A Case on a Case: Embedding Sustainable Entrepreneurship Into a Managerial-Skills Course Orlando Enrique Contreras and Leidy Tatiana Rodríguez Industrial University of Santander, Bucaramanga, Colombia
[email protected] [email protected] Abstract: This paper documents the experience of bringing a real-business challenge into the classroom using a case that demonstrates an issue in a local utility company: the Bucaramanga Metropolitan Aqueduct. The local case study shows the dilemma the manager of a public utilities company must confront, faced with the poor impact of the bottled water business unit on income results. On the one hand, the Board of Directors is totally oriented toward financial results and perceives interesting business potential with the massive development of this product in the region. On the other hand, the natural discussion about taking advantage of that potential and what the company should do in terms of strategy tends to omit its true purpose and the strong policy of social responsibility, which should go against a business that is continually being challenged in terms of the destruction of social and environmental value that it generates (bottled water).Then, this challenge appeals to the innovative sense of the students in the Managerial Skills course of the Industrial Engineering program at the Industrial University of Santander by using active innovation methodologies such as teaching through case studies and design thinking in order to formulate different alternative business models for bottled water so that, along the lines of the actual purpose of the organization, they are able to generate, simultaneously, financial results as well as good environmental and social outcomes. The contribution of this case study centers on the validity of the results generated in terms of acceptance, motivation, and learning by making combined use of concepts such as sustainability, entrepreneurship, and education in innovation. The fact that it is a known, everyday company increased the levels of participation at the time of the respective feedback, and presumably, the students' ability to understand the concepts related to the shared value creation in new ventures creation today. Keywords: entrepreneurship, sustainability, design thinking, case study, pedagogical innovation
1. Introduction The growing need to make use of active methodologies to strengthen teaching in universities has motivated the generation of interesting results at the level of educational experiences that, ideally, have a positive impact on students' comprehensive education in the interest of building a better society through their future actions and business decisions (Albanese and Mitchell, 1993; Chickering and Gamson, 1987; Light, 2001; Pedraza and Bravo, 2011). This purpose is especially true in the early formation of management skills of undergraduate-level students, for whom the incorporation of concepts such as information technologies, globalization and sustainable development should be a fundamental part of the curricula of programs such as industrial engineering (Zartha et al., 2013). Within this academic arena, the experiment in reference is put into practice. In addition, the level of relevance is higher when attempting to awaken concern for the creation of innovative business models designed to create a dynamic of independence as opposed to a labor market that does not offer enough opportunities for recent graduates, which is currently the case in countries such as Colombia. Another element to consider is the interest that the work stirs up through the rigorous use of case study methodology in the classroom; this is even more evident when the cases used represent situations in real and well-known companies among the audience, which is in line with the idea presented by authors such as Koc (2011). The sense of closeness with the issue stimulates understanding and, of course, participation. This means that achieving the purpose of a student-centered pedagogy is more direct and is, in theory, more effective. In this report, we want to share a case study of a dilemma in terms of sustainability that corresponds to a real situation in a large local public services company and that, ultimately, after a critical analysis of the situation, enables students to be propositive in terms of developing new business models in the face of the problem presented. These proposals are made in the context of a business challenge and require the understanding of the concept of sustainability put into practice. According to recent literature (Dean and McMullen, 2007), the object of study of this practice is known as sustainable entrepreneurship.
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Orlando Enrique Contreras and Leidy Tatiana Rodríguez The Bucaramanga Metropolitan Aqueduct (henceforth, AMB, from its name in Spanish: AcueductoMetropolitano de Bucaramanga) is the case setting that serves as methodological backing to support the experience. The AMB is a major utility company charged with providing the guarantee of a supply of drinking water to more than 1,100,000 people inhabiting the fifth most populous city in Colombia, Bucaramanga, and its metropolitan area. The document begins with the review of some general ideas at the level of education in sustainability that are found in the literature through the use of active methodologies. Likewise, we will introduce the school at which the practice took place and its current ideology about pedagogical innovation initiatives and finally look for any evidence that there are some similar documented experiences in the relevant literature. In addition, we will explain the applied dynamics in which a summary of the analyzed case will be present, the results obtained as a result of the students' work, and the respective feedback that is achieved from its implementation.
2. Literature overview and background Sustainable development is now challenging business as usual (Araç and Madran, 2014), which it has mainly focused on economic growth. Thus, organizations have to make new choices in order to change the way they operate, the design of products and services, and their impact on the triple bottom line (environment, society, and economy) (Lourenço, 2013). Organizational changes to implement sustainable development solutions implicitly assume that managers and employees need to be aware of and implement such policies and procedures (Haugh and Talwar, 2010). In step with this shift is the increasing recognition that sustainabilityrelated subjects need to be included in education (Mcfarlane and Ogazon, 2011), not only in primary and secondary schools (UNESCO, 2012), but also in higher education (Stubbs and Cocklin, 2008). A large number of literature contributions have been made, which are consistent with the growing need for teaching the concepts related to sustainability management in universities because of their undeniable responsibility to the community that surrounds it (Karatzoglou, 2013; Sedlacek, 2013), especially in the world of management and business education (Lourenço 2013; Araç and Madran 2014; Stubbs and Cocklin 2008). Education in business and management is an important driver of the economy, government, business, and the whole society. Students in this field should develop concern about the world’s important problems, with the purpose of playing an important role as initiators and managers of the global society. Accordingly, business schools have the intellectual capital, creativity, and entrepreneurial vision to contribute to powerful solutions that are needed globally (Araç and Madran, 2014). We can find from controlled experiments (Wiltermuth, 2011) evidence of the use of group practices in order to stimulate students’ participation in sustainable activities administered by universities (Zain et al., 2013). Furthermore, there is evidence of exploratory studies that identify the degree of effectiveness in education management sustainability and corporate social responsibility, especially at the level of executive education (Hesselbarth and Schaltegger, 2014) However, UNESCO (2012) stated that education regarding sustainability involves key issues in teaching and learning, such as climate change, biodiversity, and sustainable consumption. Hence, it promotes competencies like critical thinking, imagining future scenarios, and making decisions in a collaborative way. Furthermore, education for sustainability requires participatory teaching and learning methods that motivate and empower learners to change their behavior and take action for sustainable development. In this line of thinking, more purposeful and systematic contributions have been made that advocate for a more active and student-centered learning process in order to adequately develop these concepts from the formal introduction of such a process in the curricula of programs, so that it can achieve a greater impact in students’ learning. The use of strategies such as teaching through case studies and their association with methodologies such as design thinking are focused on stimulating students’ creativity and apparently are located at the tip of the spear of this shift of paradigm. Despite the abundant literature and growing interest related to these academic ideas (Ceulemans and De Prins, 2010; Lidgren, Rodhe, and Huisingh, 2006; Lozano, 2006; Peet, Mulder, and Bijma, 2004; Steiner and Posch, 2006; Stir, 2006), there is still no educational experience documented under the topic of teaching sustainable entrepreneurship using a combination of two or more active teaching methods.
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Orlando Enrique Contreras and Leidy Tatiana Rodríguez Moreover, it should be noted that these efforts are articulated with institutional policy, since, according to the statement made by Contreras and Ruíz (2015), the School of Industrial Engineering (EEIE, from its acronym in Spanish) of the Industrial University of Santander (where the Industrial Engineering program is developed) has made a strategic commitment towards adopting different approaches to education in the classroom, making full use of pedagogical innovation concept. The representation of this guidance was given through three specific fronts: 1) the use of case studies, 2) the investment and use of laboratories, and 3) the adoption of ludic or playful activities as a support tool. See Figure 1.
Figure 1: Strategic approach of pedagogical Innovation for EEIE As proof of its impulse, some professors and researchers of the mentioned school have also made related contributions to the literature. Examples may include Arias (2007), Camacho Pico et al. (2010), Pedraza and Bravo (2011), Contreras and Ruíz (2015), Rodríguez et al. (2015), Duarte et al. (2014), and Angulo et al. (2014).
3. What did the case consist of? The case of the AGUA-VIVA trademark of the AMB shows the dilemma the manager of a public utilities company must confront, faced with the poor results of the bottled water business unit; although it is not important in terms of its impact on income, it represented a high investment at the time, and it is not close to being recovered after more than 5 years of operation. The Board of Directors is totally oriented toward financial results and perceives interesting business potential with the massive development of this product in the region. The natural discussion about taking advantage of that potential and what the company should do in terms of strategy tends to omit its true purpose and the strong policy of social responsibility, which should go against a business that is continually being challenged in terms of the destruction of social and environmental value that it generates (bottled water) every time that it builds demand over a fundamental right like water, because it is integrated with a highly contaminating supply chain as a result of the use of packaging (a product of the oil & gas industry) and the subsequent contamination due to its prolonged biodegradation. In this case, the famous "doublespeak" of sustainability is in the spotlight; despite the fact that it allows one to highlight a series of practices aligned with the creation of shared value of the organizations, in the end, the rationality of the financial business wins out over the rest. Its objective is to raise awareness among the readers of the problem posed and the students' pedagogical case of the susceptibility of dealing with these types of decisions in the future. In this way, they may make alternative and innovative proposals regarding the exploitation of this resource in the interest of achieving a true positive combination among the financial, environmental, and social issues.
4. What did the exercise consist of? The implementation of this activity is carried out within a class of 37 students in the course called Management Skills, which students regularly take during the ninth semester of the industrial engineering program at the
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Orlando Enrique Contreras and Leidy Tatiana Rodríguez Industrial University of Santander. It should be noted that this program comprises a total of 10 semesters, and therefore students demonstrate an age range between 21 and 25. The gender ratio in the course is 62%-38%, with a female predominance. The hourly intensity is 4 hours a week for 16 weeks in the classroom, but that schedule has been supported through the EDMODO platform (www.edmodo.com), which is a sort of open, interactive, and free educational social network. The activity’s implementation was done in two stages in which the themes of sustainability and entrepreneurship were addressed consecutively, respectively, and in which there were support from experts in the methodologies used to guarantee the fulfillment of the objectives. See Figure 2.
Figure 2: Implemented exercise
4.1 First stage: Sustainability through case study methodology Teaching through case studies implies the use of a story based on either real events or a construction of events which could reasonably take place. It also involves issues or conflicts which need to be resolved (CTL, 1994). Hence, the activity steers students to work through complex, ambiguous, and real problems and encourages them to see the issues from an action perspective rather than analyze it from a distance (Angelo and Boehrer, 2002). According to CTL (1994), teachers interested in involving the students in classroom discussion have found that case studies can provide a rich basis upon which to develop students’ problem-solving and decision-making skills. Furthermore, the case study methodology is a powerful student-centered teaching strategy that can impart students with critical thinking, communication, and interpersonal skills (Schwartz 2015). By means of implementing a case in the classroom, the students determine the relevant facts, analyze them, and draw conclusions about the cause(s) of the problem and the actions to take (Angelo and Boehrer, 2002). A discussion of sustainable development is scheduled in the course syllabus at around the eighth week, and thus the written case was distributed through the work platform to all students in week 6 to be read and analyzed in advance along with a few preliminary questions to motivate critical appraisal. During class, after the group analysis phase, which is done in small groups of a maximum 5 persons, the case sharing takes place following the standards of Anderson et al. (2014), during which the professor, through previously structured questions, quizzes the students on the facts and the inferences present in the case. The main objective revolves around obtaining, after 90 minutes of discussion with the class, a unified criterion of the actual concept of sustainability and the importance of the consistency of values in decisions that are guided completely by financial and/or mercantilist motives. Ultimately we hope to highlight the common error which in practice represents the doublespeak of the actions of some organizations in the face of their policy of sustainability and their business actions. We hope to make it clear that some business models, although considered attractive due to their increasing demand, run counter to the fundamental principles of sustainable development and that, despite their legitimacy as a business, they must be addressed from a more complete and critical point of view in which other elements are taken into account. In the bottled water case, the existing debate with respect to its social and environmental impact (i.e., in terms of sustainability) is valid as a result of (1) the demand created for a vital good over the worldwide population and converted into a business, (2) the use of high levels of energy and natural resources (mainly derived from the dirty oil industry) for the production of the respective containers, (3)
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Orlando Enrique Contreras and Leidy Tatiana Rodríguez the pollution generated by the empty containers that have extended periods of biodegradation, (4) the extremely low figures of disposal and use of containers as raw material for downstream processes, among others.
4.2 Second stage: Entrepreneurship through design thinking Next, during the ninth week, we pursue the subject of new ventures creation (entrepreneurship) in the framework of the topic in question. The students are invited to form groups, and by applying the methodology of design thinking (see Figure 3), each one must propose an alternative business model to the bottled water for the AMB.
Figure 3: Design thinking methodology The suggestions for the respective activity are uploaded to the EDMODO platform and the rules of the game for sharing them later are established. The idea of sustainability is reinforced by recommending that the students see the film “Bottled Life” and the YouTube video entitled “The Story of Bottled Water.” In addition, we hope to inspire the design of alternative business through the visualization of Michael Pritchard's proposed Portable Lifesaver Filter, set forth by TEDGlobal (2009). Subsequently, the business models are presented in plenary to reinforce the ideas by means of feedback from other participants in the course. Despite the time restriction, each group is free to present its proposal freely and spontaneously.
5. Results Using the technology of Google Form, the students are required to complete a question form (see Table 1) in order to evaluate the case study presented in the course: Table 1: Question Form to evaluate the case study Rate the following aspects of the Case Study presented in the Managerial Skills course considering the scale: Strongly Neither agree nor Disagree Agree Strongly agree disagree disagree Question: The case study presented in the course in order to teach sustainable entrepreneurship… 1. Is realistic. 2. Is written clearly. 3. Is interesting and motivates my reading. 4. Is well structured so I can understand its logic. 5. Contains enough information for the analysis. 6. Allows me to define my goals after having read it. 7. Enables understanding of the topic of sustainability entrepreneurship. 8. Stimulates interest to find solutions.
As presented in Figure 4, this exploratory analysis shows that the use of combined active methods (case studies and design thinking) contributes to achieve teaching goals related to motivation (Questions 3 and 8) and understanding of the subject matter (Question 7).
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Figure 3: Question form’s results Furthermore, the quality of the local case study used in this experiment is highlighted (Questions 1, 2, 4, 6, and 7). The students’ answers indicate that they agree or strongly agree with regard to the clarity and good structure of the case study, so they can understand its logic and goals after having read it. With regard to the comprehension of sustainable entrepreneurship (Question 7), 86% of students surveyed agreed or strongly agreed that the case study enables understanding of the topic. It is also important to show an example of the process that the students carry out in order to complete the assignment. After having read the local case study and watched the recommended videos, students start the process of design thinking. In the emphatize phase, students observe users and their behavior in their real contexts; they also interview users using the following questions: Do you drink bottled water? How often do you drink bottled water? Why do you drink bottled water? In which situations do you drink bottled water? What negative aspects do you perceive from the product? What would you like to improve about the product? Using these questions, students identify aspects associated with users’ consumption habits and their level of satisfaction with the product (bottled water). They also use an innovation game called “Speed Boat” (Innovation Games, 2014), aimed to identify what customers do not like about a product or service. Next (define), students synthetize the findings of the emphatize phase into the specific needs and insights using a method called “How might we…?” aimed to state a specific problem (d.school, 2011). The ideatephase continues, so the students conduct brainstorming to get many ideas; that is, to diverge. They also use the innovation game “Spider Web” to understand relationships between ideas and the product. Subsequently, the students build an easy and cheap prototypein order to present a device that dispenses water according to the quantity the user wants. The users must pay according to the quantity dispensed, and they must bring the container required. In the test phase, the other students in the class reinforce the ideas of each group by providing feedback. To achieve this goal, a “feedback capture grid” (d.school, 2011) is used that consists of four quadrants organized as follows: (1) things one likes or finds notable, placed in the upper left; (2) constructive criticism goes in the upper right; (3) questions that the proposal raised go in the lower left; and (4) new ideas that the proposal spurred go in the lower right. Finally, each group uploads the business model proposal in the EDMODO platform, showing that there are a number of completely valid and profitable business alternatives that may be consistent with the purpose of sustainability of a company like the AMB.
6. Conclusion Today, there is growing recognition that businesses need to support sustainable development (Parrish, 2010; Schaltegger and Wagner, 2011), taking into account their key role in the world economy. There is also a tendency
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Orlando Enrique Contreras and Leidy Tatiana Rodríguez to create sustainable companies that address the problems of triple bottom line (environment, society, and economy). Hence, these facts must be promoted by means of education, not only by transferring knowledge, but also by including participatory teaching and learning methods that motivate and empower learners to change their behavior and make things happen. In this experiment, we identify methodologies in which the role of the students is active and with which their motivation and participation in the classroom can improve dramatically compared with more traditional methodologies such as conferences and workshops. Also, the use of these active methods aimed at fulfilling a basic learning need, obtain a positive feedback from students, who remark that class dynamic increasesbecause these strategies allow them to be more flexible and versatile. This state is aligned with Angelo and Boehrer (2002), who mentioned that the power of the case study method lies in the active participation of the students because they can determine the relevant facts, analyze them, and draw conclusions about the cause(s) of the problem and the actions to take. Furthermore, design thinking is a powerful methodology for which integrative thinking and collaboration are keys drivers. According to Tim Brown, design thinking can transform the way that products, services, processes, and even strategy are developed (Brown, 2008). The results suggested that, even though when using a local case study to immerse students in a real problem and going through design thinking to seek solutions can be widely accepted for students in a managerial skills course, the findings do not imply that the learning objectives were achieved. That is why it is important to conduct further research, for example, tracer studies to measure the real longer term impacts of these kinds of initiatives. There is also relevant to study the effects of other emergent methods such as challenge-based learning that enables students not only to solve collaboratively challenges but also to identify them (Observatorio de InnovaciónEducativa, 2015).
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