Sustainable Hybrid Business Model of Benefit Corporation: The Case of an Italian Film Production Company

Rosaria Ferlito and Rosario Faraci
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Rosaria Ferlito: Department of Economics and Business, University of Catania, 95129 Catania, Italy
Rosario Faraci: Department of Economics and Business, University of Catania, 95129 Catania, Italy

Sustainability, 2022, vol. 14, issue 10, 1-17

Abstract: In the last decade, individual awareness of the impacts generated by the activities of businesses has increased more than ever. Consumers, employees and investors have begun to criticize business behaviors that negatively affect either society or the environment. Given this context, and relying on the literature relating to hybrid organizations and sustainable business models, our research aims to investigate how dual logic affects the business model of benefit corporations in the Italian film production industry. To capture the complexity of this type of firm, we adopted a qualitative research method, the case study approach. The case selected was ARE FILMS srl, a creative film production company. It has been a benefit corporation since it was founded. The study suggests that the capacity of hybrid businesses to achieve a hybrid mission is intrinsically embedded in their business model. A young film production benefit corporation is more likely to adopt a semi-integrated business model that does not create an external perception of dual corporate identity and does not affect economic sustainability. Moreover, the sustainable value proposition emerges even without the formal application of accepted protocols. Furthermore, we realized that the size of the firm affects business modelling. Finally, this research underlines the fact that benefit corporations do not require external pressure to implement sustainable practices.

Keywords: hybrid organization; benefit corporation; sustainability-driven hybrid business model; business sustainability; film production company; case study (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
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