Document Type : Original Research Paper
Authors
1 Professor, Department of Business Management, Faculty of Management, University of Tehran, Tehran, Iran.
2 Associate Professor, Department of Business Management, Faculty of Management, University of Tehran, Tehran, Iran.
3 PhD Student, Department of Business Management, Faculty of Management, University of Tehran, Tehran, Iran.
Abstract
BACKGROUND AND OBJECTIVES: Sustainable business model innovation is a widely studied concept in management, sustainability, and innovation literature. Although extensively researched, business models have not fully adapted themselves to the technological, sustainability, and post-pandemic era. A critical future challenge for Iran is the financial instability of pension funds and social insurance organizations, with the crisis approaching a critical stage. Designing innovative sustainable business models for these organizations could offer an efficient solution. This study aims to identify factors influencing sustainable business model innovation, using a case study method focused on Iran’s Social Security Organization, and is the first such study of this organization. The research questions are: 1. What are the factors affecting sustainable business model innovation for the Social Security Organization, and how can they be classified? 2- What are the drivers and consequences affecting the implementation of sustainable business model innovation for the Social Security Organization, and how can they be classified? 3- What is the importance of each component of the sustainable business model innovation for the Social Security Organization across the three parts: antecedents, business model, and consequences?
METHODS: A single case study was conducted on Iran’s Social Security Organization. Data were collected through documentation and archival records (62 documents), interviews (23 interviews), and participant observation until theoretical saturation was achieved. The level of support for each component and their rankings was determined using the Shannon entropy method. Cohen’s kappa coefficient was used to assess the reliability of the coding process.
FINDINGS: The research findings were analyzed and categorized using MAXQDA software. A total of 63 components and 279 codes were identified, relating to the characteristics of sustainable business model innovation for the Social Security Organization, across three levels: antecedents, sustainable business model innovation, and consequences. For the first research question, the sustainable business model innovation for the Social Security Organization comprised 183 codes, classified into 38 components and six categories. For the second research question, the drivers consisted of 67 codes, classified into 18 components and two categories. The consequences comprised 29 codes, classified into 7 components and three categories. For the third research question, the importance of each component was determined using the Shannon entropy method. Among the antecedents, dynamic capabilities ranked first, followed by government and macroeconomic components in second and third places, respectively. Within the business model, the innovation component—focused on increasing premium collection (compulsory and non-compulsory premiums, statutory audits) and reducing liability costs (short-term, long-term, and treatment)—ranked first. The knowledge and actuarial components, human resources, and insurance services (based on actuarial calculations) ranked second to fourth, respectively. Treatment services (considering the Organization’s service showcase, mass production, procurement of quality treatment services for beneficiaries, and cost-reduction methods) and other governance elements ranked fourth and fifth, respectively. Among the consequences, competitive advantage and market components ranked first, followed by:) community development (education, health, economic growth, and livelihoods) and social security components in second and third places, respectively.
CONCLUSION: Drawing on the sustainable business model framework (Bocken et al., 2018), this study introduces a novel model of antecedents, sustainable business model innovation, and consequences. The model includes antecedents (internal and external), the business model (divided into four subsections: value creation, value proposition, value exploitation, and value delivery), and consequences (economic, social, and environmental). This model can serve as a practical guide for managers of pension funds and social insurance organizations and policymakers in welfare and social security. The study also contributes to practical innovation and sustainable business model innovation in the service sector. To achieve sustainable business model innovation, the Social Security Organization should keep pace with new business trends (e.g., teleworking, freelancing, sharing economy) and simplify complex processes. Digitalizing services, including developing self-service applications and reducing in-person visits, is essential to improve beneficiary experiences. Operational transparency, through regular and online reports, strengthens public trust and social capital. Combating insurance fraud using artificial intelligence, data mining, and inter-agency collaboration conserves organizational resources. Marketing non-compulsory insurance expands coverage by strategically targeting new markets and modifying plans. An active role in discourse, lobbying, and legislation is crucial to maintaining the Organization’s independence and financial sustainability. Using artificial intelligence and digital capabilities to identify insured people and optimize inspections while increasing efficiency. Reducing bureaucracy, outsourcing non-core tasks, and reforming meritocratic appointments will enhance organizational innovation and agility.
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