Heart and soul: business model innovation by a work-integration organization

Abstract

Purpose

This paper aimed to study business model innovation by a work-integration social enterprise (WISE). Specifically, the study investigated how the organization developed novel value propositions and created and delivered value for multiple stakeholders.

Design/methodology/approach

An in-depth qualitative study was conducted at Foreword, a for-profit organization that uses persons with disabilities, mental health conditions and special needs. Data was drawn from semi-structured interviews with stakeholders of the organization and several secondary information sources.

Findings

The authors’ inductive analysis revealed the existence of an innovative and powerful business model that is integrated by the organization’s overarching social mission and anchors its ability to deal with multiple conflicting logics such as economic, social, ecological sustainability and community development, to co-create value with and for multiple stakeholders.

Research limitations/implications

The study underscores the need for business model innovation through enhancing value creation for multiple stakeholders for for-profit WISEs. Since the analysis and resulting model in the study are based on a single organization in a geographically small, affluent country with a hands-on government, they may need to be modified before applying in other contexts.

Practical implications

The study identifies several pointers for other social enterprises – specifically the need for managers to build business models appropriate for their organizational and environmental contexts.

Originality/value

The study’s originality stems from the adoption of a stakeholder lens to examine business model innovation. It also proposes an integrative conceptual model of the antecedents and outcomes of business model innovation.