Founder-Driven Hybrid Enterprise and Contextual Social Innovation: The Case of Hangfive Coffee and Surf in Batukaras, Indonesia

This study explores how social innovation and hybrid entrepreneurship are practiced within a community-based micro-enterprise in a coastal tourism ecosystem. Using the case of Hangfive Coffee and Surf in Batukaras, Indonesia, the research examines how local cultural values, founder agency, and international partnerships interact to shape a sustainable business model. Adopting a qualitative case study design, data were collected through semi-structured interviews, participant observation, and document analysis. The study employs Alter’s Social Enterprise Typology and the Triple Layered Business Model Canvas (TLBMC) by Joyce and Paquin to analyze how the enterprise integrates economic, social, and environmental dimensions. Findings indicate that Hangfive operates as a founder-driven hybrid, a market-oriented enterprise that generates social value through informal, relationship-based practices rooted in community culture. Its sustainability logic relies on relational capital, local trust, and shared identity rather than formal social enterprise mechanisms. The study contributes to social entrepreneurship literature by proposing the notion of contextual relational sustainability, emphasizing that in resource-limited rural settings, social innovation emerges from interpersonal networks and cultural reciprocity. Practical implications highlight the need for capacity-building initiatives that can institutionalize such relational models while preserving their local authenticity.