Explores management's perceptions of social enterprise business model changes in response to distribution market shifts, suggesting actionable insights.
Purpose: Among social enterprises study, there is a lack of research on innovation of business models according to changes in the market environment. Hence, this study started from the perspective that business model transformation is necessary for sustainable. Accordingly, through a subjectivity study on the perceptions of social enterprises management among those that have undergone changes in the distribution market whose government financial support has ended (scheduled). The purpose of research is to present perceptions that can actively convert to the new distribution market environment and to make suggestions for this. Research design, data, and methodology: First, the current status of social enterprises was identified through theoretical considerations through prior research and the social enterprise performance. And, by composing a Q sample, the type of social enterprise management was classified by applying the Q methodology, targeting 11 executives with more than 2 years of certification from the Ministry of Employment and analyzed the characteristics and commonalities of each type. Results: Social enterprise management’s types to changes in the distribution market were classified as the ‘innovator type with social mission and target customer clarity’, the ‘recognizing the need for change but fearing internal and external changes’, and the ‘network type without fear of business model change’. While the three types have the will to act through business model innovation in common, they have the inconsistency problem of lack of awareness external threats to the current core business. Implications: A support system for each stage of pivoting and growth is needed for social enterprises that have management experience as a social enterprise but have a fear of new business and innovation. Also, from the stage of fostering social enterprises, clear customer recognition, market research, and the need to understand business model components that reflect the characteristics of social enterprises were raised.
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Kim et al. (2023) studied this question.
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