Fostering Generative Partnerships in an Inclusive Business Model

Abstract

How does a social venture build multiple partnerships among stakeholders to enable a wide range of social value propositions and alleviate economic inequality? We address this question by developing a new concept on generative partnerships, defined as the collaboration between nonprofits and business organizations to co-create social value proposition and attract enhanced collaboration to solve social issues in an inclusive business model. We study two Chinese cooperatives, Co-op Lishui Shangeng (L) and Co-op Wuyang Chunyu (W), to show how they created a social ecosystem through an inclusive business model. These two cooperatives have also developed co-brandings L and W, respectively. We find that hybrid organizations could generate partnerships among different agents to form a social ecosystem. Drawing on the generative relationship theory, we identify four stages of fostering generative partnerships: (1) a value blueprint, (2) a pilot demonstration, (3) scaling-up, and (4) snowballing. After developing propositions regarding directedness, heterogeneity, and interaction of agents, we further elaborate two common schemas on the process of generating hybrid partnerships in this social ecosystem.