Abstract:
Society is facing complex economic, social and environmental challenges, which traditional business models are unable to help resolve due to their focus on short-term financial performance. To address societal challenges new concepts and organisational models, including creating shared value (CSV), have emerged in response to calls for greater responsibility.
CSV relates to the creation of value for the organisation whilst simultaneously creating value for society. Despite its importance, the literature found that shared value was a relatively new concept and theoretically underdeveloped. Moreover, the phenomenon was mostly being analysed at the project level as opposed to the organisational level. As such the purpose of the research was to understand how organisations create shared value at the business model level.
This study is exploratory in nature and the findings are based on 14 semi-structured interviews with senior managers, with knowledge and experience of shared value, within South African listed organisations across six industries. The study utilised a thematic data analysis technique to draw themes and insights to develop an understanding of how organisations create shared value at the business model level.
The study extends and refines the shared value theory, which the literature considered as being at a nascent stage. Specifically, the study applies a business model perspective to shared value which has been predominantly analysed at the project level. Importantly, the study develops a shared value business model (SVBM) conceptual framework which enhances the understanding of creating shared value at the business model level, as well as provides practical guidance for management on how to operationalise a shared value strategy.
