Academic journal article Innovation: Organization & Management

Social Innovation: Can It Be a Strategy for Influencing GCC Public Welfare?

Academic journal article Innovation: Organization & Management

Social Innovation: Can It Be a Strategy for Influencing GCC Public Welfare?

Article excerpt

The current period constitutes a critical juncture for the joint action initiated by the GCC States, because the current period is characterized by challenges and new developments, which have to be addressed based on a vision and thought different from those prevailing at the beginning of the second half of the 20th century. Therefore, there is an urgent pressing need for the GCC States to reconsider all available opportunities and restraints imposed upon them, as well as the challenges facing them building order, to be able to draw up new trends toward the future that cope with the hopes and aspirations of their people looking forward to a better tomorrow for their generations. It is required to be done in order to develop better development plans so as to facilitate the movement toward the goals and objectives laid down for the early decades of the 21st century (EACID, 2011).

Some of the objectives of GCC are:

* achieving economic and social development

* value based capacity building Share in cultural heritage, resources and environment

* healthy competition and integration

* sustainable development, ensuring adequate water resources

* integrated economic partnership and enhancing and reinforcing intra-GCC trade.

Aim of this research

The aim of this research is to discuss the innovation perspective and its significance toward building business models as well as bringing the social innovation concept awareness, in order to address (if not all) most of the GCC objectives listed above toward focusing on public welfare.

Innovation and need of new business models

The decision on infrastructure investment in a certain regions is a complex task especially when the public financial resources are scarce. It is often necessary to determine whether a project or a public scheme can create enough revenue to pay off loans or is able to produce financial benefits to attract private investors. Moreover, economic growth is dependent on strategic market location, local economies and political and regulatory environment. Territorial Engineering is an innovative concept especially in countries like Canada, Europe etc. where the role of Territorial Engineering does not only define the rules and techniques for developing territorial programs but also involves analyzing and designing the procedures for program and project management, financial engineering management, legal management, consensus building and knowledge management (Guilherme de Aragao, Nascimento and Chaim, 2010). The Territorial Engineering operation is based on public private partnership principles and with the motivation of innovation.

Hybridity (such as public and private partnership) is their essential characteristic, and it fulfills an indispensable role. An approach is developed that does not rest on classification of distinctions by sectors or profit orientation. A generic structure of social entrepreneurship can be proposed which in turn is founded upon enterprise ontology (AlSudairi & Vasista, 2012a). Through various combinations between the components (among which are mission such as value creation and addition, target population such as people of the nation, and knowledge on markets), various types of business models can be distinguished. At an emergent functional level, these design configurations allow for a typological ( taxonomy based) distinction between various types of strategy (Grassl, 2012).

The capacity of a firm (or nation) to capture value will be deeply compromised unless the capacity exists to create new business models (Teece, 2010). Because companies commercialize new ideas and technologies through their business model. The widespread commercialization or marketization' can become a dominant force in shaping the both social and economic life through business and non-profit sectors (Young & Salamon, 2002). Social enterprises with technological innovation often needs to be matched with business model innovation if the innovator is to capture socio economic value. …

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