering its operational costs or enhancing its value proposition toward third parties.

Originality/value

While in the past years commercial enterprises have been disrupted by the emergence of freemium platforms, the social enterprise field has barely taken notice. We extract lessons and implications from this paradigmatic change for the theory and practice of business model innovation in social enterprises, of particular relevance to Latin America, where social and environmental disequilibria remain a recurring feat.

Propósito

Identificar cómo el modelo de negocio freemium impacta el desarrollo de un emprendimiento social.

Diseño/metodología/enfoque

realizamos un estudio de caso múltiple de dos emprendimientos sociales –uno sin fines de lucro (Aravind Eyecare) ubicada en Asia y el otro con fines de lucro ubicada en América Latina (Biodent)– para analizar las dinámicas qué genera el modelo de negocio freemium en la arquitectura de valor de los emprendimientos sociales.

Hallazgos

Cuando el modelo freemium se aplica a un emprendimiento social, surgen diferencias respecto de la práctica estándar en empresas comerciales. Estas diferencias incluyen la viabilidad/conveniencia de convertir a los usuarios gratuitos en clientes de pago, la presencia de costos variables significativos –que imponen la necesidad de equilibrar la proporción de usuarios gratuitos y clientes de pago– y el uso de esquemas de precios no tradicionales para mejorar la captura de valor. El modelo freemium social puede contribuir a facilitar la escalabilidad, así como la creación y captura de valor de un emprendimiento social. Bajo este modelo, los “beneficiarios” pueden ser más qué receptores pasivos de valor y contribuir al éxito de la empresa de diversas formas –por ejemplo, reduciendo sus costos operativos o mejorando su propuesta de valor.

Originalidad/valor

En las últimas dos décadas, varias industrias sufrieron grandes disrupciones por el surgimiento de modelos de negocio basados en plataformas, como el freemium. Sin embargo, hasta ahora el campo del emprendimiento social parecía no haber tomado nota de este cambio paradigmático. En este artículo, extraemos lecciones e implicaciones de este cambio para la teoría y la práctica de los emprendimientos sociales. Nuestros hallazgos son particularmente relevantes para América Latina, en donde subsisten profundos déficits socio-ambientales.

Book part
Publication date: 27 September 2019

Francisco Alberto Layrisse-Villamizar, Dariela Marina Parra-Elizondo and Gerardo Lozano-Fernandez

Social entrepreneurship (SE) has become the engine propelling the rapid expansion of the social/environmental sector; thus, the authors need to examine it from different…

Abstract

Social entrepreneurship (SE) has become the engine propelling the rapid expansion of the social/environmental sector; thus, the authors need to examine it from different perspectives. First of all, it is vital to understand the concept of SE in an attempt to understand the most basic question: what makes an entrepreneurship social and what makes a social initiative a SE? Second, it is important to know the tools to develop a SE such as the business model canvas and design thinking, among others, which are adapted to SE, as well as tools that are unique to the sector such as impact measurement and impact investing. Third, aspiring SEs have to understand the current ecosystem in order to take advantage of the enormous support that the SE ecosystem has to offer thanks to global players such as Ashoka, the Schwab, and Skoll foundations as well as prominent Latin American players such as New Ventures Group, ANDE, and collective company-driven initiatives such as Momentum led by BBVA Bank that have supported more than 10,000 SE all over the world. Finally, the authors will introduce the case of low-income house builders Hábtiva and a student challenge to ignite aspiring social entrepreneurs. This chapter provides a glimpse of the field SE by focusing in its importance in our current challenging world, its definition, some tools used in the field, the current ecosystem of SE, how to measure social impact, and some cases and challenges.

Details

Innovation and Entrepreneurship: A New Mindset for Emerging Markets
Type: Book
ISBN: 978-1-78973-701-1

Keywords

Content available
Book part
Publication date: 27 September 2019

Abstract

Details

Innovation and Entrepreneurship: A New Mindset for Emerging Markets
Type: Book
ISBN: 978-1-78973-701-1

Article
Publication date: 6 November 2023

James Pérez-Morón, Ulf Thoene and Roberto García Alonso

This study aims to analyze the establishment of sustainable microfranchises by women victims of the conflict (WVC) entrepreneurs who suffered the consequences and impacts of the…

Abstract

Purpose

This study aims to analyze the establishment of sustainable microfranchises by women victims of the conflict (WVC) entrepreneurs who suffered the consequences and impacts of the longest-running internal conflict in the Americas. Additionally, this research seeks to underscore the transformative role of women entrepreneurs-for-peace (WE4P) in a post-peace agreement society.

Design/methodology/approach

This study seeks to contribute to theory building on sustainable business models (SBMs) at the base of the pyramid (BoP) theory from a single case study of the Colombian microfranchise TechOil. The theoretical sampling process guided the selection of data sources, which include semi-structured interviews, company and microfranchise donors’ reports, websites and external expert interviews to support the findings. The research adopts a framework of intro-entrepreneurship characteristics, ambiance, organization and sustainability.

Findings

TechOil offers a valuable case study for understanding how the phenomenon of microfranchise as an SBM spills over the BoP and promotes gender equality. The authors also developed a new SBM typology by extending the theory inductively.

Practical implications

The paper highlights WE4P and introduces microfranchises as a new SBM typology, offering insights into policy, practice and societal transformation in post-peace agreement zones.

Originality/value

The issue of WVC entrepreneurs in post-peace agreement settings remains under-reviewed and under-theorized. This study’s originality lies in introducing microfranchises as a new SBM typology, emphasizing the importance of gender equality and women’s roles in sustainable development and addressing the overlooked link between entrepreneurship and peace, contributing to global applicability.

Objetivo

Este estudio tiene como objetivo analizar el establecimiento de microfranquicias sostenibles por parte de emprendedoras Víctimas del Conflicto (WVC, por sus siglas en inglés) que sufrieron las consecuencias e impactos del conflicto interno más largo en América. Además, esta investigación busca resaltar el papel transformador de las mujeres emprendedoras por la paz (WE4P) en una sociedad posterior a un acuerdo de paz.

Diseño/metodología/enfoque

Este estudio busca contribuir a la construcción de teoría sobre modelos de negocios sostenibles - SBM según la teoría de la Base de la Pirámide - BoP a partir de un estudio de caso único de la microfranquicia colombiana TechOil. El proceso de muestreo teórico guió la selección de fuentes de datos, que incluyen entrevistas semiestructuradas, informes de la empresa y donantes de microfranquicias, sitios web y entrevistas con expertos externos para respaldar los hallazgos. La investigación adopta un marco de características introemprendedoras, ambiente, organización y sostenibilidad.

Hallazgos

TechOil ofrece un valioso estudio de caso para comprender cómo el fenómeno de la microfranquicia como SBM se extiende más allá de la BoP y promueve la igualdad de género. Los autores también desarrollaron una nueva tipología de SBM al extender la teoría de manera inductiva.

Implicaciones

El artículo destaca a las WE4P e introduce las microfranquicias como una nueva tipología de SBM, ofreciendo ideas sobre política, práctica y transformación social en zonas posteriores a un acuerdo de paz.

Originalidad

El tema de las emprendedoras WVC en contextos posteriores a un acuerdo de paz sigue siendo poco estudiado y teorizado. La originalidad de este artículo radica en introducir las microfranquicias como una nueva tipología de SBM, enfatizando la importancia de la igualdad de género y el papel de las mujeres en el desarrollo sostenible, y abordando el vínculo pasado por alto entre el emprendimiento y la paz, contribuyendo a la aplicabilidad global.

Objetivo

Este estudo tem como objetivo analisar o estabelecimento de microfranquias sustentáveis por empreendedoras Vítimas do Conflito (WVC) que sofreram as consequências e impactos do conflito interno mais longo das Américas. Além disso, esta pesquisa busca destacar o papel transformador das mulheres empreendedoras pela paz (WE4P) em uma sociedade pós-acordo de paz.

Desenho/metodologia/abordagem

Este estudo busca contribuir para a construção de teoria sobre modelos de negócios sustentáveis - SBM segundo a teoria da Base da Pirâmide - BoP a partir de um estudo de caso único da microfranquia colombiana TechOil. O processo de amostragem teórica orientou a seleção de fontes de dados, que incluem entrevistas semiestruturadas, relatórios da empresa e doadores de microfranquias, sites e entrevistas com especialistas externos para respaldar os achados. A pesquisa adota um quadro de características introempreendedoras, ambiente, organização e sustentabilidade.

Achados

A TechOil oferece um valioso estudo de caso para entender como o fenômeno da microfranquia como SBM se estende além da BoP e promove a igualdade de gênero. Os autores também desenvolveram uma nova tipologia de SBM ao estender a teoria de forma indutiva.

Implicações

O artigo destaca as WE4P e introduz as microfranquias como uma nova tipologia de SBM, oferecendo insights sobre política, prática e transformação social em zonas pós-acordo de paz.

Originalidade

O tema das empreendedoras WVC em contextos pós-acordo de paz ainda é pouco estudado e pouco teorizado. A originalidade deste artigo reside em introduzir as microfranquias como uma nova tipologia de SBM, enfatizando a importância da igualdade de gênero e o papel das mulheres no desenvolvimento sustentável, e abordando o elo negligenciado entre empreendedorismo e paz, contribuindo para a aplicabilidade global.

Article
Publication date: 6 October 2020

Attique ur Rehman, Muhammad Shakeel Sadiq Jajja, Raja Usman Khalid and Stefan Seuring

Base-of-the-pyramid (BoP) markets are frequently characterized by institutional voids. However, it remains unclear how institutional voids impact corporate and supply chain risk…

1292

Abstract

Purpose

Base-of-the-pyramid (BoP) markets are frequently characterized by institutional voids. However, it remains unclear how institutional voids impact corporate and supply chain risk and performance. This intersection will be analyzed in this paper.

Design/methodology/approach

This paper presents a systematic literature review of 94 BoP papers published between 2004 and 2019 in peer-reviewed, English-language journals available on Scopus. Drawing upon established frameworks for examining institutional voids, supply chain risks and BoP performance, frequency, and contingency analyses are conducted. Contingencies are established to provide insights into the associations between different constructs from the selected frameworks.

Findings

Supply chain risks are pervasive in the BoP discourse, especially when BoP markets are characterized by institutional voids. The frequency analysis of the constructs suggests that the key supply chain risks discussed in the BoP literature include social risk, credit risk, product market and operating uncertainties, knowledge and skill biases and decision-maker risks due to bounded rationality. The contingency analysis suggests that institutional voids are associated with supply chain risks that affect performance.

Research limitations/implications

A theoretical framework aligning three research streams in the context of BoP calls for future studies to test the causality of highlighted constructs that are significantly associated. The analysis is confined to the constructs that are taken into account based on specific conceptual frameworks.

Practical implications

The study provides practitioners with a framework to manage supply chain risks in BoP-related firms to enhance firm performance. Managers can use key dimensions of supply chain risk, such as the product market, the input market and operating uncertainties, to evaluate performance in the BoP context.

Originality/value

Specifically, this research has strengthened the inquiry of supply chain risks in the presence of institutional voids that may have an impact on firm performance

Details

The International Journal of Logistics Management, vol. 31 no. 4
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 22 September 2023

Mukul Dev Surira, K.A. Zakkariya and Muhammed Sajid

The purpose of this study is to fill the research gap by investigating the impact of brand social initiatives on both the warmth and competence dimensions of the brand, as well as…

Abstract

Purpose

The purpose of this study is to fill the research gap by investigating the impact of brand social initiatives on both the warmth and competence dimensions of the brand, as well as examining the brand's potential to induce pro-environmental behavioral change among consumers.

Design/methodology/approach

The study employed a scenario-based survey design and surveyed 415 consumers in India. The data were analyzed using structural equation modeling (SEM) with SmartPLS 4.0.

Findings

The results show that social initiatives enhance both dimensions of social perception and increase cooperative intentions. Brand competence is more crucial than warmth in predicting behavioral intentions. Brand-cause fit, CSR commitment and initiatives' impact all influence the brand image. A brand's commitment to the cause is more significant than brand-cause fit in determining how consumers evaluate a brand.

Practical implications

This research provides insights into how social initiatives can enhance brand image and encourage helping intentions through effective communication traits. It can aid brands in building consumer trust, benefiting society and boosting finances. The study offers a framework for effective cause communication strategies, highlighting the importance of commitment to the cause over fitting with the brand's image to elicit desired responses.

Originality/value

This study is a novel attempt that uses the stereotype content model and costly signaling theory to explore how social initiatives influence a brand's warmth and competence and impact consumer behavior. It provides critical insights into the psychological mechanisms behind social initiatives' impact on consumer behavioral intentions.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 36 no. 3
Type: Research Article
ISSN: 1355-5855

Keywords

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