A typology of social venture business model configurations

Abstract

PurposeSocial ventures are unique and important for society; yet, we know very little about their business models. The purpose of this paper is to: re-conceptualize extant business model frameworks so that they can analyze social ventures; identify the key characteristics of social ventures; and identify the typology of effective social venture business model configurations.Design/methodology/approachThe paper uses resource dependence theory to make sense of extant business models and borrows from public administration literature to identify key characteristics and different configurations of social venture business models.FindingsThe paper re-conceptualizes business model frameworks as inter-organizational arrangements to cope with external resource dependence; this paper also identifies four key characteristics of social ventures, and develops a social venture business model typology based on these unique key characteristics and extant business model dimensions.Research limitations/implicationsThe typology may guide further social venture research, e.g. research on social venture business model creation, on social venture business model innovation, and on social change. Limitations and boundary conditions are discussed in the paper.Practical implicationsThe research may further help social entrepreneurs to develop effective business models that meet the social and financial objectives.Originality/valueThe paper offers a novel reconceptualization of traditional business model frameworks, a unique set of key characteristics of social ventures, and a theoretical typology of effective social venture business model configurations.