Introduction

In recent years, there has been an increase in the formation and recognition of social enterprises as models for addressing social problems. Researchers and practitioners have underscored the need for more attention to exploring the “social value creation process” and understanding “how” ideas originate, opportunities are developed, and social enterprises built to use resources in innovative ways to create social value (Dees 1998; Guclu et al. 2002; Mair and Marti 2006). Likewise, researchers and educators have emphasized the need for complementary instructional methods and examples to help students appreciate how to take action, by going beyond the immediate emotional triggers and providing real solutions for solving social problems (Dees 2012).

Process models are valuable conceptual tools and represent one approach for examining how to take action for social value creation (Kickul and Lyons 2012; Mair and Marti 2006). The purpose of this study is to develop a teaching case to illustrate the application of a process model through an in-depth analysis of Wine To Water,Footnote 1 a social enterprise that provides access to clean water through working with stakeholders in their communities. Among issues that social enterprises address, the lack of access to clean water and improved water sources remains a critical issue in numerous countries (World Bank 2016). In many instances, where governments and other organizations have not extended adequate resources for effectively reaching individuals, social enterprises have emerged in helping communities to find resolutions for solving pressing water issues (United Nations 2016).

The process model introduced in the current study, Transforming Good Intentions into Social Impact, builds upon and extends the phases articulated in the well-known Opportunity Creation Process Model (Guclu et al. 2002), or CASE process model. The CASE process model draws attention to the initial inception of a social opportunity in terms of an idea generated to address unmet social need and the development of the idea into a viable opportunity. Extending and going beyond the CASE process model, the process model in the current study elaborates on the subsequent phase of building and sustaining the social enterprise. This extension is useful in appreciating the overall actions of the social enterprise once operationalized.

The current study contributes to the calls for research to explore the “social value creation process” and provides a teaching case for applying a process model to a social enterprise. Application of the process model contributes to existing research on how social enterprises are formulated and implemented (Smith et al. 2013). The real-world application of the process model to a specific social enterprise helps students appreciate the scope and reduces the complexity (Kickul and Lyons 2012) of the elements involved in the social value creation process. The case study also enables prospective social entrepreneurs and students to see the interconnections involved in the process of creating, building, and sustaining a social enterprise model for social impact. The study contributes to the literature on stakeholder engagement in social enterprises (Ramus and Vaccaro 2017), as the case demonstrates the involvement of community partners, employees, volunteers, donors, and others to carry out the mission for developing water projects within communities.

In addition, the case study contributes to the existing literature on value creation through social enterprises (Chell et al. 2016). In this study, the process model is applied to a social enterprise established in the USA. The approach emphasized in this study is different from other approaches to social enterprises, such as approaches within the European context (Banks 2016; Defourny et al. 2014; Ridley-Duff and Bull 2015). Using this case study in contrast, students are provided with the opportunity to recognize and acknowledge differing perspectives on social enterprises (Kay et al. 2016) and varying contexts within which social enterprises operate (Defourny and Nyssens 2017).

The paper continues with background on social entrepreneurship and the social value creation process. Next, a description of the three-phase process model, Transforming Good Intentions into Social Impact, is provided. “Methods” section explains the data collection and single case study procedure. Following methods, results are presented on the application of the process model to a social enterprise. The paper concludes with a discussion and teaching note offering suggestions for educational use.

Background

Social Value Creation Process

Research on social entrepreneurship has evolved (Mair and Marti 2006). Early streams of research often focused on social entrepreneurs and characteristics that differentiate them from others (Bornstein 1998; Drayton 2002; Thompson et al. 2000). More recently, researchers have argued a more meaningful approach considers social entrepreneurship as a “social value creation” process. Researchers (e.g., Dees 1998; Guclu et al. 2002; Mair and Marti 2006) have moved away from describing “who” the individual social entrepreneur is toward a better understanding of “how” new organizations are created, opportunities to create social value are exploited, and resources are combined in new ways for social impact. Social entrepreneurship is viewed as a process that considers the interactions of the social entrepreneur, stakeholders, social enterprise, and context within which the social enterprise operates (Kickul and Lyons 2012; Mair and Marti 2006; Wei-Skillern et al. 2007).

Increasingly, research has distinguished among different approaches to social enterprises (see Ridley-Duff and Bull 2015). During the value creating process, social entrepreneurs recognize social needs and pursue opportunities by responding with actions (Short et al. 2009) that may be international in scope (Zahra et al. 2008). In this regard, social entrepreneurs are viewed as change agents by generating a promising idea with a mission to create social value (Dees 1998), seeking innovative solutions for a pressing social problem (Ashoka 2016), and being committed to mitigating or eliminating a social problem through innovative change strategies (Bloom and Chatterji 2009).

In applying a process model, it is important to link together the social entrepreneur who generated the idea, the social enterprise, and the context in which the social enterprise operates. As Kickul and Lyons described: “…social entrepreneurship is about a process that involves the interactions of all three of these elements” (2012: 27). Relative to the process, social enterprises are created with a main emphasis on problem solving, implementing solutions, and defining social impact outcomes that are directly linked to the social enterprise’s purpose (Dacin et al. 2010; Dees 2012). Social enterprises are often hybrid in form, encompassing dimensions of both charitable and business enterprises by pursuing a social mission and purpose, while simultaneously utilizing business approaches to help solve social problems in innovative and sustainable ways (Dees 1998; Jiao 2011; Kickul and Lyons 2012; Mair and Marti 2006; Wilson and Post 2013).

In general, process models consider what has taken place over time, identify stakeholders vital to the creation, development, and implementation of a social enterprise, and draw attention to resources that are required in support of mission and goals (Kickul and Lyons 2012). The application of a process model can help one to gain appreciation for the phases and actions taken to achieve social impact. In elaborating the significance of process models, Brooks (2009) argued that a process model helps in comprehending the life of the social enterprise including opportunity recognition, concept development, resource determination and acquisition, launch and venture growth, and harvesting the venture. A process model is useful for relating how the social entrepreneur originally comes to address a social need and goes further to delineate how the promising idea is developed into an attractive opportunity. As part of the process, the ongoing viability (Brooks 2009) of the organization is developed.

Process models draw attention to how to build an organization for delivering social impact. As such, social enterprises should clearly articulate intended impact (Colby et al. 2004). Potential providers of funding, including donors, grant agencies, and service organizations, will expect that social enterprises provide measures and evidence of social impact. It is important to capture actual costs for achieving impact and identify how to achieve funding in order to build an organization with requisite resources to deliver results (Bradach et al. 2008).

Transforming Good Intentions into Social Impact

The current study introduces and elaborates on the process model, Transforming Good Intentions into Social Impact, as depicted in Fig. 1. The three phases of the process model include: (1) generating a promising idea; (2) developing the promising idea into an attractive opportunity; and (3) building and sustaining the social enterprise. The first two phases are grounded in the CASE process model (Guclu et al. 2002). The process model, Transforming Good Intentions into Social Impact, extends to elaborate a third phase which highlights actions to build and sustain the existing social enterprise and measure its social impact.

Fig. 1
figure 1

Source: Generating a promising idea and developing the promising idea into an attractive opportunity are adapted from Guclu et al. (2002)

Transforming good intentions into social impact: a process model.

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Generating a Promising Idea

In the initial stage of generating a promising idea, the process model emphasizes personal experiences of the social entrepreneur that motivate the formation of an idea and shape essential comprehension of social needs. This phase explains that social entrepreneurs look for ways to address unmet social needs that shape the promising idea. Initial ideas are not constrained by resource availability, as this phase of the process model expounds on thinking broadly about potential social assets for surfacing ideas. In generating a promising idea, change and engagement in continuous innovation and learning from the process of idea generation are highlighted (Guclu et al. 2002).

Developing the Promising Idea into an Attractive Opportunity

In moving forward in the process, there is less emphasis on the individual social entrepreneur and more attention given to the interactions of the social entrepreneur, stakeholders, and organizational activities. It is essential to look at the compelling social impact theory, a proposition on how to achieve positive social outcomes in order to design an appropriate operating model. The social entrepreneur, organizational members, and other stakeholders articulate linkages for establishing an operating entity with key activities, coordinating mechanisms among stakeholders, and recognizing resource requirements and how resources could be secured via the resource strategy in the operating environment (Guclu et al. 2002).

Building and Sustaining the Social Enterprise

The process model in this study emphasizes a third phase on how to build, sustain, and evolve the social enterprise. Attention in this phase is on defining and implementing the business model, growing relevant resource strategies, evolving the social enterprise consistent with mission and resources, measuring social impact within the existing social enterprise, and sustaining the social enterprise as it evolves. Essentially, this third phase in the process model extends thinking to consider current conditions experienced by the social enterprise and contemplate the need to anticipate change and plan for the future.

Throughout the phases of the process, the mission remains central to defining the scope and purpose. Important considerations include clearly specifying what the social enterprise will do, how to create value, and how to measure social impact (Brooks 2009). Recognizing the value proposition for the social enterprise and strengthening the business model are essential to the ongoing process. Consistent with recommendations in other research (Brooks 2009), the process model encompasses decisions about strategic resources, acquisition of resources, building necessary competencies, and interfacing with stakeholders and partners in a community. The phases depicted in the process model, Transforming Good Intentions into Social Impact, guide our case study about the application of the process model to a social enterprise.

Methods

Case Study for Applying the Process Model

The current study applies the process model to the social enterprise, Wine To Water. Doc Hendley, social entrepreneur, founded the organization in 2004 with the mission to be “committed to serving in community to provide clean water to those in need.” Wine To Water is located in Boone, North Carolina in the Blue Ridge Mountains of the eastern USA. Wine To Water’s approach is that achievement of the greatest impact happens by working with community partners led by people in or near communities served. Wine To Water’s emphasis on “in-community” projects is a reflection of the guiding philosophy that members of a local community have the best understanding of local social needs and assets. For water projects to be sustainable over the long term, Wine To Water purposely engages local stakeholders.

Wine To Water has developed community-based projects in countries including Brazil, Cambodia, Colombia, Democratic Republic of the Congo, Dominican Republic, Ethiopia, Honduras, Kenya, Nepal, Peru, Uganda, and the USA. Outcomes and impact attributed to efforts on water improvement include access to safe drinking water in homes, schools, and communities; reduced water-related illnesses, particularly among children; and improved living conditions for communities with safe drinking water. In some communities, Wine To Water engages in educational initiatives for sanitation, hygiene, rainwater harvesting for clean water, and watershed cleanup and restoration. Water projects have reached nearly 500,000 people (based on Wine To Water 2016 and interviews). Examples of estimated social impact as of 2016 are shown in Table 1.

Table 1 Wine To Water’s projects by country, estimated impact, and water solutions
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Data Sources and Data Collection

This study utilized a single case study to apply the process model to one social enterprise. Case studies are preferred when “how” questions help to understand the real-life context of a situation (Yin 2014). A single case allows focus on “the dynamics present within given settings” (Eisenhardt 1989: 534) and provides a context for a rich in-depth description in one specific context (Miles et al. 2014).

Multiple primary and secondary data sources were collected, consistent with recommendations of researchers (Creswell 2013; Merriam and Tisdell 2016; Yin 2014). Primary data included multiple interviews and direct observation of a community water project. Secondary data sources included organizational records, news articles, and publicly available materials. An initial contact with the social entrepreneur, Doc Hendley, confirmed general interest to participate in the study. As recommended from the outset (Merriam and Tisdell 2016), the researchers explained the purpose of the study, the intended use of data and results, and confirmed that follow-up contact could be made for clarification.

Researchers conducted semi-structured interviews in February and March 2016 with six respondents including the founder and president, chief executive officer (CEO), member of the board of directors, international operations director, volunteer programs director, and a community ground partner. Interviews represented a range of positions, knowledge, and experiences (Yin 2014) and averaged 60 minutes each. The founder has been with the organization since its inception and currently serves as president. Other respondents reported years with the organization ranging from 2 to 4 years. The resulting case study specifies the name of the founder and identifies other participants by their professional affiliations.

Interviews were semi-structured using predetermined and open-ended questions designed to elicit responses about experiences and knowledge of the social enterprise, while providing flexibility to explore insights that emerged (Merriam and Tisdell 2016; Yin 2014). “Appendix 1” shows a sample of open-ended questions utilized in the interviews. The researcher took notes and targeted a short turnaround to summarize the notes as recommended (Miles et al. 2014). Some interviews were recorded with permission; audio tapes were retained to be summarized and then destroyed. Narratives of the interviews were sent to participants for accuracy and clarity. As direct observation in the field is an important tool for collecting primary data in a qualitative case study (Creswell 2013), one researcher traveled to the Dominican Republic in March 2016 to observe how a community-based project was carried out.

Data from the interviews, observations, and secondary sources were content analyzed in accordance with research procedures using an iterative process (Strauss and Corbin 1998) and coded by categorizing data into common themes (Lee 1999). Researchers read responses to identify themes and patterns, independently cross-analyzed the content, and worked together to summarize the findings. The data analysis process continued to address discrepancies and increase interrater reliability (Lee 1999; Miles et al. 2014).

Results from the Case Study

The results demonstrate the application of the process model, Transforming Good Intentions into Social Impact, to the social enterprise, Wine To Water. The findings are reported based on the three phases of the process model: generating a promising idea; developing the promising idea into an attractive opportunity; and building and sustaining the social enterprise. The summary of results show core themes substantiated with quotes from interviews, direct observation of a community-based water project, and evidence from archival sources.

Generating a Promising Idea

The personal experiences of Doc Hendley, social entrepreneur, inspired the initial interest in water-related social needs. When asked how he came up with the original idea, he indicated, “Water found me instead of me searching for it.” Recounting personal experiences, Mr. Hendley was in his last semester at North Carolina State University when he began thinking about what he was “going to do with the rest of his life.” Intrigued and inspired by a friend’s ambitious aspirations, he wanted “to be his best self.” During that period, he was visiting his parents in Boone, North Carolina. One night the phrase “wine to water” came to him. As a musician, he recalls writing down the phrase thinking, “it might be an inspiration for a song.” With that phrase in mind, he conducted research to learn more about water needs.

Doc Hendley recalled being “quickly blown away by the gravity of the issue.” The social needs related to water began to stick with him such as, “Water-related illness is the number one thief of children’s lives.” The genuine need became very real, but the scope of the social need seemed overwhelming to address. He experienced self-doubt wondering, “If he was good enough to serve” and questioning if “making a difference was something that only people with a lot of money did.”

To avoid feeling overwhelmed by the scope of the problem, Mr. Hendley’s mindset instead began to focus on “realizing the dire need for clean water” and that his efforts “could make a difference.” As he quoted from Wine To Water materials during the interview, “My efforts are going to be a drop in the bucket, but if I would have never taken that step because it was too big of a problem, then we wouldn’t be anywhere right now.” He also related in his autobiography, Wine To Water: A Bartender’s Quest to Bring Clean Water to the World (Hendley 2012), the profound experience that he felt for being involved in creating change and being motivated to respond with help. He mentioned that he “did not know where to start,” but one fundraising event led to another at local establishments in Raleigh, North Carolina as the idea for Wine To Water started to catch on.

In terms of openness to addressing water needs, Doc Hendley credits his “free, adventurous spirit and his focus on experiencing life” as helping him to see through obstacles. Despite this personal sense, he still had doubts about creating Wine To Water. In generating the potential promise of the initial idea, he became “very aware of what he is not good at” and “drew upon conversations with others as a way to shape and refine ideas.”

Doc Hendley recalled being acutely aware of the potential for failure and that “some of the most beautiful successes come from the most disastrous failures.” He suggests that “being prepared for failure and not giving up” are imperative in realizing there is possibility to have a positive impact and affect change. Having that mindset to be persistent was important at the beginning. As he put it, “Do not allow yourself to give up. Go with your gut. If it is wrong, own up to it. Recognize weaknesses and address them.” In interviewing a board member, he emphasized that knowing how to learn and grow from failures is critical for developing an idea into an operating social enterprise. As stated, “Knowing how to grow and learn from failures got Wine To Water where it is today.” Doc Hendley recounted the story of an early failed water project as being quite discouraging; however, he received encouragement from others, moved beyond by learning from the experience, and said that he “got excited again with new projects.” As doors shut in one location, plans shifted to another country that turned out to be “one of the most successful programs.” Thus, the founder’s personal experiences as well as recognition of social needs inspired action to make a difference in finding solutions for clean water needs.

Developing the Promising Idea into an Attractive Opportunity

Once pursuing the idea became a reality, Mr. Hendley became interested in the social enterprise approach. That is, he wanted to create an organization working with stakeholders whose focus would be on “a social mission in purpose and, at the same time, utilizing a business approach to help solve social problems in a sustainable way.” This purpose is encapsulated in the organization’s mission and carried out in the business model that was created. The initial idea quickly grew beyond the scope of the founder himself and engaged multiple stakeholders. The connection among the social enterprise, community, and volunteers became central to the operating model. As the CEO expressed, the goal is “not just a business partnership or not just an organization to provide charity support; it is a relationship” that defines our work.

In choosing the name, Wine To Water, Doc Hendley credits connection with the service industry and personal experiences as a bartender. In the interview and his autobiography, Mr. Hendley has credited the “bar crowd” as a group that continues to “embrace us and we embrace them.” In establishing the connection between wine and water, he believed that “sharing a glass of wine brings people together and builds personal relationships.” The connection between wine and water is key to the founder’s initial generation of the promising idea, and the connection has continued to shape the operating model. “Wine symbolizes wealth, celebration, and community in western culture. Our mission is reshaping the face of aid by using all three in an entirely new way” (Wine To Water 2016). The wine and water connection is visible in the name, mission, and approach to “begin the conversation” with stakeholders on helping with water problems.

To bring the idea to fruition, it was important to go beyond the initial idea and include a community of stakeholders in the formation of the organization and operating model. For instance, Wine To Water’s brochure states that “Community is the foundation of Wine To Water” as individuals in a community provide emotional and physical support to one another. All respondents emphasized that “in-community” is a critical aspect of the operating model and viewed the organization as an international community. Volunteers and community partners are integral to the team. The volunteer programs director explained, “We use every chance we get to build relationships and get to know community partners.” The international programs director mentioned that we “view the volunteers and community partners as part of the team.” This focus on “relationships first” was evident in interviews and interactions observed by the researcher.

To identify specific communities to establish water-related projects, Wine To Water carefully looks for “fit” and “trustworthy, hardworking partners.” The organization assesses the viability of its potential contributions toward a water project and “how the community partnership can be created” to determine value-add in a locale. The ability to rely on “engagement of individuals in-community” remains a core aspect of the operating model.

When asked about mission, vision, and values, all interviewees emphasized “in-community” as key to the organization. The founder and president clarified the phrase has a double meaning. Wine To Water serves in communities where they operate, partnering and building relationships within the community. These “in-community” stakeholders include not only individuals in the communities, but also donors and persons going on volunteer trips to serve. The CEO described “in-community” as essential to the mission and explained, “If we do the community piece right, we can do the water part.”

Wine To Water was established with a 501(c)3 designation to allow acceptance of contributions and donations that are tax-deductible to the donor. The international operations director mentioned that 501(c)3 is a “known recognition to potential donors.” The CEO explained that being a 501(c)3 is advantageous in that “donors can make donations that are tax-deductible.” The founder and team work closely with a voluntary board of directors for oversight and approvals. Doc Hendley stated that he is “thankful to have a board that works effectively with him and Wine To Water to accomplish goals.”

Recalling Wine To Water is small with few full-time staff members, the extended community of stakeholders is essential for outreach. “Our bottom line is water, but we understand that people are what make that happen,” commented the international operations director. “Wine To Water has connections with other organizations to create a network where in some situations we can combine resources.” These examples show how this social enterprise with a small staff relies on networks to build relationships in support of mission.

When determining whether to collaborate with an entity in a country, Wine To Water looks for “authenticity, transparency, and honesty” as explained by the CEO. There is no set checklist for determining partners because ground teams and locations are all so different. In the beginning, Doc Hendley relied on “a gut feeling when selecting partners” and “taking time to build relationships.” Now, potential local partners must be passionate about helping people, not just looking for a job. Partners become well versed in water access, filtration, and hygiene. The CEO mentioned, “Choosing a partner is less about location and more about water programs and determining if we can be effective.”

Wine To Water’s work “would not be possible without the network around the world; we have great people everywhere” as described by more than one respondent. Wine To Water regularly works to identify potential partners. With proposals reviewed in a given quarter, a community assessment of the need is conducted by relying on recognized relationships for ongoing conversations. In terms of exit from projects, in one situation Wine To Water decided to exit a country and shift efforts to another location. When following up with ground partners, monthly follow-ups take place. The organization has operating agreements as well as budget and project approval processes. When asked about partnerships, the founder and president reiterated, “All relationships are important.” Wine To Water reaches out to other organizations from time to time. The CEO said, “It all comes down to the relationship; nothing can be a transaction.” Valuable partnerships improve efforts by building transferable expertise and skills.

To appreciate the implementation of an “in-community” water project, one researcher observed an ongoing project in the Dominican Republic. Although much of the country has access to clean water, there remains need for access and improved water sanitation in rural communities. In response, Wine To Water has partnered on a ceramic water filter factory in Higuerito, Dominican Republic. The factory produces water filters to remove bacteria and other pathogens that could cause waterborne illnesses if consumed without filtration (Wine To Water 2016). Speaking with a community ground partner, the researcher learned that the ceramic filters are effective yet relatively inexpensive and can provide enough clean water for five persons for several years.

Consistent with the “in-community” focused mission, Wine To Water employs people from the local community at the ceramic filter factory, drilling wells, and installing latrines. Compared to traditional charities, emphasis is on self-sufficiency and community-based involvement. Volunteers help the community members to develop and implement water solutions, but the ground partner and local community stakeholders are responsible for the primary work. Community members receive training to repair the wells, using local materials for repair and maintenance.

To illustrate engagement, one community partner recalled having been frequently sick from unclean water through early adulthood. After using the ceramic filters on a regular basis, these water-related problems subsided. The community partner’s engagement in the water project is not only “a way to make a living, but it changes lives” and represents the nature of the community partnerships. Wine To Water works closely with community members to offer educational programs to explain how water usage, sanitation, and hygiene connect to health safety and to raise awareness of effective practices.

Building and Sustaining the Social Enterprise

From generating a promising idea to developing the idea into an attractive opportunity, the first two phases showed how Wine To Water advanced from a seed of an idea into an attractive social enterprise opportunity. The third phase of the process model, building and sustaining the social enterprise, demonstrates how the social enterprise’s business model is defined and implemented. Also, the third phase describes how relevant resources have been secured; the organization has evolved; social impact has been measured; and the organization has sustained and evolved while remaining true to the original mission of bringing clean water to communities in need.

Defining and Implementing the Current Business Model

The mission, vision, and values were integral in the development of and remain core to the current operating model. As the CEO stated, “We are committed to providing sustainable water solutions where most needed.” All respondents expressed that the original mission remains central to the operating model. The need for water projects is ongoing, with millions of people worldwide lacking access to clean water. “This means having to say no in some areas. The challenge is where Wine To Water can be best used because there is so much need,” as the international operations director shared. The chair of the board of directors mentioned ongoing challenges to generate engagement and raise donations. He describes, “We invite people to be a part of fighting the water crisis and convey the ongoing need for support.”

Growing Relevant Resource Strategies

Generating funding is ongoing and comes from larger donors, smaller individual donors, and chapter efforts. To illustrate, in a recent year about 90% of income generated from donations with about half of that from individual donors. Wine sales generated the remaining income. Reaching potential donors is a continuous endeavor and accomplished in several ways including the founder’s speaking engagements, partnerships with businesses and corporations, planned events, online website, e-mails, volunteer programs, and word of mouth.

Wine To Water manages volunteer service programs such as trips to the Dominican Republic. Individuals participate in a service trip with 25% of the cost going directly to support the community’s water projects. Other service organizations collaborate to provide funding. In one example, Rotary International clubs in the Dominican Republic and USA collaborated with Wine To Water to bring 125 water filters to an impoverished community. The clubs donated monies for water pipes, infrastructure, and filtration. The Rotary International district organization matched monies to provide funding for the water project (Eason 2016).

Another important aspect of the resource strategy is that Wine To Water does not give away the filters which “sets the organization apart from many others” as specified by three interviewees. Recipients of ceramic filters contribute a small payment toward the purchase. Individuals could pay approximately seven US dollars toward the filter in the Dominican Republic. Instead of full payment up front, individuals make installment payments. “The reasoning for this small cost sharing is so that people will value the filters more if there is a buy-in and pride in ownership” according to the international operations director. Wine To Water subsidizes the filters, along with local community engagement for installation and education on how to use the filters.

Evolving the Social Enterprise

Wine To Water is a sustainable organization open to being “entrepreneurial,” “innovative,” and “creative” as descriptors in the interviews. The growth has been deliberate and slow to allocate funding directly to programs and operate as efficiently as possible. The founder mentioned there is a “benefit to being flexible” in identifying funding sources and carrying out fundraising. The CEO mentioned there are “always improvements being considered” in trying to “find better ways to connect” with donors and volunteers. The social enterprise continually leverages new perspectives and involves new talent of interns and local chapters. Although Wine To Water’s original operating model focused on international locations, it is now also serving within its local community. Though water crisis problems are less widespread in the USA, Wine To Water recently initiated “a domestic water project that focuses on watershed cleanup, conservation, and restoration in the rural Appalachian region” (Wine To Water 2016).

Wine To Water originally sold wine to help fund projects, although the operating model has been modified. According to the president, “A better model proved to be partnering with wineries and allowing focus on delivering water solutions.” A winery partner has the rights to use the Wine To Water name and brand, taking responsibility for the wine operations and making a commitment for donating a set amount per each bottle sold. This partnership allows Wine To Water’s staff to “focus on clean water solutions rather than having to also run the wine operations.” The wine label is unique in differentiating Wine To Water’s operating model. “Wine is something to see, taste, and share with other people” according to the international operations director. “It gives people a cool opportunity to be a part of the organization” and is a “continual reminder” of the initial connections that were envisioned for the mission of this social enterprise.

The international operations director expressed the “wine program has a lot of potential and opportunity to grow” such as seeking out new partners and avenues for sales. Staffing is another challenge for establishing newer projects. The staff at headquarters is “a lean team.” Chapter networks are one way to grow with “a life of their own.” Such a horizontal grassroots team and student chapters are the primary volunteers. Wine To Water has fifteen chapter programs in the USA and Italy with expectations to increase that number in the coming years. Because Wine To Water both raises funds and supports water projects “in community,” the relationships with volunteers, interns, and chapters provide “high levels of engagement, and these improvements never end” according to the CEO and others.

As the operating model evolves, respondents anticipate growth of Wine To Water through the reach of chapters located in the USA and abroad. Chapters represent an approachable base of people “who are able to reach others.” The founder is open to adjustments and refinements as the organization evolves. For instance, the initial vision was to have wine shops everywhere, but now the wine operations are managed through a partnership with a winery. Having minimal start-up capital, the team has been innovative in finding efficiencies internally and in the field. As the CEO explained, “We are sponges seeking expertise. Not having a lot of start-up capital forces you to be innovative.”

The management team evaluates resources, costs, and risks continually to support and modify the operating model as needed. The CEO said, “Our approach is to keep it simple” and the international operations director mentioned, “It is risky to grow.” There were cost limitations initially when the enterprise was established. Wine To Water accomplished the initial 7-year plan as funding became available and continually revises plans. With growth, the chair of the board mentioned expansion of partners, increased use of social media, and volunteers and interns that have “provided a huge boost for Wine To Water” as the business model has evolved. As established in the operating model, success of outreach and engagement are important for budget allocation. Annual budget and funding reports are available on Wine To Water’s website.

Respondents emphasized the importance of creativity and innovation. The international operations director recalled that, “Wine To Water itself is a creative and innovative idea.” Others spoke to the necessity of being creative and innovative. “It is very important if you are going to make a difference,” the CEO said. Innovation applies to technology used for clean water solutions and internal operations and processes. The CEO continued, “Innovation to us is absolutely imperative to completing the mission. Wine To Water asks every member of the staff, interns, and chapters to be innovative.” He explained innovation in the way they engage people, sustain relationships, and create new opportunities to participate and contribute.

Measuring Social Impact

Wine To Water remains focused on social impact and estimates an impact on nearly half a million people with clean water needs. When asked about satisfaction with measurement methods, the CEO wants more progress toward getting better “at capturing data, analyzing data, and using it.” The team continually looks for improvement. It is possible that actual reach is not fully captured, or known, in the results measured currently. The report on persons receiving clean water “does not account for how people are now not spending money on medicine or water bottles or how children are not walking to get water and can now go to school.” The quality of life improvements related to clean water sources is important, yet mechanisms to collect extensive metrics and report on all factors would be costly.

After a water program is established, follow-up measures report on social impact of the water-related projects such as decreases in water-related disease and increases in children going to school. Wine To Water receives monthly updates from partners in ongoing projects. Reports identify locations of filter installations and how many people in a household benefit from the filter. The international operations director stated that metrics help to “improve solutions and improve behavioral change with sanitation and hygiene improvements for the long term.” Wine To Water strives to “get better at capturing and analyzing data” as one respondent put it “in order to plan for future initiatives.”

Sustaining the Social Enterprise

As Wine To Water considers water projects in the future, it takes into account changes in the broader environment. One such change is the effect of urbanization on water availability, presenting a different challenge than addressing water needs in rural communities. One respondent explained that “can present a different landscape of water need” and Wine To Water must “stay on its toes and remain cutting edge to address these changing trends.” Such shifts could require that different skills and resources be developed to adjust to “working in populated urbanized areas and to become more connected domestically.”

Wine To Water has evolved and grown substantially since its beginning. The wines now sold through the winery have increased from two wines to five as well as an increase in specialty wines. Wine To Water started out with one event program and now has multiple chapters doing events. In a recent period, the volunteer program has sent approximately two hundred people into the field. As the volunteer coordinator stated, “We have an awesome, dynamic team.” Wine To Water engages interns with the number doubling since starting the internship program.

To continue drawing attention to its mission, telling the story of Wine To Water is critical for spreading awareness. Wine To Water has benefitted from sharing the founder’s story. For example, Wine To Water was featured in the news (CNN Heroes 2009), providing an excellent forum for spreading awareness about the need for clean water solutions in communities. As Mr. Hendley put it, “It was huge; it put Wine To Water in the spotlight.” Subsequently, CNN (2013) compiled a documentary on the social enterprise that was instrumental in improving fundraising. The Internet has provided a media platform for Wine To Water to share and connect with potential donors. Wine To Water leverages communications via e-mails, catalogs, and social media. As mentioned, “We are getting better at telling success stories and connecting people to the stories we hear every day.”

To sustain and grow the operating model, Wine To Water expects to “leverage its strength as a team.” A participant conveyed, “There is no shortage of people in need and no shortage of people who want to help.” Growth is inevitable, but the plan is to open field offices and grow chapters. Doc Hendley’s role has evolved since starting Wine To Water. As he explained, “Initially, I wore all the hats” and relied informally “on family and friends helping out.” As the organization grew, the founder was “able to take off hats,” as he put it. The operations have become specialized with the addition of key staff members. Formalization of new roles to manage the operations allowed Mr. Hendley to concentrate on outreach, spreading awareness, being in the field, and doing speaking engagements. While he still serves as president, another person serves as CEO. The new CEO is a former executive of a publicly traded company, bringing added business knowledge and expertise.

In looking to the future and sustaining the social enterprise, the leadership team continuously assesses ongoing projects and evaluates possible new water projects. Addressing the impact of water-related illnesses on children was a motivating theme in the founder’s desire to create Wine To Water and remains a central theme in the mission. “Every ninety seconds a child dies of a waterborne illness, and 443 million school days are lost each year from water-related illnesses” (Wine To Water 2016). Several respondents underscored the importance of “seeking new partnerships” such as expanding university-related student chapters and affiliating with additional partners. One such example would be a potential partnership with service tourism for connecting volunteers to community water-related projects in various countries.

On the issue of succession, the founder responded, “The organization is not dependent on any one person” and emphasized the “established strong community of employees.” Other respondents described the importance of all stakeholders for the success of the organization. In the near term, the current CEO would like to have “an understanding of where the organization is most effective and double down on those investments specifically.” The intent is to focus on mission to guide decisions. The ongoing challenge is that there is “so much identifiable need. Wine To Water only has so much support and resources.” Staying focused remains paramount as the CEO explained, the plan is to “do five things exceptionally well instead of ten things okay.” In these ways, Wine To Water is looking to the future for sustaining the social enterprise and remaining focused on social impact.

Discussion

The current study applied a process model, Transforming Good Intentions into Social Impact, for examining the value creation process in a social enterprise. Wine To Water, founded to provide community-based solutions for water needs, was the context for applying the process model. The case study provides an opportunity for students to learn about application of the three phases of the process model shown in Fig. 1: generating a promising idea, developing the promising idea into an attractive opportunity, and building and sustaining the social enterprise.

The study contributes to the literature that explores varying approaches to value creation through social enterprises (Chell et al. 2016). The social enterprise examined in this study is unique in context and the lessons may not be generalizable or necessarily transferable to other social enterprises. While this case is useful to illustrate the process model in one social enterprise within the US context, we acknowledge the importance of understanding social enterprises within different contexts. A broader view considers the extensive literature, including the European approach to social enterprises. We encourage readers to consult the literature for a more complete perspective on social enterprises (e.g., Banks 2016; Defourny et al. 2014; Kay et al. 2016; Simanowitz and Knotts 2015). We view this limitation as an opportunity to conduct more research on the application of this and other process models to understand other social enterprises in other contexts.

Stakeholder engagement in social enterprises is an important dynamic to understand in the value creation process (Ramus and Vaccaro 2017). In this real-world case study, the social enterprise engages and involves relevant stakeholders throughout the three phases of the process model. In addition to the social entrepreneur, other organizational members, volunteers, donors, and community partners are critical stakeholders for executing the mission to develop water projects within communities. Future studies that illustrate the involvement of stakeholders in other social enterprises would be useful in helping students and practitioners to appreciate the critical role of stakeholders in accomplishing the work of a social enterprise.

In conclusion, process models are valuable tools to help in understanding the various approaches to value creation in social enterprises. In using the case for educational purposes, it is a tool to augment learning about the social value creation process. “Appendix 2” provides a teaching note on ways to use the case study. Applying the process model, Transforming Good Intentions into Social Impact, the case study has shown how a social enterprise is envisioned as a promising idea, carried out through an operating model with resource strategies to support social impact and, once created, continues to build and evolve.