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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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    6. Budi Harsanto & Asep Mulyana & Yudi Ahmad Faisal & Venny Mellandhia Shandy & Muntasir Alam, 2022. "A Systematic Review on Sustainability-Oriented Innovation in the Social Enterprises," Sustainability, MDPI, vol. 14(22), pages 1-18, November.
    7. 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).
    8. Slitine, Romain & Chabaud, Didier & Richez-Battesti, Nadine, 2024. "Beyond social enterprise: Bringing the territory at the core," Journal of Business Research, Elsevier, vol. 176(C).
    9. 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).
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    11. 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.

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