Business Model Innovation for Scalable Regional Expansion of Local English Course: A Design Thinking Approach
Abstract
English proficiency in Indonesia remains low, particularly in semi-urban regions where access to communicative, quality instruction is limited. Non-formal English learning centres like UP Speaking Learning Centre (UP SLC) offer vital alternatives but face systemic barriers when expanding via conventional branch models, namely high sunk costs; operational fragmentation; and weak local legitimacy. This study explores how UP SLC can redesign its business model for scalable, sustainable regional growth without replicating capital-intensive replication. Guided by three propositions rooted in business model innovation, design thinking, digital adoption, and entrepreneurial ecosystem theory, the research employs a qualitative, exploratory case study. Data were gathered through two focus group discussions, six in-depth interviews, and prototype testing with 48 stakeholders, followed by thematic and descriptive statistical analysis. Findings reveal that a hybrid model combining cafe-based micro-hubs and a lightweight digital platform significantly enhances accessibility, reduces setup costs by over 85%, improves operational coherence, and accelerates community trust. Stakeholders strongly validated the model’s feasibility (mean = 3.62), usability (mean = 3.71–3.79), and long-term adoption readiness (mean = 3.67). The study contributes a context-sensitive, community-embedded business model that aligns with the socio-spatial realities of semi-urban Indonesia and advances inclusive educational entrepreneurship.
Downloads
References
Albatti, H. (2023). Blended Learning in English Language Teaching and Learning: A Focused Study on a Reading and Vocabulary Building Course. World Journal of English Language, 13(5), 121–130. https://doi.org/10.5430/wjel.v13n5p121
Aldhamad, S. H. R., Zaki, R. I. K., Al-Zwainy, F. M. S., Varouqa, I. F., & Obaid, A. H. (2025). Significant applications of digital modeling in the construction sector for improving project management and performance. Edelweiss Applied Science and Technology, 9(4), 2432–2438. https://doi.org/10.55214/25768484.v9i4.6582
Alsalihi, D. A., Tarish, A. H., & Abdul, A. A. Z. (2025). Challenges in Teaching English Online: A Descriptive Analysis. Forum for Linguistic Studies, 7(4), 1122–1136. https://doi.org/10.30564/fls.v7i4.8926
Amin, A. S., & Nursyamsiah, S. (2025). Integrating Sustainable Supply Chain Practices….. 5818 INTEGRATING SUSTAINABLE SUPPLY CHAIN PRACTICES AND RISK MANAGEMENT: STRATEGIES TO ENHANCE MSMES PERFORMANCE IN INDONESIA. Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE), 8(2), 5818–5836.
Askari, M. Y. (2017). Competing Strategies to Balance the Budgets of Publicly Funded Higher Education Institutions. Interchange, 48(4), 377–386. https://doi.org/10.1007/s10780-017-9308-z
Behrendt, M., & Machtmes, K. (2017). Promoting experiences in outdoor environments as a way of enhancing interest and engaging learning. In Contextualizing Teaching to Improve Learning: The Case of Science and Geography. https://www.scopus.com/inward/record.uri?eid=2-s2.0-85048795655&partnerID=40&md5=94bcf90b9c24b3c6eb83c139a69eb0c9
Brachtl, S., Ipser, C., Keser Aschenberger, F., Oppl, S., Oppl, S., Pakoy, E. K., & Radinger, G. (2023). Physical home-learning environments of traditional and non-traditional students during the COVID pandemic: exploring the impact of learning space on students’ motivation, stress and well-being. Smart Learning Environments, 10(1). https://doi.org/10.1186/s40561-023-00222-4
Braun, V., & Clarke, V. (2006). Qualitative Research in Psychology Using thematic analysis in psychology Using thematic analysis in psychology. Qualitative Research in Psychology, 3(2), 77–101. http://www.tandfonline.com/action/journalInformation?journalCode=uqrp20%5Cnhttp://www.tandfonline.com/action/journalInformation?journalCode=uqrp20
Bray, M. (2023). Shadow education in Asia and the Pacific: Features and implications of private supplementary tutoring. International Handbook on Education Development in the Asia-Pacific, 159–181. https://doi.org/10.1007/978-981-19-6887-7_10
Brown, T. (2008). Design Thinking. Harvard Business Review. https://www.researchgate.net/publication/5248069_Design_Thinking
Cabral, L. M. B., & Ross, T. W. (2008). Are sunk costs a barrier to entry? Journal of Economics and Management Strategy, 17(1), 97 – 112. https://doi.org/10.1111/j.1530-9134.2008.00172.x
Carlgren, L., Rauth, I., & Elmquist, M. (2016). Framing Design Thinking: The Concept in Idea and Enactment. Creative Innovation Management, 25(1), 38–57. https://doi.org/10.1111/caim.12153
Chletsos, M., & Sintos, A. (2021). The effect of financial fragility on employment. Economic Modelling, 94(September 2020), 104–120. https://doi.org/10.1016/j.econmod.2020.09.017
Cruz-c, C. (2026). Business model innovation from dynamic capabilities perspective : A systematic literature review. 204(November 2025). https://doi.org/10.1016/j.jbusres.2025.115835
Dal Bello, U., Marques, C. S., Sacramento, O., & Galvão, A. R. (2022). Entrepreneurial ecosystems and local economy sustainability: institutional actors’ views on neo-rural entrepreneurship in low-density Portuguese territories. Management of Environmental Quality: An International Journal, 33(1), 44–63. https://doi.org/10.1108/MEQ-04-2021-0088
Efthymiou, I.-P. (2023). Blended learning: Maximizing the benefits of technology in the classroom. In Cases on Economics Education and Tools for Educators. https://doi.org/10.4018/978-1-6684-7583-6.ch003
English Proficiency Index. (2025). English Proficiency Index Trends Indonesia vs Global Average (2011-2025). https://www.ef.com/wwen/epi/regions/asia/indonesia/
Faza, A., Santoso, H. B., & Hadi Putra, P. O. (2024). Navigating online learning challenges and opportunities: Insights from small group of lecturers during pandemic. Procedia Computer Science, 234, 1164–1174. https://doi.org/10.1016/j.procs.2024.03.112
Goletsis, Y., Christogeorgou, K., & Mylonidis, N. (2025). Exploring the effect of institutions on entrepreneurial ecosystems: A meta–analysis. Journal of Small Business Management, 63(3), 936–984. https://doi.org/10.1080/00472778.2024.2363845
Gupta, V. (2025). Journal of Open Innovation : Technology , Market , and Complexity Building regional entrepreneurial ecosystems : Lessons from Germany ’ s Havel Valley community-driven initiatives. 11(August).
Helmy Adisaksana. (2020). the Effect of Digital Transformation, Business Innovation Models, and Creativity on Msme Performance With Competitive Advantage As Intervening Variable. Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE), 5(3), 248–253.
Isbahi, M. B., Zuana, M. M. M. ., & Mariana, E. R. . (2022). The Technology Strategy in Website Communication Media in Improving Business Activities. Majapahit Journal of Islamic Finance and Management, 1(2), 126–138. https://doi.org/10.31538/mjifm.v1i2.17
Jones, M. V, Dimitratos, P., Fletcher, M., & Young, S. (2009). Internationalization, Entrepreneurship and the Smaller Firm: Evidence from Around the World. Edward Elgar Publishing. https://doi.org/10.4337/9781848447363
Kallmuenzer, A., Mikhaylov, A., Chelaru, M., & Czakon, W. (2025). Adoption and performance outcome of digitalization in small and medium-sized enterprises. Review of Managerial Science, 19(7), 2011–2038. https://doi.org/10.1007/s11846-024-00744-2
Karlsson, F. (2021). Business Model Value in EdTech A single case study on a Swedish startup.
Kotler, P., & Keller, K. L. (2021). Marketing Management MARKETING MANAGEMENT Marketing Management. In Pearson Practice Hall.
Munyanyi, W., & Pooe, D. (2019). The influence of absorptive capacity and networking capabilities on small and medium enterprises. Southern African Journal of Entrepreneurship and Small Business Management, 11(1), 1–10. https://doi.org/10.4102/sajesbm.v11i1.231
Patrício, L. D., & Ferreira, J. J. (2023). Entrepreneurial Mindset , and Social Values in. Review of Managerial Science, 1(1), 1–23.
Pramana, E. (2018). Determinants of the adoption of mobile learning systems among university students in Indonesia. Journal of Information Technology Education: Research, 17, 365–398. https://doi.org/10.28945/4119
Raymond, L., Daniel, J., Loftus, M., & Cadwell, P. (2025). Spaces of teaching and (un)learning: forced migration and volunteer-led English teaching. Ethnic and Racial Studies, 48(11), 2155–2173. https://doi.org/10.1080/01419870.2024.2438282
Richardson, J. (2008). The business model: an integrative framework for strategy execution. Strategic Change, 17(5–6), 133–144. https://doi.org/10.1002/jsc.821
Rido, A., Prakoso, B. H., Perez-Amurao, A. L., Kuswoyo, H., Purba, M., Siswanto, H. W., Citraresmana, E., & Sari, N. (2023). Exploring Synchronous and Asynchronous Technological Applications and Challenges in Online English Language Classrooms in Indonesia and Thailand. 2023 9th International Conference on Education and Technology (ICET), 30–35. https://doi.org/10.1109/ICET59790.2023.10434971
Serrano-Iglesias, S., Gomez-Sanchez, E., Bote-Lorenzo, M. L., Asensio-Perez, J. I., Ruiz-Calleja, A., Vega-Gorgojo, G., & Dimitriadis, Y. (2020). Personalizing the connection between formal and informal learning in smart learning environments. CEUR Workshop Proceedings, 2712, 47 – 52. https://www.scopus.com/inward/record.uri?eid=2-s2.0-85095440104&partnerID=40&md5=2d0e67479a29b0fca674be60630dc299
Song, K.-O., Park, H.-J., & Sang, K.-A. (2013). A cross-national analysis of the student- and school-level factors affecting the demand for private tutoring. Asia Pacific Education Review, 14(2), 125–139. https://doi.org/10.1007/s12564-012-9236-7
Suherman, I., & Purnomo, A. M. (2025). Economic Evaluation Analysis of Cardboard English Learning Media for Elementary School. 20(4), 96–102.
Suryani, U., & Dwiputra, I. P. (2025). THE IMPACT OF ORGANIZATIONAL INNOVATION CAPABILITY, ORGANIZATIONAL AGILITY, AND DIGITAL STRATEGY ON BUSINESS RESILIENCE IN FOOD AND BEVERAGE SMES: THE MEDIATING ROLE OF ADAPTABILITY AND THE MODERATING ROLE OF TRANSFORMATIONAL LEADERSHIP. Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE), 8(2), 2941–2964. https://doi.org/https://doi.org/10.31538/iijse.v8i1.6321
Teece, D. J. (2018). Business models and dynamic capabilities. Long Range Planning, 51(1), 40–49. https://doi.org/10.1016/j.lrp.2017.06.007
Tello, S. (2023). INVISIBLE OPPORTUNITIES: How Collaboration Supports the Growth of an Urban Entrepreneurial Ecosystem. In Community Colleges as Incubators of Innovation: Unleashing Entrepreneurial Opportunities for Communities and Students (pp. 66–101). https://doi.org/10.4324/9781003443513-6
Trotta, A., Gallucci, C., Rania, F., Strano, E., & Tipaldi, R. (2026). The “black box” of digital finance: An umbrella review of the challenges and drawbacks in advancing financial inclusion. Research in International Business and Finance, 81(November 2025), 103188. https://doi.org/10.1016/j.ribaf.2025.103188
Varela, M. J. (2018). The costs of growth: Accelerated growth and crowd-out in the Mexican supermarket industry. International Journal of Industrial Organization, 61, 1–52. https://doi.org/10.1016/j.ijindorg.2018.08.006
Zhang, W., & Bray, M. (2020). Comparative research on shadow education: Achievements, challenges, and the agenda ahead. European Journal of Education, 55(3), 322–341. https://doi.org/10.1111/ejed.12413
Zheng, L. J., Wang, Y. A., Lin, H.-Y., & Liu, W. (2022). Understanding circular economy adoption by SMEs: a case study on organizational legitimacy and Industry 4.0. Industrial Management & Data Systems, 123(4), 1157–1177. https://doi.org/10.1108/IMDS-04-2022-0266
Copyright (c) 2026 Muhamad Rizky, Dina Dellyana
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
