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

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

Abstract

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.

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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

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