A Dual-Axis Framework for Social Innovation: Mapping Dynamic Transitions Through 121 Social Businesses in Developing Countries

Abstract

Previous research has placed social innovation as a static outcome or single concept, thereby not effectively capturing the dynamism of innovation over time and changes in its purpose. This study attempts to develop an analytical framework which adopts dual axes of pathways of institutional change and levels of innovation for multidimensional analysis of social innovation. Drawing on this dual-axis framework, this study examined 121 social businesses in developing countries. These businesses were operated by social innovators who had been recognized as Ashoka Fellows between 2006 and 2025. Analysis of the cases revealed that the most prevalent type of early-stage social innovation was the peripheral-user type, inducing change at the user level from the periphery of the system. Moreover, the most frequently observed type of transition was from the peripheral-user type to the integrated-service wherein the innovation became partially integrated into the system and changes at the service level. What these findings suggest is that social innovations start at the user level, expand into services, and, in some cases, reach the system level. They move step by step into deeper forms of institutional integration. This study develops a conceptually grounded typology and empirically examines dynamic patterns of this process.