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From failure to success: rethinking business model design for community-based enterprises

L. Sabaruddin,W. Supratiwi,Philip Linsley

Published 2025 in Journal of Enterprising Communities: People and Places in the Global Economy

ABSTRACT

Community-based enterprises (CBEs) offer a promising strategy for facilitating sustainable local development, yet many experience failure or underperformance. This study aims to explore the concept of community-based business model (CBBM) as a tailored approach to CBE success, analyzing the configuration, development processes, challenges and key factors that contribute its success. Using a multiple case study approach, the authors investigate five leading CBEs in Indonesia, each located in different provinces and include various businesses such as agriculture, farming, tourism and crafts, ensuring a broad representation of CBE business models. The study identifies key characteristics and design elements of CBBM, providing a structured approach on how “successful” CBEs create, deliver and capture value. It also examines the development processes, challenges and key success factors that enhance CBBM effectiveness, offering insights into what drives the development of a “successful” CBBM. The concept of CBBM offers an important implication for organizations engaging in CBE that they should shift from generic BM to a more customized BM to enhance the likelihood of creating sustainable and impactful CBEs. This study advances the literature on CBE and BM by conceptualizing CBBM as a distinct BM tailored for CBEs. It provides theoretical and practical insights into how BM design can enhance the effectiveness of CBEs, laying the groundwork for future research on BM design in CBEs.

PUBLICATION RECORD

  • Publication year

    2025

  • Venue

    Journal of Enterprising Communities: People and Places in the Global Economy

  • Publication date

    2025-09-04

  • Fields of study

    Not labeled

  • Identifiers
    DOI 10.1108/jec-03-2025-0073
  • External record

    Open on Semantic Scholar

  • Source metadata

    Semantic Scholar

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