Sustainable Hybrid Business Model of Benefit Corporation: The Case of an Italian Film Production Company

Abstract

In the last decade, individual awareness of the impacts generated by the activities of businesses has increased more than ever. Consumers, employees and investors have begun to criticize business behaviors that negatively affect either society or the environment. Given this context, and relying on the literature relating to hybrid organizations and sustainable business models, our research aims to investigate how dual logic affects the business model of benefit corporations in the Italian film production industry. To capture the complexity of this type of firm, we adopted a qualitative research method, the case study approach. The case selected was ARE FILMS srl, a creative film production company. It has been a benefit corporation since it was founded. The study suggests that the capacity of hybrid businesses to achieve a hybrid mission is intrinsically embedded in their business model. A young film production benefit corporation is more likely to adopt a semi-integrated business model that does not create an external perception of dual corporate identity and does not affect economic sustainability. Moreover, the sustainable value proposition emerges even without the formal application of accepted protocols. Furthermore, we realized that the size of the firm affects business modelling. Finally, this research underlines the fact that benefit corporations do not require external pressure to implement sustainable practices.