Filling a gap in the current literature, this book addresses the social approach to the design and use of innovative business models in the digital economy. It focuses onthree areas that are of increasing importance to businesses and industry today: social issues and sustainability; digitization; and new economic business models, specifically the sharing and circular economies. The authors aim to solve current scientific concerns around the conceptualization and operationalization of social business models, addressing management intentions and the impact of these models on society. Based on observation of social phenomena and the authors' research and practical experience, the book highlights best practices for designing and assessing social business models.
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Along with changes on the global markets, in the context of the development of the digital economy , social factors have a different, more important meaning. Community building is becoming the key goal of the creators of modern business models. The community gathered around a given idea operationalized through a business model embedded in a specific technology is a driver of cash flows based on the assumptions of the adopted method of monetization. The model of linking the concept of the new economy with the assumptions of shaping social digital business models presented in Fig. 1.1 indicates the key trends of modern business. The platform of the digital business ecosystem creates the conditions for creating and implementing the determinants of the concept of the positive value economy. The environment of the digital economy enables the development of innovative concepts such as the sharing economy , Big Data and the circular economy . The effectiveness of implementing business models based on these concepts results from the need to build a community. The larger the community focused on the activities around the proposed solution is, the greater the chance for future financial monetization. The assumptions of the aforementioned market solutions create social business models , for which the starting point is the theoretical concept of the Triple Bottom Line, widely recognized both in the relevant literature and practice. So far, however, this has been based on the traditional approach. The digital economy is currently providing opportunities to verify this concept under the new conditions of company operation. In this way, business models based on the foundations of the Triple Bottom Line concept are often called sustainable business models . Digital business models which have social aspects built into their formula resulting from the potential of technology are created; social enterprises are designed whereby a social factor is the fundamental driver of their business models, as well as hybrid business models which combine commercial activity and public activities. These new conditions change people’s behavior and also bring about an improvement in their quality of life in many places around the world. As a result of this new trend, positive social effects and new positive behaviors of entire human communities are created. Currently, these conditions are leading to a redefinition of modern business, where the goal of companies should not only be to maximize financial profit but also to create social profit; that is, the effect of the business model which is commonly accepted and in line with the expectations of stakeholder groups. From this perspective, social business models are what should now be focused on. The social acceptance of innovative solutions in the information society determines the ability to make progress and meet challenges of civilization such as climate change, the migration of people, digital exclusion, and access to education and information. The digital business model should be looked at with the hope that the next generation of industry and services development, that is, Industry 4.0 and Service Management 4.0, will bring business to a higher level suitable for the current development of civilization through the conceptualization and operationalization of digital business models.
Fig. 1.1
A model linking the concept of the new economy with shaping social business models in the digital economy . (Source: Own study)
Social issues have an important dimension in the context of building new business and ventures. In the context of the assessment of the activities of companies oriented at creating profitability, how this income is generated and what kinds of value ventures can create are important. A sustainable approach is the result of a different approach to defining the purpose of enterprises. At present, goals are focused on building communities and relationships with business stakeholders , while monetization is postponed until sometime in the future. The priority is to build a digital brand of a company that has an impact on communities, their lifestyle, understanding the world and perceiving values. This chapter describes contemporary trends in building social attitudes through participation in ventures and creating communities sharing the same values, interests and priorities. This chapter also presents a review of the literature as well as current trends emerging in the business space, which have a significant impact on building social bonds, creating social values and building a sustainable business activity model in the digital economy .
Social issues have an important dimension in the context of building new companies and undertakings. In the context of the assessment of the operation of companies focused on profitability, it is important to know how revenue is generated and what types of values an undertaking can create. A balanced approach is the result of a different approach to defining the purpose of enterprises. Currently, the goals of creating business models are focused in many cases on building communities and relationships with business stakeholders , and their monetization is postponed until the future. The priority is to build a company’s digital brand that impacts the community, their lifestyle, understanding the world and perceiving values. Contemporary trends, operationalized through business models, help build social attitudes through participation in undertakings and the creation of communities sharing the same values, interests and priorities. The literature review and observation of economic phenomena in the business space confirm the significant impact of new business solutions based on technological solutions on building social bonds, creating social values and building a sustainable business activity model in the digital economy .
Modern technological solutions create the conditions for shaping social attitudes and undermine the existing principles of classical economics. Markets which have an increasingly ontological character are emerging parallel to existing ones. The virtual world creates new markets, establishes the new principles of cooperation between people and creates new communication formulas. The old action model based on a contractual approach turns into a relational approach. Social and personal interactions are important factors that motivate people to conduct transactions (Mauri et al. 2018, p. 42).
The technological revolution generates solutions in the social sphere, establishing new principles of creating markets and people’s behavior. The influence of digital technology on these aspects is visible.
New concepts and ideological trends are operationalized through innovative technological solutions , which allow for the implementation of global solutions whose potential is not yet fully utilized. This is not only due to technological problems, but also due to sociological ones, whereby new generations use these solutions to a greater extent than older ones. Quality of life is now strongly correlated with access to digital technologies. Countries with a higher level of digitization have more potential. As a result, they can implement new social ideas faster and improve people’s quality of life. The potential in terms of the sharing economy , the circular economy and Big Data is very large. It allows for the creation of business solutions as well as solutions related to the so-called new concept of public management. The sharing economy is a plan for a future business idea that explains how to connect economic, environmental and social issues (Daunoriene et al. 2015, p. 837).
The digital economy creates new opportunities to build entrepreneurial initiatives. New entrepreneurship gives an opportunity to create social values, where the company’s priority is social value rather than profit. Social business models are satisfactory, not only for their creators, but above all for their users and recipients. There are different approaches to defining social enterprises. Contemporary trends in creating social values are operationalized by means of business models. Features that distinguish classical entrepreneurial activities in the context of classical economics from modern entrepreneurial activities aimed at the use of social values in the network economy are important here. Such assumptions indicate how to create social value, how to capture social value and how to keep it in the company and among the company’s stakeholder group. It is essential to identify the key determinants that build entrepreneurial attitudes focused on designing social business models in the ecosystems of the digital economy.
The value economy is a holistic view of creating value for different groups of stakeholders . It explores and deals with knowledge areas such as economics, philosophy, sociology, cultural anthropology, business ethics and corporate social responsibility. As J. Hausner observes, a dispute about value is constantly present at the center of the discussion on scientific cognition as well as on the dissimilarity of the nature of exact and social sciences. It is impossible to formulate a correct economic theory of value without recognizing that values have a social nature, and that it is existential and non-instrumental values which give meaning to our existence and being (Hausner 2017, p. 71).
The value economy is an important tendency that should be taken into account in the process of designing modern business models. The value economy plays an important role in the process of shaping social business models in the digital economy . The criteria for classifying business and life values are important. It seems interesting to try to combine the business aspects of the classical economy with a new approach to values, namely sharing resources according to the concept of the sharing economy . The social nature of value is widely revealed in these solutions. As part of the identification of features describing the contemporary business environment, the attributes of building social bonds are critical as part of the network economy and network organizations. As regards social business models, the value economy should be considered in ontological, epistemological and methodological categories. As H. Mintzberg writes in reference to the plural sector, less formal incorporation include...
