Designing business models for creating and capturing shared value

An activity-system perspective

Arash Najmaei, Zahra Sadeghinejad

Research output: Chapter in Book/Report/Conference proceedingChapter

4 Citations (Scopus)

Abstract

Business models define configurations of activities that jointly enable a firm to create and capture value. The value paradigm is shifting from sharing created value to creating shared value in which firms and societies jointly create and share value to nurture more benefits for a sustainable business-environment symbiosis. Drawing on this logic, we develop a framework for designing business models that enable creation and capture of shared value. Our model builds on the practice theory and activity system and depicts business models as complex adaptive systems that co-evolve with markets. Using the shared value framework proposed by Porter and Kramer (2011) we propose three design themes namely the Product-Market Design (PMD), the Value Chain Design (VCD) and the Social Cluster Design (SCD). We specify features of each school from the activity perspective. Subsequently, we will discuss implications of our framework for theory, practice and management education and illuminate some directions for future research.
Original languageEnglish
Title of host publicationIncorporating business models and strategies into social entrepreneurship
EditorsZiska Fields
Place of PublicationHershey, PA
PublisherBusiness Science Reference
Pages40-65
Number of pages26
ISBN (Electronic)9781466687493
ISBN (Print)1466687487, 9781466687486
DOIs
Publication statusPublished - 2016

Publication series

NameAdvances in business strategy and competitive advantage
PublisherBusiness Science Reference
ISSN (Print)2327-3429

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Najmaei, A., & Sadeghinejad, Z. (2016). Designing business models for creating and capturing shared value: An activity-system perspective. In Z. Fields (Ed.), Incorporating business models and strategies into social entrepreneurship (pp. 40-65). (Advances in business strategy and competitive advantage). Hershey, PA: Business Science Reference. https://doi.org/10.4018/978-1-4666-8748-6.ch003