Social Enterprises as Agents of Change: Business Model Configurations in Waste Management in Indonesia

Abstract

Waste management remains a persistent sustainability challenge in Indonesia, where community‐based and policy‐led interventions often underperform due to organisational, relational and capacity constraints. Despite growing interest in circular economy ( CE ) approaches, limited empirical evidence explains how social enterprises integrate environmental, social and economic objectives through their business models. Addressing this gap, this study examines how CE ‐oriented social enterprises in Indonesia's waste management sector configure business models to create, deliver and capture multi‐dimensional value. Using a qualitative multiple‐case design, documentary analysis was conducted on the websites of five social enterprises operating across waste collection, recycling, digital platforms and upcycling. Data were analysed using a business model lens focusing on value creation, delivery and capture. The findings reveal three key insights. Three complementary business model configurations emerge, forming a multi‐model circular‐economy ecosystem in a Global South context. Environmental objectives act as the central organising logic across business model components, supported by social mechanisms enabling participation and behavioural change and economic mechanisms stabilising impact. Partnerships and community engagement are embedded as structural elements shaping value creation and delivery. These findings advance CE and business model research by introducing a multi‐model ecosystem perspective that explains how such configurations enable integrated value creation in emerging economy contexts.