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Voluntas (2020) 31:966–980

https://doi.org/10.1007/s11266-019-00156-x

ORIGINAL PAPER

Connecting Two Sides: A Qualitative Study on Social Innovation


Ventures and Poor Communities in an Emerging Economy
Rodrigo Luiz Morais-da-Silva1 • Andréa Paula Segatto1 •

Indira Gandhi Bezerra-de-Sousa1

Published online: 3 September 2019


 International Society for Third-Sector Research 2019

Abstract The relationship between social innovation Introduction


venture and poor communities has received little attention
from studies in the area of social innovation. In order to Poverty has been considered one of the most complex
clarify this relationship, our study seeks to answer: What social problems (Hart 2005; Rogers et al. 2008) by
strategies would help to bring social innovation ventures affecting a considerable part of the population from
closer to poor communities? We developed an empirical developing countries and marginalized people in rich
and qualitative research in a social innovation venture and nations. To solve this problem, many players from different
two poor beneficiary communities in Brazil. The results sectors (state sector, market sector and civil sector) are
indicate that the proximity between those agents was based trying solutions in the macro- and the micro-level. How-
on five main items: (a) reputation of the social venture; ever, according to the World Bank Group (2017), more
(b) appropriate prices according to the community’s real- than 10% of the world population lives with less than $1.9
ity; (c) close relations with the community; (d) structure a day; therefore, they cannot meet their daily food needs.
proximity; and (e) winning the community leadership’s The academia has been trying to help solve this problem
trust. Thus, our study contributes to the literature by by clarifying this issue. In the field of management,
exploring the beneficiary communities and their relation- specifically in the innovation management studies, many
ship with social innovation ventures. In addition, we sug- contributions are trying to elucidate, for example, disrup-
gest the use of the term ‘‘social innovation venture’’ to tive innovations, frugal innovations, innovations for the
designate a wide range of types of organizations willing to populations from the base of the pyramid, and more
generate social innovation in the practical field. recently emphasized, the social innovation, the main sub-
ject of this research.
Keywords Social innovation  Social innovation venture  Social innovation could be understood as ‘‘a novel
Poor communities  Poverty  Brazil  Qualitative research solution to a social problem that is more effective, efficient,
sustainable, or just than existing solutions and for which
the value created accrues primarily to society as a whole
rather than private individuals’’ (Phills et al. 2008: 36). The
& Rodrigo Luiz Morais-da-Silva central point in the social innovation topic is the creation of
rodrigolms.silva@gmail.com social value to solve social problems (Lautermann 2013).
Andréa Paula Segatto Besides that, these innovative solutions with social purpose
andreapsegatto@gmail.com are commonly developed by organizations with social
Indira Gandhi Bezerra-de-Sousa intention (Mulgan 2006), also known as hybrid organiza-
indirabs16@gmail.com tions (Jäger and Schröer 2014). We adopted the term social
1
innovation ventures to identify organizations dedicated to
Postgraduate Program in Management (PPGADM) - UFPR
generating social innovation.
Business School, Federal University of Paraná, 632, Prefeito
Lothario Meissner Av., Jardim Botânico, Curitiba, Although the practical relevance of the topic, social
Paraná 80210-170, Brazil innovation has been studied with greater intensity only in

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Voluntas (2020) 31:966–980 967

the last 15 years. According to Phillips et al. (2015), this Social Innovation
area of research has been investigated in three main areas:
the role of the social entrepreneur, the relation established The Concepts of Social Innovation and Social
between the actors and the institutional environment. In Innovation Venture
spite of the last two areas being focused on the social
innovation ecosystem and the relation between the actors Although studies on social innovation have gained promi-
inside this ecosystem, a significant part of the contribution nence in the last decade (Van der Have and Rubalcaba
is trying to discuss social innovation and the role of gov- 2016), the term was initially used in the early twentieth
ernments (Kolk and Lenfant 2015; Ojo and Mellouli 2018; century to designate changes to the communities of the
Phills et al. 2008), impact investment funds (Clarkin and West Indies (Ayob et al. 2016). From 1980 onwards,
Cangioni 2016; Glanzel and Scheuerle 2016), social publications with the term ‘‘social innovation’’ began to
enterprises (Bhatt and Altinay 2013) and traditional com- focus on organizational and social aspects to delineate the
panies (Le Ber and Branzei 2010). first contours of the concept’s current understanding.
Nevertheless, the beneficiaries, usually members of poor That new focus was possible with the study by Gershuny
communities, mainly in emerging economies, are not part (1983), Drucker (1987) and Kanter (1999), who analysed
of the agents commonly investigated in the social innova- different approaches within the understanding of social
tion ecosystem. There are many possible reasons for this, innovation as an alternative for the resolution of social
for example the difficulty of contacting people living in problems by organizations beyond the governmental sec-
poor communities or marginalized areas, the methods used tor; Ayob et al. (2016) argued that social innovation was
in most research and the focus on the organization level. driven by the industrialization and urbanization of the
However, the social innovation beneficiaries are one of the nineteenth century through the stimulation of social
most critical parts to be studied in this context, since they enterprises and social innovation. However, it was only at
are the centre of attention in this field. Therefore, they are the end of the twentieth century and at the beginning of the
the focus of this study. twenty-first century that a greater expressiveness of studies
Based on this literature gap, this research aims to answer involving the theme could be perceived.
the following question: What strategies would help to bring Considering the concepts of social innovation, Ayob
social innovation ventures closer to poor communities? et al. (2016) highlight that, in general, between 1989 and
Thus, this research could clarify how the social innovation 1993, the definitions were concentrated in social relations
proposal can achieve greater success. For this, one social and societal impact with little or almost no consensus.
innovation venture dedicated to solving social problems Between 1994 and 1998, the concept was used in several
related to habitation in Brazil (called Homes for All ways, without any attempt to explain it. Between 1999 and
Enterprise—a fictitious name) was investigated by quali- 2003 emerged the contested concept of social innovation,
tative approach. The data were collected by observations in in which it may have been possible to identify various
loco, documentary research and in-depth interviews with aspects, without being treated in a universal way and that
the managers from the organization and members from the could have been, above all, associated with social relations
poor communities (the beneficiaries). We adopted the term and the creation of ideas. The period of 2004–2008 was a
‘‘poor communities,’’ in the same way as Ansari et al. period of competition between researchers in the intent to
(2012), to designate areas with limited access to financial strengthen their definitions. Between 2009 and 2013, an
resources and, generally, difficulty in accessing products apparent convergence arose around the concepts, especially
and services (Domenico et al. 2010). those involving collaborations between agents.
This research contributes, in practical terms, to The conceptual evolution of the topic social innovation
social entrepreneurs from organizations dedicated to gen- over time points to an internal complexity of definition
erating social innovation understand better ways to bring (Casini et al. 2018; Fossati et al. 2017). Even with the
their business closer to the poor communities. Regarding evident evolution, social innovation is still considered a
the theoretical contributions, this paper investigated a contested concept because it does not have a single and
research gap that has not yet been investigated in depth and exact definition nor a consensual understanding among
may help draw other researchers’ attention to also study the specialists in the field (Ayob et al. 2016; Marques et al.
poor communities involved in the social innovation 2017; Ziegler 2017), which leads the topic to receive var-
context. ious criticisms in the field (Fossati et al. 2017).
The ‘‘essentially contested concept’’ derives from the
explanations of Gallie (1956) who considers that some
concepts, such as art, democracy and freedom, are

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considered a frustration for those that seek fixed defini- Another way of understanding the different perspectives
tions. This definition of the contested concept, still of social innovation is through the analysis of scale char-
according to Gallie (1956, p. 169), ‘‘involves endless dis- acteristics and scope of Marques et al. (2017). For the
putes about their proper uses on the part of their users.’’ authors, definitions of social innovation can be grouped
The main problem of a concept being considered as con- into four approaches. The first is social structural innova-
tested is the difficulty of accumulating knowledge from a tion that understands the phenomenon through transfor-
perspective. The conceptual confusion in the social sci- mations of social structures brought about by revolutions
ences is the greatest source of difficulty in theoretical over time or by the great social movements such as femi-
development and in empirical analyses (Collier et al. nism and environmentalism. The second, called the radical
2006). social innovation, is related to the innovative way in which
The argument that social innovation is a contested goods and services are produced and delivered with the
concept comes from the finding of different understandings intention of changing the current state, such as local social
and definitions in the area. The analysis of publications currencies and activities that seek to reduce social
involving the theme developed by Ayob et al. (2016) inequalities. The third, complementary social innovation,
describes the existence of two perspectives of under- seeks to offer goods without drastically reforming current
standings that clash in some points: the perspective that institutional arrangements, such as the Grameen Bank
understands social innovation as a process focused on the proposal in Bangladesh. The fourth, instrumental social
change of the relations of power, and the perspective of innovation, seeks to provide goods in the same way as the
results focused on the generation of social value. third perspective, but with little novelty as to the methods
On the one hand, for the processual view, social inno- used in comparison with what was already being done,
vation is ‘‘new social practices created from collective, such as philanthropy and corporate social responsibility
intentional, and goal-oriented actions aimed at prompting actions.
social change through the reconfiguration of how social These different perspectives of understanding presented
goals are accomplished’’ (Cajaiba-Santana 2014: 44). previously contribute to the consolidation of the term social
Therefore, the processual perspective focuses on social innovation as a contested concept. However, some expla-
structures with interaction among individuals or the indi- nations for this are the contemporaneity of the theme
vidual as main elements of the social innovation process, (Dacin et al. 2011; Morais-da-Silva et al. 2016; Phillips
where the participatory role of all actors involved in the et al. 2015), the topic complexity (Turker and Vural 2017)
process of social innovation should be highlighted (Daw- and the diversity of research areas involved in the theme,
son and Daniel 2010). such as community psychology, creativity, local develop-
On the other hand, for the result view, ‘‘an innovation is ment, and social and societal challenges: focus on social
termed a social innovation if the implied new idea has the innovations as solutions to unsatisfied social needs (Van
potential to improve either the quality or the quantity of life der Have and Rubalcaba 2016). In addition, both Ayob
[…] innovations conducive to better education, better et al. (2016) and Ziegler (2017) argue for a tendency (even
environmental quality and longer life expectancy a few’’ if initially) of convergence between concepts at present for
(Pol and Ville 2009: 881). In this case, the social innova- an understanding of collaborative social innovation. In this
tion is disseminated mainly by organizations without the approach, the field of social innovation would create a
explicit need of the social participation, what matters are space for a variety of disciplines and actors that contributed
the results of new products and services developed with to the formation of social innovation as a collaborative
social purpose (Lettice and Parekh 2010; Mulgan 2006). concept and no longer a contested concept (Ziegler 2017).
Besides the perspectives of process and result, there are In relation to our study, our research can be allocated
other perspectives of understanding in the area. One of from a perspective of social innovation outcome (Pol and
them is the Nicholls and Murdock (2012) and Nicholls Ville 2009), in which the focus is the creation of social
et al. (2015), who argue that the social innovation literature value unprecedented for society, without the express
can be divided into three focuses: (1) resilience theory and necessity of the participation of the beneficiaries. We
social innovation that relate to the need to maintain a adopted the social innovation concept as ‘‘a novel solution
sustainable environment in which social relations occur; to a social problem that is more effective, efficient, sus-
(2) innovation in social relations, in their structures, in tainable, or just than existing solutions and for which the
labour relations and social changes; and (3) social inno- value created accrues primarily to society as a whole rather
vation focused on market failures, whose focus is related to than private individuals’’ (Phills et al. 2008: 36). In this
innovative understanding of social needs not contemplated article, in coherence with Mulgan (2006: 146), social
by the market, government or non-governmental innovation ‘‘is predominantly diffused through organiza-
organizations. tions whose primary purposes are social.’’

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Regarding the environments in which a social innova- resource that meet a social need (Peredo and McLean
tion can be developed, the literature establishes that it can 2006).
occur from social entrepreneurs, social businesses, social The investors could help other social ventures indirectly
enterprises, non-profit organizations, traditional companies by what has been called social investment funding, from
and government (Groot and Dankbaar 2014; Phills et al. the provision of financial resources mainly (Brest and Born
2008). To group the different organizational forms that can 2013). The government, in particular, is one of the most
generate social innovation, we adopted an unprecedented relevant actors (Ojo and Mellouli 2018) and should leave
term ‘‘social innovation venture.’’ We define a social the role as regulator and tax collector to assume more
innovation venture as any organizational form, such as a collaborative positions, supporting social value creation
social enterprise, a non-profit organization, an NGO, a initiatives (Phills et al. 2008). The traditional companies
government agency project, or a company project, dedi- also could have a relevant role in a social innovation sys-
cated to the development and implementation of innovative tem. According to Le Ber and Branzei (2010), partnerships
proposals with primarily social purpose, and promoters’ between traditional companies could allow the access of
different types of social innovation. The term social inno- social innovation ventures to technology and new compe-
vation venture is more appropriate because it covers a tencies. Besides that, traditional companies have capillarity
greater number of organizational forms, in different context (range) and many resources and could contribute more to
and environments, that seek to address a social problem the society to solve its problems, and this could help social
from an innovative proposal. ventures in its proposals.
Therefore, considering those players in the social inno-
Partnerships Focused on Social Innovation vation system, less attention has been given to the benefi-
ciaries/users of the social innovation initiatives. The
Due to the complexity of social problems, simple solutions relationship between community and its territory in the
developed by individual organizations could not be suffi- study of social innovation can also be perceived in studies
cient to deal with, for example, poverty, low levels of investigating the role of this kind of innovation in the local
education, violence and housing deficit. Because of this, development of a community, a neighbourhood, a city, or
terms as partnerships, alliances, collaboration and social the connection between them, as in the investigation by
networks have been highlighted commonly in the social Van der Have and Rubalcaba (2016). From this perspec-
innovation topic and its correlated issues (Austin 2002; tive, it is understood that the proposals for social innova-
Mandell and Steelman 2003). Furthermore, according to tion do not occur in a disjointed way from the community
Westley and Antadze (2010), social innovation could be and from the local context (Van Dyck and Van den Broek
considered as something that transcends sectors and levels 2013), but are spatially specific and embedded (Moulaert
of analysis. 2009). Therefore, it is argued that participatory processes
In doing so, the social change as result of social inno- and citizens’ empowerment are relevant aspects of social
vation proposals, the interaction between actors in the innovation (Edwards-Schachter et al. 2012).
social systems developed through the collectively and Even with this relevance, the contexts in which social
cooperation (Neumeier 2012), highlighting the relevance of innovations are developed and implemented are not always
interactions in the development of social innovations to the given due attention from the academic literature. It is
society. Among the most relevant players as part of this possible to suggest some reasons for this: as the users are,
system, the literature on this field has highlighted the social usually, from the poor or marginalized part of society, it is
enterprise, the social entrepreneur, the investors, the gov- more difficult to contact and investigate them, mainly in
ernment and the traditional companies. emerging economies; and also the research methods fre-
The social enterprise could be understood as similar quently used are developed to give more attention to the
models from the traditional companies, once it seeks quantity not to the deep information.
financial sustainability by selling products and services; Nevertheless, the social innovation beneficiaries are one
however, the social enterprise model run with a social of the most critical parts to be studied in this context, since
purpose, not only with economic goals (Defourny and they are the centre of attention in this field. Due to this fact,
Nyssens 2017; Domenico et al. 2010; Santos et al. 2015). this paper also aims to understand the beneficiaries’ point
The social entrepreneur, as another player in the social of view about their relationship with social innovation
innovation system, is characterized as a person that works ventures. Thereby, following this vision of the relationship
with a new social initiative to deal with problems not between organizations and users, it is intended to explore
resolved in the society (Austin et al. 2006; Peredo and how these two actors may become closer in an environment
McLean 2006; Yunus 2007) by the combination of that generates social innovation.

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Methodology Proceedings Ten semi-structured interviews were conducted in the


study (three with the entrepreneur, one with an employee
The empirical focus of this paper is a social innovation of the enterprise, as well as six with the poor communities’
venture in the habitation sector in Brazil. Called as Homes residents). The details of the interviews are described in
for All Enterprise (fictitious name), they help to find a Table 1. Although the number of interviews (10) may seem
solution in conflicts between poor communities, as illegal as not significant regarding this study, it is worth noting the
occupants of big urban areas, and the legal landowners. As size of the organization researched (small sized) in which
the main objective here is to understand how to make social the entrepreneur, interviewed three times in this study, is
innovation venture get closer to poor communities, the the main agent in the process with the communities. In
qualitative approach was adopted. According to Denzin addition, despite the difficulty of access to the communi-
and Lincoln (2006) and Merriam (2009), qualitative ties, six interviews were conducted at this location. The
researches should be adopted when the focus is on the focus on the interviews was in obtaining information about
process, on the meaning and on the interpretation that the experience before, during and after the service provided
people give to their experiences. Besides that, the case by the Homes for All Enterprise.
study was adopted due to its appropriate feature to inves- Neighbourhoods A and B were chosen because they
tigate complex phenomena inside a context (Merriam were the oldest areas served by Homes for All Enterprise
2009; Stake 1998). since its founding and for being in the final process of
The Homes for All Enterprise was chosen as part of this regularization of its areas. Considering this, they have more
study because its characteristics as a social innovation experience in the relationship with Homes for All Enter-
venture in the Brazilian context. These characteristics are prise and would be better able to contribute to this research.
clearly established social objective of improving access to The selection of community members to be interviewed
housing in Brazil; seek to offer their service to improve the was made by the community leader themselves. In both
quality of life of poor communities by allowing them to neighbourhoods, the leaders were interviewed, and, at the
legally own the property their homes are constructed on, as end of the interview, they indicated, at the request of the
well as enabling and motivating infrastructure projects researchers, two other residents who had experience with
promoted by the local government; have as their target Homes for All Enterprise in their respective communities.
audience (beneficiaries/customers) people with low Regarding the data analysis, the content analysis was
monthly income and with unmet social needs; generate its adopted by searching through the categorization of the
revenues from market operations selling its services to poor information collected. In detail, according to Bardin
communities; a highly innovative model by offering an (1993), the analysis process is composed by three steps:
unprecedented service in the Brazilian environment, which (a) initial reading: when the focus was on understanding
led Homes for All Enterprise to receive numerous Brazilian the historical relation between the agents and in identifying
and Latin American awards. By contemplating these five the primary elements that involved the actors in a suc-
criteria, in addition to the proximity to poor communities, cessful relationship. At this stage, the data from the inter-
Homes for All Enterprise was selected for this views were transcribed by the researchers themselves, the
investigation. field notes (derived from the observations) were reviewed,
The data collection was developed in two environments: and all data were inserted into the Atlas TI software for
the Homes for All Enterprise and two poor neighbourhoods better organization; (b) categorization: when the focus was
assisted by them. The data were collected through docu- on the categorization of the data related to the purpose of
mentary research, non-participant observation, and inter- this research. At that moment, the researchers, from the
views. Specifically, aiming to give the researcher the open codification, initiated a process of reading and dis-
opportunity to know the case and some of its characteristics cussing the data in order to categorize the information
before the interviews, the documents (web page of the case, patterns regarding the elements that provided the proximity
newspaper news, institutional videos, publicly available between the social innovation venture and the communities
reports) assisted in the collection of initial information of benefited from it. As a result of this phase, about 10 codes
the case and served as the basis for the interviews, when were delineated; (c) refinement: when the elements iden-
the information was debated. The non-participant obser- tified in the previous steps of the analysis process were
vation was developed in a structured way, planned, for reviewed. In this stage, the codes outlined in the previous
120 min in both environments (the social innovation ven- stages were debated from the data that represented them
ture and the poor communities) and were used to confirm and, therefore, some codes were extenuated because they
some of the findings. did not sustain themselves from the information collected
(little evidence); and others were merged, as they were the
same elements, only described in different ways. From this

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Table 1 Interviews
Interviewed Profile Coding

Homes for All Entrepreneur Man, 50–55 years old, founder and president of Homes for All Homes for All
Enterprise Enterprise 1
Homes for All Enterprise employee Man, 25–30 years old, analyst of prospecting Homes for All Homes for All
Enterprise Enterprise 2
President of the neighbourhood A residents’ Woman, 50–55 years old, small merchant CA1
association
Resident 1, neighbourhood A Woman, 45–50 years, cleaner CA2
Resident 2, neighbourhood A Man, 65–70 years old, retired CA3
President of the neighbourhood B residents Man, 50–55 years old, retired CB1
association
Resident 1, Neighbourhood B Woman, 45–50 years old, seamstress CB2
Resident 2, neighbourhood B Woman, 40–45 years old, cleaner CB3

process, five elements related to the proximity of the Therefore, on the one hand there is a legal landowner and
relation between the actors have been discovered. on the other hand there are many families that do not have
It is also worth mentioning the use of validity and adequate housing, resulting in major conflicts over prop-
reliability strategies to guarantee rigour to the present erties. Although these invasions occurred in general a few
study. Therefore, the triangulation of information obtained decades ago, driven mainly by the Brazilian rural exodus, it
from interviewees was used to strengthen patterns that can be said that the problem of the housing deficit has not
ratify the elements identified; triangulation of the sources been solved in the country.
of evidence (interviews, documentary analysis and obser- To help to solve this social problem, a social innovation
vation); as also the triangulation of researchers, since the venture called Homes for All Enterprise was founded in
data were analysed in several stages and reviewed with the 2001 in the south of Brazil. Currently, Homes for All
participation of all the involved researchers. Enterprise is a small organization, with almost 20
employees, and benefits 15 communities in the south, 07 in
the southeast, and 01 in the north of Brazil. The Homes for
The Context and the Case All Enterprise, including its social entrepreneur and its
staff, are not part of the beneficiary communities. They are
Poverty is a relevant and an in-depth problem in Brazil. part of an outside group that seeks, through market logic, to
The number of people living with less than US $3.10 a day deliver social value to the communities that need support
was, in 2013, about 19 million (The World Bank 2016), for the legalization of their homes and for obtaining the
approximately 10% of the Brazilian population. One of the property rights.
consequences of the poverty in Brazil is the number of 3.2 Despite its small structure and reduced number of
million of residences under the classification as ‘‘irregular’’ employees, Homes for All Enterprise is supported by
or ‘‘subnormal clusters,’’ representing more than 11.5 partner organizations: an impact investment fund and the
million people living in precarious conditions (IBGE local authorities. The fund injected financial capital into the
2013). social innovation venture in 2013 and, thus, acquired a
About poverty and habitation in Brazil, it is possible to share of it. In addition to the injection of financial
highlight the relevance of alternative forms beyond the resources, the impact investment fund is part of the man-
state performance that can improve peoples quality of life. agement board and thus assists in the strategic level deci-
In this scenario, Homes for All Enterprise, characterized as sions of the social innovation venture. The Local
a social innovation venture, responsible to generate social Authorities, though not involved with the allocation of
innovation, acts in helping poor people to legalize their financial resources, are other important partners. Local
house. authorities assist in two main ways. The first includes the
The portrait usually found by the Homes for All political and judicial support to allow the regularization
Enterprise is observed by many families who had, as a service of the occupied areas. This often includes the
common feature, low monthly incomes and lack of ade- editing of local laws that allow the regularization of these
quate housing. Situations like these led this population to areas. The second form of assistance is the construction of
establish residences in areas of risk and on private property. infrastructure in the areas in process of regularization. This

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usually includes improvement in the water distribution regularization. So, they have enough experience with the
system and electric power system, the provision of corre- Homes for All Enterprise.
spondence services and the introduction of sewage net-
works, construction of streets with pavements, items hardly
found in the communities in which Homes for All Enter- Findings
prise operates.
Homes for All Enterprise’s activities could be analysed The empirical results suggest that there are five strategies
in five main steps. First: an analysis of possible areas to be that help bring social innovation ventures and poor com-
regularized is developed by the social innovation venture in munities closer. In the following section, we present five
collaboration with partners, as NGO (non-governmental main elements, based on the empirical evidence.
organization), local governments and representatives of
areas in conflicts. Second: meetings with the residents’ Finding 1: Social Innovation Venture Reputation
association, representatives of the local governments and
legal owners of the areas. Third: evaluation of the urban Our empirical data suggest that there is, in these two
areas as well as other transaction details about the pay- communities (neighbourhood A and neighbourhood B), a
ments from the occupants to the legal owner; Four: through distance between the populations, the companies and
the Homes for All Enterprise, which keeps a percentage to entrepreneurs in general. The main reason for this is the
maintain its structure, the payments are made; Five: at the receipt of funds by companies from these communities
end of the payment, the residents receive the proper deeds without providing the promised service. This conclusion
and records of real estate, confirming their legal ownership could be demonstrated in the declaration of CA1: ‘‘real
of the property. estate agencies had already been here, but they were a
It is important to mention that the Homes for All farce, and then came the lawyers and they also deceived
Enterprise maintain its activity (in financial aspects) from us’’ and CA3 ‘‘many have come here; we paid for one, we
the service provided to poor communities that seek to paid for another and nothing happened.’’ According to
regularize their property to guarantee rights over them. Its these excerpts, there is a widespread impression that sev-
financial maintenance stems from this service and a part of eral companies and entrepreneurs have misled community
the payments made by the communities. As these com- members. Oftentimes the value of the service was paid in
munities do not have high purchasing power, part of the advance and the service was not provided.
funds comes from impact investment funds operating in To address this situation, the Homes for All Enterprise’s
Brazil. experience of success in land regularization in other
To complete this study and its purpose, two deprived regions of the country was important to improve its
areas called Neighbourhood A and Neighbourhood B receptivity in the communities, as highlighted by the CB3
(fictitious names), attended by Homes for All Enterprise in interviewee:
the same city, were investigated. The number of families
At first, I was a bit suspicious of Homes for All
benefiting from the action of Homes for All Enterprise was
Enterprise, but they had already done other jobs in
approximately 130 in Neighbourhood A and around 140 in
coastal communities. We heard about this, but here
Neighbourhood B, reaching more than 1100 people.
for us, they were new. Then we talked and matured
According to data from residents of both neighbourhoods
our ideas for months until the negotiations were
and the entrepreneur of the social innovation enterprise, the
concluded. (CB3)
two areas were known as ‘‘slums.’’ In Brazil, areas such as
these are common mainly in large cities or in metropolitan When realizing the serious work of Homes for All
regions. They are identified by high population density, Enterprise, the community itself tries to pass on this
high levels of crime and poverty, and low urban infras- experience to other communities that have the same
tructure. Generally, these areas, as in Neighbourhood A problem, recommending their services, according to infor-
and Neighbourhood B, are irregularly occupied. mation provided by the interviewee BB3:
As these areas were irregularly occupied, they have been
So, for us it was great, it was awesome. There are
suffering from conflicts between the residents and its legal
even some people there in the neighbouring com-
owners. In both cases, the identification of the areas was
munity, they are begging Homes for All Enterprise to
made by Homes for All Enterprise from local government
go there, they have seen the success achieved here,
requests, which could not solve the conflict, and requests
they saw the success of Homes for All Enterprise, we
from the community members themselves. Both have been
told them everything ourselves. (BB3)
assisted by the social innovation venture for a minimum of
5 years and now they are at the end of the process of land

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In addition to this community explanation, Homes for All Finding 2: Appropriate Prices to the Population’s
Enterprise’s entrepreneur argued that one of the elements Reality
of success in gaining new areas for regularization is the
‘‘good image’’ he acquired from the prizes won, as well as A second relevant question verified in this research is
positive exposure in the media. The following is a passage related to the prices practiced by the social innovation
in which the entrepreneur (interviewed Homes for All venture. Since the communities investigated in this study
Enterprise 1) exemplifies this question: (Neighbourhoods A and B) are largely composed of poor
people, by charging an appropriate price to the local real-
At first it was me and my employees who sought the
ity, Homes for All Enterprise can act efficiently, solving
areas to regulate. People know about us today. When
the problem, but within the financial possibilities of the
we have won a prize from a major national newspa-
residents, as reported by the interviewee Homes for All
per, we have appeared on TV and in the magazines,
Enterprise 1 and Homes for All Enterprise 2:
this has caused us to receive many calls from com-
munities that want our services. (Homes for All In areas where there is an agreement between the
Enterprise 1) owner and the residents, a fair value of indemnity is
defined […] Then we make a payment agreement, we
It can be seen, therefore, that poor communities, in general,
define where the lots are, and each inhabitant begins
are kept away from companies due to their lack of
to pay his lot to the owner. (Homes for All
receptivity to people with few resources available for
Enterprise1)
purchases. When there is a greater proximity between
We do a socioeconomic survey to know what the
companies and poor communities, this is usually associated
financial capacity of the residents is and what they
with the direct exploitation of the little resource maintained
could afford. At that time, we identified that most of
by these people. This can also be related to misleading
the residents agreed with the regularization and
actions and a lack of competency by companies.
accepted to pay. It is no use waiting for another 30 to
With this, a generalized mistrust could be established
40 years for the promise that they will receive a
with organizations and entrepreneurs that seek to work
property for free, which does not happen. So, they
with poor populations. One of the ways to improve this
prefer to pay a lower value. (Homes for All Enter-
image, that is, the reputation of social innovation ventures,
prise 2)
is to present narrative of success from previous work.
While it may take time, this image built within the com- It can be seen in the explanations above that in addition to
munity can be one of the main means to establish new charging a more affordable price for properties, Homes for
negotiations with different communities. All Enterprise seeks to adjust the financing system to
Other relevant information was the exposure of the people who do not have sufficient income to pay, even with
entrepreneur and the social innovation venture in prizes the agreement considering a lower price than practiced in
that could guarantee the legitimacy of the proposal and the traditional market. With data collection through non-
make the community recognize it to solve their problems. participant observation, it was possible to perceive the
Exhibits in the media, such as television channels and poverty situation of the area mainly due to the low quality
newspapers, can also help build and maintain a reputation in the overall infrastructure of the neighbourhoods (un-
for social innovation venture, which can help bring this paved streets, sidewalks only on main streets, little access
social innovation venture closer to its poor communities as to basic sanitation, for example) and low-cost housing
potential beneficiaries. In this way, Homes for All Enter- (small wooden houses, houses without finishing, and
prise’s positive reputation can be considered as one of the unfinished walls, for example).
relevant elements for the poor community to approach, To define the price that each community member must
establish a relationship of trust and demand the services of pay for the area, Homes for All Enterprise makes a
the social innovation venture. The reputation of the com- socioeconomic survey based on indicators developed by
munity, from the point of view of Homes for All Enter- them, in which the number of people in the residence is
prise, was not considered by the entrepreneur as a relevant considered, their income, as well as the size of their
aspect since this is difficult to assess in an urban context of occupied property. With this, a calculation is made on the
a large city. value that the community can pay for each area in an
average period of 7–10 years. This value is negotiated with
the owner of the area, as well as considering the reality of
the community. In general, several rounds of negotiation
are required so that a common value agreement is reached.

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The payments made by the residents of the investigated Finding 3: Close Personal Relations
neighbourhoods were based on sacrifices made by the with the Community
families, according to the reports of the interviewees CA2
and CB2. A third element identified in this study is related to the
personal proximity of the relations established by the social
When we bought the property, we were already
innovation venture. This element does not refer to the
employed, and we were able to pay the regularization
strictly economic relationship between buyers and sellers
instalments. Everything that we would earn, we
as in the traditional market, but rather to something more
would save to pay it. […] Even if there was no bread,
in-depth and with the intent that goes beyond the capture of
but the land was there, and we never delayed the
the economic value generated. Such emphasis can be
instalment. (CA2)We had to save money to pay it. It
observed in the actions carried out by the social innovation
was half of our salary, so we got together and paid.
venture, as well as in the importance to the social issues
But for us it was an immense joy, we did not expect
given by the undertaking. The following section highlights
that it would be so fast. (CB2)
the importance given by the social innovation venture and
Although a financial sacrifice was necessary, it was verified the undertaking of the specific issues of the communities
that the prices practiced by Homes for All Enterprise served.
satisfied a basic need of owning a property of these people
Suddenly there was a situation in a neighbourhood
residing in the poor neighbourhoods, so the amount paid
with 200 families being dumped on the street. Then I
was something ‘‘advantageous,’’ according to reports of
left the meeting to see the situation. I could not hold a
CB3.
meeting at the same time as those people were being
The rent from any house today, there in the neigh- evicted. At that time, they were knocking down
bourhoods, simple neighbourhoods, costs twice what properties and dumping 250 families in another
I am paying per month for my lot to be regularized, neighbourhood. I organized a march with the people,
that is advantageous! (CB3). we gathered in front of the site where they were
knocking down properties and we were able to sus-
It is emphasized that by charging appropriate prices to the
pend the reintegration. (Homes for All Enterprise 1)
local reality, the social innovation venture obtains a wide
acceptance in the community. To do so, it is necessary to It is possible to note that the relevance of the problems of
carry out a survey of the payment possibilities, including a the communities often goes beyond the obligations related
price that should be accessible for the community. to the social innovation venture, such as the time when the
In addition, it should be noted that the amounts paid by entrepreneur decided to leave the meetings of the day to
poor communities usually involve a great sacrifice by most meet a demand of the population. This established the
families, who fail to acquire other necessary products and credibility of the entrepreneur and the social innovation
services, prioritizing the agreed values. Even so, the venture in the community. However, programmed activi-
amounts paid are understood as advantageous by the ties were also necessary so that the population could
communities, provided they meet an important need within understand the proposal and trust the performance of
their reality. Homes for All Enterprise.
In addition to the statements that indicate accessibility
It started to take too long to negotiate and I started
of the amounts paid by properties traded by Homes for All
getting annoyed with Homes for All Enterprise, the
Enterprise in relation to the market price, there is another
people here in the community were even saying that I
way of confirming this. The Homes for All Enterprise has
was in favour of Homes for All Enterprise and against
received throughout its history numerous Brazilian and
the community. Then I called them, and I discussed
international awards. Among them are awards from the
everything with the owner of the enterprise. The same
largest media organizations in Brazil in partnerships with
day he came here, we talked a lot and he explained to
international institutions, the title certifying Homes for All
everyone why it was taking so long. End of story: we
Enterprise as an organization that contributes to the UN
closed the deal with them. (BB1)
Sustainable Development Goals, as well as recognitions of
I went to the Homes for All Enterprise to talk so
internationally prestigious organizations such as Ashoka
many times, the staff was always very considerate,
and Schwab Foundation.
they kindly answered our questions and those of our
neighbours too. (BB2)
Therefore, when the relations between the parties are not
yet established with high levels of confidence, due to

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historical facts, some actions can be taken. The first one It should be noted, however, that the cost of maintaining
usually occurs more naturally, according to the events. It a structure outside the organization is highly expensive and
comes from altruistic actions in which one human being not always possible. In the case of Homes for All Enter-
tends to be worried about others. prise and the two communities, the strategy used was to
In addition, more programmed actions also help estab- provide local structures (paid by the social innovation
lish closer relationships among the actors, such as meetings venture) only in the first months of negotiations. As a
and informal lectures. These events in the community result, residents came to know the social innovation, to
demonstrate the importance of the place to the social make sure that it ‘‘really exists,’’ in addition to the fact that
innovation venture; in the same way meetings in the a good deal of the negotiations was made in that period. In
organization give greater legitimacy to the process, since the following section, the entrepreneur commented on this
they show that there is a structure that supports the business strategy:
model and the fact that the solutions come from an ‘‘ac-
When we arrive in a new area, we make available an
tual’’ organization. This was also perceived through non-
information kiosk for a while, but not forever because
participant observation as some Homes for All Enterprise
there comes a time when the locals know that Homes
posters were arranged in the public areas of neighbour-
for All Enterprise is there, and they have our contact.
hoods (such as in churches and in neighbourhood residents’
(Homes for All Enterprise 1)
associations) with addresses and telephone contact of
Homes for All Enterprise. The non-participant observation can also prove this prox-
Organized events (meetings and lectures) can create an imity between the social innovation venture and the
atmosphere of closeness between the parties, enabling communities, from photographs arranged in the corridors
negative impressions related to past experiences to be of Homes for All Enterprise in which the information
overcome by close and trusting relationships. kiosks in the attended neighbourhoods are shown. In this
sense, it can be understood that the proximity of structure
Finding 4: Proximity of Structure can help social innovation venture to approach poor
communities as they guarantee greater legitimacy among
The fourth element identified as the potential inducer of the the poor populations, demonstrating that the social inno-
proximity between social innovation ventures and poor vation venture really exists. In addition, there are issues
communities is related to the organization’s structure. In the related to the ease of having the possibility of a local
investigated case of Homes for All Enterprise and the two service, since almost all the people involved work long
communities, little initial acceptance was observed when the hours a day and the locations of the companies are almost
service was offered. Once found that the main reason for this always far from the neediest communities.
was the lack of knowledge of the population about details of
the negotiation, the entrepreneur and his team decided to set Finding 5: Winning the Community Leadership’s
up information kiosks in the two investigated communities. Trust
The importance of these structures within communities can
be exemplified by the following sections: The fifth element identified in this study as relevant to the
closeness between poor communities and social innovation
They [Homes for All Enterprise] came and set up a
ventures concerns the importance of the community leader.
small office right here and they stayed here for two or
In both environments investigated, local leaders were
three months doing peoples’ registrations. […] And
classified as a relevant link between the parties, mainly
Homes for All Enterprise was always scheduling
because they are already recognized by the community that
meetings, they were always talking to us. (CA3)
elected them as leaders or representatives. The role of local
They [Homes for All Enterprise] came here to the
leaders can be understood from their lines:
community, we had meetings in the church hall. They
came to explain, to talk and to show the projects, we Some people understood what Homes for All Enter-
had to change the projects several times. (CB1) prise was talking about and some did not. Then I
explained and explained, always taking the lead. And
It can be seen in the speeches that the bringing of the social
things got better. We started to create more confi-
innovation venture into the community can represent
dence in Homes for All Enterprise, we saw their
integration with the families. Besides just clients, the
effort, we saw the bureaucracies they had to deal with
communities, as interviewed CB1, visualize themselves as
as well and how difficult it was for them. (CB2)
part of the process since it was necessary to ‘‘change
When people receive their deeds, they get an air of
projects several times,’’ and this was possible because of
happiness and gratitude. Last week, some people
the proximity to the social innovation venture.

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received their deeds. You cannot imagine the joy of Proposition 1 Social innovation venture’s positive rep-
hugging each other, hugging me and saying, ‘thank utation support the proximity of a social innovation venture
you, we’re this happy because you helped a lot.’ and poor communities.
(CA1)
Appropriate Prices to the Population’s Reality
The participation of the community leader is very involved
from the negotiation stages with Homes for All Enterprise
The second research finding is related to the prices imposed
and legal landowners. In that period, much detailed
on the poor communities. To that end, prices in low-mid-
information of the negotiation is demanded by the com-
dle-income markets must have a good price-performance
munity. Recognition of all community leaders’ efforts
ratio and this is related to the inability of large investments
comes with time, when, for example, in the final phase of
in products or services, as well as the impossibility of
the process, many community members thank you for the
frequent replacement of products with a short period of use
work.
(Boateng et al. 2014; Lim et al. 2013; Ray and Kanta Ray
2011).
Therefore, by setting prices that are appropriate to the
Discussion and Implication for Theory
local reality, social innovation ventures could create win–
win relationships by enabling the product or service offered
In the prior section, we sketched the main strategies that
while also gaining from the marketing of the good. This
assist in building better relations between social innovation
win–win relationship holds that business can be good for
ventures and poor communities based on the facts that have
both companies and customers and all other network
emerged from our data. In this section, we will discuss
partners (Anderson et al. 2010).
those five strategies against the background of existing
In the case investigated in this study, the establishment
literature and make a proposition for each strategy.
of a win–win relationship between the parties (residents
and legal owners) is only possible from the performance of
Social Innovation Venture Reputation
a third party (the Homes for All Enterprise). This third part
mediates the relationship by presenting a market solution
It has been found that there is general widespread mistrust
for the existing market failure. This causes the owners to
on the part of the poor to consider whether small or large
benefit from receiving a ‘‘real value’’, below the market
companies are interested in helping to reduce poverty or at
value, but finally (after years or decades) receives some-
least improve their quality of life. These arguments are in
thing for their occupied property. This also makes it pos-
line with some more critical studies that argue that the
sible for the community to legalize their homes and
primary interest of firms in low-income markets would be
achieve a higher standard of quality of life. The third part,
related only to marketing strategies to reach new markets
the Homes for All Enterprise, appropriates a percentage of
and increase their profitability rather than issues related to
the values that would be destined to the owner for the
social development of poor populations (Jaiswal 2008;
maintenance of its structure. The entire process is carried
Jenkins 2005; Karnani 2007; Landrum 2007).
out in a transparent and official manner via contracts
In considering this negative image in part of the needy
between the three parties.
population, social innovation ventures should seek strate-
However, it can be emphasized that this study con-
gies to improve their reputation in these environments and
tributes to the literature by arguing that fair prices are
thereby succeed in two proposals, since Austin et al. (2006)
important elements to bring the relationship between social
advocate the idea that social entrepreneurs should base
innovation ventures and poor communities closer together.
their relationships on trust and reputation so that their
In addition, there is a need for the social innovation venture
actions are efficient and lasting. It should be emphasized
to conduct surveys on the ability of poor people to pay,
that this study contributes by adding the explanation that
including the opportunity for financing for those people,
this trust relationship is generally fragile at the beginning
since investing resources usually requires the sacrifice of
of the partnership but tends to be strengthened if the social
those people. This proximity and the co-creation of a value
innovation venture takes steps to improve it. Indications
proposition (in financial terms) for payment of the property
from other communities, proximity to poor individuals, as
can assist in the establishment of greater trust between the
well as winning prizes and titles can make the reputation of
parties. This can lead to future actions of co-creation, as in
social innovation venture stronger, achieve greater legiti-
the construction of structures of common use in commu-
macy and help in the development of a more efficient and
nities (such as the place used for the meeting of the Resi-
lasting social innovation proposal. We therefore conclude
dents’ Association, for example). We assume the
the following:
following:

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Proposition 2 Appropriate prices help establish a win– Although some theoretical contributions have already
win relationship between communities and social innova- investigated cooperation between organizations and poor
tion ventures, bringing them together and creating a communities, the emphasis in structures that seek to bring
mutual relation of reliability. these two actors closer has not been found in the literature.
Given this, this study contributes to the theory by high-
In our empirical study, this win–win relationship affects,
lighting the relevance of taking part in the social innova-
in addition to communities and the social innovation ven-
tion venture structure to the assisted communities.
ture, landowners. In this way, the three actors involved are
Answering stations can help members of the community
benefiting from the implementation of the proposal.
have easy access to social innovation venture information
and can close deals with greater convenience. In addition,
Close personal Relations with the Community
social innovation venture structures in the context of
communities can help make the proposal more ‘‘real’’ for
The third finding of this research is related to the need for
the context, reducing the sense of mistrust among mem-
close actions between the social innovation venture and
bers. Hence we assume the following
members of poor communities. This issue of close relations
between the actors has already been revealed as relevant Proposition 4 Local structures from social innovation
for the social innovation process to occur in a collaborative ventures located in poor communities helps to gain the
way (Dawson and Daniel 2010), social entrepreneur’s work trust of poor people as it gives a greater sense of reality to
is almost never isolated (Phillips et al. 2015). those involved while facilitating service and negotiations,
In this sense, it was verified that, by constructing close resulting in greater proximity among them.
relations with the poor communities and helping in their
social development, the organizations could be part of the Winning the Community Leadership’s Trust
solutions and not of the problems that these communities
face. Specifically, this study concludes by specifying that The fifth proposition indicates that achieving the commu-
this process of proximity can occur in two ways. The first nity leader’s trust helps the social innovation venture in the
of these is related to the altruistic thought in which the implementation of the proposals among poor communities,
entrepreneur and other members of the social innovation acting as a bridge between the parties since the leader has
ventures seek to put themselves in the place of the other been chosen as a legitimate representative by the members
and to understand their point of view. The second form of of the community. So, the local leaders are considered
proximity is related to program elements, such as con- important as they hold the confidence of the poor com-
ducting lectures within the community or within the social munities and help deal with the challenges of the com-
innovation venture structure. Such forms can help to munity (Majee et al. 2017). This confidence is gained over
guarantee greater proximity between the actors for a more time and strengthens relationships with the community.
efficient social innovation proposal. We therefore assume Thereby, the present study contributes to the theory by
the following: highlighting the role of the community leader as a bridge
between the community and the social innovation venture,
Proposition 3 Close personal relationships, obtained
being an important aspect, since as indicated by Delannon
through altruistic or programmed actions, help to establish
et al. (2016) the more stable the relationship is between
an environment of trust between social innovation ventures
local communities and organization, the better the benefits
and members of poor communities, which leads to a closer
for the individuals who inhabit them. The reason for this is
relationship between the parties.
the fact that the community leader has gained confidence
among the members of the community (Cleveland and
Proximity of Structure
Cleveland 2018) and therefore has the ability to influence
the community in its decisions (McMillan and Chavis
The fourth finding of the research indicates that there is a
1986). The social innovation ventures can take advantage
need to approximate the structure of the social innovation
of the position of the local leader to start and/or strengthen
venture to members of poor communities. Such emphasis is
their relations with the community, diminishing the feeling
related to the need to maintain in-depth dialogues with the
of distrust in the organization.
poor to inform them about all the specified products and
services (Pervez et al. 2013; Reynoso et al. 2015). Besides, Proposition 5 Winning the community leadership’s trust
as they relate roughly, organizations and poor populations helps social innovation ventures to build a trust-based
can develop innovative products and services in a co-cre- connection between business and poor communities
ated way (Pansera and Owen 2015).

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Finally, based on the empirical results, we suggest that economy, while much of the literature only explores cases
the process of bringing together social innovation ventures in developed contexts, mainly in Europe and North
and poor communities can encompass these five strategies; America.
we hope that the actions developed to improve stakeholder However, it is necessary to emphasize the limitations of
proximity will facilitate the creation of more efficient this study. The first is more related to the limitations of the
social innovations in low-income contexts capable of method regarding case studies, which seeks to investigate
improving the quality of life of these communities. in depth, a smaller number of cases, which does not allow
the generalization of the results. The second limitation
observed is related to the need for deeper contact with poor
Conclusion communities’ members. In our data collection, there were
some obstacles to access information, mainly due to the
Historically, companies and communities with few difficulty of access to the communities, restrictions on
resources available for purchases are not close. This visiting times and the lack of availability of the intervie-
problem stems primarily from the little funds available for wees. In addition, we found some resistance in the conduct
purchases; however, often poor communities distance of interviews by the lack of contact of these people with
themselves from opportunistic organizations based on past external researchers. Therefore, methods of investigation
experience. This has led to the development of a negative that create closer relations between the researcher and
corporate image by poor communities. those investigated, such as ethnography, could be used in
Even in the case of social innovation ventures, which the future.
seek to satisfy social needs and improve the quality of life Due to the limitations of this study, mainly related to the
of populations based on market logic, this problem persists, difficulty of access to the data, we seek to clarify in an
hampering actions that would benefit these communities. initial way the complex relationship between social inno-
Given this practical problem and allied to the need for vation ventures and poor communities. Our intention is to
discussions on the subject in the social innovation litera- open research avenues for further studies, with other social
ture, this study sought to answer the following research innovation initiatives and other communities, so that our
question: What strategies would help to bring social findings can be confirmed, refuted or improved.
innovation ventures closer to poor communities? Additionally, even as suggestions for future studies, we
According to our empirical results, we conclude that believe that several approaches still require new contribu-
social innovation ventures could consider strategies related tions that seek to re-evaluate the strategies presented here
to social innovation ventur’s reputation, appropriate prices from qualitative or quantitative methods. The proximity of
to the population’s reality, close relations with the com- some of the five elements identified can be interpreted as
munity, proximity of structure, and winning the community elements of the same construct (endogenous variables).
leadership’s trust. Even that in our study, these elements have emerged from
Our contribution to the practices is related to the five the field as independent variables, future studies can
strategies that could be considered by entrepreneurs to try analyse if, how, and how much these elements are con-
to bring their proposals closer to disadvantaged commu- nected. Besides, other research questions still require
nities. This may assist them in their implementation, answers: How does the process of joint creation of social
negotiation and proximity to the communities. innovations between disadvantaged communities and
Moreover, we offer theoretical contributions to the social innovation ventures occur? What is the role of other
social innovation literature by at least four points. First, by actors, as well as NGOs and government, to facilitate these
revealing the five strategies to approach social innovation relationships? These and other issues involving marginal-
ventures and poor communities, new perspectives on how ized populations and social innovation still demand
the beneficiary communities perceive and are affected by answers in studies that include the ecosystem in which
the social innovation proposals were described. Second, by these innovations are developed.
investigating a poorly explored actor in the social innova-
tion literature (the beneficiary communities) our study may
draw the attention of other researchers in the field to this Funding Funding was provided by Brazilian Federal Agency for
Support and Assessment of Postgraduate Education
relevant topic. Third, by presenting in detail how social (CAPES) and National Council for Scientific and Technological
innovations are implemented in marginalized communities, Development (CNPq).
our study clarifies this topic in the literature that is often
neglected, focusing only on the stages of development of
social innovation. And fourth, our study contributes to the
literature by presenting an empirical case in an emerging

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