Managing Value Creation Paradoxes in Social Business: The Role of the Digital Platform Business Model
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Abstract
Objective: this paper examines how business model design influences value creation paradoxes in social businesses, with a focus on DPBMs (digital platform-based models). Methods: case studies in the Brazilian education and employability sector are analyzed using the activity system perspective of business model design. Results: the findings show that DPBM-based social businesses exhibit a mix of traditional business model value drivers (complementarity, lock-in, and novelty) and social business value drivers (impact complementarity, shared values, and integration novelty). DPBMs can help social organizations address the learning paradox and improve activity efficiency for business scalability. However, challenges in implementing DPBMs, such as user group selection, revenue models, and platform access regulation, can amplify performance and learning paradoxes. Conclusions: the study provides empirical evidence supporting specific drivers of social business value while highlighting a coexistence with traditional business model drivers. DPBM can aid scalability but presents challenges impacting performance and learning paradoxes. Insights for managers include the significance of business model design and the need to consider social and traditional value drivers in DPBM decisions.
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