The strategic potential of community-based hybrid models: the case of global business services in Africa

Firms in latecomer economies, such as Sub-Saharan Africa, often have limited success with traditional business models. We explain why it can be more feasible to adopt a hybrid model in such a region that combines profitability with serving local communities, e.g., by promoting inclusive employment or by targeting underserved markets. Sub-Saharan Africa supports hybrid models and social enterprises mainly through local community resources (e.g., labor, market ideas), community organizations giving access to such resources, and experience with business-community alliances. Hybrid models can benefit from such conditions when business clients and governments support the social mission and when firms are ready to target niche rather than mainstream markets. We illustrate the business potential of hybrid enterprises based on the case of ‘impact sourcing’ in global business services in Kenya and South Africa.