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Social Capital as Value Creation and Delivery of a Sustainable Business Model: A Case Study from Indonesia

In: Sustainable Business Models

Author

Listed:
  • Risa Bhinekawati

    (Universitas Agung Podomoro)

  • Banguning Asgha

    (Universitas Agung Podomoro)

Abstract

This chapter clarifies the linkages between value propositionValue proposition, value creation and delivery, and value captureValue capture through integration of social capital concept into a sustainable business model. Using an exploratory qualitative case study, it investigates why and how a corporation translates its sustainability strategy (value proposition) into corporate foundationsCorporate foundation that generate social capital (value creation and delivery), and sustainability performanceSustainability performance (value captureValue capture) from 1980 to 2011. Two corporate foundations dealing with small enterprise and skilled labour development within one of Indonesia’s largest public listed companies were chosen for cross-case analysis. Primary and secondary data from company documents, archival records, interviews and observations were analysed to develop a theoretical model. The study finds the importance for companies to play ‘hybrid’ roles as profit and non-profit institution in building sustainable business model. The corporate foundations, which are the non-profit arm of the corporations, deal with social issues that intersect with business needs. Stakeholder relations and resource allocations through the foundations have developed social capital, which enable the company and its stakeholders to co-create value to achieve triple bottom line Triple bottom line (TBL) performance for both. This research contributes to the management literature as it integrates the concept of social capitalSocial capital, and clarifies the actual linkages between value propositionValue proposition, value creation and delivery, and value capture in a sustainable business model. The theoretical model Sustainability Sustainable business Values Business models from the research can be replicated by other companies, especially for the ones operating in emerging economies. However Social capital , further research is needed to test its applications to other context.

Suggested Citation

  • Risa Bhinekawati & Banguning Asgha, 2018. "Social Capital as Value Creation and Delivery of a Sustainable Business Model: A Case Study from Indonesia," CSR, Sustainability, Ethics & Governance, in: Lars Moratis & Frans Melissen & Samuel O. Idowu (ed.), Sustainable Business Models, chapter 0, pages 305-327, Springer.
    • Handle: RePEc:spr:csrchp:978-3-319-73503-0_14
    DOI: 10.1007/978-3-319-73503-0_14
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