The Wave of the Social Enterprise : A Single Case Study on an International Social Enterprise Operating in Indonesia

Abstract: During the last decades, the circular economy has enabled a new kind of business model that is challenging the traditional linear way of doing business. The purpose of this thesis is to investigate how an international social enterprise work towards a circular business model, as well as the challenges and opportunities that comes with operating in an emerging market. Previous research on the subject is limited which leaves a research gap in existing literature. Indonesia is an emerging country that is struggling with a weak recycling infrastructure and   lack of waste management, which has resulted in an ocean plastic pollution problem.   In the theoretical framework, relevant aspects of the circular economy, social enterprises and opportunities and challenges with operating in an emerging market are presented. A conceptual framework concludes the literature review by illustrating how the concepts ties together. In order to answer the research questions, a qualitative research method has been followed throughout this single case study, combined with an abductive approach. The data has been collected through semi-structured interviews presented together with secondary data, in order to get a deeper understanding of the case. By examining an international social enterprise with operations in an emerging market, findings on what opportunities and challenges this social enterprise encounter in Indonesia are presented together with how they work towards a circular business model. This study indicates that the international social enterprise challenges the linear way of doing business and can be set as an example for other companies that has a social mission and wants to do business in a sustainable way.   The analysis discusses the relation between the theoretical concepts and the empirical findings, together with observations from the authors. The analysis is followed by the concluding chapter where the contributions are stated, and the research questions are answered, followed by implications, limitations and suggestions for future research. The findings showed that international social enterprises can find opportunities in infrastructure- and institutional gaps in emerging markets. In addition, the findings indicate that a strong social mission can reduce the challenges of operating in an emerging market. The findings have contributed to introducing the social enterprise phenomenon into the international business research field, as well as international social enterprises operating in emerging markets. The authors also provide their definition of the concept ‘social enterprise’.