Short Abstract:

This study aims to critically review how an NGO in a developing economy deviates from traditional development means to alternative social enterprise mechanisms for enhancing their impact on women's empowerment and economic independence.

Long Abstract:

This study aims to critically review how an NGO in a developing economy deviates from traditional development means to alternative social enterprise mechanisms for enhancing their impact on women's empowerment and economic independence. In the context of NGOs, value co-creation has shifted how modern NGOs manage the organizational and development capabilities (Chmielewski et al. 2020; Dumalanede & Payaud, 2018; Kerlin 2013). Transforming from development aid providers to socially marginalized people to include them in social and economic value creation has been criticized as well as appreciated in past studies (Baser et al., 2022; Muhammad, 2018; Mair et al., 2012; Karim, 2011). Therefore, this study aims to investigate whether including marginalized groups in the value chain as a means for economic and social growth is effective by analyzing a social enterprise, BRAC Aarong, operating in Bangladesh. An in-depth analysis of the social enterprise by integrating the theoretical framework of social innovation and value co-creation has been conducted based on primary (e.g., in-depth interview) and secondary data (e.g., BRAC annual reports from 2013 to 2023). The findings of the study broadly illustrate the innovative model the NGO has developed to support under-represented women by creating demand and a market for their skills. It bridges the gap between the buyers and local rural women entrepreneurs, creating opportunities for the underprivileged to achieve a better living by enhancing their capability (Doherty et al., 2020; Mair et al., 2012; Sen, 2000). However, factors such as institutional settings (Doh & Guay, 2006), government policies (Fifka & Pobizhan, 2014), corruption and mismanagement of funds and resources internally and externally (Baser & Hasnath, 2022) create unequal platforms and disparity in how the social enterprise contributes to and facilitates the development activities. The finding also suggests that collaborative approaches with other traditional (e.g., international development agencies ) and non-traditional (e.g., multinational corporations) development agents create new avenues for development initiatives and access to resources (Ajwani et al., 2021; Ghauri, 2018; Doherty et al., 2014; Jamali et al., 2008). Moreover, the two-fold effects of the outcome of the operation of the social enterprise have proved to be beneficial to building a financially independent enterprise model for the NGO (Cho et al., 2015). Hence, the research outcome adds new dimensions to the existing literature on development policies and the intersection between social innovation and value co-creation. Moreover, the practical implication of innovative approaches showcased in the study would benefit both developed and developing countries' policy actors, practioners and NGOs.

Keywords: Social innovation, value co-creation, social enterprise, developing economy.

References

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