Model C in social business modeling

Abstract

Purpose: This article aims to analyze entrepreneurs’ perceptions about the contributions of Model C in modeling their social businesses. Originality/value: The study contributes theoretically and empirically when addressing social businesses linked to opportunities and their development challenges by using the Model C tool in its modeling, exploring institutional integration, and allowing a holistic, systemic structure of value creation activities. Design/methodology/approach: The study adopts a qualitative method of a descriptive type based on multiple cases in three Brazilian social businesses. For data collection, an interview script developed from the analysis categories of the Model C framework was applied, as well as the interviewees’ perception of how the tool helps the development of their business model, direct observation, and documentary analysis. The analysis of the results was performed with the aid of the software ATLAS.ti. Findings: Based on the assumption that a social business model mixes several institutional logics, combining social and financial missions in a balanced way, the results show that Model C can structure the business’s organizational capacity and social value. However, it cannot fully quantify the financial value generated by social businesses, leading the social entrepreneur to use complementary financial tools. There is evidence for the creation of new tools that assist in obtaining innovative solutions to address societal challenges.