Despite smallholder farmers playing an important role in global food production, the value retained by smallholders in agri-food supply chains has declined over the last 20 years. This chapter makes a new contribution to the inclusive value chain literature by showing that hybrid business models in the form of social enterprise provide novel approaches to profit distribution, power and governance and entrepreneurship to deliver development goals for smallholder farmers. Hybrids are able to support smallholders in accessing both credit and premium market segments coupled with addressing power imbalances and quality requirements in value chains.
Bob Doherty and Pichawadee Kittipanya-ngam
Bob Doherty, Valéry Bezençon and Gaëlle Balineau
Bob Doherty, Helen Haugh and Fergus Lyon
The pursuit of commercial, social and environmental goals makes social enterprise hybrids an ideal setting in which to investigate organisational hybridity. Social enterprise hybrids bridge the public, private and non-profit sectors and are found in a range of industries and locations. They differ from other forms of enterprise as they prioritise the achievement of social and environmental objectives above commercial goals, and they differ from other forms of non-profits as they generate income from trading activity (Doherty et al., 2014; Pache and Santos, 2013; Zahra et al., 2009). Research concerning how social enterprise hybrids are managed, however, is still in its infancy. This chapter explores the strategic management tensions encountered when seeking to balance commercial, social and environmental objectives, and presents a conceptual framework to advance our understanding of the management of social enterprise strategic management tensions. We define strategic management as the fundamental decisions that shape the course of a firm (Eisenhardt and Zbaracki, 1992), and it is of particular interest to leaders of social enterprise hybrids when seeking to scale up impact or scale out delivery (Lyon and Fernandez, 2012; Vickers and Lyon, 2013). There has been a growing societal interest in the scaling of social enterprise hybrids as people search for alternatives to the conventional divisions between public, private and charitable organisations in order to find ways to increase well-being, prosperity and sustainable development (Mair and Mart', 2006; Ridley-Duff and Bull, 2011). A fundamental element of social enterprise strategic management is the ability to respond to the conflicting demands to achieve commercial, social and environmental objectives.