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Impact creation approaches of community-based enterprises: a configurational analysis of enabling conditions

Journal: Journal of Business Venturing

Date: 2024

Author: Björn C. Mitzinneck, Jana Coenen, Florian Noseleit, Christian Rupietta

Abstract:
This study investigates which local conditions enable community-based enterprises (CBEs) to create impact. Advancing our limited understanding of the various contexts that enable CBEs to tackle societal issues locally, we investigate supportive conditions across 77 CBEs driving the energy transition in their geographic community. Through qualitative comparative analysis, we identify four condition configurations for CBE impact creation. Across these configurations, we reveal transferable mechanisms helping CBEs to engage community members (Opportunity- and Community-anchoring) and handle the absence of a supportive condition (Circumventing and Compensating). Our study suggests how CBEs can combine these mechanisms to create impact in varied local contexts.

Link: Google Scholar

Background and Context

Community-Based Enterprises (CBEs)

CBEs are ventures co-owned and co-governed by local inhabitants that find fitting local solutions for communities to tackle grand challenges where they manifest.

Research Focus

This study investigates which local conditions enable CBEs to create impact by examining 77 bioenergy community ventures (BEVs) in Germany driving the energy transition.

Methodology

The researchers used qualitative comparative analysis (QCA) combined with in-depth case analysis to identify supportive condition configurations and underlying mechanisms.

Four Different Configurations Enable CBE Impact Creation

Config 1 Config 2 Config 3 Config 4 Physical Resources Form Legitimacy Lacking Concernment Physical Resources Social Capital Lacking Form Financial Resources Social Capital Concernment Lacking Form Form Legitimacy Concernment Lacking Social Multiple Paths to Impact Creation Opportunity Leveraging Community Leveraging Opportunity Building Community Building
  • The study identified four different combinations of local conditions that enable CBEs to create impact.
  • Each configuration includes the absence of one supportive condition, showing CBEs can succeed in less-than-ideal contexts.
  • No single condition is necessary across all configurations, contradicting prior beliefs about essential requirements.

Four Impact-Creation Mechanisms Combined into Distinct Approaches

Circumventing Compensating Opportunity-anchoring Community-anchoring Opportunity Leveraging (Configuration 1) Opportunity Building (Configuration 3) Community Leveraging (Configuration 2) Community Building (Configuration 4) Four Mechanisms of Impact Creation
  • Each impact-creation approach combines one community engagement mechanism with one mechanism to handle absent conditions.
  • Opportunity-anchoring and Community-anchoring represent two distinct ways to engage community members in the CBE.
  • Circumventing and Compensating represent different strategies for dealing with the absence of a supportive condition.

How CBEs Use Transferable Mechanisms to Create Local Impact

Opportunity-anchoring Community-anchoring Circumventing Compensating Engages members by emphasizing value they desire Engages members by creating affiliation and belonging Bypasses lacking condition making it irrelevant Gradually reduces hurdle of lacking condition How CBEs Create Impact with Available Conditions Combined into Impact-Creation Approaches
  • Opportunity-anchoring engages community members by highlighting economic, social, or ecological benefits they desire.
  • Community-anchoring engages members by fostering a sense of belonging and meaningful relationships.
  • Circumventing allows CBEs to bypass lacking conditions, while Compensating helps gradually overcome them.

Key Implications Reveal Multiple Paths to Success for CBEs

CBE Impact Creation No Single Condition is Necessary Multiple Paths to Impact Creation Success in Less Than Ideal Contexts Key Implications for Community-Based Enterprises
  • Contrary to prior speculation, no single condition is necessary for successful CBE impact creation.
  • CBEs can succeed through multiple different pathways, each combining different supportive local conditions.
  • These findings challenge the belief that CBEs can only thrive in ideally supportive contexts.

Contribution and Implications

  • Demonstrates that no single condition is necessary for CBE impact, contrary to prior theoretical expectations.
  • Identifies transferable mechanisms for community engagement that CBEs can adapt to their specific context.
  • Offers practical guidance for changemakers on selecting appropriate impact-creation approaches based on available conditions.
  • Helps policymakers identify communities where CBEs could effectively create impact and target support accordingly.
  • Shows that different impact-creation approaches generate distinct beneficial side effects beyond primary goals.

Data Sources

  • Visualizations are based on the study's findings from qualitative comparative analysis of 77 bioenergy community ventures.
  • Condition configurations (Visualization 1) are derived from Table 2 in the article.
  • Impact-creation mechanisms (Visualizations 2-3) are synthesized from the case analyses in section 4.2.
  • Key implications (Visualization 5) are drawn from the study's conclusions in section 5.