The Business of Social and Environmental Innovation

The Business of Social and Environmental Innovation

Verena Bitzer Ralph Hamann Martin Hall Eliada Wosu Griffin-EL Editors The Business of Social and Environmental Innovation New Frontiers in Africa

Editors Verena Bitzer Ralph Hamann Martin Hall Eliada Wosu Griffin-EL Graduate School of Business University of Cape Town ISBN 978-3-319-04050-9 ISBN 978-3-319-04051-6 (ebook) DOI 10.1007/978-3-319-04051-6 Springer Cham Heidelberg New York Dordrecht London Library of Congress Control Number: 2014956937 Springer International Publishing Switzerland 2015 This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. Exempted from this legal reservation are brief excerpts in connection with reviews or scholarly analysis or material supplied specifically for the purpose of being entered and executed on a computer system, for exclusive use by the purchaser of the work. Duplication of this publication or parts thereof is permitted only under the provisions of the Copyright Law of the Publisher s location, in its current version, and permission for use must always be obtained from Springer. Permissions for use may be obtained through RightsLink at the Copyright Clearance Center. Violations are liable to prosecution under the respective Copyright Law. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. While the advice and information in this book are believed to be true and accurate at the date of publication, neither the authors nor the editors nor the publisher can accept any legal responsibility for any errors or omissions that may be made. The publisher makes no warranty, express or implied, with respect to the material contained herein. Printed on acid-free paper Springer is part of Springer Science+Business Media (www.springer.com)

Contents Part I Introduction 1 The Business of Social and Environmental Innovation... 3 Verena Bitzer and Ralph Hamann Part II An Entrepreneurial Lens to Social Innovation 2 Social and Environmental Enterprises in Africa: Context, Convergence and Characteristics... 27 David Littlewood and Diane Holt 3 Social Innovation Through Development Franchising: Compensating for a Lack of Entrepreneurial Expertise and Connecting to Formal Supply Chains... 49 Isaac H. Smith and Kristie W. Seawright 4 Innovations in Social Entrepreneurship for Sustainable Biofuel Production: The Case of Tanzanian Outgrowers Cultivating Jatropha for the Global Biofuel Chain... 63 Annelies Balkema and Henny Romijn Part III Strategies for Incumbent Businesses to Engage in Social Innovation and BoP Markets 5 The Evolution of a Sustainability Leader: The Development of Strategic and Boundary Spanning Organizational Innovation Capabilities in Woolworths... 87 Nadine Methner, Ralph Hamann, and Warren Nilsson v

vi Contents 6 Obstacles to Firms Adoption of Socially Embedded Approaches to BoP Markets... 105 Clare Bland and Ralph Hamann 7 An Integrated Approach to Poverty Alleviation: Roles of the Private Sector, Government and Civil Society... 129 Kevin McKague, David Wheeler, and Aneel Karnani Part IV Cross-Sector Collaboration and Social Innovation 8 From Concord to Conflict: A Conceptual Analysis of a Partnership for Social Innovation... 149 Rob Moore 9 Fostering Innovation for Sustainable Food Security: The Southern Africa Food Lab... 163 Milla McLachlan, Ralph Hamann, Vanessa Sayers, Candice Kelly, and Scott Drimie 10 Key Factors for the Successful Implementation of Stakeholder Partnerships: The Case of the African Cashew initiative... 183 Petra Kuenkel and Andrew Aitken Part V Social Innovation and the Role of Higher Education 11 The Social Innovation Lab: An Experiment in the Pedagogy of Institutional Work... 201 Warren Nilsson, Francois Bonnici, and Eliada Wosu Griffin-EL 12 Against Inequality: Towards a Curriculum for Social and Environmental Innovation... 213 Martin Hall Erratum... E1 Index... 233

Contributors Andrew Aitken Collective Leadership Institute, Potsdam, Germany Annelies Balkema Sustainable Innovations and Transitions, Eindhoven University of Technology, Waalre, The Netherlands Verena Bitzer Graduate School of Business, University of Cape Town, Clare Bland Graduate School of Business, University of Cape Town, Cape Town, South Africa Francois Bonnici Bertha Centre of Social Innovation and Entrepreneurship, Graduate School of Business, University of Cape Town, Scott Drimie Southern African Food Lab (SAFL), Johannesburg, South Africa Interdisciplinary Health Sciences, University of Stellenbosch, Stellenbosch, South Africa Eliada Wosu Griffin-EL Graduate School of Business, University of Cape Town, Martin Hall Graduate School of Business, University of Cape Town, Cape Town, South Africa Graduate School of Business, University of Cape Town, Ralph Hamann Graduate School of Business, University of Cape Town, Diane Holt Essex Business School, University of Essex, Colchester, UK Aneel Karnani Stephen M. Ross School of Business, University of Michigan, Ann Arbor, MI, USA Candice Kelly School of Public Leadership, Sustainability Institute, Stellenbosch University, Stellenbosch, South Africa vii

viii Contributors Petra Kuenkel Collective Leadership Institute, Potsdam, Germany David Littlewood Henley Business School, University of Reading, Greenlands, Henley-on-Thames, Oxfordshire, UK Kevin McKague Shannon School of Business, Cape Breton University, Sydney, NS, Canada Milla McLachlan Interdisciplinary Health Sciences, Stellenbosch University, Stellenbosch, South Africa Nadine Methner Graduate School of Business, University of Cape Town, Climate System Analysis Group, Environmental and Geographical Science Department, University of Cape Town, Rob Moore University of the Witwatersrand, Johannesburg, Johannesburg, South Africa Warren Nilsson Graduate School of Business, University of Cape Town, Henny Romijn Technology and Development Studies, School of Innovation Sciences, Eindhoven University of Technology, Eindhoven, The Netherlands Vanessa Sayers Reos Partners, Johannesburg, South Africa Kristie W. Seawright Department of Business Management, Marriott School of Management, Brigham Young University, Provo, UT, USA Isaac H. Smith David Eccles School of Business, University of Utah, Salt Lake City, UT, USA David Wheeler Cape Breton University, Sydney, NS, Canada

List of Figures Fig. 2.1 Map of survey respondents... 33 Fig. 2.2 Primary source of income for African Social Enterprises... 34 Fig. 2.3 Organization s use of volunteer labour... 36 Fig. 2.4 Social purpose venturing in Africa... 38 Fig. 2.5 Environmental enterprises sources of income... 39 Fig. 2.6 Environmental enterprise classification... 40 Fig. 2.7 Social and environmental enterprise spectrum... 43 Fig. 3.1 Differences in entrepreneurial expert scripts among entrepreneurs, managers, and franchisees... 53 Fig. 3.2 Distribution model... 56 Fig. 3.3 Production model... 58 Fig. 4.1 Business models, objectives and sources of financing... 65 Fig. 5.1 Examples of bar-charts summarizing particular aspects of the Woolworths Gbj performance measurement system. ( a ) Corporate scores in bi- annual measurement cycles, 2008 2010, relative to targets for actual year ( dark ) and 2012 ( light ). (b) Aggregate scores for different sustainability factors relative to targets for actual year ( dark ) and 2012 ( light )... 93 Fig. 6.1 The BoP retail distribution structure... 108 Fig. 6.2 Examples of spaza shops, or traditional, informal retail store BoP communities: ( a ) from outside and ( b ) inside... 109 Fig. 6.3 A preliminary model of barriers to socially embedded approaches to the BoP... 111 Fig. 6.4 Revised model of limiting factors towards a socially embedded approach to the BoP... 121 ix

x List of Figures Fig. 6.5 Primary, linked and resultant inhibiting factors to socially embedded approaches with the BoP market in South Africa... 124 Fig. 7.1 Integrated framework for the roles of societal actors in poverty alleviation... 131 Fig. 9.1 A schematic representation of Theory U... 170 Fig. 10.1 Eight key factors for the successful implementation of stakeholder partnerships... 186

List of Tables Table 2.1 Sources of start-up funding for social enterprises... 37 Table 2.2 Environmental enterprise start-up funding... 41 Table 6.1 Overview of interviewees... 112 Table 6.2 Overview of key findings... 118 Table 9.1 Four categories of change strategies, with application to the food system... 169 Table 11.1 A transformative action heuristic for social innovation... 206 Table 12.1 Capabilities for higher education... 219 xi