Social Capital as Value Creation and Delivery of a Sustainable Business Model: A Case Study from Indonesia

  • Risa Bhinekawati
  • Banguning Asgha
Part of the CSR, Sustainability, Ethics & Governance book series (CSEG)


This chapter clarifies the linkages between value proposition, value creation and delivery, and value capture through integration of social capital concept into a sustainable business model. Using an exploratory qualitative case study, it investigates why and how a corporation translates its sustainability strategy (value proposition) into corporate foundations that generate social capital (value creation and delivery), and sustainability performance (value capture) from 1980 to 2011. Two corporate foundations dealing with small enterprise and skilled labour development within one of Indonesia’s largest public listed companies were chosen for cross-case analysis. Primary and secondary data from company documents, archival records, interviews and observations were analysed to develop a theoretical model.

The study finds the importance for companies to play ‘hybrid’ roles as profit and non-profit institution in building sustainable business model. The corporate foundations, which are the non-profit arm of the corporations, deal with social issues that intersect with business needs. Stakeholder relations and resource allocations through the foundations have developed social capital, which enable the company and its stakeholders to co-create value to achieve triple bottom line performance for both. This research contributes to the management literature as it integrates the concept of social capital, and clarifies the actual linkages between value proposition, value creation and delivery, and value capture in a sustainable business model. The theoretical model from the research can be replicated by other companies, especially for the ones operating in emerging economies. However , further research is needed to test its applications to other context.


  1. Akhtar, C., Ismail, K., & Hussain, J. (2014, November 28–30). Social capital and organizational sustainability: Case of Malaysian SMEs. In C. Arapatsakos, M. Razeghi, & V. Gekas (Eds.), Recent advances in environmental sciences and financial development (pp. 87–91). Paper presented at 2nd International Conference on Business Administration, Marketing and Economics (BAME’14), Athens.Google Scholar
  2. Astra International. (2015). Sustainability report 2015: Building resilience responsibly. Jakarta: Astra.Google Scholar
  3. Bhinekawati, R. (2017). Corporate social responsibility and sustainable development: Social capital and corporate development in developing economics. New York: Routledge.Google Scholar
  4. Bocken, N., Short, S., Rana, P., & Evans, S. (2014). A literature and practice review to develop sustainable business model archetypes. Journal of Cleaner Production, 65, 42–56.CrossRefGoogle Scholar
  5. Boons, F., & Ludeke-Freund, F. (2013). Business model for sustainable innovation: State-of-the-art and steps towards a research agenda. Journal of Cleaner Production, 45(9), 9–19.CrossRefGoogle Scholar
  6. Bourdieu, P. (1986). The forms of capital. In J. Richardson (Ed.), Handbook of theory and research for the sociology of education (pp. 241–258). New York: Greenwood Press.Google Scholar
  7. Burt, R. (1992). Structural holes: The social structure of competition. Cambridge: Harvard University Press.Google Scholar
  8. Busse, C., Schleper, M., Niu, M., & Wagner, S. (2016). Supplier development for sustainability): Contextual barriers in global supply chains. International Journal of Physical Distribution & Logistics Management, 46(5), 442–468.Google Scholar
  9. Coleman, J. (1990). Foundations of social theory. Cambridge: Harvard University Press.Google Scholar
  10. Davis, K. (1973). The case for and against business assumption of social responsibilities. Academy of Management Journal, 16, 312–322.Google Scholar
  11. Edwards, M. (2005). Getting to the roots of the problems. Accessed from
  12. Eisenhardt, K. (1989). Building theories from case study research. Academy of Management Review, 14(4), 532–550.CrossRefGoogle Scholar
  13. Eisenhardt, K., & Graebner, M. (2007). Theory building from cases: Opportunities and challenges. Academy of Management Journal, 50(1), 25–32.CrossRefGoogle Scholar
  14. Elkington, J. (1997). Cannibals with forks: The triple bottom line of 21st century business. Mankato: Capstone.Google Scholar
  15. Foerstl, K., Reuter, C., Hartmann, E., & Blome, C. (2010). Managing supplier sustainability risks in a dynamically changing environment – Sustainable supplier management in the chemical industry. Journal of Purchasing and Supply Management, 16(2), 118–130.CrossRefGoogle Scholar
  16. Fukuyama, F. (1995). Trust: The social virtues and the creation of prosperity. New York: Free Press.Google Scholar
  17. Hart, S., Milstein, M., & Caggiano, J. (2003). Creating sustainable value. Academy of Management Executive, 17(2), 56–69.Google Scholar
  18. Høgevold, N., & Svensson, G. (2012). A business sustainability model: A European case study. Journal of Business and Industrial Marketing, 27(2), 141–151.CrossRefGoogle Scholar
  19. Larosa, T. (2016). Astra archival record: New data update of Astra Manufacturing Polytechnic. Jakarta: POLMAN Astra.Google Scholar
  20. Leana, C., & Van Buren, H. (1999). Organisational social capital and employment practices. Academy of Management Review, 24(3), 538–555.CrossRefGoogle Scholar
  21. Lin, N. (1999). Building a network theory of social capital. Connections, 22(1), 28–51.Google Scholar
  22. London, T., & Hart, S. (2004). Reinventing strategies for emerging markets: Beyond the transnational model. Journal of International Business Studies, 35(5), 350–370.CrossRefGoogle Scholar
  23. Ludeke-Freund, F. (2010, October 25–29).Towards a conceptual framework of business models for sustainability. In R. Wever, J. Quist, A. Tukker, J. Woudstra, F. Boons, & N. Beute (Eds.), Proceedings of the Knowledge Collaboration & Learning for Sustainable Innovation, Conference, Delft. Accessed from
  24. McKinsey Global Institute. (2012). The archipelago economy: Unleashing Indonesia’s potential. Washington: McKinsey & Company.Google Scholar
  25. Miles, M., & Huberman, A. (1994). Qualitative data analysis: An expanded sourcebook (2nd ed.). Thousand Oaks: Sage.Google Scholar
  26. Nahapiet, J., & Ghoshal, S. (1998). Social capital, intellectual capital, and the organisational advantage. Academy of Management Review, 23(2), 242–266.CrossRefGoogle Scholar
  27. Osterwalder, A., & Pigneur, Y. (2010). Business model generation: A handbook for visionaries, game changers, and challengers. Hoboken: Wiley.Google Scholar
  28. Porrit, J. (2007). Capitalism as if the world matters. London: Earthscan.Google Scholar
  29. Porter, M., & Kramer, M. (2006). Strategy and society: The link between competitive advantage and corporate social responsibility. Harvard Business Review, 84(1/2), 78–92.Google Scholar
  30. Putnam, R. (1995). Bowling alone: America’s declining social capital. Journal of Democracy, 6(1), 65–78.CrossRefGoogle Scholar
  31. Rasmussen, B. (2007). Business models and the theory of the firm. Working Paper. Melbourne: Victoria University of Technology.Google Scholar
  32. Schaltegger, S., Lüdeke-Freund, F., & Hansen, E. (2011). Business cases for sustainability and the role of business model innovation developing a conceptual framework. Luneburg: Centre for Sustainability Management.Google Scholar
  33. Stake, R. (2000). Case studies. In N. Denzin & Y. Lincoln (Eds.), Handbook of qualitative research (2nd ed., pp. 443–466). Thousand Oaks: Sage.Google Scholar
  34. Stubbs, W., & Cocklin, C. (2008). Conceptualizing a sustainability business model. Organization & Environment, 21(2), 103–127.CrossRefGoogle Scholar
  35. Szreter, S., & Woolcock, M. (2004). Health by association? Social capital, social theory, and the political economy of public health. International Journal of Epidemiology, 33, 650–667.CrossRefGoogle Scholar
  36. Tambunan, T. (2008). SME development, economic growth, and government intervention in a developing country: The Indonesian story. Journal of International Entrepreneurship, 6, 147–167.CrossRefGoogle Scholar
  37. Tambunan, T. (2009). Promoting innovation in SMEs through transfer of technology. Tech Monitor, July–August, 30–36.Google Scholar
  38. UNDP. (2014). Human development report 2014: Sustaining human progress, reducing vulnerabilities and building resilience. New York: United Nations Development Programme.CrossRefGoogle Scholar
  39. Uphoff, N. (2000). Understanding social capital: Learning from the analysis and experience of participation. Washington: World Bank.Google Scholar
  40. Widjaja, H. (2014). The public contribution of Astra. Paper presented at the Seminar Harmonizing government and non-government efforts in strengthening Micro, Small, Medium Enterprises (MSMEs), Jakarta.Google Scholar
  41. World Bank.verder. (2010). Indonesia skills report: Trends in skills demand, gaps and supply in Indonesia. Washington: World Bank.CrossRefGoogle Scholar
  42. Yin, R. (2003). Applications of case study research (2nd ed.). Thousand Oaks: Sage.Google Scholar
  43. Yin, R. (2009). Case study research: Design and methods (4th ed.). London: Sage.Google Scholar
  44. Zott, C., Amit, R., & Massa, L. (2011). The business model: Recent developments and future research. Journal of Management, 37, 1019–1041.CrossRefGoogle Scholar

Copyright information

© Springer International Publishing AG, part of Springer Nature 2018

Authors and Affiliations

  • Risa Bhinekawati
    • 1
  • Banguning Asgha
    • 1
  1. 1.Universitas Agung PodomoroJakartaIndonesia

Personalised recommendations