The Evolution of Pure, Bi-Focal and Market-Exposed Social Innovations within Community-Based Systems

Abstract

Grassroots communities in the 21st century take on the role of social innovators and contribute to addressing market failures and system failures through innovative action. The aim of this empirical study is to evaluate the various modes in which social innovations (products and services) arise in the conditions of community-led grassroots initiatives, to compare the patterns of social and economic value creation through these innovations and to elaborate the possibilities of their commercial exploitation. Drawing from data on 63 innovative products and service of 106 grassroots, taking the optics of grounded theory and adopting the approach of comparative analysis, this study sheds a light on the emergence of “pure”, “bi-focal”, and “market-exposed SI” products and services. Furthermore, the results suggest that it is possible to conceptualize the demand for community-led products and services. The majority of identified innovative products and services of grassroots generate a mix of social and economic outcomes that address both the social needs within one’s own community and needs of various stakeholders, or marginalized groups. The differentiation of SI into “pure”, “bi-focal”, and “market-exposed” was found to be relevant. Also, we identified a rationale for further elaboration of the evolutionary patterns of SI development, as we found that some “pure” SIs have the potential to be introduced to market within the later stages of the SI life-cycle. Some of the investigated products and service had to be commercially exploited due to a paradox—some social, public beneficial solutions need to be commercially exploited to be provided sustainably in the long term.