Business Models in Water Supply Companies—Key Implications of Trust

Abstract

Currently, trust is one of the key factors that ensures the acceptable mechanisms of economic and social relationships. It is not only an element of correct communication, but also a factor in inter-organizational bonds and a source of social dialogue. Trust has become a factor in the creation of value, as well as a key component of the conceptualization and operationalization of business models. It has revealed many problems at the strategic level, in the water sector in particular. From this perspective, trust is a major factor of strategies, models, and business processes which are currently being built. New types of business models that emerge have also started to include trust as part of their configuration. This is the case in the construction and implementation of social business models. A social business model can be understood as a business model whose factors that stimulate development include social aspects expressed in balancing economic, environmental, and social issues with the involvement of communities and their dynamic communication focused on the selected attributes of business models that stimulate growth and that are conducive to achieving success, expressed by economic and/or social profit. The satisfaction of stakeholders with such a solution is another condition for embedding this solution in the sphere of the social economy. In this approach, trust, which stimulates the growth of social and economic value in the component structure of the social business model, becomes particularly important. The aim of the paper is to present the place and role of trust as a key component of social business models. The scope of the paper includes research into public water sector industry companies located in the Province of Silesia and their social business models, with a focus on defining the position of trust among other attributes of these business models. The authors put forward a hypothesis that trust is a crucial component of the social business models of water supply companies that operate at the intersection of the market and social economy. Trust also helps companies from the water supply sector achieve both social and economic effects. It also becomes a source of reverse market polarization, where the value of a social business model materializes to create social and environmental effects without detriment to the economic effects.

A review of entrepreneurship and circular economy research: State of the art and future directions

“…Smitskikh et al (2020) set out a model for social entrepreneurship in the CE, taking into account the interested parties and their environmental, social and economic impacts, and defend how the determining factor in the development of CE is the long term effects of social entrepreneurship. Jabłoński and Jabłoński (2020) analyse the role of trust in the social business models in the Polish water sector, verifying how social capital registers fairly low levels in Poland and trust‐based risk holds a strong influence over the establishing of trust‐based social business models.…”

Circular Business Model Value Dimension Canvas: Tool Redesign for Innovation and Validation through an Australian Case Study

“…According to the authors, such enterprises work towards environmental and social sustainability in their core business activities. Jabło ński and Jabło ński [66] identified that social enterprise predominately contributes to community and society at the same time, and generates profits typically invested in the business itself. Using the example of water supply companies, the authors argued that social enterprises traditionally have holistic consideration of the impact of business activities on the environment and society while maintaining economic viability.…”

“…Environmental and social sustainability-oriented mindset and contribution were seen as the significant attributes of social enterprise identified by Staicu [65] and were also evident from Company X, which underpins the job creation of disabled young people and diverts waste from landfills and extends the product lifespan by collaborative value addition. Thus, it contributes to the community and, at the same time, generates revenue [66]. From the interview with the CEO of the social enterprise, it is seen that his motivation for solving the waste-related problem was motivated by CE principles and strategies, which play an essential role in transitioning to a CE at scale [64].…”

“…Institution and Infrastructural Support for Market Leadership From the social and circular entrepreneurship perspectives, funding/investment schemes are critical as positive interventions to boost entrepreneurial effort [86]. For external activities, funding is essential for social enterprise [66]. Business sector funding with effective partnerships was identified as one of the significant factors for social enterprise [70].…”

Sustainable Business Model of Modern Enterprises in Conditions of Uncertainty and Turbulence

“…Theoretical and practical aspects of creating an effective business model of the enterprise in the face of intensifying competition are covered in the works og A. Afuah [2], G. Bernarda [3], A. Gambardella, A. McGahan [4], D. Debelak [5], A. Jablonski [6], H. Kupalova [7], A. Magomedova [8], J. Magretta [9], Mahmoodi, M.; Roman, M.; Prus, P. [10], A. Osterwalder, Y. Pigneur [11], M. Porter [12], Š. Slávik [13], N. Strekalova [14], P. Thomson [15], G. Kharitonova [16], H. Chesbrough [17], D. Sj ödin, V. Parida [18], C. Zott [19] and others. In the works of these scientists, scientific approaches to the essence of the business model of the enterprise are studied.…”