Uncaptured Value in the Business Model: Analysing its Modes in Social Enterprises in the Sustainable Fashion Industry

Abstract

Social enterprises (SEs) combine economic and social goals and are essential pillars to contribute to a better world. SEs often manage limited resources; wasting some could mean minimizing their social contributions. This study, supported by the theoretical lens of the business model (BM), analyses the modes of uncaptured value in SEs. This qualitative study examines micro and small SEs from the sustainable fashion industry based on ethnographic views and semi-structured interviews. This study contributes to the literature and the managerial field by examining the modes of uncaptured value and their consequences while organizing them in two groups according to the set of decisions and actions of the SEs; presenting a framework that represents stages of the development of SEs according to their relationship with modes of uncaptured value; and, providing a set of valuable knowledge to support the qualification of SEs in better structuring their BMs and practices. Understanding the modes of uncaptured value in the BMs of SEs leverages the value that could be delivered but is not, especially in a context of resource scarcity and social demands.

Uncaptured value in sustainable business model innovation: the missing link

“…Galvagno and Dalli (2014) explain that this can be accomplished in various ways, such as value co-creation amongst stakeholders, where novel insights can lead to new value opportunities. Moreover, uncaptured value has lately garnered attention in social enterprises with a focus on traditional business models, which is noted by Borchardt et al. (2024), and also in socially involved entrepreneurship and start-ups, as implied by Wagner and Kabalska (2023), but less orientation is toward uncaptured value in SBMI.…”