Development of a social-oriented inclusive business model for strategic enterprise renewal

Authors

DOI:

https://doi.org/10.15587/1729-4061.2023.292500

Keywords:

corporate philanthropy, stakeholder approach, socially inclusive value, charitable corporation

Abstract

Research object is a business model of enterprises’ strategic renewal in the areas of economy, environmental friendliness, and sociality. Key problem: the need to develop a business model for strategic renewal of enterprises, maximally adapted to the current challenges of the market and society. Based on the prerequisites for the evolution of traditional corporate strategies to a stakeholder approach, a business model for strategic enterprise renewal has been formed. The relative nature of companies’ business activity, transformation of analysis methods and approaches to decision-making, as well as key elements, vectors, and results of interaction within the developed business model are determined and justified. The possibilities of practical application of a social-oriented inclusive business model in the implementation of business analysis are shown. Interpretation of the research results: the social-oriented business model of enterprises’ strategic renewal is developed on the basis of systematization of the relative approach, theories of stakeholders and corporate philanthropy, the concept of "charitable corporation" and orientation to socially inclusive value instead of traditional shareholder value. Along with the traditional economic aspect of the business model, the environmental and social aspects are outlined. To adapt business models of enterprises to modern challenges, it is proposed to increase the use of qualitative analysis parameters in the implementation of strategic decisions, as well as to design the development of relations with key stakeholders. Practical significance: Certain parameters of the business model can be used by enterprises to conduct a critical analysis of their own business strategies and develop effective measures to adapt them to modern challenges

Author Biographies

Anna Kramarenko, V. N. Karazin Kharkiv National University

PhD, Associate Professor

Department of Management and Administration

Anton Kvitka, Kauno kolegija Higher Education Institution

PhD, Associate Professor

Department of Communications

References

  1. Rasheed, A., Ion, W. (2022). A Novel Approach towards Sustainability Assessment in Manufacturing and Stakeholder’s Role. Sustainability, 14 (6), 3221. doi: https://doi.org/10.3390/su14063221
  2. Schmitt, A., Barker, V. L., Raisch, S., Whetten, D. (2016). Strategic Renewal in Times of Environmental Scarcity. Long Range Planning, 49 (3), 361–376. doi: https://doi.org/10.1016/j.lrp.2015.08.004
  3. Rowley, T. J. (1997). Moving Beyond Dyadic Ties: A Network Theory of Stakeholder Influences. Academy of Management Review, 22 (4), 887–910. doi: https://doi.org/10.5465/amr.1997.9711022107
  4. Westerveld, P., Fielt, E., Desouza, K. C., Gable, G. G. (2023). The business model portfolio as a strategic tool for value creation and business performance. The Journal of Strategic Information Systems, 32 (1), 101758. doi: https://doi.org/10.1016/j.jsis.2023.101758
  5. Halonen, N., Majuri, M., Lanz, M. (2019). Characteristics of a circular economy framework to support strategic renewal in manufacturing firms. Procedia CIRP, 81, 653–658. doi: https://doi.org/10.1016/j.procir.2019.03.171
  6. Hill, C. W. L., Jones, T. M. (1992). STAKEHOLDER‐AGENCY THEORY. Journal of Management Studies, 29 (2), 131–154. doi: https://doi.org/10.1111/j.1467-6486.1992.tb00657.x
  7. Gautier, A., Pache, A.-C. (2015). Research on Corporate Philanthropy: A Review and Assessment. Journal of Business Ethics, 126 (3), 343–369. doi: https://doi.org/10.1007/s10551-013-1969-7
  8. França, C. L., Broman, G., Robèrt, K.-H., Basile, G., Trygg, L. (2017). An approach to business model innovation and design for strategic sustainable development. Journal of Cleaner Production, 140, 155–166. doi: https://doi.org/10.1016/j.jclepro.2016.06.124
  9. Aravindakshan, A., Rust, R. T., Lemon, K. N., Zeithaml, V. A. (2004). Customer equity: Making marketing strategy financially accountable. Journal of Systems Science and Systems Engineering, 13 (4), 405–422. doi: https://doi.org/10.1007/s11518-006-0173-z
  10. Omtzigt, J. D. (2009). Survey on Social inclusion: Theory and Policy. Available at: https://www.semanticscholar.org/paper/Survey-on-Social-inclusion-%3A-Theory-and-Policy-1-of-Omtzigt/946cdbe95e393a4b020b93c4f06c98e9f72e1f9b
  11. Chakravorti, B., Macmillan, G., Siesfeld, T. (2014). Growth for Good or Good for Growth: How Sustainable and Inclusive Activities are Changing Business and Why Companies Aren’t Changing Enough. Available at: https://www2.deloitte.com/content/dam/Deloitte/us/Documents/monitor-institute/us-monitor-institute-growth.pdf
  12. von Schönfeld, K. C., Ferreira, A. (2021). Urban Planning and European Innovation Policy: Achieving Sustainability, Social Inclusion, and Economic Growth? Sustainability, 13 (3), 1137. doi: https://doi.org/10.3390/su13031137
  13. Malnight, T. W., Buche, I., Dhanaraj, C. (2019). Put purpose at the core of your strategy. Harvard Business Review. Available at: https://hbr.org/2019/09/put-purpose-at-the-core-of-your-strategy
  14. Castells, M., Caraca, J., Cardoso, G. (Eds.) (2012). Aftermath: The Cultures of the Economic Crisis. Oxford: Oxford University Press.
  15. Kramarenko, A. (2021). Social innovations and business: essence, opportunities, business models. Efektyvna Ekonomika, 9. doi: https://doi.org/10.32702/2307-2105-2021.9.73
  16. Freeman, R. E. (2004). The Stakeholder Approach Revisited. Zeitschrift Für Wirtschafts- Und Unternehmensethik, 5 (3), 228–241. doi: https://doi.org/10.5771/1439-880x-2004-3-228
  17. Garlewicz, K. (2018). How To Care For Your Stakeholders For Better Business Health. Forbes. Available at: https://www.forbes.com/sites/theyec/2018/10/11/how-to-care-for-your-stakeholders-for-better-business-health/?sh=7761ff6221cf
  18. Hess, M. F., Hess, A. M. (2016). Stakeholder-Driven Strategic Renewal. International Business Research, 9 (3), 53. doi: https://doi.org/10.5539/ibr.v9n3p53
  19. Geels, F. W. (2011). The multi-level perspective on sustainability transitions: Responses to seven criticisms. Environmental Innovation and Societal Transitions, 1 (1), 24–40. doi: https://doi.org/10.1016/j.eist.2011.02.002
  20. Elliott, J. (2009) Sustainable development. International Encyclopedia of Human Geography. Oxford: Elsevier, 117–131. doi: https://doi.org/10.1016/b978-008044910-4.00124-3
  21. Marcus, A. (1989). The deterrent to dubious corporate behavior: Profitability, probability and safety recalls. Strategic Management Journal, 10 (3), 233–250. doi: https://doi.org/10.1002/smj.4250100304
  22. Marquis, C. (2020). Is Your Business Ready For Stakeholder Capitalism? Forbes. Available at: https://www.forbes.com/sites/christophermarquis/2020/07/29/is-your-business-ready-for-stakeholder-capitalism/?sh=31b0b0935ec0
  23. Barney, J. B., Wright, P. M. (1998). On becoming a strategic partner: The role of human resources in gaining competitive advantage. Human Resource Management, 37 (1), 31–46. doi: https://doi.org/10.1002/(sici)1099-050x(199821)37:1<31::aid-hrm4>3.0.co;2-w
  24. Delaney, J. T., Huselid M. A. (1996). The Impact of Human Resource Management Practices on Perceptions of Organizational Performance. Academy of Management Journal, 39 (4), 949–969. doi: https://doi.org/10.2307/256718
  25. Arora, P., Petrova, M. (2010). Corporate social performance, resource dependence and firm performance. Journal of Business Economics, 1, 1–22. doi: https://doi.org/10.2139/ssrn.1364993
  26. Amit, R., Schoemaker, P. J. H. (1993). Strategic assets and organizational rent. Strategic Management Journal, 14 (1), 33–46. doi: https://doi.org/10.1002/smj.4250140105
  27. Brammer, S. J., Pavelin, S., Porter, L. A. (2009). Corporate Charitable Giving, Multinational Companies and Countries of Concern. Journal of Management Studies, 46 (4), 575–596. doi: https://doi.org/10.1111/j.1467-6486.2008.00827.x
  28. Campbell, J. L. (2007). Why would corporations behave in socially responsible ways? an institutional theory of corporate social responsibility. Academy of Management Review, 32 (3), 946–967. doi: https://doi.org/10.5465/amr.2007.25275684
  29. Arco‐Castro, L., López‐Pérez, M. V., Pérez‐López, M. C., Rodríguez‐Ariza, L. (2020). How market value relates to corporate philanthropy and its assurance. The moderating effect of the business sector. Business Ethics: A European Review, 29 (2), 266–281. doi: https://doi.org/10.1111/beer.12264
  30. Porter, M. E., Kramer, M. R. (2011). Creating shared value. Harvard Business Review. Available at: https://hbr.org/2011/01/the-big-idea-creating-shared-value
  31. Grubor, A., Berber, N., Aleksić, M., Bjekić, R. (2020). The influence of corporate social responsibility on organizational performance: A research in AP Vojvodina. Anali Ekonomskog Fakulteta u Subotici, 43, 3–13. doi: https://doi.org/10.5937/aneksub2001003g
  32. Felber, C., Campos, V., Sanchis, J. R. (2019). The Common Good Balance Sheet, an Adequate Tool to Capture Non-Financials? Sustainability, 11 (14), 3791. doi: https://doi.org/10.3390/su11143791
  33. Figge, F., Shaltegger, S. (2000). What is stakeholder value? Developing a catchphrase into a benchmarking tool. Published in association with United Nations Environment Program.
  34. Porter, M. E., Kramer, M. R. (2002). The Competitive advantage of corporate philanthropy. Harvard Business Review. Available at: https://hbr.org/2002/12/the-competitive-advantage-of-corporate-philanthropy
  35. Coskun-Setirek, A., Tanrikulu, Z. (2021). Digital innovations-driven business model regeneration: A process model. Technology in Society, 64, 101461. doi: https://doi.org/10.1016/j.techsoc.2020.101461
  36. Coffay, M., Bocken, N. (2023). Sustainable by design: An organizational design tool for sustainable business model innovation. Journal of Cleaner Production, 427, 139294. doi: https://doi.org/10.1016/j.jclepro.2023.139294
  37. Rong, K., Wu, J., Shi, Y., Guo, L. (2015). Nurturing business ecosystems for growth in a foreign market: Incubating, identifying and integrating stakeholders. Journal of International Management, 21 (4), 293–308. doi: https://doi.org/10.1016/j.intman.2015.07.004
  38. Ivascu, L., Cirjaliu, B., Draghici, A. (2016). Business Model for the University-industry Collaboration in Open Innovation. Procedia Economics and Finance, 39, 674–678. doi: https://doi.org/10.1016/s2212-5671(16)30288-x
Development of a social-oriented inclusive business model for strategic enterprise renewal

Downloads

Published

2023-12-28

How to Cite

Kramarenko, A., & Kvitka, A. (2023). Development of a social-oriented inclusive business model for strategic enterprise renewal. Eastern-European Journal of Enterprise Technologies, 6(13 (126), 6–14. https://doi.org/10.15587/1729-4061.2023.292500

Issue

Vol. 6 No. 13 (126) (2023): Transfer of technologies: industry, energy, nanotechnology

Section

Transfer of technologies: industry, energy, nanotechnology

License

Copyright (c) 2023 Anna Kramarenko, Anton Kvitka

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

The consolidation and conditions for the transfer of copyright (identification of authorship) is carried out in the License Agreement. In particular, the authors reserve the right to the authorship of their manuscript and transfer the first publication of this work to the journal under the terms of the Creative Commons CC BY license. At the same time, they have the right to conclude on their own additional agreements concerning the non-exclusive distribution of the work in the form in which it was published by this journal, but provided that the link to the first publication of the article in this journal is preserved.

A license agreement is a document in which the author warrants that he/she owns all copyright for the work (manuscript, article, etc.).
The authors, signing the License Agreement with TECHNOLOGY CENTER PC, have all rights to the further use of their work, provided that they link to our edition in which the work was published.
According to the terms of the License Agreement, the Publisher TECHNOLOGY CENTER PC does not take away your copyrights and receives permission from the authors to use and dissemination of the publication through the world's scientific resources (own electronic resources, scientometric databases, repositories, libraries, etc.).
In the absence of a signed License Agreement or in the absence of this agreement of identifiers allowing to identify the identity of the author, the editors have no right to work with the manuscript.
It is important to remember that there is another type of agreement between authors and publishers – when copyright is transferred from the authors to the publisher. In this case, the authors lose ownership of their work and may not use it in any way.