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Business Models for Sustainability: Origins, Present Research, and Future Avenues
Abstract
While a consensus appears to have evolved among many sustainability researchers and practitioners that sustainable development at the societal level is not very likely without the sustainable development of organizations, the business model as a key initiating component of corporate sustainability has only recently moved into the focus of sustainability management research. Apparently, the usual approaches to sustainable development of philanthropy, corporate social responsibility, and technological process and product innovation are insufficient to create the necessary radical transformation of organizations, industries, and societies toward genuine, substantive sustainable development. More in-depth research is needed on whether both modified and completely new business models can help develop integrative and competitive solutions by either radically reducing negative and/or creating positive external effects for the natural environment and society.
... Os modelos de negócios são identificados como uma ferramenta para estudar abordagens gerenciais e empresariais, bem como combinar e redefinir filosofias de negócios antigas e novas (Schaltegger;Hansen;Lüdeke-Freund, 2016). Para Gao e Li (2020) os modelos de negócios podem incorporar criatividade, inovação, redes dinâmicas e desenvolvimento de ecossistemas. ...
... Os modelos de negócios são identificados como uma ferramenta para estudar abordagens gerenciais e empresariais, bem como combinar e redefinir filosofias de negócios antigas e novas (Schaltegger;Hansen;Lüdeke-Freund, 2016). Para Gao e Li (2020) os modelos de negócios podem incorporar criatividade, inovação, redes dinâmicas e desenvolvimento de ecossistemas. ...
... Os modelos de negócios são identificados como uma ferramenta para estudar abordagens gerenciais e empresariais, bem como combinar e redefinir filosofias de negócios antigas e novas (Schaltegger;Hansen;Lüdeke-Freund, 2016). Para Gao e Li (2020) os modelos de negócios podem incorporar criatividade, inovação, redes dinâmicas e desenvolvimento de ecossistemas. ...
O contexto de intensa competitividade a partir do mercado cada vez mais globalizado tem imposto uma nova realidade de gestão para as instituições financeiras, de modo que a introdução de práticas sustentáveis tem se tornado cada vez mais frequente no mercado corporativo, ganhando espaço no setor bancário. Nesse sentido, o objetivo geral deste estudo consistiu em analisar como a inovação é incorporada à sustentabilidade nos modelos de negócios de instituições bancárias, tendo como referência os arquétipos propostos por Yip e Bocken (2018). Para tanto, realizou-se uma pesquisa de cunho descritivo, valendo-se da metodologia qualitativa, por meio de entrevistas e relatórios públicos. Os dados obtidos foram analisados pela técnica de análise de conteúdo. Os principais resultados apontam para uma tendência na adoção de práticas sustentáveis por instituições bancárias por meio de inovação nos modelos de negócios que trazem benefícios tanto para o meio ambiente, como sociais e as torna mais rentáveis, além de melhorar a reputação perante a sociedade.
... Despite the role and responsibility of enterprises to sustainability, studies on how enterprises can transform themselves into sustainable ones still need to be explored in the literature [4]. In this sense, an innovation in an enterprise's business model, considering environmental and social factors integrated with the business logic, can improve sustainability performance [5]. Initially, the literature suggested that a business model should be focused on value proposition, value creation and delivery, and value capture to the enterprise [6]. ...
... Also, the literature needs to explain how an SBM can be operationalized in practice [13]. Therefore, more research is needed in this area [5]. This need is related to managerial knowledge and new theories that can effectively contribute to the sustainable development of the economy and society. ...
... The first studies on business models emerged at the end of the 20th century [5], motivated by the need to describe and analyze new business opportunities [6]. A business model represents how the creation, capture and delivery of value are structured by organizations [6] to leverage new market opportunities and revenue sources. ...
... The goal of the business sustainability model is to optimise value and benefits from economic, social, and environmental aspects by maintaining productivity and profitability in business (Geissdoerfer, Pieroni, Pigosso, & Soufani 2020;Schaltegger, Hansen, & Lüdeke-freund 2016;Syllick & Hockerts 2002). The business sustainability model is a set of interaction relationships with stakeholders in constructing, receiving, achieving and performing value exchange activities with various stakeholders (Boons & Lüdeke-Freund 2013;Geissdoerfer, Vladimirova & Evans 2018). ...
... However, the influence of social networks in business models is still a question and study by researchers (Zott et al. 2011). This explains the need for a comprehensive study in investigating the types of social networks involved in the formation of a business sustainability model (Schaltegger et al. 2016) and what are the implications of the value of social networks (Evans et al. 2017). In summary, this study aims to discuss the formation of business models influenced by social networks. ...
... Previous researchers have argued that business models are not only limited to the internal environment of an organisation, but also involve the external environment of the organisation such as customers, suppliers and any individual or organisation that can provide the resources needed by entrepreneurs (Doganova & Eyquem-Renault 2009;Teece 2010;Zott & Amit 2010;Zott et al. 2011). The business sustainability model provides various advantages to business organisations in achieving sustainable development goals by maintaining productivity and profitability in the business (Schaltegger et al. 2016). This explains that the value and benefit to the economy, social and environment is a fundamental matter in building a business sustainability model that is built from the internal and external environment of a business organisation. ...
Business network relationships is a business strategy that is an embedded social process through interaction in business activities. Business network relationships help produce the network values that ensure the viability and competitiveness of small and medium enterprises (SMEs). The objective of this study aims to identify the network values from business network relationships in helping the viability and competitiveness of small and medium enterprises (SMEs) owned by Malays (native) through network values exchange activities with the network of actors that make up a network model of business sustainability.This study employed the phenomenological approach through qualitative data collection technique. A total of 20 informants were selected for the study using snowball sampling technique. In-depth interviews were conducted with the informants. Data were transcribed and subsequently analyzed thematically using the ATLAS. ti software. The research found that business network relationships produce the tangible values and intangible values to Malay entrepreneurs. Value exchange activities between social network actors involve information sharing, mentoring, assistance, business support services, advice and business problem solving. The impact of the exchange of social networking values yields various benefits to entrepreneurs ranging from the process of producing quality products and services, marketing strategies, meeting customer needs, business continuity and being able to compete in an increasingly challenging market. The implication of this research is that building a relationship with the actor of social network is a business strategy and a tool for Malay entrepreneurs to benefit in business through the various role of each actor network, resulting in the various network values which complement each other and mutually necessary in building a sustainable business with the aim of economic, social and environmental values. The research showed that Malay entrepreneurs need to build a social network in the micro and macro levels, including social institutions. This study contributes to the social enterprise literature by demonstrating that business network relationships help ensure the viability and competitiveness of SMEs through the impact of network values and achieving sustainability goals.
... It has been cited that there is no unique tool to management the sustainability (Nawaz and Koç, 2018). Alongside the environmental, economic and social sustainability; finance and accounts, and accountability (Schaltegger and Burritt, 2010), (Bebbington et al., 2014), business models (Schaltegger et al., 2016) and their practicing strategies (Gond et al., 2012), and culture (Rahardjo et al., 2013), (Reimer, 2013), (Madu and Kuei, 2012) are very critical in managing sustainability efficiently. ...
... Alternatively, researchers find that business models also very concern about economic issues (Koman et al., 2022), (Schaltegger et al., 2016). Business activities maintain economic standards (Bakhtiyorovna and Bakhtiyorovna, 2020) and establish economic sustainability (Diboye-Suku and Alagah, 2021) in the society, through economic empowerment of the stakeholders (Surya et al., 2020a) (Surya et al., 2020b). ...
... Business models are critical originating mechanisms of organizational sustainability which have attained very high concentration in recent sustainability management research (Schaltegger et al., 2016). Experts are continuously arguing for adapting technological advancements (Brenner, 2018) and efficient energy management (Wüstenhagen and Boehnke, 2017) in the business models. ...
Purpose of the research: Sustainability has become the most crucial issue across the world. Due to business operations, negative impacts are encountered to the society and environment while emphasizing more on economic orientations. Considering the business impacts, the research aims at satisfying sustainable measures towards sustainable corporate management. The research highlights the different issues affecting negatively on sustainability and proposing the corporates to seriously concentrate on these issues and ensure their own sustainability.
Methodology: The research is entirely based on the literature relevant to sustainability and sustainable management across the world with an emphasis on corporate sustainability management. About 350 scholarly papers have been critically reviewed to identify the negative impacts towards economic, society and environmental sustainability, and proposed sustainable business management as well as corporate sustainability. The basic issues of sustainability have been carefully linked with corporate strategies in ensuring sustainable corporate management.
Findings: Conducting an extensive search through literature, the research has particularly identified that with more focus on economic/financial gains, business operations often neglect the social and environmental issues of sustainability. The research also finds that on many occasions, corporates are damaging the environment and giving minimal attention to societal issues. The research has shown that through proper business ethics and sustainability reporting tools, corporates can easily attain sustainable management. The research has also established the link between the UN SDGs and corporate sustainability management.
Originality and implications: This vigorous research is very worthy, firstly, it has gathered the negative impacts from business operations, secondly, it has established a linkage between sustainability and corporate management, , and thirdly, the research has guided the corporates in ensuring sustainability measures through different strategies adaptation in ethics, legal and compliance, competitive advantage, resource allocation, change management, transparent supply chain management, and product differentiation for sustainable production and consumption.
https://cberuk.com/abstract_proceeding/roge-august-2023
... We engage with this crucial subject through business models that emerged as a critical concept to investigate, formalize, and consider novel forms of socioenvironmental value creation (Evans et al., 2017;Lüdeke-Freund & Dembek, 2017;Schaltegger et al., 2016). Business models are conceptualized as value logics consisting of interlocking components that are practiced by heterogeneous actors to produce value (Doganova & Eyquem-Renault, 2009;Laasch, 2018Laasch, , 2019. ...
... To investigate (non-)economic value creation involving novel technologies, we build on the intersection of entrepreneurship and business models (Lüdeke-Freund, 2020;Schaltegger et al., 2016). Specifically, we consider business models as value logics consisting of interlocking components of value proposition, value creation, and value capture (Bocken et al., 2014;Holzmann et al., 2020;Laasch, 2019;Schwarz et al., 2021). ...
... When taking society and the environment into the equation, business models' value logics become increasingly complex Laasch, 2018Laasch, , 2019. In this regard, the central aspect of "value" is conceptualized as a combination of financial and non-economic gains (Schaltegger et al., 2016). Non-economic gains refer to the desirable outcomes of businesses that are not readily translatable in financial terms (Skeggs, 2014). ...
This article investigates how sustainable entrepreneurship on digital platforms enacts digital connectivity to capture and create value. By complementing the business model lens with sociomateriality, we theorize digital technologies as key actors that participate in the enactment of business models. We analyze visual and textual data from 19 entrepreneurial initiatives for sustainability established on the social media platform YouTube. Our findings demonstrate novel business model configurations enacted by a web of human and nonhuman (digital) actors: connecting for sustainability as part of the value proposition, forming connective spaces for socioenvironmental value creation, and leveraging connectivity for multidimensional value capture. These findings have two major contributions. First, we offer novel insights on the practices that configure business model elements of sustainable entrepreneurship on platforms. We especially draw attention to how digital connectivity of platforms is achieved and made durable by human and digital actors. Second, we elaborate on how digital agencies intervene in entrepreneurial efforts to make sustainability visible and how this affects the business models. Thus, the study contributes to and further develops the intersection of digital technologies, sustainable entrepreneurship, and business models.
... In Table 2, it can be seen that the greatest emphasis is on the work developed by Schaltegger et al. (2016), with a total of 144 citations, entitled "Business Models for Sustainability: A Co-Evolutionary Analysis of Sustainable Entrepreneurship, Innovation, and Transformation", published in Organization and Environment. This paper discusses innovation as a support for the development of management and accounting practices for corporate sustainability in order to contribute to sustainable development. ...
... These two theories explore business models that can help maintain or even increase economic prosperity by radically reducing negative effects on or creating positive external effects for the natural environment and society. In this context, the most cited authors are Schaltegger et al. (2016) and Teece et al. (1997), authors of the articles "Business Models for Sustainability: Origins, Present Research, and Future Avenues" and "Dynamic capabilities and strategic management", respectively. This is noteworthy, even though this cluster of authors shows a strong connection with the other clusters, especially with Clusters 2 and 3. ...
... The former addresses value creation following a strategic perspective, oriented towards corporate sustainability, while the latter explores sustainability-oriented innovation practices, as well as their effects on organizational performance. Schaltegger et al. (2016), authors of the article entitled "Business Models for Sustainability: A Co-Evolutionary Analysis of Sustainable Entrepreneurship, Innovation, and Transformation", recorded a total of 144 citations, representing 47.21% of the citations received in Cluster 3 and 17.33% of citations in relation to all the clusters. It was also noticed that a total of 72 relational ties were registered, with emphasis on the relationship with Bocken and Geradts (2020), who developed the article entitled "Barriers and drivers to sustainable business model innovation: Organization design and dynamic capabilities". ...
Purpose
Sustainability at the corporate level is interpreted as the approach capable of creating prosperity over long-term horizons through targeted strategic integration, sustainable business system and societal transitions, beyond economic growth, along with environmental quality and social equity. In this context, this article aims to explore the interplay of the relationship between environmental innovation and corporate sustainability.
Design/methodology/approach
A systematic literature review (SLR) was conducted in the Web of Science and Scopus databases for the last six decades to explore the proposed relationship. Data were selected on August 2, 2020, and the analysis period lasted until July 20, 2021. A research protocol consistent with the methodological rigor required in conducting an SLR was prepared for the mapping and analysis of relevant research.
Findings
In the last five years, there has been an evolution in research related to green innovation in supply chain management. Based on this evolution, there is a growing concern with the development of sustainable business models, taking into account the motivation to adopt green innovation practices aimed at corporate image. The purpose lies in verifying the organizational capabilities in achieving corporate sustainability practices and economic performance. The results show a greater concentration of studies exploring (1) sustainable business models, (2) the complexity of the sustainability tripod balance, in addition to (3) organizational strategies based on green and competitive practices.
Originality/value
Few works explored the context of small and medium-sized companies, especially those located in emerging and underdeveloped countries. This opens up a promising field of research. The main contributions of this article are related to (1) the presentation of a portfolio of theoretical and methodological approaches on the subject, which allows the exploration of the possibilities of empirical studies; and (2) showing the current status of research on environmental innovation and its impact on corporate sustainability. This article explores the interplay of the relationship between environmental innovation and corporate sustainability and brings state-of-the-art research about the theme.
... Despite the role of technology, the Balanced Scorecard (BSC) developed by Kaplan and Norton (1992), which has proven to be one of the most extensively used instruments in management strategy, can serve as another tool to aid in energy management operations. Furthermore, Hansen and Schaltegger (2012) identified the four objectives reviewed by the traditional BSC-finance, customers, internal procedures, and learning and growth-as ignoring the inclusion of sustainability issues and so needing to be modified to the changing business environment [17]. While the traditional BSC framework can assist managers in matching business sustainable development goals with firm strategy, experts in the field argue that the framework should include economic, social, and environmental factors. ...
... Despite the role of technology, the Balanced Scorecard (BSC) developed by Kaplan and Norton (1992), which has proven to be one of the most extensively used instruments in management strategy, can serve as another tool to aid in energy management operations. Furthermore, Hansen and Schaltegger (2012) identified the four objectives reviewed by the traditional BSC-finance, customers, internal procedures, and learning and growth-as ignoring the inclusion of sustainability issues and so needing to be modified to the changing business environment [17]. While the traditional BSC framework can assist managers in matching business sustainable development goals with firm strategy, experts in the field argue that the framework should include economic, social, and environmental factors. ...
A green balanced scorecard allows businesses to monitor their environmental progress and energy use, as well as quantify their achievements toward decreasing their ecological footprint. The scope of the current research is twofold: (i) to highlight the new sustainable profile of the Balanced Scorecard; and (ii) to investigate the contribution of the Sustainable Balanced Scorecard to the achievement of the energy efficiency and environmental goals of businesses. The present research study applies the rigorous bibliometric analysis technique and the PRISMA method for the years 2011–2023 to investigate the most popular research sources and documents, where the most frequently used keywords and research trends are utilized to answer the research question. In addition, findings from the network, content, and cluster analyses were visualized with the use of the bibliometric tools of Biblioshiny and VOSviewer. The results of the study indicate that businesses have made it a priority to build an energy-efficient management system based on the Sustainable Balanced Scorecard, which will help them achieve their organization’s environmental strategic goals. Moreover, a new era in the Sustainable Balanced Scorecard, that of the Contact Balanced Scorecard, has started emerging in the field. This article explains how the Sustainable Balanced Scorecard benefits organizations by enabling them to enhance their performance on both the economic and social fronts as well as the environmental front. Finally, by employing strategic evaluation methods like the Sustainable Balanced Scorecard to analyze organizations’ sustainability performance, the present study effort supports the sustainable growth of enterprises.
... The BSIMs are examined in light of various non-business aspects to explore the following questions inspired from the business model development for sustainability (Bocken et al. 2014;Schaltegger et al. 2016) and business models for sustainability innovation (BmfSI) (Lüdeke-Freund, 2018; Mihailova 2023): ...
The report identifies the most viable business models, social innovation models and new forms of organisation appropriate for advancing energy citizenship (ENCI) in different conditions. It offers an innovative approach based on business and social innovation models (BSIMs) of the ENCI detailed case studies for the elaboration of strategies for upscaling and advancing energy citizenship in the nine countries participating in the EnergyPROSPECTS project. To this aim, it proposes a clustering of the main BSIMs, distinguishing between publicly-run, organisation-based and community-based initiatives, presenting a set of nine good practice cases out of the forty detailed case studies. The analysis of the clusters revealed a set of characteristics for each cluster that has to be taken into account for the scaling of ENCI. Following on from an examination of some of the main issues and challenges related to the three main forms of scaling (scaling out, scaling up and scaling deep), this report presents four possible parallel strategies to be developed within each cluster, in order to advance ENCI for each type of BSIMs.
... Pacheco et al. (2010) discuss the challenges facing sustainable entrepreneurship and the need to create opportunities for sustainable development. Schaltegger et al. (2016) In their study of the effectiveness of sustainability innovation on sustainable entrepreneurship ventures, the authors measured the impact of sustainability innovation on the financial performance of sustainable start-ups. One potential effect size that could be calculated is the standardized difference in means between the financial performance of sustainable start-ups that implemented sustainability innovation versus those that did not. ...
Green entrepreneurship ventures have emerged as a promising solution to address environmental challenges while promoting sustainable economic development. However, assessing the performance and impact of such ventures is a complex and multifaceted task that requires careful consideration of various factors and indicators. In this study, we used meta-analysis to synthesize evidence from 25 studies on the performance and impact of green entrepreneurship ventures across different contexts and sectors. Our analysis revealed that the overall effect size of green entrepreneurship on environmental and social outcomes was positive and significant, but highly variable across studies and indicators. We found that the sources of variability in the effect sizes included differences in the types of green entrepreneurship ventures, geographical locations, and measurement methods. Our sensitivity analysis indicated that the results were robust to different prior assumptions and model specifications. We also identified several key factors that could enhance the performance and impact of green entrepreneurship ventures, including access to finance, supportive policy frameworks, and stakeholder engagement. Our findings have important implications for researchers, practitioners, and policymakers seeking to promote sustainable entrepreneurship and green innovation. Further research is needed to explore the causal mechanisms and contextual factors that influence the performance and impact of green entrepreneurship ventures.
... Incorporating sustainability, a business model, as suggested by [36], serves to describe, analyze, manage, and communicate based on the sustainable value proposition for all stakeholders. It encapsulates how this value is created and delivered, while also highlighting how the economy captures value while preserving or regenerating natural, social, and economic capital beyond organizational boundaries. ...
The increase in online orders following the COVID-19 pandemic has heightened consumer ex-pectations regarding prompt deliveries. However, this phenomenon has subsequently triggered a substantial increase in the number of vehicles navigating through urban areas, highly affecting the overall quality of life within cities. Capitalizing on the complexities posed by urban logistics, this paper proposes an innovative digital business model for logistics services. In this context, we introduce “Urban Logistics as a Service (ULaaS), platform”, a concept rooted in the principals of circular economy and harnessed through the application of the Canvas methodology. The con-ceptual framework outlines the ULaaS ecosystem and explores potential user-functionality com-binations. The proposed platform serves as both an on-demand service provider and a control hub for stakeholders such as traffic authorities, policymakers, logistics providers, carriers, and shippers. This platform streamlines citywide logistics to enhance movement efficiency, ease congestion, and reduce emissions. The ULaaS concept was validated through analysis of data collected from interviews in the unique social context of Campinas City, Brazil. The key value-generating mod-ules within the ULaaS ecosystem include parking reservations, shared warehousing, e-commerce deliveries, and comprehensive logistics solutions. However, implementing Urban Logistics as a Service has challenges. These include defining public and private sector roles, creating effective pricing models, and fairly distributing respon-sibilities among service providers. The paper also elucidates various monetization models and required investments, crucial for fostering potential private sector involvement.
... Frishammar & Parida, 2019;Ringvold et al., 2022). Sustainable BMs (SBMs) have received considerable attention from researchers and practitioners, with the compelling potential to address sustainable development in society as well as being recognized as a potential source of competitive advantage and long-term profitability (Bocken & Geradts, 2020;Massa et al., 2017;Schaltegger et al., 2016). Managing multiple BMs as a portfolio within one company can be challenging (Markides, 2013), and is often referred to as a major source of strategic failure (Casadesus-Masanell & Tarziján, 2012). ...
... However, the importance of developing sustainable models is recognised. A study by Schaltegger, Hansen, & Lüdeke-Freund (2016) found that companies that adopted sustainable practices tended to have better financial performance than their peers (Schaltegger et al., 2016). Additionally, a review of literature by De Jong, Karen and Susanne (2017) found that companies that engaged in sustainable practices had a lower cost of capital, and were more likely to attract and retain customers and employees. ...
Advances in technology, falling trade barriers, economies of scale and domestic market saturation are considered some of the key drivers behind globalisation. Globalising businesses require the management of complex solutions to coordinate resources and processes across functions and geographies. The importance of strong business models is therefore vital in view of increasing global competition. Aided by the development of sustainable business models, entrepreneurs and small firms can confidently participate in networks and capture value from networking relationships, regionally and internationally, to enhance their global presence. The aim of this research is to investigate the importance of development of sustainable business models for international companies. Results showed the development of sustainable business models are important in motivating corporate innovative measures for sustainability, and this is a driving force behind competitiveness
... Our focus on lighthouse SMEs, those considered as sustainability leaders, required a purposive sampling method (Stake, 2000). We first reviewed scholarship for examples of SBMs adopted by SMEs, which identified B Corps, social enterprises, and circular economy models (Geissdoerfer, Vladimirova, & Evans, 2018;Pizzi, Leopizzi, & Caputo, 2022;Schaltegger, Hansen, & Lüdeke-Freund, 2016a;Stubbs, 2017Stubbs, , 2019. B Corps are for-profit businesses certified by B Lab to meet rigorous standards for environmental and social performance, accountability, and transparency-using 'the power of business to solve social and environmental problems' (Stubbs, 2017, p. 299). ...
Addressing major global environmental and social challenges requires transformation of the private sector. Small- to medium-sized enterprises (SMEs) constitute 90% of private organisations globally, resulting in calls for research into the strategic roles SMEs can play in shaping sustainable futures through adopting sustainable business models (SBMs). The purpose of our study is to understand the factors that allow SMEs to successfully adopt SBMs. We used an exploratory qualitative approach drawing on interviews with SMEs implementing SBMs. Our findings extend contemporary insights by revealing the important role of the external support (‘enabling’) environment, and identifying—potentially transformative—capabilities that can help steer SMEs’ transitions to SBMs. These include persistence, tenacity, flexibility, adaptability, and a willingness to learn and fail. They enable SMEs to successfully operate in times of uncertainty and rapid changes in the external environment, and respond to new requirements through changes to their business models.
... környezeti, társadalmi problémák jellemzően különböző arányban és mértékben vannak jelen az egyes országokban, szűkebb értelemben a vállalatok működésében (Claro & Esteves, 2021). Annak érdekében, hogy a vállalatok mikroszinten hozzájáruljanak a globális fenntarthatósághoz, a 17 fenntartható fejlődési cél bármelyikéhez (melyek a gazdasági és jóléti növekedést szolgálják a társadalom, de azon belül a vállalatok számára is), üzleti modelljeikben, stratégiájukban is meg kell, hogy jelenjenek a fenntarthatóság dimenziói és az azokhoz való kapcsolatuk, lehetőleg mérhető módon (Schaltegger, Hansen, & Lüdeke-Freund, 2016;Zilahy, 2016;Bebbington & Unerman, 2018;Edőcsény & Harangozó, 2021;Yamane & Kaneko, 2022;Csutora, Harangozó, & Szigeti, 2022). ...
A fenntartható fejlődés megteremtése a jelenkor egyik meghatározó kérdésévé vált, a szerzők vélelmezik, hogy e tekintetben a kis- és középvállalatok szerepe felértékelődik a közeljövőben. Tanulmányukban a fenntarthatóság gazdasági, környezeti, társadalmi aspektusainak összetettségével és jelenlétével foglalkoztak a magyar kis- és közepes vállalati szektor kérdőíves vizsgálata mentén. A kialakított kérdőív négy fő területhez kötődően gyűjt információkat a magyar kis- és középvállalatok vezetőinek véleménye alapján: a fenntarthatóság fogalma és jelenléte, a fenntarthatóság menedzsmentszempontjai, kapcsolódó finanszírozási források és a fenntartható fejlődési célok relevanciája és jelenléte a szervezet működésében. Kutatási eredményeik alapján a magyar kis- és középvállalatok éreznek nyomást törekvések és programok elindítására a fenntarthatóság valamennyi pillérjének irányába. Elsődleges fontosságú a gazdasági fenntarthatóság, de a másik két pillér is egyre inkább előtérbe kerül. A gazdasági sikeresség és a fenntarthatóság között pozitív a kapcsolat, és ez fordítva is igaz, vagyis a fenntarthatósági törekvések hosszú távon a gazdasági eredményre is kedvező hatással vannak.
... SBMs models that create a competitive advantage through superior customer value not only benefit the company but contribute to sustainable development within the broader society (Lüdeke-Freund et al., 2019). Barth et al. (2021) introduced a Three Values (3 V) framework for SBMs, based on earlier work by Schaltegger et al. (2016) and Bocken et al. (2014) and encompassing three traditional elements: (i) the value proposition (product/service offering, customer segments, and customer relationships), (ii) value creation and delivery (activities, resources, partners, and distribution channels), and (iii) value capture (cost structure and revenue model). ...
Over the past two decades, the wine sector has witnessed a significant rise in sustainable practices driven by concerns about sustainability and their impact on wine quality. However, the lack of a common framework for sustainability concepts has resulted in a wide range of practices. Among these, biodynamic viticulture has gained remarkable traction among producers due to its perception as a strong quality indicator, despite the lack of scientific consensus and regulatory alignment across countries. Biodynamics traces its origins back to the organic movement and is viewed by some scholars as a radical progression of organic agriculture. The surging popularity of biodynamics is rooted in the expanding organic movement, reflecting consumer demand for ecologically-conscious, premium goods. Amid this complex backdrop, the wine industry grapples with navigating diverse sustainability approaches and formulating effective business models for competitiveness. Vital is comprehending and adeptly conveying sustainability values to consumers. Prior research mainly quantified sustainability’s impacts, external drivers, and motivations. However, a gap remains in exploring sustainable business models’ role in driving innovation and value creation through alternative networks in the wine sector. This paper presents findings from a phased qualitative study in Tuscany (Italy), reflecting on the evolving landscape. The results underscore synergies between biodynamic and organic approaches, emphasizing their strong connection with the territory. These strategies synergistically promote sustainability and differentiation, enhancing product quality, reducing environmental impact, and fostering territorial engagement. The study accentuates the role of territorial and business context, profoundly influencing collaborative and proactive strategies among producers, exemplified by networks like Lucca Biodinamica. These networks catalyze innovation, knowledge dissemination, and collaborative initiatives, profoundly impacting strategy adoption and advocating for sustainability. Within such ecosystems, a nurturing environment for sustainability practices is cultivated, spurring innovation and winery cooperation. Case studies vividly illustrate that wineries within these networks frequently adopt proactive sustainability stances, grounded in shared environmental and societal commitment. Conversely, some scenarios feature place-rooted leadership models tied to factors like origin, winemaking tradition, and wine tourism, driving innovation. Participating in alternative wine networks represents a strategic choice with lasting personal and economic implications–a framework for innovation and embracing sustainability.
... In this sense, some authors advocate exploring new ways of sustainability-oriented business model innovation Schaltegger & Wagner, 2011;Trimi & Berbegal-Mirabent, 2012), creating the triple-layered business model canvas (TLBMC) (Joyce & Paquin, 2016). To do so, they followed a triplebottom-line approach to organizational sustainability (Elkington, 1994;Elkington, 2004;Schaltegger, 2014;Schaltegger et al., 2016;Schaltegger et al., 2018;Birkin et al., 2019). ...
En la actualidad, la agenda 2030 ha puesto las preocupaciones sociales y ambientales en el centro de la práctica empresarial. Esto ha impulsado a los nuevos emprendimientos a integrarlos a su modelo de negocio desde sus primeras etapas de desarrollo. Así, muchos de los comportamientos tradicionalmente asociados con las empresas sociales están siendo adoptados por las empresas ordinarias. Este proceso se menciona en la literatura como hibridación. En consecuencia, este enfoque híbrido sostenible adoptado por una cantidad cada vez mayor de nuevas empresas requiere el desarrollo de nuevas herramientas para diseñar, probar y escalar modelos de negocios sostenibles que aborden la integración de las preocupaciones sociales y ambientales en su modelo de negocios desde sus etapas iniciales de desarrollo. Sin embargo, hasta la fecha, no existe una herramienta disponible totalmente capaz de diseñar, probar y escalar modelos de negocios sostenibles. Por lo tanto, el presente trabajo tiene como objetivo llenar este vacío en la literatura proporcionando una metodología secuencial que combina el marco de la Economía del Bien Común, el Lean Start-up y el método Delphi. Los autores han desarrollado la metodología docente propuesta en este artículo durante cinco años consecutivos, utilizando la investigación basada en la acción con estudiantes internacionales y locales del Curso de Emprendimiento que se imparte en el Grado en Administración y Dirección de Empresas de la Universitat de València.
... According to Claro and Esteves (2021), economic, environmental, and social concerns manifest in varying proportions and degrees across countries, as well as within the operational framework of businesses. Therefore, to foster their contribution to national and global sustainability, and sustainable development goals (SDGs), the dimensions of sustainability must be ingrained within their business models and strategies (Schaltegger et al., 2016;Edőcsény and Harangozó, 2021;Yamane and Kaneko, 2022;Rahman et al., 2023). ...
... For a company to enhance its sustainability performance, it must modify its business model to embed social and environmental factors within its business logic [10]. This integration not only promotes sustainability but also fosters competitive advantages [11]. ...
... Second, we found that the extant research presents only a few KPIs related to the environmental sustainability and societal performance of business models. Given the increasing importance of the topic in practice and research (Schaltegger et al. 2016;Lüdeke-Freund et al. 2017), future research should investigate which KPIs are relevant to the environmental sustainability and societal impact of business models. Third, the validity of the catalog can be evaluated by experts in the fields of business models and performance measurement, and its utility can be assessed by conducting empirical case studies with practitioners in different domains and contexts. ...
Organizations continuously adapt and innovate their business models to remain competitive. To support the management of business models throughout their lifecycle, Key Performance Indicators (KPIs) related to business models play an important role. However, the current research on business model KPIs is dispersed and lacks clarity on how they are defined, concretized, and managed throughout their lifecycle. Therefore, we conducted a systematic literature review to analyze and consolidate the current state of the research on KPIs for business models. We identified 35 relevant publications and classified them in a concept matrix consisting of five categories related to business models and KPI management. In addition, we synthesized the business model KPIs referred to in the literature into a catalog structured by business model dimensions. Based on our review and analysis, we formulate avenues for further research on KPIs for business models. Practitioners can use the overview of available approaches for business model KPI management and the catalog of business model KPIs to effectively manage and define KPIs for their organization’s business models.
... Studies on sustainable business models place sustainability and multi-stakeholder collaboration in the center of business organizations. Sustainable business models require correspondence of internal structures and cultural capabilities (Stubbs and Cocklin 2008) and transformational value creation logics (Schaltegger et al. 2016). Hence, complex sustainability challenges are seen to touch both business organizations and management theories to an extent that they need to adapt or transform accordingly (Derry 2012;Hahn et al. 2010). ...
The purpose of this chapter is to examine how business sustainability is considered and legitimated in stakeholder value creation studies. Based on a review of stakeholder value creation literature, a stakeholder value creation typology is presented. The typology consists of four categories, which are (1) focal firm orientation with economic value perspective, (2) stakeholder orientation with economic value perspective, (3) focal firm orientation with multiple value perspective, and (4) stakeholder orientation with multiple value perspective. Each category tells a somewhat different story of what the purpose of business is, who are the important stakeholders, what role does sustainability play in business, and how business sustainability is legitimated. A closer analysis reveals that the category of stakeholder orientation with a multiple value perspective shows the most potential to build the legitimacy of business sustainability on the profound meaning of sustainability with economic, social, and environmental dimensions. In this category, business sustainability is legitimized in terms of cooperative stakeholder relationships, continual negotiations, and collective efforts, where versatile value is created for various stakeholders, including values related to sustainability. The recommendations for future research draw attention to versatile and broad understanding of value, stakeholders, and value creation and dynamic, systemic, and multilevel stakeholder relationships and collaboration as subjects to understand the legitimation of business sustainability.
... A growing number of studies on BM and sustainability have been published in a variety of journals, reflecting the need to address environmental and social challenges (Boons and Lüdeke-Freund, 2013). Also, building on earlier issues of this journal featuring eco-innovation (Hall and Clark, 2003) and the diffusion of clean technologies (Montalvo, 2008), scholars highlight the need to research business models for sustainability (Schaltegger et al., 2016). ...
... However, they underline that little is known about the underlying dynamics of sustainable business model (SBM) adoption. More specifically, despite the increasing interest of scholars and practitioners on SBMs, there is limited knowledge regarding the factors enabling the SME transition toward SBMs, leading them to integrate sustainable principles (Evans et al., 2017;Geissdoerfer, Vladimirova, & Evans, 2018;Schaltegger, Hansen, & Lüdeke-Freund, 2016;Schaltegger, Lüdeke-Freund, & Hansen, 2012). This research gap is confirmed by recent studies highlighting the need for further research on what drives SMEs to adopt an SBM (Bocken, Short, Rana, & Evans, 2014;Evans et al., 2017;Geissdoerfer, Vladimirova, & Evans, 2018;Pizzi, Corbo, & Caputo, 2021). ...
An increasing number of small and medium enterprises (SMEs) are focusing on sustainable development and on embracing sustainable business models (SBMs). Despite the growing interest of academics and practitioners in SBMs, and the benefits for stakeholders, there is limited knowledge regarding the factors enabling SME transition toward SBMs, leading them to integrate sustainable principles in their BMs. This study explores the enabling factors for SBM adoption by SMEs and provides an improved understanding of this recent phenomenon. Understanding what factors enable adoption of SBMs is crucial for both SMEs and policymakers. The research uses an inductive qualitative research design approach focused on multiple case studies. The findings reveal that both internal and external factors play a key role in enabling SME transition toward SBM adoption. The internal factors that emerged include openness, change of mindset, problemistic search, social exchange, and resource valorization, while external factors included markets change, technological innovation, stakeholders’ influences, policy and institutions.
... Geissdoerfer et al. (2018) mentions the "creation of monetary and non-monetary value for a broad range of stakeholders and hold a long-term perspective". Schaltegger et al. (2016) highlight in their definition of SBM the aspect of "capturing economic value while maintaining or regenerating natural, social, and economic capital beyond its organizational boundaries". ...
A successful business is increasingly concerned with comprehending the challenges and opportunities associated with society’s shift towards sustainability. However, current business model innovation fails to embrace the sustainability dimensions sufficiently. Many organizations lack a process that allows them generate entirely new and viable alternatives for business models. Sustainable development and its three-dimensional framework significantly impact most businesses’ re-organization. The complexity of balancing the economic, environmental, and social dimensions of sustainable development signals the need for a new business model. In this conceptual paper, the authors discuss possible transitioning from the business model to the contribution model, where the value ecosystem and value exchange plays a defining role.KeywordsBusiness modelContribution modelSustainabilityValue co-creationValue ecosystem
... mentions the "creation of monetary and non-monetary value for a broad range of stakeholders and hold a long-term perspective". Schaltegger et al. (2016) highlight in their definition of SBM the aspect of "capturing economic value while maintaining or regenerating natural, social, and economic capital beyond its organizational boundaries". ...
Digital servitization describes the change of business models towards smart service offerings enabled by digitization. One challenge of digital servitization for manufacturers is to gain a better understanding how smart services generate value-in-use. To examine individual value-in-use concepts regarding smart services, we conducted and analyzed 22 in-depth interviews with the repertory grid technique. Our findings show that the respondents have a fairly uniform understanding of what constitutes an ideal service. Their perception of the service of tomorrow, smart service, and remote service offerings is closer to a future ideal than the service of today. Further we were able to group individual value perceptions into four groups and to discuss differences of an external and internal view on smart service. Interestingly sustainability was not mentioned as a value dimension in our study, which should be investigated further.KeywordsSmart serviceRepertory gridValue-in-use
... Thus, there is an opportunity for accountants and accounting firms to position themselves as global experts in the area of corporate water risk and water trading opportunities (Burritt & Christ, 2015). So while government policy is critical for improving water management and achieving SDG 6, targeted improvements in water resources management are unlikely to be realized without the involvement of business (Ortas et al., 2019;Schaltegger et al., 2016). ...
... This implies that sustainability is at the heart of the business model's value proposition, sustainable value is created and delivered to stakeholders and is transformed into economic value for the firm and its shareholders (Aagaard, 2019). Schaltegger et al. (2016) proposed a well-accepted definition of sustainable business model: helps describe, analyse, manage and communicate (i) a firm's sustainable value proposition to its customers and all other stakeholders, (ii) how it creates and delivers this value and (iii) and how it captures economic value while maintaining or regenerating natural, social and economic capital beyond its organisational boundaries. Consequently, the most important implication of this study for practice is that SMEs should not ignore environmental challenges and should not view sustainability as something that will take away their competitiveness or even wealth creation. ...
There is an ongoing scholarly debate regarding the compatibility of sustained high levels of firm-level growth with today's environmental sustainability goals, which include targets for limiting carbon emissions and avoiding further biodiversity loss. In this study, we aim to explore this issue through a quantitative analysis of the relationship between firm-level growth and sustainable innovation (i.e., all innovations with benefits for the environment) within an international sample of small-and medium-sized enterprises (SMEs). To accomplish this, we utilise micro-data from the Community Innovation Survey, based on the conceptual framework provided by the Oslo Manual. By employing econometric models, we demonstrate that sustainable innovations promote SME growth. Specifically, we find that SMEs implementing sustainable innovations experience higher growth compared to those that do not practice them. Our research not only contributes to the existing literature in economics and management by providing more extensive knowledge but it also identifies several policy and management implications. Furthermore, we seek to offer novel insights into the importance of sustainable innovations adopted by growth-oriented SMEs.
... This implies that sustainability is at the heart of the business model's value proposition, sustainable value is created and delivered to stakeholders and is transformed into economic value for the firm and its shareholders (Aagaard, 2019). Schaltegger et al. (2016) proposed a well-accepted definition of sustainable business model: helps describe, analyse, manage and communicate (i) a firm's sustainable value proposition to its customers and all other stakeholders, (ii) how it creates and delivers this value and (iii) and how it captures economic value while maintaining or regenerating natural, social and economic capital beyond its organisational boundaries. Consequently, the most important implication of this study for practice is that SMEs should not ignore environmental challenges and should not view sustainability as something that will take away their competitiveness or even wealth creation. ...
This work aims to study the impact of meso-level variables of entrepreneurial ecosystems (EEs) on digital transformation. Statistical analysis was used to evaluate the research hypotheses, based on multiple linear regression, with a sample of 172 organisations. The results show that actors from the meso dimension of EEs positively impact digital transformation through knowledge, discoveries, guidance, co-opetition, co-creation and stimulation of technological search. The contributions of this study are in bringing a more refined perspective of the incentives of society actors to digital transformation, besides awakening to their importance in organisational processes and showing that associations for the satisfaction of own interests can culminate in common benefits.
... Therefore, for leaders and managers to contribute to those factors, it has been studied the concepts of corporate sustainability such a strategy that allows the creation of economic, environmental, and social value to increase the wellbeing of present and future generations [10,11]. According to the author [6], corporate sustainability refers to the strategic systems that transform organizational management into a set of activities that contribute to sustainable development. ...
Micro, small, and medium enterprises (MSMEs) are the engine of economic, environmental and social stability in many countries but recently MSMEs have been facing instability in their sales, production, and feature a decrease in employment that generates negative growth in the gross domestic product in emerging countries. Also, along with governmental entities, they are expected to be aware of the importance of developing sustainable models to improve production systems within the framework of sustainable development. Considering there is abundant literature on multiple sustainable models, their effective implementation in production systems is a debate topic as there is no standard guide to the processes and activities that should be followed in their adoption. The objective of this study is to design an integral sustainability model for MSMEs through the analysis of the interrelationships and dependencies of sustainability factors and a perception analysis evaluating 327 MSMEs in Colombia, using the design science research and case study as a research method. The analysis of the results has been exposed as results of a doctoral thesis which indicates that the MSMEs that were studied presented significant variations and similarities in the use of the adoption of sustainable strategies, which allowed the identification of weaknesses and strengths to focus efforts on the development of productive systems aligned with environmental sustainability
... From the available data, this can be attributed, in part, to low product sales. Low sales may result from intense market competition, products that are less in demand, or ineffective sales promotion strategies [22]. "Our sales volume has been declining over the past four years. ...
This study investigates the sustainability level of small industries that have persevered for up to three generations in rural areas of Indonesia, addressing the significant issue of high failure rates among small industries. Utilizing the Triple Bottom Line framework, this study examined the economic, social, and environmental performance of four small industries that have thrived for multiple generations in Indonesia. Data collection involved semi-structured interviews, focus group discussions (FGDs), and secondary company data. Thematic analysis principles using N-Vivo 12 software were applied to analyze qualitative data, while the RAP 2016 software version R was used for assessing the sustainability index and status. The research findings revealed that the sustainability status of small industries that survived for up to three generations in rural areas was predominantly unsustainable. Economic performance exhibited variability, some falling into the less sustainable category, while social and environmental performances were deemed moderately sustainable. The practical implications of the findings are as follows: the level of competition, government policy, and market access are the most sensitive factors that should be considered to improve economic performance. Meanwhile, small industries must maintain and enhance their social and environmental performance to ensure stability. In addition, the theoretical implication of this finding suggests that the concept of “sustainability” cannot solely be represented by the company’s longevity. Long-lasting small industries may not necessarily be economically, socially, and environmentally sustainable.
The sharing economy provides an interesting playground in which to innovate business models with the aim of creating sustainable value. Despite the growing interest in the topic, the relationship between sharing economy business models and sustainability is still largely unknown. In this study, the focus is on examining how to increase the utilization of unused or underutilized assets through business models to create sustainable value. Based on the comprehensive analysis of sustainability‐oriented companies in the Finnish clothing industry, 11 business model (BM) types with different internal development and cooperation levels were identified, guiding the development of BMs toward sharing. By applying a contingency theory, we identified different contingency factors interacting with BM components and affecting the potential of these BMs to increase the sustainable use of resources and move toward increased sustainable value creation. This new understanding contributes especially to the call to study BM innovations in contingent situations, and highlights the importance of considering the context while analyzing the sustainable value creation potential of sharing economy BMs.
This Master's Thesis aims to analyze the requirements arising from the increasing demand for sustainability-oriented innovations in the automotive-supplier industry and to derive recommendations for success in transformation. This seems to be essential in order to strenghten the major role of the Upper Austrian automotive supplier industry within the regional and national economy.
Initially, the theoretical framework is established to define the concept of sustainability in the industrial context and its specific implications concerning innovations. Following an examination of the automotive industry in general and the network of the Automotive Cluster Upper Austria in particular, an overview of trends and drivers in terms of regulations and laws, OEM and Tier 1 strategies, banking and capital markets, digitalization, as well as societal change and mobility is provided.
Methodologically, a PESTEL analysis was applied in order to present the wide range of environmental influences in a structured and differentiated manner according to political, economic, social, technological, ecological and legal aspects. This step made it possible to draw up a opportunities-and-risks matrix for the "Upper Austrian automotive supplier industry" as a reference object (external analysis). On the other hand, individual strengths and weaknesses were identified that apply to the network of the automotive cluster, which is strongly characterised by small and medium-sized enterprises (internal analysis). The discussion and interconnection of these insights (SWOT-Analysis) were leveraged for the formulation of comprehensive list of recommendations. Herein, drivers of sustainability-oriented business models were particularly taken into consideration.
Starting with global legislators and policies, as well as the strategies of international vehicle manufacturers, it is evident that a radical reduction in CO2 emissions within the automotive value chain, coupled with the elevation of social and ecological standards, is inevitable. However, to confront this sustainable transformation, the Automotive Cluster network possesses a favorable starting position to adress these challenges. Over all, this work condenses 22 opportunities, 21 risks, 17 strengths, and 5 weaknesses, ending in 84 recommendations.
The chapter presents the issue of ESG and defines the state of research in this field. The second part of the chapter is devoted to the issue of a sustainable business model and the challenges that companies face in this scope. The last part of the chapter describes a sustainable business model in financial institutions. The chapter especially points out the importance of the concept of sustainable development which makes the incorporation of ESG factors into the business model a natural necessity for modern entities that want to gain or maintain a competitive advantage on the market. The chapter discusses the role of ESG factors in the decision-making processes of the companies and its operating strategy.
Purpose
This study aims to analyse the components of sustainable business models (SBMs) in the dairy industry, in relation to firm-relevant organisational features (size, ownership structure and production process) and through the lenses of the business model framework and the sustainable value exchange matrix (SVEM). This contribution proposes a taxonomy of emerging SBMs and sustainable value creation in the dairy industry.
Design/methodology/approach
This research makes use of a multiple case study approach, with cases selected in collaboration with industry experts. The selected firms are highly committed to sustainability transition. Results are drawn from qualitative data obtained from in-depth interviews and secondary sources. The interpretation phases, initially based on open coding, have been enriched by applying the components of business models (BMs) frameworks and the SVEM, and the analyses have been enhanced through an additional interpretative workshop with experts.
Findings
The authors related the BMs characteristics of some typical dairy firms transitioning to sustainability, using SBM components and taxonomies emerging in the literature, based on the formalisation of sustainability practices, the scope of operations, and the degree of integration of the three dimensions of sustainable value. These findings led to the discovery of three types of SBM in this dairy industry, referred to as “Milky Ways”.
Originality/value
This paper contributes to the scant literature on sustainability in dairy firms, highlighting the different paths followed by small and medium-sized enterprises (SMEs), cooperatives and large companies in remoulding their business models towards sustainability and thus achieving sustainable value creation.
Purpose
The purpose of this study is to identify the factors that contribute to the successful implementation and management of sustainable innovation in research-intensive sectors such as the life sciences industry.
Design/methodology/approach
The study was conducted through a combination of two methods. The first was qualitative interviews of 21 sustainability experts and leaders in the life sciences industry who were responsible for implementing sustainable innovation. They were selected through nonprobabilistic purposive sampling. The second method was thematic content analysis using the MAXQDA software.
Findings
The study identified that successful implementation of sustainable innovation in research-intensive firms begins with the alignment of the executive vision for sustainability with the business objectives of the research-intensive firm. Furthermore, implementation of sustainability practices is identified as a function of organizational reconfigurations that facilitate purposeful inflow and outflow of ideas and knowledge between internal firm resources and external stakeholders, anchored by the objectives of the research-intensive firm.
Research limitations/implications
The study explicated factors only within life sciences industry based on qualitative interviews. The study offers scope for cross-sector quantitative evaluation.
Originality/value
To the best of the authors’ knowledge, this study is among the first studies to systematically delineate the underlying factors that govern successful implementation of sustainable innovation in research-intensive industries, through integration of the resource-based view and stakeholder theory and thereby provide a framework for research-intensive organizations to implement sustainable innovation practices.
Stakeholder theory is one of the most widespread theoretical lenses in sustainable business model (SBM) research. However, stakeholder theory in SBM research is mainly anthropocentric, as it emphasises human stakeholders, such as customers, suppliers, employees, partners, shareholders, investors, or local communities. Thereby, SBM research fails to acknowledge the role and impact of non-human animals as stakeholders. This is surprising, as non-human animals play an active role in business: Each year, European slaughterhouses kill about 360 million animals, around 20 million cows contribute to milk production, and the pure economic benefit of bees is estimated at around 265 billion euros worldwide. Hence, I argue that researchers and practitioners must consider animals as stakeholders in SBMs in order to enhance business models’ contribution to sustainability transformations. This essay takes a first step to developing a post-anthropocentric stakeholder theory for SBM research that considers non-human animals.
The construction industry and the built environment represent significant challenges towards greening and implementing sustainable development due to their high consumption of limited natural resources and the generation of a significant amount of waste. The implementation of eco-responsibility and circular economy practices can contribute to the reduction of environmental impact and the promotion of resource efficiency in construction activities. This chapter provides an overview of eco-responsibility and circular economy practices and discusses strategies for their implementation in the construction industry and built environment. The chapter also highlights the contribution of eco-responsibility and circular economy practices towards the achievement of the United Nations' Sustainable Development Goals.
Today an increasing number of business models claim to be sustainable despite the environmental, social and economic problems that, far from improving, are in fact getting worse. It seems impossible to reach the objectives described in UN’s sustainable development goals (SDG’s) without making deeper changes in the dominating economic paradigm which is based on and driven by profit maximization and promoting economic growth.
Drones can play a significant role in the paradigm shift desired by several international entities. Although many attempts to transport through the technology have encountered regulatory barriers, drones represent disruptive mobility that can foster social and environmental sustainability. For the successful implementation of this new mobility model, the support of several stakeholders is critical. In this regard, the paper applies the theoretical lens of stakeholder theory embedded within the business 4.0 model for the creation of value propositions. Through several semi-structured interviews, the research analyses findings related to a single case study concerning the unique location of Venice, Italy. The city emerges as having international interest because of its singular transportation system. Specifically, Flying Aid, a start-up venture of the Strategy Innovation ecosystem of the Ca’ Foscari University of Venice, uses drones to transport drugs to remote areas to promote therapeutic access for patients with chronic diseases and transportation difficulties. The paper contributes to understanding how a paradigm shift through drone transportation may improve patient engagement and overcome transportation barriers. It also expands stakeholder engagement by empowering healthcare providers and promoting knowledge translation and systems integration. Moreover, the research contributes to the investigation of environmental and social sustainability by advancing knowledge toward cleaner production and decarbonized mobility. Finally, the paper provides insights into the elements of the business model 4.0, facilitating value creation for stakeholders.
Research Summary
This study employs resilience theory and examines the dynamics of business modeling in international firms that enable them to resist environmental shocks under the adverse conditions of a global pandemic. Our multiple‐case study shows that firms develop various dynamic states of their business models (BMs) during the resilience process; each state differs in terms of the scope of BM change and the concurrent degree of BM innovativeness. Shifts in dynamic states result from attaining certain resilience capabilities. We contribute to the dynamic view on BMs, and the process perspective on organizational resilience; we also advance BM research in the context of internationalization.
Managerial Summary
Under conditions of extreme disruptions that take the form of long‐lasting adversity, international firms need to continuously adjust their BMs to brave force majeure and remain resilient. This study takes a dynamic perspective on business modeling and examines how international firms develop different dynamic states of their BMs to stay resilient under extreme uncertainty; each state differs in terms of the scope of BM change, concurrent degree of BM innovativeness and the attained resilience capabilities. We show that business modeling is a continuous task of international firms that allows them not only to resist adversity but also to open new markets.
This study analyzes the preferences and perceptions of consumers in e-marketplaces to design and guide sustainable business models based on economic, social, environmental, and technological dimensions. The results are based on a sample of 387 respondents to analyze the main reasons and benefits for using e-marketplaces, the preferences, and perceptions of consumers regarding sustainability dimensions in e-marketplaces, and the assessment of technological features of digital platforms. Using descriptive statistics and structural equation modeling (SEM), this study highlights the importance of e-marketplace business models and their customer-centric value propositions in effectively communicating and ensuring high levels of usability and stability in the digital platform. The findings underscore the importance of informing consumers about the benefits of participating in digital platforms, with particular emphasis on the technological and environmental dimensions, which emerged as the most influential factors in the development of a sustainable business model for e-marketplaces. However, the study also emphasizes the need not to overlook the economic and social dimensions, as they are crucial for maintaining a sustainable business model in the long run. In conclusion, this research provides valuable insights to guide e-marketplace business models towards sustainability based on the perspectives and contributions of consumers.
Whether and how “sustainable business models” effectively support sustainable development is not just a matter of design, but also of the measurability and manageability of business model effects. While the interrelations between organisations’ sustainability performance and their business models is discussed in an increasing number of academic and practice publications, appropriate management approaches for the deliberate assessment and management of business models and their expected contributions to a sustainable development of the natural environment and human society are currently not available. Therefore, this chapter discusses this research gap and proposes a conceptual framework for sustainability-oriented business model assessments.
While business model innovation has been widely accepted as an innovation category on its own, its problem-solving potential is still unexplored. We argue that business model innovation can be applied beyond single firms, i.e. on the value network level, to find systemic solutions to " wicked " problems. A framework and method for sustainable business model innovation for value networks are proposed: the former building on the concept of normative management, the latter on a " mainstream " business modelling tool. This method was applied and evaluated in a workshop series on regional energy networks in Germany. We review the literature on sustainable business models, provide the theoretical background of normative innovation management, describe the workshops, and reflect on the lessons learned from theory and practice. We conclude that the best starting point for systemic sustainability innovations lies beyond single firms within networks built on shared goals and normative values.
Pressures on business to operate sustainably are increasing. This requires companies to adopt a systemic approach that seeks to integrate consideration of the three dimensions of sustainability – social, environmental, and economic – in a manner that generates shared value creation for all stakeholders including the environment and society. This is referred to as sustainable business thinking. The business model concept offers a framework for system-level innovation for sustainability and provides the conceptual linkage with the activities of the firm such as design, production, supply chains, partnerships, and distribution channels. A value mapping tool has been presented in the literature to assist in sustainable business model innovation. This study explores the use of value mapping for broader sustainable business thinking, by reflection on its use in workshop settings. A range of new applications is identified which is expected to be of interest to business practitioners, policy makers, and academic researchers.
Social entrepreneurship research often relies on presenting narratives of organisations that integrate various actors, actions, contextual elements and outcomes without a clear perspective on why these elements were selected and what can be learned from them. This paper provides a transparent and systematic process of modelling organisations and proposes a validity triangle that adequately integrates analytical, theoretical and ontological dimensions. An illustrative case study demonstrates the choices involved in a valid modelling process. It also illustrates the steps involved in building a generative model of a social enterprise that accounts for the mechanisms that explain how the focal organisation achieves multiple strategic objectives.
Grameen bank, founded in 1976, has both pioneered the development of micro-finance, and created nearly 30 businesses designed to alleviate poverty. The article traces the gradual development of Grameen’s expertise in formulating social business models, which require new value propositions, value constellations and profit equations, and as such, resembles business model innovation. The article presents five lessons learned from this experience: three are similar to those of conventional business model innovation: challenging conventional thinking, finding complementary partners and undertaking continuous experimentation; two are specific to social business models: recruiting social profit-oriented shareholders, and specifying social profit objectives clearly and early. We suggest these new business models - where stakeholders replace shareholders as the focus of value maximization - could empower capitalism to address overwhelming global concerns.
Eco-innovations, eco-efficiency and corporate social responsibility practices define much of the current industrial sustainability agenda. While important, they are insufficient in themselves to deliver the holistic changes necessary to achieve long-term social and environmental sustainability. How can we encourage corporate innovation that significantly changes the way companies operate to ensure greater sustainability?
Sustainable business models (SBM) incorporate a triple bottom line approach and consider a wide range of stakeholder interests, including environment and society. They are important in driving and implementing corporate innovation for sustainability, can help embed sustainability into business purpose and processes, and serve as a key driver of competitive advantage.
Many innovative approaches may contribute to delivering sustainability through business models, but have not been collated under a unifying theme of business model innovation. The literature and business practice review has identified a wide range of examples of mechanisms and solutions that can contribute to business model innovation for sustainability. The examples were collated and analysed to identify defining patterns and attributes that might facilitate categorisation.
Sustainable business model archetypes are introduced to describe groupings of mechanisms and solutions that may contribute to building up the business model for sustainability. The aim of these archetypes is to develop a common language that can be used to accelerate the development of sustainable business models in research and practice. The archetypes are: Maximise material and energy efficiency; Create value from ‘waste’; Substitute with renewables and natural processes; Deliver functionality rather than ownership; Adopt a stewardship role; Encourage sufficiency; Re-purpose the business for society/environment; and Develop scale-up solutions.
The aim of this paper is to advance research on sustainable innovation by adopting a business model perspective. Through a confrontation of the literature on both topics we find that research on sustainable innovation has tended to neglect the way in which firms need to combine a value proposition, the organization of the upstream and downstream value chain, and a financial model, in order to bring sustainability innovations to the market. Therefore, we review the current literature on business models in the contexts of technological, organizational, and social sustainability innovations. As the current literature does not offer a general conceptual definition of sustainable business models, we propose examples of normative 'boundary conditions' that business models should meet in order to support sustainable innovations. Finally, we sketch the outline of a research agenda by formulating a number of guiding questions.
A considerable body of literature deals with the creation of economic value while increasing corporate environmental and social performance. Some publications even focus on the business case for sustainability which aims at increasing corporate economic value through environmental or social measures. The existence of a business case for sustainability is, however, mostly seen as an ad hoc measure, a supplement to the core business, or simply a coincidence. As a contrast, this paper argues that business model innovations may be required to support a systematic, ongoing creation of business cases for sustainability. A framework for business model innovation is proposed as a means to strategically create business cases on a regular basis as an inherent, deeply integrated element of business activities.
According to one perspective, organizations will only be sustainable if the dominant neoclassical model of the firm is transformed, rather than supplemented, by social and environmental priorities. This article seeks to develop a "sustainability business model" (SBM)-a model where sustainability concepts shape the driving force of the firm and its decision making. The SBM is drawn from two case studies of organizations considered to be leaders in operationalizing sustainability and is informed by the ecological modernization perspective of sustainability. The analysis reveals that organizations adopting a SBM must develop internal structural and cultural capabilities to achieve firm-level sustainability and collaborate with key stakeholders to achieve sustainability for the system that an organization is part of.
This paper proposes a model of how incumbents and new entrants engage in sustainable entrepreneurship. We suggest that in the early stages of an industry's sustainability transformation, new entrants (‘Emerging Davids’) are more likely than incumbents to pursue sustainability-related opportunities. Incumbents react to the activities of new entrants by engaging in corporate sustainable entrepreneurship activities. While these ‘Greening Goliaths’ are often less ambitious in their environmental and social goals, they may have a broader reach due to their established market presence. This paper analyses the interplay between ‘Greening Goliaths’ and ‘Emerging Davids’ and theorizes about how it is their compounded impact that promotes the sustainable transformation of industries.
This paper aims to clarifyi the concept of business models, its usages, and its roles in the Information Systems domain. A review of the literature shows a broad diversity of understandings, usages, and places in the firm. The paper identifies the terminology or ontology used to describe a business model, and compares this terminology with previous work. Then the general usages, roles and potential of the concept are outlined. Finally, the connection between the business model concept and Information Systems is described in the form of eight propositions to be analyzed in future work.
The article is intended as a contribution to the ongoing conceptual development of corporate sustainability. At the business level sustainability is often equated with eco‐efficiency. However, such a reduction misses several important criteria that firms have to satisfy if they want to become truly sustainable.
This article discusses how the concept of sustainable development has evolved over the past three decades and particularly how it can be applied to the business level. It then goes on to describe the three types of capital relevant within the concept of corporate sustainability: economic, natural and social capital.
From this basis we shall then develop the six criteria managers aiming for corporate sustainability will have to satisfy: eco‐efficiency, socio‐efficiency, eco‐effectiveness, socio‐effectiveness, sufficiency and ecological equity. The article ends with a brief outlook towards future research. Copyright © 2002 John Wiley & Sons, Ltd. and ERP Environment
Part I - Introduction.- The Emergence of Green Business Models.- Purpose of this Work and Research Approach.- Part II - Theoretical Foundation of Green Business Model Transformations.- Environmental Sustainability in Business.- The Business Model Concept as a Unit of Analysis for Management Science.- Towards a Taxonomy of Green Business Models.- Organisations, Change, and Innovation.- Part III - Towards a Practical Management Approach.- A Survey on Green Business Model Transformations.- Managerial Implications of Survey Results.- Managing Green Business Model Transformations - A Framework for Management Practice.- Part IV - Conclusion and Outlook.- Conclusion and Outlook.
This present book offers a unique view on innovativeness and competitiveness that improve when organizations establish alliances with partners who have strong capabilities and broad social capital, allowing them to create value and growth as well as technological knowledge and legitimacy through new knowledge resources. Additionally, the value of digital technology, at both personal and industrial levels, leads to new opportunities that emerge for creating experiences, processes, and organizational forms that fundamentally reshape organizations. For example, organizational intelligence systems have become versatile to accumulate internal information and environmental changes, utilizing the insights that emerge by the transformation of data with the knowledge of the strategic value. Moreover, this book aims to show that organizational resilience is linked to organizational competitiveness and robustness via organizational intelligence and knowledge, information and data analytics for organizational intelligence competences and capabilities.
The relevance of business models for corporate performance in general and corporate sustainability in particular has been widely acknowledged in the literature while sustainable entrepreneurship research has started to explore contributions to the sustainability transformation of markets and society. Particularities of the business models of sustainable niche market pioneers have been identified in earlier research, but little is known about the dynamic role of business models for sustainable entrepreneurship processes aiming at upscaling ecologically and socially beneficial niche models or sustainability upgrading of conventional mass market players. Informed by evolutionary economics, we develop a theoretical framework to analyze co-evolutionary business model development for sustainable niche pioneers and conventional mass market players aiming at the sustainability transformation of markets. Core evolutionary processes of business model variation, selection and retention, and evolutionary pathways are identified to support structured analyses of the dynamics between business model innovation and sustainability transformation of markets.
The concept of business models has reached global impact, both for company's competitive success and in management science. Its application by authors from diverse areas has led to a previously very heterogeneous comprehension of the concept. Yet, by means of investigating its origin and theoretical development, we state a recently converging business model view. Further, based on analyzing business model definitions, perspectives and components in the literature, we newly define the concept and portray its essential components in an integrated framework. Finally, the compilation of the current state of business model research yields the article's main findings. In this regard, via database search we quantitatively identify 681 peer-reviewed articles. Further, we qualitatively analyze them according to individual research areas that we adopt from an appropriate heuristic frame of reference. In this way, we identify four essential research foci: innovation, change & evolution, performance & controlling and design. In triangulation with assessing future research perspectives through a survey of twenty-one international experts, they also consider the areas of innovation, change & evolution, and design to be significant for the future development of the business model research field.
This paper explores the relationship between micro-economic business models, economic structure, and locally sustainable prosperity. In this respect, the paper takes as a premise the contention that sustainable mobility requires a sustainable industry to create the vehicles and business models to deliver that mobility. The interactions between locality and scale are explored within the context of the anti-globalisation discourse. Thereafter, the paper provides a brief outline of some business models from the automotive industry where alternatives to the monolithic and centralised structure of the mainstream industry have been proposed.
Sustainability challenges are complex. So are the challenges that business firms encounter in their corresponding quest for corporate sustainability. Given this complexity, there is a need for new approaches to corporate sustainability management research. We discuss transdisciplinarity as such a novel approach in three steps. After showing that specialization is the primary conventional response to increasing complexity, we first briefly compare how inter-, multi-, and trans-disciplinarity reintegrate decentral, specialized knowledge. The second step describes how the emerging sustainability science has recently advanced the transdisciplinary methodology. Based on the two dimensions of interdisciplinarity and academia-practice collaboration, we thirdly, generate a framework for mapping existing research approaches in terms of their transdisciplinary qualities. We use this framework to identify room for novel methodologies in sustainability management research.
Management studies on corporate sustainability practices have grown considerably. The field now has significant knowledge of sustainability issues that are firm and industry focused. However, complex ecological problems are increasing, not decreasing. In this paper, we argue that it is time for corporate sustainability scholars to reconsider the ecological and systemic foundations for sustainability, and to integrate our work more closely with the natural sciences. To address this, our paper introduces a new development in the natural sciences – the delineation of nine ‘Planetary Boundaries’ which govern life as we know it – including a call for more systemic research that measures the impact of companies on boundary processes that are at, or possibly beyond, three threshold points – climate change, the global nitrogen cycle (N), and rate of biodiversity loss – and closing in on others. We also discuss practical implications of the Planetary Boundaries framework for corporate sustainability, including governance and institutional challenges.
This paper explores the role of the business model in capturing value from early stage technology. A successful business model creates a heuristic logic that connects technical potential with the realization of economic value. The business model unlocks latent value from a technology, but its logic constrains the subsequent search for new, alternative models for other technologies later on-an implicit cognitive dimension overlooked in most discourse on the topic. We explore the intellectual roots of the concept, offer a working definition and show how the Xerox Corporation arose by employing an effective business model to commercialize a technology rejected by other leading companies of the day. We then show the long shadow that this model cast upon Xerox's later management of selected spin-off companies from Xerox PARC. Xerox evaluated the technical potential of these spin-offs through its own business model, while those spin-offs that became successful did so through evolving business models that came to differ substantially from that of Xerox. The search and learning for an effective business model in failed ventures, by contrast, were quite limited.
The ambiguity around model-based science is witnessed by the proliferation of meanings of the term business model. We argue that a clearer specification of the analytical, theoretical and ontological validity of models is an opportunity to learn about and understand complex organizational phenomena more systematically. We apply this to research on social entrepreneurship and pro-poor business models that has been criticized as being atheoretical and conceptually ambiguous. Business models are presented as narratives that integrate various actors, actions, stories, and outcomes without a clear perspective of why these elements were selected and what we can learn from them. This paper outlines an explicit modeling process as an investigative tool that enables transparent and systematic theorizing of business models. Using an illustrative case study, we develop a generative model that accounts for the social mechanisms that explain how business models achieve multiple strategic objectives and multiple dimensions of economic and social value creation.
The purpose of this paper is to propose a framework to position sustainable entrepreneurship in relation to sustainability innovation. The framework builds on a typology of sustainable entrepreneurship, develops it by including social and institutional entrepreneurship, i.e. the application of the entrepreneurial approach towards meeting societal goals and towards changing market contexts, and relates it to sustainability innovation. The framework provides a reference for managers to introduce sustainability innovation and to pursue sustainable entrepreneurship. Methodologically, the paper develops an approach of qualitative measurement of sustainable entrepreneurship and how to assess the position of a company in a classification matrix. The degree of environmental or social responsibility orientation in the company is assessed on the basis of environmental and social goals and policies, the organization of environmental and social management in the company and the communication of environmental and social issues. The market impact of the company is measured on the basis of market share, sales growth and reactions of competitors. The paper finds conditions under which sustainable entrepreneurship and sustainability innovation emerge spontaneously. The research has implications for theory and practitioners in that it clarifies which firms are most likely under specific conditions to make moves towards sustainability innovation. The paper makes a contribution in showing that extant research needs to be expanded with regard to motivations for innovation and that earlier models of sustainable entrepreneurship need to be refined. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.
Whenever a business enterprise is established, it either explicitly or implicitly employs a particular business model that describes the design or architecture of the value creation, delivery, and capture mechanisms it employs. The essence of a business model is in defining the manner by which the enterprise delivers value to customers, entices customers to pay for value, and converts those payments to profit. It thus reflects management's hypothesis about what customers want, how they want it, and how the enterprise can organize to best meet those needs, get paid for doing so, and make a profit. The purpose of this article is to understand the significance of business models and explore their connections with business strategy, innovation management, and economic theory.
We explore different business ventures in low-income markets in order to understand the factors influencing business model innovation in this context. Grounded in the rich data obtained from multiple case study analyses and in the received theory in strategy in low-income markets and business models, we identified a set of contingency factors that permitted us to distinguish between isolated and interactive business models. Isolated business models widen its entrance into new markets by leveraging firm's current resources and capabilities for taking advantage of existing opportunities. Interactive business models require a firm to combine, integrate and leverage both internal resources with ecosystem's capabilities to create new business opportunities. Finally, we discuss the main implications on value creation from these business models.
Corporations increasingly subscribe to the principles of corporate sustainability, which is generally described as the integration of economic, environmental and social dimensions. Concerning innovation management, this emphasises the role of sustainability-oriented innovations (SOI). SOI is considered a tool both to address sustainability issues and to tap into new customer segments and markets. Yet SOI are very risky: both their market success and non-economic sustainability are uncertain. This paper presents a generic model termed the "Sustainability Innovation Cube" (SIC) for structuring innovations' sustainability effects in order to better inform corporate decision-makers about how to minimize the directional risk of SOI. The model includes the three dimensions: target, life cycle and innovation type. A qualitative expert study reveals the opportunities and challenges related to the developed model. Finally, practical implications are derived, limitations are discussed and a brief outlook is given.
"Business model" was one of the great buzz-words of the Internet boom. A company didn't need a strategy, a special competence, or even any customers--all it needed was a Web-based business model that promised wild profits in some distant, ill-defined future. Many people--investors, entrepreneurs, and executives alike--fell for the fantasy and got burned. And as the inevitable counterreaction played out, the concept of the business model fell out of fashion nearly as quickly as the .com appendage itself. That's a shame. As Joan Magretta explains, a good business model remains essential to every successful organization, whether it's a new venture or an established player. To help managers apply the concept successfully, she defines what a business model is and how it complements a smart competitive strategy. Business models are, at heart, stories that explain how enterprises work. Like a good story, a robust business model contains precisely delineated characters, plausible motivations, and a plot that turns on an insight about value. It answers certain questions: Who is the customer? How do we make money? What underlying economic logic explains how we can deliver value to customers at an appropriate cost? Every viable organization is built on a sound business model, but a business model isn't a strategy, even though many people use the terms interchangeably. Business models describe, as a system, how the pieces of a business fit together. But they don't factor in one critical dimension of performance: competition. That's the job of strategy. Illustrated with examples from companies like American Express, EuroDisney, WalMart, and Dell Computer, this article clarifies the concepts of business models and strategy, which are fundamental to every company's performance.
This paper explores the role of the business model in capturing value from early stage technology. A successful business model creates a heuristic logic that connects technical potential with the realization of economic value. The business model unlocks latent value from a technology, but its logic constrains the subsequent search for new, alternative models for other technologies later on--an implicit cognitive dimension overlooked in most discourse on the topic. We explore the intellectual roots of the concept, offer a working definition and show how the Xerox Corporation arose by employing an effective business model to commercialize a technology rejected by other leading companies of the day. We then show the long shadow that this model cast upon Xerox's later management of selected spin-off companies from Xerox PARC. Xerox evaluated the technical potential of these spin-offs through its own business model, while those spin-offs that became successful did so through evolving business models that came to differ substantially from that of Xerox. The search and learning for an effective business model in failed ventures, by contrast, were quite limited. Copyright 2002, Oxford University Press.
International yearbook of environmental and resource economics
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