Social innovation business models: Coping with antagonistic objectives and assets

Purpose - The chapter provides empirical research results on the peculiarities of social innovation and the specific features that its business model must support. It concludes by proposing a Social Innovation Business Model Canvas and steps towards Social Innovation typologies. Methodology/approach - The research is based on the results of a comparative analysis of 25 business case studies and 32 biographies conducted within the SIMPACT research framework. We then implemented a process of reverse engineering to uncover the business models behind the cases which facilitated the creation of a typology for different social innovation business models. Reverse engineering is the application of tools and processes used to study new business ventures in comparison with existing ones. As such, it sheds further light on the broad characteristics of social business models and their value creation mechanisms. The evidence coming from the cases were analyzed within a new business model and clustered to identify a typology of business models of social innovations. Findings - The main SIMPACT findings, resulting from the reverse engineering process and upon which our discussion is based, can be seen in the following distinguishing characteristics of SI business models. SI business models are: configured around finding complementarity between antagonistic assets and seemingly conflicting logics; often structured around a divergence in the allocation of cost, use, and benefit leading to multiple value propositions; modeled on multiactor/multisided business strategies, and developed as frugal solutions and through actions of bricolage. Four typologies of social innovation were identified: beneficiary as actor, beneficiary as customer, beneficiary as user, and community-asset-based models. Research implications - While much attention has been placed on forprofit business models, there is little literature on social/not-for-profit business models. This chapter can add to this gap by providing substantial empirical evidence. Practical implications - Practitioners in the field of social innovation, particularly the growing intermediary sector, could integrate the findings of the research in their work. Social implications - The work is also leading to the construction of a future business toolbox for social innovation, which will be even more useful for incubators, accelerators, and supporting structures. Originality/value - Research presented in this chapter is the result of an extensive comparative analysis across all of Europe, including examples of failure, and the first to propose a typology of SI Business Models.