Social Network,Institutional Logic And Social Enterprise Business Model

Social enterprises first appeared in the the Sixties or seventies of the 20th century in the European countries,mostly focused on the field of disability,poverty alleviation and special social problems.As the national welfare system becomes increasingly bloated,the fiscal deficit remains high,and the pressure is increasing,the government's allocation to non-profit organizations is gradually reduced.Some of the functions that the government needs to undertake,such as education,medical care,pension,employment,etc.,have been operated in a market-oriented way.The operation of the system,social enterprises have sprung up like mushrooms.As an effective supplement to the absence of government and market,social enterprises can maintain their specific social goals while maintaining sustainable development through their own hematopoietic function.The rise of social enterprises has also aroused widespread concern in Chinese academic circles.Scholars from public governance,sociology,management and other disciplines study the definition,connotation,type,and growth of social enterprises.However,there are not many studies on social business models.Especially in the Chinese context,there are few studies on the formation of social enterprise business models.Therefore,this thesis takes XiAn RenWen and Gufeng Health as two research objects,and uses social network theory and institutional logic theory to study the pre-factors that lead to the evolution of social enterprise business models,and to clarify the difference between the business model of social enterprises and the business model of traditional business enterprises.At the beginning of the article,I first studied the relationship between social networks,institutional logic and social enterprise business models by studying a large amount of literature.Institutional logic is often used to explain the level of corporate behavior,and it is often used together with legitimacy to explain the organization's response to changes in its internal and external environment,which provides ideas for this study.On the basis of combing the literature,I compiled the first-hand and second-hand materials of XiAn RenWen and Gufeng Health,using systematic coding to analyze the factors that influence the business model of social enterprises and clarify the uniqueness of the social enterprise business model.The study finds that the evolution of the business model of social enterprises is mainly dominated by the logic of social logic and business logic.Under the internal and external pressures,the social logic and business logic will dynamically change.There are three stages of dynamic change:the dominant social logic,the balanced social logic and business logic,and the dominant commercial logic.The change of institutional logic will cause the change of the business model of social enterprises,at the same time,the change of business model will also create new pressure on the organization,and then cause the dynamic change of the organization system logic.External pressure mainly comes from the social network in which social enterprises are located,the change of external macroscopic environmental factors will affect the behavior of the actors in the social network,in addition,the social relations in the network,the differences in the nature of social nodes and the relative position of society enterprises in the network,will produce different values oriented pressure,and then it affects the proportion of social logic and business logic.The internal power mainly includes the organization and the entrepreneur two levels,The organizational level is closely related to enterprise resource endowment,enterprise survival pressure,and enterprise development planning;the entrepreneurial level will be affected by many factors such as entrepreneur experience,entrepreneurial identity,and entrepreneurial expectations.The composition of the business model of social enterprises is similar to that of traditional commercial enterprises,but it is different in terms of specific content.The business model of social enterprises and the business model of commercial enterprises both contain the core strategy,strategic resources,customer interface and value network four parts.However,there are differences in target groups,pricing methods,payment behaviors,and low investment in light assets.The target groups of social enterprises are mostly concentrated in the fields of social life,such as old age,education,disability,poverty alleviation,employment and environmental protection.Because traditional commercial enterprises charge too much or the effective supply is insufficient,so that there are still a large number of audiences can not get services or relief.Social entrepreneurs who are deeply committed to social responsibilities are involved in the form of social enterprises to reach more audiences and solve related social problems.Unlike commercial enterprises,social enterprises implement differential pricing in pricing structure,for those who are less able to pay,discounts are given or even free,and full price is charged to other audiences.In addition,the payers of social enterprises are not exclusively consumers,and often their stakeholders transfer payments for them,and governments and third party agencies tend to purchase services directly for socially vulnerable groups.What's more,The business model of social enterprises relies heavily on the social networks in which they are located,and social networks can not only provide social enterprises with the necessary resources,but also provide them with a legitimacy endorsement.Finally,unlike traditional companies which regard their business model as an important source of competitive advantage,the business model of social enterprises is more a manifestation of the acquisition of legitimacy.