Synthesis: The Future of Innovation, CSR and (In-)Formal Management

Abstract

This chapter provides a synthesis and conclusion over the book chapters. It does so by reporting on a content analysis of the book chapters and case studies published in this volume. It could be shown that intrinsic Corporate Social Responsibility (CSR) is rooted in the ethics of individuals, usually starting with the owner-manager, but permeated through culture across the organisation. In addition, these intrinsic motives are often tacit, difficult to espouse and somewhat separate from profit-maximising endeavours. However, their efficacy in achieving corporate success is proven—no reason was found why intrinsic motives and their enactment in CSR and business practices are an impediment to competitiveness, or to providing sufficient innovation dynamics towards persistent product and process development. What is observable is the specific coexistence of ethical motives and motivation with suitable business models, so where the 1970s Contingency Theory suggested internal organisational structures to be contingent with external factors, here it appears that business models shape around pre-existing ethical motives and value-based propositions. And as the interest in new business models, built on ethics, morale, intrinsic motivations implicit communication, has increased since the many financial and state crises over the last decade, the hope is that such legitimate practice may offer an alternative pathway towards genuine social responsibility of companies. The time for Small and Medium-sized Enterprises (SMEs) to become genuine beacons of inspiration seems to have come.

1 Introduction

The last chapter of “Intrinsic CSR and Competition” in its multifunctionality covers to some extent a summary, takes conclusions, shows gaps and potential for further research and has other quite specific prior functions. They are rooted in the broad area of research—ranging from foundational research (i.e. intrinsic and extrinsic motivation, the former’s legitimacy, the still rampant superstition of the latter’s power, or to be precise, its causality to enhance a company’s financial performance), to post-financial crisis popular research regarding heritage, values, the importance of staff, its motivational level, entrepreneurship, motivation, etc. (Kaptein 2011).

To answer these questions, two content analyses of all case studies’ texts were conducted: (1) a “standard” qualitative content analysis following the rules of Legewie’s global analysis (1994) and Mayring’s (1996, 2003) qualitative content analysis; (2) an automated content analysis (ACA) using a software (i.e. Leximancer). This approach shows significant benefits (see Sect. 4).

2 Synthesis: The Business Model Puzzle

Firstly, this book’s aim, endeavour, as well as ambition is to identify and explore a Meta Level Conceptual CSR Framework, seen as Meta Business Approach and/or Business Model. Further, how the crucial success factor, i.e., “innovation”, is taken into account should be answered as well.

Although the dichotomy “intrinsic vs. extrinsic” or “nonformal vs. formal” management activities were questioned by different authors’ case studies, this is an overarching issue, simply given by the title and its (still continuing) discussion.

2.1 Synthesis: Ontology vs. Evolution

Secondly, this Framework’s capability is to cover two other areas of interest regarding business frameworks and as a consequence (in-)formal management: the ontological aspects (i.e. origins, definitions, components and taxonomies of the business model; the relationship between the business model and strategy); and the evolutionary aspects (i.e. the business model innovation; the open business model; and the sustainable business model) (Di Tullio et al. 2018). Results suggest that, despite substantial academic interest, an agreed conceptualisation of the business model is still lacking. Hence, this study aims to uncover, classify and integrate the main units of analysis from the topics and chapters above.

3 Synthesis: Intrinsic Motivation vs. Tacit Knowledge?

To follow values, virtues, familytradition, while being world market leader in the luxury segment, postulates innovation as THE crucial success factor within a company’sbusiness model. Or, to realise that employees working for companies belonging to significantly different sectors have comparable—in the meaning of convertible—skills, processes, thus knowledge, shows “tacit” knowledge (Koskinen et al. 2003).

Tacit knowledge represents knowledge based on the experience of individuals. It expresses itself in human actions in the form of evaluations, attitudes, points of view, commitments, motivation, etc. Usually, it is difficult to express tacit knowledge directly in words (Koskinen et al. 2003), and often, the only ways of presenting it are through metaphors, drawings and different methods of expression not requiring a formal use of language. Regarding daily business, many SME owner-manager, his family members, experts, scientists, etc. cannot express clearly all they know and are able to do, and how they make their decisions and come to conclusions.

Moreover, this chapter addresses the question from what kind of motivation—assumed to be intrinsic to match the goal of motivation combined with knowledge—the case studies’ social engagements provide the proper work context for tacit knowledge acquisition and sharing to take place.

4 Methodology

This study, based on case studies written by this book’s authors, is epistemologically linked to social constructivism since it assumes that reality is constructed by human beings interacting in a cultural setting (Scott 1995). Grounded theory is the appropriate approach to research such settings since it enables to seek out and conceptualise the latent social patterns by using an inductive approach of generating substantive codes from collected data (Mitchell and Jolley 1992; Creswell 2007). Later, it is possible to develop theories leading to the next sequence of data collection increasingly focussed on the deduction of further questions (Patton 2002). Considering this hermeneutical integration of rival theories, new insights and additional third-party sources are consulted and included whenever useful, achievable and/or necessary.

4.1 Case Studies’ Analyses: Synthesis “Ontology vs. Evolution”

The case studies were analysed following the aim Sect. 2 described regarding Business Frameworks related to (in-)formal approaches (Di Tullio et al. 2018).

These are the ontological aspects:

• Origins

• Definitions

• Components

• Taxonomies of the business model

• The relationship between the business model and strategy

as well as the evolutionary aspects:

• The business modelinnovation

• The open business model

• The sustainable business model

4.2 Case Studies’ Analyses: Synthesis “Intrinsic Motivation/Tacit Knowledge”

A key part of this new story is renewed interest and revitalised research on the idea of corporate social responsibility. In the light of numerous well-publicised problems and scandals involving large corporations whose highly formalised CSR systems failed to prevent anti-social and illegal behaviour, there is growing interest in informal processes and relationships—that are based on tacit knowledge (Koskinen et al. 2003) and driven by intrinsic motivation—that foster organisational cultures that embed and exemplify CSR. This book’s 13 case studies and their inherently different approaches investigate the processes, values, relationships, etc. that make up informal CSR-oriented organisational cultures. Thus, it aims at identifying key drivers and dynamics of different management systems as well as business models.

4.3 Qualitative and Automated Content Analysis

In the first step, the essays were analysed by Legewie’s (1994) global analysis and Mayring’s (1996, 2003) qualitative content analysis. This process allowed cross-case comparisons to identify patterns and construct typologies as suggested by Patton (2002). This helped to relate the identified patterns to other observations or research results. Table 1 outlines the different steps of analysis:

Table 1 Working steps regarding the goal to reach a meaningful synthesis

Until stage 8, the methodology is interpretative at several levels, which might be a draw-back on the study’s objectivity. To tackle these weaknesses and further heighten the quality of this study the rich Case Study texts were also analysed by automated content analysis (ACA) software, namely Leximancer, to help mitigate human biases since this allows an independent, objective, systematic, category-based examination of individual statements.

The combination of a software tool like Leximancer (with to some extent grounded theory like approach) with a qualitative content analysis yields useful information for further research.

5 Findings

5.1 Synthesis Results: “Ontology vs. Evolution”

The case study coding delivered interesting linkages between the theoretical aspects of ontology and daily business practices. Some significant statements are added; other codes are overarching topics mentioned by a number of case study-involved leaders, employees, etc. (Table 2).

Table 2 Synthesis’ results: “Ontology vs. Evolution”: ontological aspects

In general, the case study texts are very rich regarding quotes that clearly show some tendencies towards ontology—or even, to be precise, fundamental ontology. However, as the cases were related to very specific topics, for instance attitudes, behaviours regarding their employees, virtues/values as business drivers, etc.

Regarding evolutionary settings of business models, a clear-cut relation between intrinsic CSR, SMEs and innovation as business driver could be stated (Table 3).

Table 3 Synthesis’ results: “Ontology vs. Evolution”: evolutionary aspects

5.2 Synthesis Results “Intrinsic Motivation/Tacit Knowledge”

As tacit knowledge is hard to identify apart from human actions in the form of evaluations, attitudes, points of view, commitments, motivation, etc., this synthesis is mainly based on codes given during the transcript for expression of emotions (shown, e.g., by gesture or facial expression). To set codes already during the process of transcription is a smart way to catch statements made with a chuckle, or if interviewees got stressed by unusual questions, if they avoided eye contact by any reason, etc.

Usually, it is difficult to express tacit knowledge directly in words, and often, the only ways of presenting it are through metaphors, which is an option using MAXQDA for coding. MAXQDA offers a set of pictograms or emoticons to express “hidden” information nevertheless. Especially regarding this point, Leximancer as a backup analysis is very suitable.

As shown, intrinsic motives are in many cases key drivers regarding the social dimension of CSR. To elaborate the nexus between intrinsically motivated actions and in the case of need-related tacit knowledge, socially intrinsic motivation seemed to be a suitable anchor of proof. “People-oriented” was identified to be a core concept of the social dimension of CSR.

The analysis of the Swiss and German Case Studies using the re-clustering function “change to social relation map” and “people” delivered an interesting visualisation (see Fig. 1). Interestingly, as “different” seems to be an important concept for these companies given “people” as core concept of intrinsic CSR motives.

Fig. 1

“Intrinsic Motivation/tacit Knowledge” visualisation using Leximancer

The German and Swiss cases were chosen due to language issues, since Leximancer is sensitive regarding many languages, including Italian; however, it cannot analyse a mixture of language sets.

Figure 2 shows the ranking of related words, their count and likelihood. These parameters were the result of the first analysis step regarding intrinsic motivesfor CSR of the mentioned cases and social activities.

Fig. 2

Ranking of tacit knowledge aligned with “people” (issued by Leximancer)

6 Conclusion

Due to focusing on two specific synthesis, it can be concluded that an intrinsic approach is neither a hurdle nor a break on being innovative. By contrast, as small companies are often financially independent, moreover with ground, buildings, company material, etc. belonging to them, they have in many cases free financial measures as well as the eager to integrate their companies forward or backward, to differentiate, to come up with new products.

The parameters determining a “Meta Level Conceptual CSR Framework”—as a core aim of this book—are identified. However, the puzzle’s pieces bear quite generic names. The reasons why are profound as well as banal. Banal, since the case studies’ SMEs are highly agile—as precondition to be innovative. Further, they are belonging to different sectors, with divergence regarding cultural background, age, language, religion, etc.

As many of the SMEs under research stated that “Strategy is distinct from their Business Model”, the relation between the former and the latter seems to be floating, thus culminating in profoundly different manifestations. As a consequence, even compared to “50 Business Models to Adopt or Adapt” (2017) this synthesis concludes with a three-dimensional set-up. This is defined by the level of tacit knowledge, the relationship between ontological and evolutionary aspects, and the level of intrinsic motives. The latter is seen to have a correlation with tacit knowledge; however, the direction of causality or the determination by a latent variable is not clear-cut at this stage. The identification of (non)causality seems to be playground for further research (Fig. 3).

Fig. 3

“Three-dimensional SME-CSR business model”

As the interest in new business models, built on ethics, morale, intrinsic motivations implicit communication, agility, as well as on ongoing innovation, has increased since financial and state crises, the time for SMEs to become genuine lighthouses seems to have come.