This chapter provides a summarized and objective review over the relationships among innovation, social innovation, entrepreneurship, social entrepreneurship, new business models (NBM), and product (good, service, idea) value and sustainability (economic, social, ecological, and psychological). A study has been done in Porto region through interviews with 13 social innovators and entrepreneurs, in order to evaluate those relationship. The conceptual base for analysis is the theories developed by Jonker (2012) and Carvalho and Jonker (2015). It has been concluded that market-oriented social innovation has a crucial role in the development social entrepreneurship. Moreover, these NBM should be adjusted to population needs towards societal well-being, by combining creation of shared value, co-creation of value, and multiple value creation. Thus, the value set (social innovation) contributes to economic, social, ecological, and psychological sustainability, and consequently to human, social and territorial development.
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This chapter begins with the theoretical framework that underlies the concepts of entrepreneurship, social entrepreneurship, entrepreneurial partnerships, innovation, social innovation, social sustainability, new business models (NBM), and the relations among them and their impact on regional development.
Jonker’s theory (2012) was applied to the analysis of 13 cases of social innovation and entrepreneurship. Based on this study, the main characteristics of this NBM were assessed, as well as their link to a balanced value proposition (Carvalho & Jonker, 2015) that considers economic, ecological, social, and psychological factors. These case studies illustrate what is happening in Porto region in terms of social innovation and social entrepreneurship. The methodology followed is qualitative, based on interviews with the leaders of the projects and institutions. The analysis allows to draw conclusions about the new trends of social innovation in the region and in Portugal, as well as the adjustment of the social sector to population needs and towards a societal well-being, helping to reduce social exclusion.
The impact on regional and national development is perceived indirectly by the positive impact of these organizations on economic, ecological, social, and psychological sustainability. The latter is a new broad concept developed in connection to the concepts of psychological value (Carvalho & Jonker, 2015) and mental well-being (European Union, 2011).
The organizational pattern behavior is also assessed, namely using the combination of three approaches (Jonker, 2012): (1) sharing, in terms of social capital, equipment, property, data, time, transport, and skills, among partnerships; (2) trading, concerning transactions with associated benefits, like alternate payment methods or with services exchange, and the generation of value other than profit; and (3) creating, related to the creation of multiple values in win-win situations. These behaviors are related to the concepts of creation of social and shared value (Austin & Seitanidi, 2012b; Porter & Kramer, 2011); co-creative networks (Chatterjee, 2013; Zott, Amit, & Massa, 2011); and multiple value creation (Elkington, 1997).
In the end of the chapter, a new model is presented, which considers psychological sustainability as the fourth pillar of human, social, and territorial development.