Article

Values-Based Network and Business Model Innovation

Authors:
  • University of Applied Sciences for Media, Communication and Management
  • ESCP Europe Berlin
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Abstract

Innovation management falls short in solving urgent societal problems, if it neglects the power of networks and the values of their constituent actors. Even though network and business model innovation have been acknowledged as innovation categories in their own right, their problem-solving potential remains unexplored. In this article, we argue that purposeful innovation requires considering the shared values of those engaging in innovation processes, where values are understood as subjective notions of the desirable. Values-based innovation can motivate the development of new networks and business models that address complex societal problems, such as the unsustainability of current forms of energy supply. We present a theoretical framework and facilitation methods for values-based network and business model innovation. Both have been applied in an exemplary workshop on regional energy networks in Germany. Reflecting upon the lessons learned from theory and practice, we conclude that crucial starting points for systemic sustainability innovations can be found in values-based networks and business models.

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... Second, to consider various forms of value (e.g. economic, ecological, social, cultural, relational, psychological), their underlying subjective and normative values (Breuer and Lüdeke-Freund, 2017) and who might benefit from these forms of value. Third, to explicitly connect comprehensive notions of value creation to business models and business model innovation in order to explore how SVC functions from methodical, instrumental and practical points of view (cf. ...
... As stated above, we must consider that both the traditional and sustainability-oriented views are normatively grounded (e.g. Agle and Caldwell, 1999;Breuer and Lüdeke-Freund, 2017). The most important difference between these views lies in their scope and the content of their normative underpinnings. ...
... Primarily stakeholderbased; the scope of value creation includes the value that is proposed, the value that is destroyed and missed and new value opportunities Brennan and Tennant, 2018, p. 622 'Sustainable value is created when tangible factors of production (structural resources), including processes, business models, products, services and infrastructure, are brought into particular combinations with ideas of sustainability impact and sustainability values (cultural resources). Sustainability cultural resources include important concepts such as net positive benefits and the creation of "common good" value (Dyllick and Muff, 2016) and sustainability values, which have recently been recognized as pivotal to sustainable business model innovation (BMI) (Breuer and Lüdeke-Freund, 2017)' (orig. emphasis). ...
Article
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We discuss traditional assumptions about value creation and confront these with current views on sustainable value creation (SVC). Against this backdrop, the articles contained in the special issue 'Sustainable Value Creation Through Business Models' are introduced, and their contributions to the exploration of SVC are highlighted. The proposed framework identifies cornerstones for theorising about SVC in regard to the what, who and how of value creation. A main finding is that, although value creation and SVC are widely discussed in the literature, there are huge gaps in terms of the who, what and how of value creation, particularly in the sustainable business model (SBM) field. Various theoretical propositions are developed, including notions such as stakeholder-responsive and relational interpretations of value creation.
... Cultural values function as normative orientations, govern companies' innovation processes and more than that enhance innovation performance. Although the value-based innovation model has strategic managerial implications, the role of value in innovation research is still scarce (Breuer and L€ udeke-Freund, 2017). Breuer and L€ udeke-Freund (2017) showed through a case study how the value of sustainability can support a network creation. ...
... Although the value-based innovation model has strategic managerial implications, the role of value in innovation research is still scarce (Breuer and L€ udeke-Freund, 2017). Breuer and L€ udeke-Freund (2017) showed through a case study how the value of sustainability can support a network creation. ...
... People strive for personal and interpersonal harmony, as well as for harmonious relationships with the natural environment (Euromonitor, 2019). Companies react to these trends by changing their business activities and launching innovations (Edvardsson and Tronvoll, 2013;Breuer and L€ udeke-Freund, 2017). The innovation activity varies by economic sectors; service industries ...
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Purpose Recently, a growing need for harmony has been observed worldwide. Harmony is a universal value in both Western and Asian countries. This paper aims to study how the concept of harmony is reflected in the innovation of European multinational grocery retailers and how harmony-related innovations affect the financial performance of the retailers. Design/methodology/approach The research is based on a multisource database including innovation outcomes and financial performance indicators of 17 European multinational grocery retailers in the period of 2011–2018. In sum, 1,399 innovations were identified by content analysis. The relationship between innovation outcomes and financial performance was measured by panel regression analysis. Findings Results indicate that retailers differ in launching harmony-oriented innovations. Moreover, 40% more innovations are related to harmony with people as those related to harmony with nature. Finally, harmony-with-people innovations have a significantly positive effect on retailers' sales growth. Practical implications Based on the research findings, retailers can improve their sales growth by launching innovations that focus on harmony in human relationships. Originality/value This paper extended the concept of harmony to the field of innovations. First, the research showed how the value of harmony appears in the innovations of multinational retailers. Second, the study differentiated between harmony-with-people and harmony-with-nature innovations. Third, the findings revealed that harmony-oriented innovations contribute to retailers' financial performance.
... Academics have recently developed tools and facilitation methods for business modelling by a group of actors. Examples are 'collaborative business modelling' (Rohrbeck, Konnertz & Knab, 2013), 'network-level business model' (Lindgren et al., 2010), and 'values-based network and business model innovation' by Breuer and Lüdeke-Freund (2017). Some of these approaches propose that the business models of individual firms need to be in accordance with the collective business model (for example, Rohrbeck et al., 2013), whereas others have proposed a network-based business model that provides an overall synergetic view of the network's value proposition and describes the synergistic ways of the network partners to create and capture value (for example, Breuer & Lüdeke-Freund, 2017;Lindgren et al., 2009). ...
... Examples are 'collaborative business modelling' (Rohrbeck, Konnertz & Knab, 2013), 'network-level business model' (Lindgren et al., 2010), and 'values-based network and business model innovation' by Breuer and Lüdeke-Freund (2017). Some of these approaches propose that the business models of individual firms need to be in accordance with the collective business model (for example, Rohrbeck et al., 2013), whereas others have proposed a network-based business model that provides an overall synergetic view of the network's value proposition and describes the synergistic ways of the network partners to create and capture value (for example, Breuer & Lüdeke-Freund, 2017;Lindgren et al., 2009). These approaches offer valuable tools and facilitation methods for collaboration and interaction among the participants during ideation and development of the business model, but consider the constellation of actors as relatively fixed. ...
... This tool is particularly helpful in the ideation phase of sustainable business model innovation (Geissdoerfer, Bocken & Hultink, 2016). Other approaches include 'collaborative business modelling' by Rohrbeck et al. (2013), 'network-level business model' by Lindgren et al. (2010), and a framework and facilitation method for values-based network and business model innovation by Breuer and Lüdeke-Freund (2017). These approaches all facilitate business model innovation by a group of partners, in their search for a joint business model. ...
Thesis
Sustainable development and the circular transition are gaining increased attention from science and practice. Since implementation of more sustainable solutions lags behind expectations and technological possibilities, scholars and practitioners are increasingly seeing sustainable business model innovation as the key pathway to show the value potential of new sustainable technology. Although they stress the importance of integrating the interests of multiple stakeholders and their economic, environmental and social value goals, little is known about which stakeholders are actively involved, how they interact and what the effect is on the business modelling process. This thesis clarifies the dynamics of collaborative business modelling for sustainability by studying the role of stakeholder interaction from the level of a focal firm, as well as from the level of innovation ecosystems. Through three empirical studies and a design science study it establishes that stakeholder interaction and business modelling have a reciprocal relationship and unravels the processes that elucidate how stakeholder interaction actually influences the direction into which the sustainable business model develops. It further identifies the main contributors to business model innovation for sustainability, emphasises the distinction between stakeholders and their roles and provides a practical tool, therewith contributing to both science and practice.
... On the identity dimension, typical boundary reconfigurations are the integration of a social and environmental objective in the normative orientations of the organization (e.g. mission, vision, value statements), and which is shared between organizations to develop stakeholder networks [28,44]. The power boundary is typically reconfigured by a focus on network competitiveness and long-term contracts with a large element of trust instead of individual power accumulation and transactional relationships [45]. ...
... The boundary of competence typically shifts towards inclusion of repair and remanufacture skills, circular design, modular processing, but also more intangible aspects Table 1 Review of SBMI tools. Developed from [2,19,20,[28][29][30] Tool name [46,47] and experimentation capabilities [44,48,49]. On the efficiency boundary, SBMI promotes a shift in the division of roles and activities. ...
... • To provide insight into opportunities and threats and to link them to new action points The theoretical contribution of the tool lies in the integration of a multi-stakeholder boundary work perspective to existing SBMI approaches and its translation into entrepreneurial linguistics. The tool has the potential to integrate both values-based network and business model innovation approaches [28] as well as effectuation approaches [17,66], depending on the sequence of boundary mapping. Additionally, this study contributes to tool development for SBMI by taking an explicit (multi-)stakeholder focus and integrating its visible (e.g., materials, costs, machinery) and invisible (e.g. ...
Article
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Sustainable business model innovation cannot reach its full sustainability potential if it neglects the importance of multi-stakeholder alignment. Several studies emphasize the need for multi-stakeholder collaboration to enable sustainable business model innovation, but few studies offer guidance to companies for engaging in such a collaborative process. Based on the concept of boundary work, this study presents a tested process tool that helps companies engage with multiple stakeholders to innovate sustainable business models. The tool was developed in three iterative phases, including testing and evaluation with 74 participants in six sustainable business model innovation cases. The final process tool consists of five steps to facilitate multi-stakeholder alignment for sustainable business model innovation: (1) defining a collective ambition, (2) mapping and negotiating the changing organizational boundaries, (3) exploring opportunities and tensions for aligning stakeholders, (4) defining first interventions and (5) developing a collaboration pitch. We found that the tool enables discussions and negotiations on sensitive topics, such as power reconfigurations and mutual responsibilities to help stakeholders align. For companies, the boundary tool enriches sustainable business model innovation by offering guidance in the process of redesigning their multi-stakeholder system, assessing their own organizational boundaries, exploring, negotiating and prioritizing strategic actions based on organizational boundary changes and kick-starting new partnerships.
... Most research focusses on specific organisational practices, for example, stakeholder interactions related to sustainable supply chains, in particular with customers and suppliers for environmental sustainability (Chen et al., 2017;Gimenez and Tachizawa, 2012;Grekova et al., 2016) and with different stakeholders in sustainability reporting processes (Greco et al., 2015;Herremans et al., 2016;Bellucci and Manetti, 2018). Recently, a number of scholars (Breuer and Lüdeke-Freund, 2017;Freudenreich et al., 2019;Kujala and Korhonen, 2017) proposed not only to consider stakeholder interaction as a part of sustainability practices but to implement stakeholder interaction as part of business models. Such a sustainability-oriented business model focusses on value creation with a broad range of stakeholders beyond customers and suppliers and covers all sustainability dimensions (economic, environmental, social) (Elkington, 1999;Freudenreich et al., 2019;Schaltegger et al., 2016). ...
... A business model has to be differentiated from an organisation's strategy that defines the process of reaching organisational goals (Casadesus-Masanell and Ricart, 2010;DaSilva and Trkman, 2014;Wirtz et al., 2016). However, organisational visions and values might also impact strategic management decisions and with that influence the business model (Breuer and Lüdeke-Freund, 2017). While stakeholder interaction is recognised as a central element in such sustainability-oriented business models (Bocken et al., 2013;Freudenreich et al., 2019;Stubbs and Cocklin, 2008), the role and function of stakeholders remain vague. ...
... Freudenreich et al. (2019) propose expanding business model conceptions to include the facilitation of stakeholder relationships and different types of value creation for and with a variety of stakeholders. However, the form and the extent to which stakeholder interaction can be implemented in sustainabilityoriented business models remains unspecified and needs further clarification (Breuer and Lüdeke-Freund, 2017;Freudenreich et al., 2019;Matos and Silvestre, 2013). ...
Article
Purpose This study aims to analyse how and to what extent stakeholder interaction for sustainability is implemented in organisations and the linkages to the overarching interaction efforts. Design/methodology/approach This study was conducted in the context of seaports. To examine interaction activities with stakeholders for sustainability and how they are implemented, the study uses content analysis of sustainability reports. Findings The results show that the majority of ports recognise the importance of stakeholder interaction to create value and guide organisational sustainability; however, it is implemented to varying levels and degrees, which affects the form and extent of the overarching interaction efforts. The paper proposes four categories of implementing stakeholder interaction, showing the linkages to the number of stakeholder groups involved, sustainability dimensions covered and interaction approaches used. Originality/value This paper contributes to sustainability, stakeholder and management literature by highlighting different levels of implementation of stakeholder interaction for sustainability and its linkages to overarching efforts that may affect the sustainable development of an organisation. The results of this study provide a better understanding of stakeholder interaction within organisational sustainability approaches and implementation in sustainability-oriented business models. As organisations seek to increase their sustainability performance, these insights may be useful for both academia and practice.
... Via cette notion souvent associée à la littérature marketing ou plus largement la littérature des services avec la logique DS, la cocréation de valeur est considérée comme un levier clé dans la satisfaction client grâce à sa collaboration au mécanisme de création de valeur. C'est en ce sens qu'elle est préconisée dans la conception d'une offre à la base de la pyramide (Nahi, 2016 (Breuer & Lüdeke-Freund, 2017;Maucuer, 2013). Conformément à la croissance des problématiques liées au développement durable, la responsabilité sociale des entreprises, l'entrepreneuriat social ou les stratégies BoP, la considération de la création de valeur sociale au sein du BM prend essor dans la littérature (Dahan et al., 2010;Seelos & Mair, 2007 économique, mais aussi sociale, finalité des stratégies BoP. ...
... Figure 10 : Conceptualisation de BM pour la prestation de service de santé inclusifs à la BoP proposé par Angeli et Jaiswal (2016, p. 15) Sur la base des composantes mises en avant dans la littérature des BM (Osterwalder & Pigneur, 2010 . En référence au concept de values-based business model (Breuer & Lüdeke-Freund, 2017), il semble pertinent pour l'organisation de considérer les valeurs portées par ses différentes parties prenantes, patients BoP inclus, en plus de se focaliser sur l'acceptation socioculturelle par les patients BoP (Angeli & Jaiswal, 2016). Dans cette même perspective, les défis d'inclusivité et d'accessibilité des stratégies BoP et les barrières à l'accès des services de santé connus dans les PED pourraient être clairement exposées dans les dimensions « Découverte de valeur » ou « Proposition de valeur » afin que le BM puisse être construit en conséquence. ...
... Considérer les individus BoP pour leur multiple rôle (Ben Letaifa & Considérer les valeurs portées par ses différentes parties prenantes (Breuer & Lüdeke-Freund, (2017) Construire une offre adaptée : -Les 4As (Anderson & Billou, 2007) -Considérer la proximité géographique et sociale de l'entreprise avec les consommateurs (Mason & Chakrabarti, 2016), en l'occurrence les patients -Permettre une distribution au last mile (Barki & Parente, 2014) -Placer l'expérience du patient comme élément clé de l'offre de service de soin (Beirão et al., 2017, p. 231) -Surmonter les barrières personnelles, barrières financières et organisationnelles de l'utilisation d'un service de santé pour encourager une équité d'accès (Gulliford et al., 2002) -Développer l'inclusion des services (Fisk et al., 2018) ...
Thesis
Full-text available
Ce travail doctoral met en lumière un défi mondial peu étudié dans la littérature en sciences de gestion : l'accessibilité des services de santé primaires aux populations à faible revenu Pourtant, la gestion difficile de l’accessibilité dans les stratégies Bottom of the Pyramid et les spécificités des services de santé complexifient la problématique pour les organisations.Cette recherche à visée prescriptive présente des stratégies que les organismes sans but lucratif et à but lucratif peuvent mettre en oeuvre pour créer des business models permettant de délivrer des services de santé primaires aux plus démunis tout en améliorant le bien-être de ces mêmes populations.Pour ce faire, nous avons mené une recherche qualitative basée sur une étude de cas multiples de quatre organisations basées au Brésil et en Afrique du Sud. Elles ont toutes le même objectif de délivrer des services de santé primaires aux plus démunis, mais développent des business model différents pour y parvenir. Cette divergence présente l’intérêt de créer un enrichissement mutuel des pratiques utile à la conception de notre produit de recherche : un business model Bottom of the Pyramid dédié à la prestation de services de santé primaires.La confrontation de notre étude empirique à notre étude conceptuelle souligne la nécessité pour les organisations de développer des interactions régulières avec les acteurs locaux par lesquelles elles pourront améliorer leur encastrement local. Encastrées, les organisations peuvent en effet s'appuyer sur leur écosystème local pour favoriser l'accessibilité des services de santé aux populations à faible revenu tout en créant de la valeur sociale et économique pour l'écosystème entier. Nous suggérons alors des éléments clés que les organisations peuvent intégrer dans leur business model afin de fournir des services de santé inclusifs aux populations à faible revenu.
... The BM canvas is popular both among practitioners and researchers (Bocken et al., 2014;Breuer & Lüdeke-Freund, 2017;Dentchev et al., 2018;Geissdoerfer et al., 2018;Joyce & Paquin, 2016;Ladd, 2018;Lüdeke-Freund et al., 2018;Massa et al., 2017;Morioka et al., 2018;Ojasalo & Ojasalo, 2018). Osterwalder and Pigneur (2010) identify nine BM elements: key partners, key resources, key activities, value proposition, customer segments, customer relationships, channels, cost structure, and revenue streams. ...
... (Small 1) Such information does not fit the BM canvas template. However, Breuer and Lüdeke-Freund (2017) point out that entrepreneurs' values can have a fundamental influence on the business logic. They state that "sustainability-oriented business models are an example of how particular values can exert such an influence." ...
... Firms with a strong sustainability focus communicated not only their SBMs but also the sustainability values that were central to the business, such as animal welfare or a clean environment. Values relate to the BM through having an influence on the business logic (Breuer & Lüdeke-Freund, 2017). Communicating values in this context creates a more coherent story, conveying not only the BM choices but also the reason for them. ...
Article
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Firms can embed sustainability efforts in business model elements such as key resources, key activities, or key partners. To capitalize on their sustainability efforts, firms must present these efforts in a way that is meaningful to consumers that is-translate them. This study explores how sustainability efforts are translated to consumers on webpages, newsletters, and social media profiles of Norwegian yarn firms. Data analysis revealed that firms' sustainability communications could be related to underlying business model elements. At the same time, to consumers they were framed as product attributes or consequences to consumers, society, or the environment. This shows that firms conveyed business model information, but not in business model terms, which supports the idea of business model translation. The findings also indicated variation in how sustainability efforts were framed based on the firm's sustainability focus.
... This necessitates a collaborative, multi-stakeholder business modelling process to structurally align normative, strategic and instrumental dimensions of the various stakeholders. For example, alignment is required on organizations' understanding and prioritization of the envisioned value creation, and with regard to the activities, competences, resources between interdependent stakeholders (Breuer and Lüdeke-Freund, 2017;Velter et al., 2020). This multistakeholder process for SBMI poses significant challenges for the engaged business(es), as the process is full of tensions and clashes with existing business model configurations which should somehow be dealt with Gorissen, Vrancken, and Manshoven, 2016;Meijer, Schipper, and Huijben, 2019;Sarasini and Linder, 2017). ...
... Santos and Eisenhardt (2005) offer a comprehensive conception of organizational boundaries by distinguishing organizational boundaries of identity, power, competence and efficiency. These boundary conceptions address alignment on normative, strategic and instrumental levels as needed for SBMI (Breuer and Lüdeke-Freund, 2017;Stubbs and Cocklin, 2008;Velter et al., 2020). ...
... Boundary setting on identity deals with issues of coherence between the organizational identity, its business model strategy and the activities it conducts (Bojovic, Sabatier, and Coblence, 2019;Mdletye et al., 2014;Santos and Eisenhardt, 2005). The boundary of identity can develop ' grounded' through experimentation with novel activities and business models, but also through ' releasing', where the boundary of identity sets the scope for strategic and instrumental decisions (Berends, Smits, Reymen, and Podoynitsyna, 2016;Bojovic et al., 2019;Breuer and Lüdeke-Freund, 2017). In SBMI, the boundary of identity should be based on sustainable value creation and multi-stakeholder responsiveness (Breuer et al., 2018;Geissdoerfer et al., 2018). ...
Article
Full-text available
Purpose: How does a small business engage in boundary work to innovate its business model towards sustainability? We employ a boundary work lens to trace the endeavors of a small company to explore, negotiate and (re)align organizational boundaries in its multi-stakeholder network around new, sustainable value propositions. Design/Methodology/Approach: We engaged in longitudinal research of a company' s endeavors for multi-stakeholder alignment in sustainable business model innovation (SBMI). By means of thick description, this paper offers rich empirical insights on the processes of interaction between a small company and its stakeholders in the Dutch pork sector, with special attention to boundary spanners, boundary objects and the mutual organizational boundary changes. Findings: We find that the shaping and shifting of organizational boundaries highly influences the process and content of the business model innovation. During the phases of boundary exploration, brokering and boundary changes, there is a piv-otal role for boundary objects to deal with uncertainties, to facilitate strategic discussions and to find solutions to different valuation frames, power tensions and role divisions between stakeholders. Research implications: SBMI can benefit from boundary work, as it helps companies to find value opportunities in the organizational boundaries of their external stakeholders, addressing challenges that emerge from existing organizational boundaries, and establishing boundary arrangements to facilitate this process. Originality/Value: Boundary work interlinks concepts of identity, power, competences and efficiency in entrepreneurial processes of collaborative SBMI. The framework and methods of this study further our understanding of the co-evolutionary processes of SBMI.
... This necessitates a collaborative, multi-stakeholder business modelling process to structurally align normative, strategic and instrumental dimensions of the various stakeholders. For example, alignment is required on organizations' understanding and prioritization of the envisioned value creation, and with regard to the activities, competences, resources between interdependent stakeholders (Breuer and Lüdeke-Freund, 2017;Velter et al., 2020). This multistakeholder process for SBMI poses significant challenges for the engaged business(es), as the process is full of tensions and clashes with existing business model configurations which should somehow be dealt with Gorissen, Vrancken, and Manshoven, 2016;Meijer, Schipper, and Huijben, 2019;Sarasini and Linder, 2017). ...
... Santos and Eisenhardt (2005) offer a comprehensive conception of organizational boundaries by distinguishing organizational boundaries of identity, power, competence and efficiency. These boundary conceptions address alignment on normative, strategic and instrumental levels as needed for SBMI (Breuer and Lüdeke-Freund, 2017;Stubbs and Cocklin, 2008;Velter et al., 2020). ...
... Boundary setting on identity deals with issues of coherence between the organizational identity, its business model strategy and the activities it conducts (Bojovic, Sabatier, and Coblence, 2019;Mdletye et al., 2014;Santos and Eisenhardt, 2005). The boundary of identity can develop ' grounded' through experimentation with novel activities and business models, but also through ' releasing', where the boundary of identity sets the scope for strategic and instrumental decisions (Berends, Smits, Reymen, and Podoynitsyna, 2016;Bojovic et al., 2019;Breuer and Lüdeke-Freund, 2017). In SBMI, the boundary of identity should be based on sustainable value creation and multi-stakeholder responsiveness (Breuer et al., 2018;Geissdoerfer et al., 2018). ...
Article
How is it possible to systematically develop business model innovations for different domains? This paper provides a novel answer, using a methodological approach called Business Model Matrix (BMM), which merges the approaches of Business Model Canvas (BMC), Business Model Navigator (BMN), and Morphological Box.
... Value capture (Teece, 2018) Benefits to customers and partners flowing back as revenue (Osterwalder and Pigneur, 2010) Monetization as part of value capture (Baden-Fuller and Haefliger, 2013) Digital business model may reduce the cost burden (Prem, 2015) Digitalisation provides new or added revenue (Veit et al., 2014) Digital technologies offer the opportunity to consider new sources of capital and sources of revenue (Breuer and L€ udeke-Freund, 2017 The Galicia Jewish Museum in Krakow (Poland) well illustrates such concepts. It hosts multi-service and multi-actor contexts. ...
... As the previous subsection shows, the concept of the business model in the digital revolution decade is increasingly connected to the concepts of collaboration and network and is based on new forms of value conceptualization. In this context, the strategy of value sharing captures the need to address new forms of capital (financial, human, intellectual, relational, and social) and potential new revenue sources (sharing, peer-to-peer interactions, transparency, trust, and sustainability) (Breuer and L€ udeke-Freund, 2017) to cover the costs and externalities associated with other business model elements and to generate a surplus or value. This strategy looks beyond the traditional focus on firms and finance, encouraging value creation and distribution across the business and social contexts. ...
Article
Purpose The paper offers a comprehensive understanding of how digital transformation affects business models and how firms operate and compete effectively and successfully in a digital economy. Design/methodology/approach The research adopted an abductive approach (Dubois and Gadde, 2002) through constant movement between theory and empirical evidence. A systematic literature review led the first conceptual development and examples of practices from cultural heritage sectors were used in the theorizing process. Findings This paper depicts a digital model framework through a set of assumptions about how an organization creates and delivers value in an interconnected way by orchestrating new interactive processes, and providing experience propositions to customers, and about how value is framed in terms of economic, social and cultural outcomes. Originality/value The study contributes to the scientific debate by discussing the role of digital business models as enhancements more rather than replacements of traditional business models; it frames a digital business model as consisting of three main pillars: value orchestration, experience propositions and value sharing.
... Firms want to create a shared understanding of drivers and barriers regarding the implementation of environmentally sustainable business models in these platforms and think in systems (Baden-Fuller & Morgan, 2010;Breuer et al., 2018). This integration with diverse stakeholders such as partners, competitors, and governments, gives organizations access to diverse sources of knowledge through which the different parties can develop environmentally sustainable business models (Breuer & Lüdeke-Freund, 2016;Breuer et al., 2018). Networks of NGOs, scientists, firms, and public authorities evolve wherein environmentally sustainable products, services, and business models are developed through interaction (Lüdeke-Freund, 2010). ...
... The public sector is a notable client for firms since this sector values and wants to encourage environmentally sustainable applications. Most research focused on living labs explore the benefits of living labs regarding innovation and avoiding obstacles in the implementation of business models (e.g.,Baden-Fuller & Morgan, 2010;Breuer & Lüdeke-Freund, 2016;Breuer et al., 2018). This studies' results indicate that firms are not only focused on the innovation and the clearance of obstacles in the supply chain but want to increase business among the living lab as well. ...
Thesis
Full-text available
In the last decade, the number of living labs focusing on environmental sustainability has risen in order to cope with the need for environmentally sustainable innovation. Although these multi-actor approaches allow for innovation, this alone does not suffice a society’s transition to becoming environmentally sustainable. Organizations should focus on innovation internally as well, but in practice, this lacks often because environmentally sustainable values are not integrated into the organizational policy. Living labs could influence the organization’s policy regarding environmental sustainability. Qualitative findings based on eight interviews, observations, and additional relevant documents from a living lab gave insights into this process. Overall, this study found that organizations take part in living labs for several reasons. First, firms wish to stabilize their business model in the long-term and lower risk on future claims. Second, the living lab’s aim for collaboration in order to implement environmentally sustainable approaches in the supply chain attracts firms. Finally, firms expect to gain business and market demand in the living labs. Additionally, the embeddedness and proximity of firms in the living lab makes participating in the living lab more attractive when firms consider joining a living lab based on the previously mentioned reasons. Once participating in the living lab, team dynamics, and knowledge sharing practices change firm representatives’ perceptions regarding their attitudes towards environmental sustainability and the feasibility to implement environmentally sustainable practices. This change in perception is translated to the firm of the participant, where firms’ policies are adjusted. Based on this research, implications for organizations, governmental policymakers, and living lab facilitators are provided as well as suggestions for future research.
... The notion of value has also been used in later sustainable business model tool development (e.g. Breuer & Lüdeke-Freund, 2017). ...
... Yet, other examples include card type of games that can be used in workshop formats to stimulate new idea generation for sustainable business model innovation (e.g., Breuer & Lüdeke-Freund, 2017). The use of cards and mapping exercises is also common in the broader field of sustainable (and eco-) innovation (Adams et al., 2016). ...
Chapter
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... One way to guide trajectories of practices is through developing the imaginary associated with a given practice through narrative-based approaches. Many scholars have employed workshop methods that include storytelling to enable social learning and to develop transdisciplinary policy planning processes that explicitly engage in imaginative work (Breuer & Lüdeke-Freund, 2017;Davies, Doyle, & Pape, 2012;Kazadi, Lievens, & Mahr, 2016;Mangnus et al., 2019;Reuveni & Vashdi, 2015). Research points to the need to develop futures literacy and ways to increase capacity building for anticipatory governance (Mangnus, Oomen, Vervoort, & Hajer, 2022;Vervoort & Gupta, 2018), but the way in which future practices are co-constructed and how policies might guide trajectories of practices in the future are areas that require further work. ...
... The workshops provided a space for collaborative engagement among diverse food policy stakeholders. Our study is aligned with the view that diverse team members provide a wider variety of knowledge resources and perspectives (Breuer & Lüdeke-Freund, 2017;Kazadi et al., 2016;Reuveni & Vashdi, 2015). Feedback surveys indicated that the participants were stimulated to think more critically about the issues for discussion by listening to other group members who have different backgrounds (Appendix 4). ...
Article
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Conventional policy approaches emphasize technical solutions and individual behavioral change, but practice-based policy approaches offer an alternative. This paper examines the operationalization of a practice-oriented futures policy development process. The process builds on practice theory to generate alternative sustainable future pathways and policy intervention ideas, and in doing so, extends the vocabulary for policy-focused futures work. We focus on three practices with implications for urban sustainability - food purchasing, eating out, and home cooking in Bangkok, Thailand. A multi-phase process of interlinked workshops including visioning, scenario evaluation, and transition pathways was enacted with food system actors and policy makers. Role-play and narrative elements were incorporated to elicit transformative and systems knowledge on how practices are or might be embedded in everyday life and generated policy ideas to enable such practices to emerge in the future. Different practices showed varying degrees of amenability to the process, based on participants' sense of agency and individual and community-based practice memories. This paper contributes to our understanding of how future practices are co-constructed and how policies might guide practice trajectories in the future. Practice-oriented futures policy development opens pathways for integrated policy ideas, mirroring the growing recognition for integrated governance structures.
... Psychologically enhanced innovation theories and empirical investigations of 'values-based business model innovation' (e.g. Breuer and Lüdeke-Freund, 2017) or the development of new reference frames for 'sustainability-oriented business models' (e.g. Dentchev et al., 2018) serve as examples. ...
... While Etzion (2020) and Glinik et al. (2021), in simple terms, study how sustainability becomes a part of business models, Urmetzer (2021) attempts to understand how business models can help diffuse sustainability values throughout the wider innovation systems in which business models are embedded. Both perspectives are highly complementary and indicate a new field of study, namely values-based business models (Breuer and Lüdeke-Freund, 2017). With a view to the future, Urmetzer (2021) concludes that more in-depth insights about diffusion mechanisms and patterns of values are needed, and how these reconfigure leading paradigms at the regime and systems levels. ...
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Purpose: We illustrate how cross-disciplinarity in business model research (multi-, inter-and transdisciplinarity) can help scholars overcome silo-building and span disciplinary boundaries. The seven articles contained in the special issue 'Fostering Cross-Disciplinarity in Business Model Research' are summarised, and the authors' perspectives on the phenomena studied as well as the theories and methods adopted are portrayed. Methodology: We provide literature-based definitions of cross-disciplinary research modes and discuss their potential for business model research informed by insights from the seven special issue articles. Findings: There is much variety regarding the theories applied in business model research. These include design, imprinting , information asymmetry, paradox theories and many more. This variety illustrates that traditional domains, such as organisation, management and entrepreneurship studies, can be extended in creative ways, and hence can be equipped to deal with emerging and complex issues such as sustainability, circular economy, data management and base-of-the-pyramid entrepreneurship. Interdisciplinarity seems to be well developed regarding the use of theories, but more must follow in terms of research methods and collaboration formats. Research Implications and Limitations: The common understanding of the potential and importance of cross-disci-plinarity can be considered the major implication of this special issue. Beyond this, further critical reflection is required. Important questions remain open, primarily regarding research methods and collaboration formats. This editorial article reflects the perspectives of both the guest editors and the authors in this special issue. The presented understandings of cross-disciplinary business model research and implications for its future are of a preliminary nature. Originality and Value: Business model research is growing rapidly and scholars from various fields contribute to expanding our knowledge. An explicit focus on the potential of multi-, inter-and transdisciplinary research approaches is missing so far.
... Waste collectors, R&D institutes, universities, designers, manufacturers, distributors, marketers, and industry representatives orientation serves as a guidepost for the stakeholders involved in the BM. Taking into consideration the multiplicity of potential values that can be created, partners should define common ground by aligning expectations of value outcomes (Dahan et al., 2010;Oskam et al., 2020;Rohrbeck et al., 2013) and sustainability orientation allows partners to align these expectations (Breuer and Lüdeke-Freund, 2017). Therefore, we associate sustainability orientation with the principle Partners have aligned expectations of value outcomes (C3). ...
... The motivation for this guideline is to align the expectations of the value outcomes (Dahan et al., 2010;Oskam et al., 2020;Rohrbeck et al., 2013). Values are desired beliefs and attitudes (Breuer and Lüdeke-Freund, 2017), and individuals' values influence their normative behavior (Roccas and Sagiv, 2010). In other words, values influence an individual's expectations. ...
Article
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Our current take-make-dispose economic model faces a vital challenge as it extracts resources from the natural environment at faster rates than that the natural environment can replenish. A circular economy where businesses lower their negative impact on the natural environment by transitioning towards recycling business models (RBMs), one of the four principles of circularity, is suggested as a promising solution. For a RBM to become viable, collaboration among several stakeholders and across several industries is required. In addition, the RBM should be scalable to make a positive impact. Hence, developing RBMs is complex as organizations need to consider multiple principles imposed by the recycling, collaborative, and scalability dimensions of these business models (BMs). In addition, these principles often remain general and not actionable to the practitioners. Therefore, in this study, we researched the practical guidelines for viable RBMs that are also collaborative and scalable. The empirical setting is the reuse of textile fibers to develop biocomposite products. We studied three cases using a research-through-design approach. We contribute to the literature on RBMs by showing the six minimum practical guidelines for recyclability, collaboration, and scalability. We draw implications for within sector collaborations and advance the thought that lease constructs challenge the scalability of RBM.
... SC ambidexterity can be used to improve coordination efforts among multiple stakeholders. However, the coordination itself requires extra effort s in sustainability innovation compared to traditional business model as successful alignment on both strategic and normative dimensions ( Breuer and Lüdeke-Freund, 2017 ;Geissdoerfer et al., 2018 ). Strategic alignment with key SC partners needs to be spent more attentions to provide the insights of suppliers' capabilities, restrictions, and processes for effective forecasting and planning, designing products over operational management. ...
Article
Balancing sustainability and disruption of supply chains requires organizational ambidexterity. Sustainable supply chains prioritize efficiency and economies of scale and may not have sufficient redundancy to withstand disruptive events. There is a developing body of literature that attempts to reconcile these two aspects. This study gives a data-driven literature review of sustainable supply chain management trends toward ambidexterity and disruption. The critical review reveals temporal trends and geographic distribution of literature. A hybrid of data-driven analysis approach based on content and bibliometric analyses, fuzzy Delphi method, entropy weight method, and fuzzy decision-making trial and evaluation laboratory is used on 273 keywords and 22 indicators obtained based on the experts’ evaluation. The most important indicators are identified as supply chain agility, supply chain coordination, supply chain finance, supply chain flexibility, supply chain resilience, and sustainability. The regions show different tendencies compared with others. Asia and Oceania, Latin America and the Caribbean, and Africa are the regions needs improvement, while Europe and North America show distinct apprehensions on supply chain network design. The main contribution of this review is the identification of the knowledge frontier, which then leads to a discussion of prospects for future studies and practical industry implementation.
... These industry case studies demonstrate that the scope of value proposition can be extended beyond conventional dimensions of economic, environmental, and social value through the adoption of CBMs by HVMs. This more comprehensive understanding of extended and amplified CBM value propositions can provide HVMs with strategic clarity regarding the creation/modification of circular product or service offerings (Bocken, Schuit, & Kraaijenhagen, 2018;Breuer & Lüdeke-Freund, 2017;Ries, 2011). ...
Article
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The transition to a circular economy (CE) requires companies to evaluate their resource flows, supply chains, and business models and to question the ways in which value is created. In the high value manufacturing (HVM) sector, this evaluation is critical, as HVM enables value in nonconventional forms, beyond profit, including unique production processes, brand recognition, rapid delivery times, and highly customized services. We investigate the role of value, cost, and other factors of influence in the selection of a circular business model (CBM) for HVM. Explored through five case studies using a qualitative evaluation of circularity, we then contribute to the emerging field of CBMs by modifying the CBM canvas that can capture the nontraditional value, traditional value, cost, and other influencing factors enabled via CBM adoption in HVM. Finally, the important role of digital technologies for incentivizing and enabling CBM adoption, is clarified.
... proposition can be extended beyond conventional dimensions of economic, environmental, and social value through the adoption of CBMs by HVMs. This more comprehensive understanding of extended and amplified CBM value propositions can provide HVMs with strategic clarity regarding the creation/modification of circular product or service offerings(Bocken, Schuit, & Kraaijenhagen, 2018;Breuer & Lüdeke-Freund, 2017;Ries, 2011).Based on the industry case study insights, HVMs deliver value to a diverse and large number of beneficiaries, via interconnected global value systems(Martinez, Neely, Ren, & Smart, 2008) of communication, physical distribution and recovery, and sales channels. For certain types of CBMs, particularly those engaged in looping (e.g., Company C and Company D) and exchange (e.g., Company E), value delivery is achieved through both the physical forward distribution of products, and the physical recovery and reverse logistics systems that are maintained to manage end-of-use and end-of-life products and cores. ...
Article
Full-text available
The transition to a circular economy (CE) requires companies to evaluate their resource flows, supply chains, and business models and to question the ways in which value is created. In the high value manufacturing (HVM) sector, this evaluation is critical, as HVM enables value in nonconventional forms, beyond profit, including unique production processes, brand recognition, rapid delivery times, and highly customized services. We investigate the role of value, cost, and other factors of influence in the selection of a circular business model (CBM) for HVM. Explored through five case studies using a qualitative evaluation of circularity, we then contribute to the emerging field of CBMs by modifying the CBM canvas that can capture the nontraditional value, traditional value, cost, and other influencing factors enabled via CBM adoption in HVM. Finally, the important role of digital technologies for incentivizing and enabling CBM adoption, is clarified.
... Estudios previos, señalan que las empresas con una sólida red de contactos están en mejor posición para acceder a nuevas ideas e identificar mejores oportunidades de crecimiento (Anwar y Ali Shah, 2018;Kijkuit y Van den Ende, 2007). Por ejemplo, la relación de los gerentes de empresas de nueva creación con gerentes de empresas ya establecidas y maduras, puede ayudar a los primeros a tener mejor acceso a recursos, adquirir nueva información, nuevos conocimientos y lo acercan a nuevas redes Fliaster y Spiess, 2008) lo que influye en la innovación de la empresa (Breuer y Lüdeke-Freund, 2017). Es así que, incluso a través de actividades de redes externas con socios de la industria, las personas llegan a conocer de nuevas tecnologías que pueden ser relevantes para sus propias organizaciones (Covin et al. 2016). ...
Thesis
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Influencia del contexto en el proceso emprendedor y el desempeño innovador de las empresas creadas y dirigidas por mujeres en Ecuador
... While the integration of multiple stakeholders through broader conceptions of business models and value creation is a recurrent theme found in the literature (Dentchev et al., 2018;Lüdeke-Freund & Dembek, 2017)-some even argue that it is the characterizing feature of business models for sustainability-its theoretical underpinnings, insightful cases, and problems of this integration are hardly studied. Examining the possibilities and limitations of cross-sector collaboration motivating, and being motivated by, business models for sustainability is crucial for understanding the available means to facilitate sustainability transformations on different levels of business and society (Breuer & Lüdeke-Freund, 2017;Kurucz et al., 2017). As noted by Rohrbeck, Konnertz, and Knab (2013), "sustainability innovations are characterized by a systemic nature and require that multiple organisations act in an orchestrated fashion" (p. ...
Article
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Sustainability challenges typically occur across sectoral boundaries, calling the state, market, and civil society to action. Although consensus exists on the merits of cross-sector collaboration, our understanding of whether and how it can create value for various, collaborating stakeholders is still limited. This special issue focuses on how new combined knowledge on cross-sector collaboration and business models for sustainability can inform the academic and practitioner debates about sustainability challenges and solutions. We discuss how cross-sector collaboration can play an important role for the transition to new and potentially sustainability-driven business models given that value creation, delivery, and capture of organizations are intimately related to the collaborative ties with their stakeholders. Sustainable alternatives to conventional business models tend to adopt a more holistic perspective of business by broadening the spectrum of solutions and stakeholders and, when aligned with cross-sector collaboration, can contribute new ways of addressing the wicked sustainability problems humanity faces.
... Much of the empirical research involving managerial values in business sustainability decision-making has either treated organisational outcomes as proxies or indicators for the managerial values and attitudes that shape business sustainability decision-making (Figge and Hahn 2012;Gao and Bansal 2013;Pullman et al. 2009;Young and Tilley 2006), or framed those around managers' moral sentiments or personality traits (Agle et al. 1999;Choi and Wang 2007;Papagiannakis et al. 2014;Walker and Mercado 2016). Keeney (1996) and Breuer and Lüdeke-Freund (2017), however, remind us that there is a utilitarian dimension to managerial values as they signify the desirability of specific outcomes. ...
Article
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Per definition business sustainability demands the integration of environmental, social, and economic outcomes. Yet, managerial decision-making involving sustainability objectives is fraught with tension and the way managerial decision-makers frame sustainability issues in their mindset influences how sustainability tensions are managed at the organisational level. In the bid to better understand what types of managerial mindsets, or cognitive frames, foster integrative business sustainability practices that simultaneously advance environmental, social, and economic objectives, extant research has focussed on the underlying logics that drive the acknowledgement of sustainability tensions. However, the existing logics-based constructs do not sufficiently explain this link, and it has been suggested that managers perceive and manage sustainability tensions based on the values that they hold. To clarify the roles of managerial values and logics as antecedents in business sustainability decision-making, we integrate Keeney’s value-focussed thinking approach with managerial and organisational cognition perspectives. Drawing on data from a survey with 169 senior procurement managers in Australia we found three types of cognitive frames which demonstrate that stronger sustainability values are associated with a more holistic perception of sustainability tensions and vice versa. We also found that managers’ cognitive framing of sustainability is strengthened by more holistic organisational cognitive frames and discuss according implications for managerial decision-making in theory and practice.
... The few publications devoted to this issue, concern a slightly different presentation of the network than the approach proposed by the authors of this paper. We can list here: system innovations in sustainable development included in business networks and models based on values (Breuer and Lüdeke-Freund 2016); network business models providing visibility (traceability) of the delivery chain (Dellyana et al. 2016;Suherman and Simatupang 2017); distribution networks (Li et al. 2018); and internal logic of the service providers in achieving a successful project coalition (Rajakallio et al. 2017). ...
Article
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The network perspective of a business model provides an attractive outlook on the interactions and interdependencies of its components. The network is a “living organism,” it changes constantly and dynamically. Therefore, the key nodes in the network, and their potential loss, may be of vital importance to the network itself. The paper presents the network of relations between the components of a company business model operating in a sector of new technologies – virtual reality – and indicates the prominent and most influential nodes in the network that can affect value creation. The authors analyzed the influence exerted by a key node that has been eliminated from the network on the remaining structure, based on the immediate impact (change analysis), which computes the key nodes of the network and then isolates them individually to determine the effect on measured values. The primary research approach is an organizational network analysis (mostly centrality measures) and a simulation functionality used for determining measures and visualization, before and after changes. The results indicate the level of centrality measures of all nodes in the network (a virtual reality company’s business model), their interdependence, and the dynamics of their change. The paper concludes with implications for theory and practice, limitations, and directions for further research.
... The organisation faced the challenge of having to develop a business model in a participatory manner. As there is no 'correct' solution for a business model, which is influenced by personal values and aims as well as fit with the local context, and business model innovation is an ongoing challenge, business model development can be considered a wicked problem (Breuer & Lüdeke-Freund, 2017;Foss & Saebi, 2018), such that a problem structuring approach is appropriate. Starting from the assumption that collective entrepreneurship is a learnable, distributed concept (Johannisson, Ramírez-Pasillas, & Karlsson, 2002), the business model canvas (BMC) (Osterwalder, Pigneur, Oliveira, & Ferreira, 2010) was chosen, which has been previously used in the context of Soft OR interventions (Hindle, Vidgen, Hamflett, & Betts, 2015;Vidgen, Hindle, & Randolph, 2020) and is freely available to NGOs as part of NESTA's DIY (Development Impact & You) Toolkit (NESTA, 2014, p. 22), which contains a range of methods that organisations can use to structure their continued development efforts. ...
Article
The importance of understanding how Soft OR methods work is increasingly being recognised. However, gaining insight into how participant engagement develops at the micro-level of a problem structuring intervention is an ongoing challenge. This exploratory study addresses the question: How do intrinsically motivating experiences of participants unfold in problem structuring interventions? A sensitising device for the study of motivational affordances in problem structuring interventions is proposed, grounded in self-determination theory, interaction aesthetics and the generic constitutive definition of problem structuring methods. Applying this lens to empirical episodes from a problem structuring intervention, eudaimonic and hedonic experiences of participants are made visible. In this way, the approach proposed in this paper contributes to an enriched understanding of how Soft OR methods work and enhances our conceptual repertoire for reflection on practice.
... Therefore, the joint efforts of stakeholders are the most important part of value co-creation [38]. In addition, stakeholders must first have a common purpose to collaborate [39] and then also encourage the positive contributions of members [40]. ...
Article
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As an important supply chain development strategy, green investment and sustainability are concerns of the government and enterprises. However, due to the high cost and low profit of green investment, a large number of small and medium-sized firms can be deterred from their implementation. Value co-creation has become a key measure to solve this problem. This article explores the relationship between the green supply chain (GSC) strategy, value co-creation, and corporate performance in the manufacturing environment, and considers the regulatory effects of internal environmental factors and external environmental pressures on this relationship. Based on data from 115 manufacturers in China, we tested the hypotheses, explained the statistical results, and identified key concerns for implementing GSC through value co-creation. The findings reveal that the GSC strategy can promote a high level of firms’ value co-creation with their supply chain partners, and different value co-creation modes have different effects on firm performance (i.e., operational performance, innovation performance, and financial performance). In addition, the findings indicate that macro-level external pressure and micro-level internal support could enhance such effects. This study enriches the literature with value co-creation modes and GSC management by integrating GSC strategies and value co-creation strategies, providing confidence to the firms and their supply chain partners in value co-creation, thus helping them to better implement a GSC strategy.
... For this reason business model innovation should ensure sustainability. According to Breuer & Ludeke-Freund (2017) managers should keep in mind shared values of different actors engaged in the innovation process. It could result in creation of new structures of relationships between market entities as well as new types of business models which address complex societal problems (e.g. ...
Article
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Motivation: In the dynamically changing environment companies are looking for new ways to build competitive advantage. One of them could be business model innovation. Despite the rapidly increasing number of research on business model innovation, understanding its role for company's development is still difficult. Aim: The aim of the paper is to identify the role of business model innovation for compa-ny's development. Results: A map of up-to-date information derived from the literature was delivered. It not only helped to identify the common standpoints within existing research, but determined relationships between business model innovation and company's development. Additionally , identifying directions for future research was possible.
... As such, our framework reiterates studies suggesting that the more complex a cross-sector partnership's external environment, the more complex it needs to be in terms of establishing new processes and structures (De Lange et al., 2016;Ryan et al., 2012;Schneider et al., 2017). For example, our framework underlines the need for finding a normative synthesis between the multiple logics and values that cross-sector partners put forth (Breuer & Lüdeke-Freund, 2017;Laasch, 2018Laasch, , 2019 and for learning in rapid, distributed cycles of experimentation and sensemaking (Andries et al., 2013;Sosna et al., 2010). The nonlinear, recursive, and modular configuration of agents involved in a partnership means that for them to collectively support a system-level outcome like resilience, they need to constantly realign the strategic, institutional, and learning elements of partnerships to avoid unintended consequences on the level of socio-ecological systems (Martí, 2018). ...
Article
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A flourishing literature assesses how sustainable business models create and capture value in socio-ecological systems. Nevertheless, we still know relatively little about how the organization of sustainable business models – of which cross-sector partnerships represent a core and distinctive mechanism – can support socio-ecological resilience. We address this knowledge gap by taking a complex adaptive systems (CAS) perspective. We develop a framework that identifies the key strategic, institutional and learning elements of partnerships that sustainable business models rely on to support socio-ecological resilience. With our analytical framework, we underpin the importance of assessing sustainable business initiatives in terms of their impact on resilience at the level of socio-ecological systems, not just of organizations. Therefore, we reveal how cross-sector partnerships provide the organizational support for sustainable business models to support socio-ecological resilience. By combining the key features of CAS and the key elements of partnerships, we provide insight into the formidable task of designing cross-sector partnerships so that they support socio-ecological resilience and avoid unintended consequences.
... Explicitly, it addresses the significance of combing social and economic concerns to establish a value network for achieving synergistic innovation performance in the context of Asian Pacific BMs. Implicitly, such an intricate innovation mode led by the government often necessitates the forming of shared cultural values among multiple stakeholders, whereby the continuing development and expanding scope of the value network can be justified and legitimized. Viewed from this angle, our research also partly contributes to the current trend of taking into account the strong interdependence and complementarity of social and economic benefits in the studies of BM innovation (Breuer and Ludeke-Freund 2017;Spieth et al. 2018). ...
Article
From an integrative view of paradox and culture, this research aims to elucidate the impact of cultural heterogeneity on the compositional structure of business models (BMs) in the Asia Pacific by focusing on the core BM content about the mechanisms of value creation and innovation. After a systematic review addressing the knowledge void, we refine the widely accepted, renowned model of a BM canvas to propose a new, indigenous Confucian BM canvas using the Yin-Yang harmony cognition as the underlying rationale for identifying the peculiar, innovative value-creating patterns of BMs in Confucian Asia. Our canvas encompasses three new building blocks: Social Legitimacy, Institutional Enabler, Institutional Disabler, that reflects the idiosyncratic Confucian cultural values and, thereby, can serve as a vital strategic map. Based on the insights distilled from this new canvas, we further suggest a novel ‘networked synergistic mode of innovation for value creation’ with an example of the electric motor industry in the Asia Pacific region. Theoretical, practical and policy implications are also discussed.
... Oprindeligt medvirkede Porters vaerdikaedeforståelse til et øget fokus på vertikal integration mellem organisationer. Men denne vaerdikaedeforståelse kommer i stigende grad til kort, da vaerditilbuddet i de enkelte organisationer bliver dematerialiseret, hvorved de både fysiske og lineaere strømme i vaerdikaeden opløses (Breuer and Lüdeke-Freund, 2017). ...
Article
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Værdiskabelse sker i stigende grad på tværs af organisatoriske grænser og skaber dermed grundlag for gentænkning og innovation af eksisterende forretningsmodeller. Der eksisterer derfor et behov for at gøre op med det traditionelle fokus på enkeltstående forretningsmodeller i isolerede organisationer. I denne artikel introduceres en distinktion mellem intra- og inter-organisatoriske forretningsmodeller. Ved at bygge bro mellem forskellige teoretiske dimensioner af inter-organisatorisk samarbejde og forretningsmodellitteratur diskuteres, hvorledes forretningsmodelinnovation kan være en tilgang til at skabe organisering på tværs af organisatoriske grænser. Dette eksemplificeres gennem en case, der følger inter-organisatorisk samarbejde omkring forretningsmodeludvikling og etablering af en kollaborativ forretningsmodel på Aalborg Havn.
... Although promising, these relationships require careful alignment of the involved actors' business models and objectives (Chesbrough and Schwartz, 2007;Velamuri et al., 2013). Examining the findings from the literature as a whole, taking an ecosystem-based approach to business model innovation can be a delicate prospect since it requires a meticulous understanding of the company's environment (Eppler et al., 2011;Lüdeke-Freund and Breuer, 2017;Spieth and Meissner, 2017). ...
Conference Paper
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The introduction of electric vehicles requires contributions from multiple industries and confronts the involved actors with unprecedented challenges. While research that has been conducted on business models and innovation ecosystems has gained attention, little research has been conducted on how actors can align business models to overcome bottlenecks and demonstrate a viable ecosystem value proposition. We address this issue by presenting evidence from a qualitative multiple case study in which a focus was placed on downstream-actors in the innovation ecosystem for electric vehicles. We highlight factors that motivate actors to establish a value proposition for electric vehicles, describing their similarities and differences in terms of how they cope with bottlenecks. Our results indicate that the issues of (1) electric charging infrastructure, (2) the availability of vehicles, and (3) customer value in terms of technological properties need to be addressed simultaneously to establish an attractive ecosystem value proposition.
... Besides the previous research propositions, the authors recommend that the stakeholder model be used as a guideline for understanding the process by which stakeholders cooperate in tourism destinations [33,34]. From this, a number of future studies could be conducted by which stakeholders in tourism destinations are surveyed with a goal of understanding how each of the stakeholders view the other stakeholders. ...
Article
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This paper combines game theory with Land Ethics to demonstrate a path forward for sustainable development. Our findings indicate that two likely equilibria can be reached. One equilibrium focuses on high short-term profits, but with ecological damage leading to less cumulative profits. The second equilibrium requires ecological maintenance costs (thus less short-term profits) yet yields greater cumulative profits. The comparison of the two equilibria and using the historical perspective of the Wisconsin Dells demonstrates how communities that embrace a Land Ethic can reach the equilibrium that produces greater long-term benefits.
... Firms engaging in sustainability-oriented exploration additionally need to shield the universalism-based sustainability values (often driven by intrinsically motivated individuals) from the more conventional security values and related business rationale. This is crucial-and needs to be assured over relatively longer periods of timebecause additional complexity, uncertainties, and related risks come into play in radical sustainability innovation (Kennedy et al., 2017); for instance, the difficulty in finding partners with similar values (Breuer and Lüdeke-Freund, 2017a), the directional risk linked to the ultimate sustainability impact of the developed technology (Hansen et al., 2009), and the problem that sustainable technologies are usually in disadvantage over their conventional counterparts (Rennings, 2000). ...
Article
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Sustainability is a key societal challenge and has become an opportunity for innovation. While start-ups are prone to enter such new territories, established companies are more hesitant to leave current trajectories and embrace uncertainty linked to sustainability-oriented exploration. We present a case of a conventional high-tech firm of an owner-manager whose strong values of universalism led him to initialize a sustainability-oriented diversification by exploring renewable energy technologies. Our longitudinal study uncovers how changes in ambidextrous organizational design and represented managerial values ultimately resulted in failed exploration. Our contribution is threefold: First, we link individual-level managerial values of universalism with organizational-level phenomena of sustainability-oriented exploration and diversification. Second, we contribute to bridging hitherto mostly separate bodies of literature on sustainability-oriented innovation and ambidexterity to better understand how conventional firms can deploy their technological capabilities for sustainability. Third, we conceptualize the "separation drift" as fading organizational separation resulting in exploration failure.
... Much attention has been paid to sustainable business models from a firm-centric viewpoint (Neumeyer & Santos, 2018). Several business model scholars have pointed out the need to take on a systems perspective and develop business models from a perspective beyond the single organization (Breuer & Lüdeke-Freund, 2017;Rohrbeck, Konnertz, & Knab, 2013;Starik, Stubbs, & Benn, 2016;Stubbs & Cocklin, 2008;Upward & Jones, 2016). However, the overall systemic change, which is needed for a sustainability transition, is not yet integrated (Diepenmaat, Kemp, & Velter, 2020). ...
Chapter
To realise sustainability transitions, firms need to collaborate in networks and carry out system-changing activities. In this way, they pro-actively build a more sustainable system and change the environment in which they operate. This in turn will help them to market their own sustainable product or service. Partners in a network can co-develop a ‘networked business model’, which takes on a systemic perspective and helps them to align their sustainability efforts. This latter model comprises transition goals, system-building activities, system resources, benefits created for stakeholders and costs to the network. The networked business model feeds into each network member’s individual firm-centric business model and vice versa. The business models at the firm level and the system level are interconnected and mutually influence one another.
... SMEs require external stakeholders to act as substitutes for key internal agents when there is a lack of knowledge regarding sustainability issues or where there is the need to develop innovative product, processes, organizational features, and business models (Breuer & Lüdeke-Freund, 2017;Journeault et al., 2021). In their work, Journeault et al. (2021) clarify that in an SME sustainabilityoriented network, the presence of different stakeholders "performing different transversal and complementary roles can represent an effective framework for providing more tailored solutions to the specific needs of different SMEs" (p. ...
Article
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The global economy's transition toward more sustainable development models is undoubtedly grounded on small and medium-sized enterprises (SMEs). However, SMEs, individual entrepreneurs, and microenterprises have always encountered barriers to implementing social responsibility and sustainability concepts. The paper investigates the enabling role of formalized corporate networks to drive SMEs toward sustainable behaviors. A quantitative nonlinear regression approach is applied to a content analysis of a sample of network contracts coded. The content analysis is applied to analyze the declared objectives, the purpose of the contract, and sustainability areas. An ordered logistic regression is applied on variables related to the behavior of SMEs before entering in the contract and post-adhesion phases. Data demonstrates how networks of SMEs can be used as enabling factors to boost sustainability among them. Specifically, the study is based on a sample of 96 formalized network contracts (FNCs), including 1486 Italian SMEs in that sustainability-oriented networks. It offers an evidence-based perspective on how networks of companies can play a fundamental role in the development of policies aimed at bringing small companies closer to the concept of sustainability (such as eco-innovations, eco-efficiency, environmental performance, and social innovations, among others) and its practical implementation. This paper has two significant strengths. The first is that it uses as a sample a set of 1486 companies, including individual entrepreneurs and microenterprises, whose data are usually difficult to collect. The second is that it demonstrates the efficacy of a contractual form that could be scalable to different countries.
... That a focus on values can be a mechanism for the discovery and implementation of new opportunities is a critical insight for both scholars and practitioners interested in some of the world's grand challenges. Values-based innovation has been named as a way to address urgent social problems such as climate change and global health (e.g., George et al. 2016, Breuer andLüdeke-Freund 2017), leading scholars to consider how organizations might improve the broader social world (see Howard-Grenville et al. 2019). This effort requires a recognition of the potential benefits and limitations inherent in extant ways of organizing. ...
Article
We examine how entrepreneurs might build a viable, values-driven niche. Extant templates for niche creation typically employed in moral markets depend on instrumentally rational logics that privilege economic ends such as profitability and efficiency. Entrepreneurs seeking to construct a nascent niche whose purpose and objectives include the amelioration of social ills, however, may find such templates inadequate. Using the emergence of the U.S. bean-to-bar chocolate niche, through which entrepreneurs attempt to address the social and environmental shortcomings of conventional chocolate production, we demonstrate that constructing an alternative model for niche creation is feasible. Most bean-to-bar entrepreneurs deliberately opted out of extant private regulation initiatives, developing instead alternative encompassing, values-driven sourcing and cooperative relationships, which we term collaborative governance. This is enacted throughout the niche by promoting shared values, best practices, and transparency and is supported by strategic meaning-making work to cultivate customers. Together, these three values-driven strategies form a novel template of niche creation based not on cognitive repositioning or exploiting exogenous change within existing structures and institutions, but on a reconceptualization of how markets might work to support the implementation of nonmarket goals. Based on our mixed-methods analysis, we find that, instead of hoping to accomplish nonmarket goals through established market structures, entrepreneurs built a niche centered on the achievement of specific social goals. Our findings suggest that to understand the strategies supporting emergent socially oriented markets, researchers must explore the intersections of values, entrepreneurial motivations, and operational complexities.
... Breuer and Lüdeke-Freund (2017) [48] went as far as to suggest that the stakeholders' values should drive the design and decisions of BMs. ...
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... Through entrepreneur's skills, start-up firms gain information, financial resources, knowledge and increasing support/partnership from start-up support organizations. Access to new information, resources and knowledge will affect enterprise innovation (see Breuer and Ldeke-Freund [8]). To implement BMI, start-up firms certainly require financial capital (see Anwar and Ali Shah [2]). ...
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Keywords Abstract. Access to start-up resources Business model innovation Entrepreneurial skills Managerial skills Based on human capital theory, this study aims to explain start-up resources formation and business model innovation. The study examined the effect of entrepreneur's human capital (including managerial skills and entrepreneurial skills) on business model innovation via access to start-up resources as a mediator. The Partial Least Squares Structural Equation Modeling (PLS-SEM) was conducted with the size sample of 220 founders/ co-founders of start-up firms in Vietnam. The research results supported the positive links from managerial skills and entrepreneurial skills to business model innovation through the mediating mechanism of access to start-up resources. The study explored the meditation role of access to start-up resources between entrepreneur's human capital and business model innovation. In addition, the results provide practical value to entrepreneurs in improving managerial skills and entrepreneurial skills in order to facilitate the access to outside support resources and promote business model innovation. Finally, the study suggests some managerial implications for entrepreneurs, research limitations and further research directions.
... Complex model of sustainable governance model as the prerequisite of attractiveness[9,10] ...
... Our work falls within, and contributes to, the domains of Innovation Management (IM), and Sustainable Business Model Innovation (SBMI). Scholars from the former recognize that innovation management often fails to solve social problems, as the role of networks and the values and interests of actors involved are being neglected (Breuer et al, 2017). Within the SBMI field, scholars generally agree that although there is recently strong academic interest, this research is currently under a consolidation phase (Lüdeke-Freund et al., 2018). ...
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The Triple Layered Business Model Canvas is a tool for exploring sustainability-oriented business model innovation. It extends the original business model canvas by adding two layers: an environmental layer based on a lifecycle perspective and a social layer based on a stakeholder perspective. When taken together, the three layers of the business model make more explicit how an organizations generates multiple types of value - economic, environmental and social. Visually representing a business model through this canvas tool supports developing and communicating a more holistic and integrated view of a business model; which also supports creatively innovating towards more sustainable business models. This paper presents the triple layer business model canvas tool and describes its key features through a re-analysis of the Nestlé Nespresso business model. This new tool contributes to sustainable business model research by providing a design tool which structures sustainability issues in business model innovation. Also, it creates two new dynamics for analysis: horizontal coherence and vertical coherence.
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Der Weg in die quartäre Wirtschaft der dienstleistungsgeprägten Wissensgesellschaft ist weit offen. Treibende Kraft dieser Entwicklung ist die rasante Entwicklung der Informationstechnologie, die nahezu alle räumlichen Beschränkungen, denen die Kommunikation bisher unterlag, aufhebt. Das “globale Dorf” scheint aus dieser Perspektive heraus Wirklichkeit zu werden. Dennoch wird diese Entwicklung das menschliche Urstreben nach sozialer Einbindung und Nähe nicht vermindern, sondern eher verstärken: Der “ homo sociologi-cus” (Dahrendorf) oder das von den Griechen als “zoon politicon” apostrophierte Bild des Menschen wird in einer multikulturellen Gesellschaft eher neue Restriktionen in der Kommunikation und Kooperation aufbauen: Eine neue Entwicklungsschere zeichnet sich ab. Sie birgt Risiken in sich, schafft aber auch für diejenigen Unternehmungen, die sich innovativ als Pioniere neuer Organisationsmodelle bedienen, nicht unerhebliche neue Chancen.
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