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Embracing the variety of sustainable business models: Social entrepreneurship, corporate intrapreneurship, creativity, innovation, and other approaches to sustainability challenges

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... Although research on sustainable business models is growing substantially in the strategic and innovation management literature (see Arevalo et al., 2011;Boons et al., 2013;Schaltegger et al., 2016;Svensson and Wagner, 2011), how sustainable business models function and are applied in the real world, and what determines their success (or otherwise) in the market, are not well understood (Dentchev et al., 2016). ...
... Moreover, sustainable business models are typically implemented by social enterprises operating with new, hybrid organisational forms e such as 'benefit corporations' ('B Corporations' or 'B Corps') e that blur the boundary between the for-profit and nonprofit sectors (Dees and Battle Anderson, 2003;Doherty et al., 2014). Compared to traditional for-profit companies, social enterprises may prioritise their mission over the pursuit of growth and revenue, thus raising novel questions on the appropriate criteria for measuring success that go beyond financial profitability (Dentchev et al., 2016). Furthermore, sustainable business models yield innovative value propositions that often encounter significant barriers to entry and only limited market acceptance, which may threaten their very existence (e.g. ...
... Anttonen et al., 2013;Darvojeda et al., 2013;Planing, 2017;van Weelden et al., 2016;Vezzoli et al., 2015). Understanding how they may be successfully designed, implemented and scaled-up to provide higher impact deserves further exploration (Dentchev et al., 2016). ...
Article
Sustainable business models are intended to create economic value while benefitting the environment and society. Their wider adoption and diffusion is necessary to tackle pressing societal problems. How they are implemented and what determines their success (or lack thereof) in the market is not yet well understood, however, and deserves further exploration. To help fill the gap in knowledge, this study examines an emerging and innovative type of sustainable business model based on the peer-to-peer (P2P) sharing of underutilised assets facilitated by digital platforms. Its aim is to identify possible reasons for their commercial success or failure. In particular, the study investigates the values of users of a successful P2P goods-sharing platform and to what extent they differ from values of users of a comparable, yet unsuccessful, platform. Previous research on a UK-based online marketplace, Ecomodo, measured people's motivations for joining and the value priorities of users using Schwartz's Portrait Value Questionnaire. Results were compared with data from a representative sample of the UK population and used to explain the platform's low market uptake. The same study is here replicated with members of Peerby, an online marketplace where people rent, lend and borrow their possessions with each other. The analysis shows similar value priorities and orientation in Ecomodo and Peerby respondents, which suggests that the failure of the former platform and the success of the latter may be more directly attributed to differences in their business model design and execution than the types of user.
... While "BoP solutions" have been identified as a type of SBM (Bocken et al., 2014), studies of business models at the BoP using the SBM lens are scarce. Also little is known about how SBMs work in general (Dentchev et al., 2016). Further, both BoP and SBM studies to date have focused primarily on what these business models look like rather than how they work and their persistence in analyzing business models as a set of elements rather than as a system, has been recently identified as a limitation (França et al., 2017). ...
... Some studies positioned SBMs as means to implement sustainable innovations (Boons and Lüdeke-Freund, 2013; Rosca et al., 2017), or improve a part of value chain or an activity (Floden and Williamsson, 2016). Those with broader scope seek to increase a firm's "economic, environmental, and social effectiveness" on a diverse range of issues like resource conservation, emission reduction, resilience to external shocks, healthy profitreinvestment ratios, healthy ownership structures, secure and meaningful employment, and intra-and intergenerational equity (Geissdoerfer et al., 2016(Geissdoerfer et al., :1219; and most broadly to resolve social and environmental issues (Dentchev et al., 2016). This last purpose presents arguably the greatest value creation potential of SBMs and makes it especially promising for the BoP due to its potential to address the complexity of poverty discussed in the previous section. ...
... First, the multi-stakeholder approach of SBMs allows community impact to be deeply integrated into the core of a business model, which is necessary if it is to generate social value (Sinkovics et al., 2014). Secondly, SBMs have less focus on short-term profit maximization (Dentchev et al., 2016), which allows for a much-needed patient approach to business and market development. The unmet needs of the BoP do not in and of themselves create a market for products and services (Garrette and Karnani, 2010), and creating markets where they do not already exist may require significant time and effort. ...
Conference Paper
Many ventures have sought to incorporate people living in poverty (the so-called Base of the Economic Pyramid (BoP)) into company value chains as providers or entrepreneurs in order to simultaneously increase the income of the poor while ensuring procurement for the company (London and Hart, 2011). Pursuit of this dual goal has rarely delivered on these expected dual outcomes. This problem seems to result in part from using conventional business model approaches focused on creating firm value and customer satisfaction without adapting them to the BoP context. Given the complexity of poverty and the diversity of needs at the BoP, such approach is inadequate at best, and potentially harmful. In this paper we revisit the business model concept, adapting it to better reflect the challenges and complexity organizations encounter at the BoP. In particular, respond to recent developments in sustainable business model research, by extending the definitions of value and value capture to ensure that all stakeholders benefit from the value chain, not just the company and its customers. We then demonstrate these adjustments in practice in the case of Habi, a Philippine-based footwear manufacturer working in the slums of Manila. We use a new business model mapping method that combines a systemic activity-based view with the stakeholder-based perspective on value to analyze and visualize Habi’s business model. The findings illustrate the necessary changes to the business model concept and reveal a specific dual value creation mechanism that allows Habi to deliver on its social and economic goals simultaneously.
... While "BoP solutions" have been identified as a type of SBM (Bocken et al., 2014), studies of business models at the BoP using the SBM lens are scarce. Also little is known about how SBMs work in general (Dentchev et al., 2016). Further, both BoP and SBM studies to date have focused primarily on what these business models look like rather than how they work and their persistence in analyzing business models as a set of elements rather than as a system, has been recently identified as a limitation (França et al., 2017). ...
... Some studies positioned SBMs as means to implement sustainable innovations (Boons and Lüdeke-Freund, 2013; Rosca et al., 2017), or improve a part of value chain or an activity (Floden and Williamsson, 2016). Those with broader scope seek to increase a firm's "economic, environmental, and social effectiveness" on a diverse range of issues like resource conservation, emission reduction, resilience to external shocks, healthy profitreinvestment ratios, healthy ownership structures, secure and meaningful employment, and intra-and intergenerational equity (Geissdoerfer et al., 2016(Geissdoerfer et al., :1219; and most broadly to resolve social and environmental issues (Dentchev et al., 2016). This last purpose presents arguably the greatest value creation potential of SBMs and makes it especially promising for the BoP due to its potential to address the complexity of poverty discussed in the previous section. ...
... First, the multi-stakeholder approach of SBMs allows community impact to be deeply integrated into the core of a business model, which is necessary if it is to generate social value (Sinkovics et al., 2014). Secondly, SBMs have less focus on short-term profit maximization (Dentchev et al., 2016), which allows for a much-needed patient approach to business and market development. The unmet needs of the BoP do not in and of themselves create a market for products and services (Garrette and Karnani, 2010), and creating markets where they do not already exist may require significant time and effort. ...
Article
Addressing poverty at the Base of the Pyramid (BoP) using market-based approaches has proven very challenging. Studies built around traditional profit and customer focused business models adapted to the BoP context have yielded limited insight into how business models that address poverty work to create value for their various stakeholders. The lens of sustainable business models has been recently turned on the BoP with promising results. This study continues this approach and extends our understanding of how business models work in the BoP context. Based on primary and secondary data from 55 organizations addressing poverty in Indonesia and the Philippines, this study shows nine distinct business models addressing poverty. We classify the models by their activities and structure to create a BoP business model matrix and explain how these nine models use different activities, value approaches, value creation logics, value sources and capturing mechanisms to benefit different stakeholders. We find that one group of models, which aims to reorganize how BoP communities and the systems around them operate, has especially large value creation potential because it combines three distinct value creation logics to provide comprehensive solutions to complex problems. We explain limitations and provide guidance for future research and practice.
... Organizations worldwide have become aware of the need to foster sustainability, e.g., by focusing on the sustainable development goals (SDGs). Within the business context, the growing attention paid to the subject has led to an exponential growth into research on sustainable business models (SBM) [2,3]. These models try to incorporate sustainability within the business model canvas [4] providing an array of possibilities to integrate it into the activities connected to value creation, value delivery and value capture. ...
... Where organizations in the defensive phase are only dealing with sustainability on an ad hoc basis, those in the transformative phase use business model innovations to address the causes of unsustainable practices in a more systematic manner. Van Tilburg et al. [14] identify four business model phases: (1) inactive; (2) reactive; (3) active and (4) proactive. In the inactive phase, organizations see sustainability primarily as a government task, whereas in the reactive stage they draw upon their reputation to support their focus on sustainability. ...
... Environmental benefits alone do not provide sufficient incentive to get sustainability initiatives off the ground [48]; they must also be offset by economic benefits. Long et al. [12] mention profitability as a critical success factor but this can conflict with the environmental and social orientation of sustainable business models [3]. Because they have no profit motive, housing corporations are 'hybrid' organizations that operate in an area of tension between the government, the market and society. ...
Article
Full-text available
Social housing corporations play an important role in society as they provide affordable and quality housing for vulnerable citizens. Yet, the sector has to deal with the historical legacy of a high number of old and poorly insulated buildings. While research into the processes that drive or hinder business model innovation in this sector is scarce, this paper draws upon multiple qualitative case studies of social housing in the Netherlands to identify critical success factors for the transition to sustainable business models for new buildings and retrofits. Results show that there are four key attributes for a successful transition process: collaboration (both with supply chain partners as well as other social housing associations); continuous innovation; vision; and the role of the government (including subsidies and fiscal regulations). While economic performance was an important boundary condition sustainability was not always seen as a strategic organizational objective, a finding that might be explained through considering the legacy of social housing corporations. Furthermore, a number of barriers were identified including the need for customer acceptance, a lack of support from the construction sector and government and macro-economic factors such as increased construction costs.
... The current COVID-19 pandemic is also increasing the call for economic investments and activities that lead to a more sustainable world [4]. A whole range of organizations are, in response to the abovementioned challenges, concerned with aspects of sustainability and social innovations, including non-profit organizations, commercial enterprises with CSR/CSR objectives and social enterprises [5][6][7][8][9].This research focuses specifically on the business models of social enterprises. ...
... The missing central place of profit generation in sustainable business models has not yet been well researched. How can sustainable business models function and create social and environmental value without focusing on generating profit [5]? ...
Article
Full-text available
The increasing pressure on people to do something for society, in combination with the need for financial turnover in order to survive, is seen as one of the dominant factors for the rise of social enterprises. However, there is still debate on how social enterprises create social value in addition to economic value and how this is reflected in the business model. In this case study research, we investigate how the key components of the business model of social enterprises contribute to the creation of social and economic value. The cases in this research create social and economic value through the mutually interacting operation of key components and their sub-components. This interacting effect focuses on the one hand on the alignment of the internal architecture, market and financial management with the mission. The mission statement serves as a guiding principle. Furthermore, realizing the highest possible profit is not a goal in itself for social entrepreneurs. Generating profit serves the continuity of the company and the realization of social value. We also found that social enterprises can be configured as either market hybrids, blending hybrids, bridging hybrids or coupling hybrids.
... According to De Lucia et al. (2016), since 2010, the year of the 2.0 green revolution, entrepre- neurship has been active and competitive in the globalized world, through sustainable initiatives innovation. Coherently, adequate initiatives are necessary to help promote creativity and orientation for entrepreneurship aiming at sustainability (Dentchev et al., 2016;De Lucia et al., 2016). ...
... Consistently, CP is a proactive environmental strategy with extremely positive results in the environmental corporative management ( Oliveira et al., 2016). We should highlight that the entrepreneurial characteristics from an organization must include environmental practices ( Rahdaria et al., 2016;Dentchev et al., 2016), where EO can influence CP. This leads to our H1 hypothesis. ...
... Interestingly, both business model and transition scholars regard an explicit link between the fields as necessary. In business model research, particularly the growing sustainable business model community who is by definition interested in the societal impact of business models, has repeatedly called for an integration of both fields (Arevalo et al., 2011;Boons et al., 2013;Boons and Lüdeke-Freund, 2013;Dentchev et al., 2016;Schaltegger et al., 2016b;Wainstein and Bumpus, 2016;Wells, 2013). In turn, transition researchers have emphasized the critical role of organizations in societal transitions (Garud et al., 2016;Geels, 2006) and the need to better understand the interrelations between their business models and transitions (Loorbach, 2010;Loorbach and Wijsman, 2013;Wells and Nieuwenhuis, 2012). ...
... The integration of research on business models and transitions acknowledges the interrelation between organizations and their wider environment, emphasizing their importance for achieving sustainable development. Interest in the topic is currently rising, which we see reflected in recent calls for papers and conferences (Dentchev et al., 2016;Garud et al., 2016;Schaltegger et al., 2016a) as well as pioneering work in renowned journals (Bolton and Hannon, 2016;Huijben et al., 2016;Loorbach and Wijsman, 2013;Sarasini and Lindner, 2017;Schaltegger et al., 2016b;Tongur and Engwall, 2014;Wainstein and Bumpus, 2016). We hope that our paper will contribute to further advancing research in this important field. ...
Thesis
Full-text available
It has been suggested that business model innovation (BMI) is crucial for incumbent firms to drive and master sustainability transitions. Yet there is not much knowledge about how business models (BMs) and sustainability transitions interrelate and how incumbents (can) innovate BMs in a transition context. BM research typically takes a firm-centric perspective, disregards the mutual influence between firms and the socio-economic system they are embedded in, and fails to address the particularities of BMI in a transition context. To address these shortcomings, I embark on this cumulative dissertation by identifying BM research directions which are particularly relevant in a transition context. The five dissertation papers follow these directions, are theoretically informed by transition and strategic cognition theory and empirically situated in the German energy industry. Methodologically, this dissertation includes conceptual papers, action research and longitudinal case studies. Overall, I find that the BM concept is well suited to link firms and the wider system because it is firm-centric yet context-oriented. To drive and master sustainability transitions, incumbents need to emphasize BMI with a focus on inter-organizational collaboration and support cognitive change within and across organizational boundaries. In this dissertation, insights from the transition and BM literatures are conceptually integrated and a method for collaborative BM design is developed, applied and evaluated. Furthermore, BM implementation is portrayed as a recursive process of cognitive change and alignment at and across organizational levels, and ensuing action. This dissertation primarily contributes to BM research; however, individual papers offer secondary contributions to the transition and strategic cognition literatures.
... However, reviewing the related literature, which has been done in different articles, special issues and research projects (Bocken et al., 2014;Boons & Lüdeke-Freund, 2013;Dentchev et al., 2016;Schaltegger et al., 2016;Lüdeke-Freund et al., 2016), shows that sustainable business model researchers and practitioners have a tendency to talk mainly to their sustainability peers, e.g. in terms of how they frame and work on research and practice problems, the journals and other outlets they publish in. This may indicate that we are looking at a fragmented field that is either trapped in the niches in which it emerged, such as the traditional business model and corporate sustainability fields, or that has already become a new, isolated silo. ...
... The most obvious deviations from traditional ontologies and theories are the extended and multidimensional concepts of value creation and the central role played by diverse stakeholders beyond firm owners, business partners and customers (e.g. Dembek et al, 2016b;Jonker, 2016;Schaltegger et al., 2016;Upward & Jones, 2016). While these extensions require knowledge from the natural sciences, sociology, psychology, and many more non-economic and non-business disciplines (as e.g. ...
Article
Full-text available
This article reflects on the current state of the dynamically growing research and practice related to sustainable business models (SBMs), motivated by the question of whether dealing with SBMs is just a passing fancy or an emerging field, maybe even a field in its own right. We follow Ehrenfeld (2004), who asked a similar question for the field of industrial ecology in this journal, and reflect on the major beliefs and concepts underpinning SBM research and practice, tools and resources, authorities and the related community of actors. These elements are considered characteristics of a field and must be institutionalised in academia, industry and government for a field to emerge and progress. We therefore also identify some institutionalisation tendencies. As a result, we conclude that SBM research and practice show traits of an emerging field. It is however too early to foresee if it will develop as a sub-field within already established domains (“sub-field hypothesis”) or as a stand-alone field (“stand-alone hypothesis”). We argue that the sub-field and the stand-alone positioning may hamper the unfolding of the field's full potential. Instead, we propose that the SBM field needs to assume the role of an integrative field to break existing academic niches and silos and maximise practical impact (“integration hypothesis”). Our observations indicate that the SBM field is indeed developing into an integrative field and force. But we need to better understand and strengthen this development, for example by crafting a dedicated SBM research programme. A series of critical reviews could be a starting point for such an endeavour.
... Following this insight, scholars and practitioners have pointed to the importance of sustainable business models for systemic change, which inspired the emergence of a dedicated field of inquiry within business model research (e.g. Arevalo, Castelló, De Colle, Lenssen, Neumann, & Zollo, 2011;Boons, Montalvo, Quist, & Wagner, 2013;Dentchev et al., 2016). Business models have been ascribed the potential to change entire industries because they connect multiple actors, mediate between the production and the consumption side of business and support the introduction of novel technologies to the market (Gambardella & McGahan, 2010;Johnson & Suskewicz, 2009;Sabatier, Craig-Kennard, & Mangematin, 2012). ...
... The integration of research on business models and transitions acknowledges the interrelatedness between organizations and the wider environment and its importance for achieving sustainable development. Interest in the topic is currently rising, which we see reflected in calls for papers in special issues and conferences (Dentchev et al., 2016;Garud et al., 2016;Schaltegger et al., 2016a) and pioneering work in renowned journals (Bolton & Hannon, 2016;Huijben et al., 2016;Loorbach & Wijsman, 2013;Schaltegger et al., 2016b;Tongur & Engwall, 2014;Wainstein & Bumpus, 2016). We hope that our paper will contribute to further advancing research in this important field. ...
Article
Following recent calls from sustainable business model and transition research, we establish a link between these two fields. We systematically integrate existing knowledge on business models into the well-established multi-level perspective on socio-technical transitions and identify three roles of business models and their respective impact on transition dynamics: (1) As part of the socio-technical regime, existing business models hamper transitions by reinforcing the current system’s stability, (2) as intermediates between the technological niche and the socio-technical regime, business models drive transitions by facilitating the stabilization process of technological innovation and its breakthrough from niche to regime level, and (3) as non-technological niche innovation, novel business models drive transitions by building up a substantial part of a new regime without relying on technological innovation. We discuss our contributions to (sustainable) business model and transition research.
... Porter, 1979;Teece et al., 1997;Wernerfelt, 1984) have shifted, to a view where social licence to operate is critical to corporate survival, and the firm can derive competitive advantage from interaction with environmental management activities (Hart, 1995;Hart and Dowell, 2011). These changes are also evident in the movement towards sustainable materials programs and supporting policy programs incorporated in circular economy principles (Dentchev et al., 2016;Silva et al., 2017) and industrial symbiosis models (Rosano and Schianetz, 2014). ...
... However, while organizational and technological innovations are disrupting incumbent actors in many areas, the integration of environmental and social aspects of sustainability in profitoriented commercial activities remains elusive (Dentchev et al., 2016), suggesting that further evolution in business management strategy is necessary. Strategic thinking has reached the stage where stakeholder benefits and sustainability outcomes are intimately connected; new business philosophies and operational strategies that emphasize a more holistic approach to commerce help firms understand and explain not only how value is captured, but how it is created, and how extra value can be obtained by increasing focus on social and environmental outcomes (Baldassarre et al., 2017;Bocken et al., 2014;Zott et al., 2011). ...
Article
The subjectivity, complexity, and often competing interests of sustainable development have limited the effectiveness of integrating these important ideas into mainstream business strategy. With the adoption of the UN Sustainable Development Goals (SDGs) in January 2016, there are now global sustainability benchmarks that apply across diverse sectors and national contexts, allowing public and private organizations to orient and evaluate their activities, strategies, and business outcomes. However, it is not directly apparent where the advantage for business lies in pursuit of these actions within the prevailing economic paradigm, highlighting the need for new analytical frameworks and tools. Industrial ecology (IE) has been successfully used in engineering practice for decades and has been suggested as a method that can provide the concepts and methods necessary to bridge the gap between traditional business practice and sustainable development. To test this, literature bridging the fields of industrial ecology, business strategy, and sustainable development was collected and analyzed using the textual analysis software Leximancer™. The analysis showed that while the SDGs are primarily aimed at the national level, they also hold relevance for business through innovation, partnerships, and strategic positioning, inter alia. The analysis found that the integration of IE and business strategy is highly relevant for three of the SDGs, but captures elements of all 17 to varying degrees. IE has a strong focus on innovation and its potential in new markets, products, and business models. IE is also consciously aimed at the efficient use of energy and resources, ideas that are relevant to mitigating, adapting, and building resilience in a changing future, but are also relevant to traditional concepts of business strategy and competitive advantage. This paper shows that through the combination of IE and strategic management theory, commercial organizations can positively contribute to the Sustainable Development Goals while building competitive advantage.
... According to De Lucia et al. (2016), since 2010, the year of the 2.0 green revolution, entrepreneurship has been active and competitive in the globalized world, through sustainable initiatives innovation. Coherently, adequate initiatives are necessary to help promote creativity and orientation for entrepreneurship aiming at sustainability (Dentchev et al., 2016;De Lucia et al., 2016). ...
... Consistently, CP is a proactive environmental strategy with extremely positive results in the environmental corporative management (Oliveira et al., 2016). We should highlight that the entrepreneurial characteristics from an organization must include environmental practices (Rahdaria et al., 2016;Dentchev et al., 2016), where EO can influence CP. This leads to our H1 hypothesis. ...
Article
Enterprises from different economic sectors play a fundamental role in furthering a sustainable development in the region where it is inserted. However, it is the environmental practices of these organizations which determine the prompt impacts on environmental sustainability. In this sense, Cleaner Production is responsible for the decrease in natural and material resources’ consumption and energy, as well as for the systematic decrease in waste and pollutants emission. Thus, it is important to identify the strategical guides which came before Cleaner Production and, consequently, lead the enterprises to achieve a Sustainable Competitive Advantage before their competitors. In this context, this research aims at analysing the influence of strategic drivers (Entrepreneurial Orientation, Market Orientation and Knowledge Management Orientation) on Cleaner Production and the Sustainable Competitive Advantage. This research was about a survey applied to 1774 small and medium enterprises in Southern Brazil, in the sectors of transformation industry, commerce and services, and it was analysed by the Structural Equation Modelling, typifying it as a quantitative and descriptive research. The results show there is an intense previous influence of strategic drivers over Cleaner Production, pointing out that the correlations among the three antecedents have a high intensity, showing that the enterprises researched use the strategic drivers separately, and that, when they are combined, there is a higher chance of Cleaner Production success, with a significant increase in Sustainable Competitive Advantage for the small and medium enterprises.
... Interestingly, both business model and transition scholars regard an explicit link between the fields as necessary. In business model research, particularly the growing sustainable business model community who is by definition interested in the societal impact of business models, has repeatedly called for an integration of both fields (Arevalo et al., 2011;Boons et al., 2013;Boons and Lüdeke-Freund, 2013;Dentchev et al., 2016;Schaltegger et al., 2016b;Wainstein and Bumpus, 2016;Wells, 2013). In turn, transition researchers have emphasized the critical role of organizations in societal transitions (Garud et al., 2016;Geels, 2006) and the need to better understand the interrelations between their business models and transitions (Loorbach, 2010;Loorbach and Wijsman, 2013;Wells and Nieuwenhuis, 2012). ...
... The integration of research on business models and transitions acknowledges the interrelation between organizations and their wider environment, emphasizing their importance for achieving sustainable development. Interest in the topic is currently rising, which we see reflected in recent calls for papers and conferences (Dentchev et al., 2016;Garud et al., 2016;Schaltegger et al., 2016a) as well as pioneering work in renowned journals (Bolton and Hannon, 2016;Huijben et al., 2016;Loorbach and Wijsman, 2013;Sarasini and Lindner, 2017;Schaltegger et al., 2016b;Tongur and Engwall, 2014;Wainstein and Bumpus, 2016). We hope that our paper will contribute to further advancing research in this important field. ...
Article
Following recent calls from sustainable business model and transition research, we establish the link between both fields. We systematically integrate existing knowledge on business models into the well-established multi-level perspective on socio-technical transitions and identify three roles of business models and their respective impact on transition dynamics: (1) As part of the socio-technical regime, existing business models hamper transitions by reinforcing the current system's stability, (2) as intermediates between the technological niche and the socio-technical regime, business models drive transitions by facilitating the stabilization process of technological innovation and its breakthrough from niche to regime level, and (3) as non-technological niche innovation, novel business models drive transitions by building up a substantial part of a new regime without relying on technological innovation. We illustrate our findings with examples from the German energy sector and discuss our contributions to (sustainable) business model and transition research.
... Sustainable business models can provide unique environmental and social solutions to a multitude of today's challenges. However, there are increasing concerns whether a focus on environmental and social elements defers priority from profit generation and financial feasibility; the latter might suffer as a consequence (Dentchev et al., 2016). A key challenge for sustainable business models is thus to also generate profit. ...
... Moreover, a business model can create a competitive advantage as it is an aspect that differentiates firms serving the same customer segment (McGrath, 2010). In contrast to most business models, profit generation does not have a central role in sustainable business models, which focus on resolving societal and environmental problems (Dentchev et al., 2016). In their comprehensive literature review, Boons and Lüdeke-Freund (2013) argue that a sustainable business model should have a value proposition that provides measureable environmental and social values, a supply chain with responsible suppliers, a financial model that appropriately distributes cost and benefits among actors and a customer interface that motivates the customer in terms of sustainable consumption (Boons and Lüdeke-Freund, 2013). ...
Article
The capability to both anticipate user needs and incorporate them into a firm's value proposition is considered as an important stepping stone towards more effective and sustainable business models. However, many firms struggle to involve the user in their business model design process. Therefore we have investigated what user-centred approaches to more sustainable business model design exist in practice and how they impact the market uptake of energy efficiency measures. Nine semi-structured interviews with CEOs and managers of firms that provide energy efficiency products and services have been conducted. We found that firms interact with the user in three phases: during the design, the marketing and the use-phase. For these different phases we identified an involvement loop consisting of four stages: design of involvement, facilitation of involvement, extraction of lessons learned and finally business model adaptation. Additionally, different types of user involvement were found ranging from sending and receiving information to co-producing and co-innovating the business model. Involving the user requires facilitation of opportunities for interaction in multiple components of the business model and can lead to both incremental and radical business model innovation ex-post. However, further research is needed to test when and to what extent user-centred approaches lead to more successful market uptake.
... An organizational lens on business model development in the context of sustainability reaches beyond typical business model ontology, and has the potential to enhance the existing understanding of various organizational forms that could help resolving current sustainability issues. With this potential in mind, Dentchev et al. (2016) called for a Special Volume (SV) in the Journal of Cleaner Production. ...
... The papers assembled here are provide particularly valuable insights for managers and policy makers. Heys et al. (2018), for example, provide a new ontology for SBMs for small enterprises in ICT, and thus contribute to the current development of SBM ontologies (Breuer, 2013;Upward and Jones, 2016;Joyce and Paquin, 2016;Jonker, 2016). Piscicelli et al. (2018) contribute with the discussion of success, but also of failure in SBMs. ...
Article
Investigating the benefits of sustainable business models for our societies is an important and timely topic. This Special Volume contributes to current research by exploring a variety of sustainable models in use around the world. The accepted articles provide an overview of the various organizational forms, management mechanisms, sustainability solutions, challenges, theoretical lenses and empirical evidence, i.e. fundamental elements in the study of sustainable business models. In this introductory paper, the thirty-seven articles included in this Special Volume are presented, organized in four approaches to sustainable business models: 1/the generalist approach, 2/the technology-based approach, 3/the entrepreneurship and innovation approach and 4/the behavioral approach. In conclusion, avenues for future research are formulated, with a call for solid theory building, more sophisticated research methods, focus on the interplay of sustainable with existing conventional business models, and systemic consideration of the role of governments in advancing sustainable business models.
... Interestingly, both business model and transition scholars regard an explicit link between the fields as necessary. In business model research, particularly the growing sustainable business model community who is by definition inter- ested in the societal impact of business models, has repeatedly called for an integration of both fields (Arevalo et al., 2011;Boons et al., 2013;Boons and Lüdeke-Freund, 2013;Dentchev et al., 2016;Schaltegger et al., 2016b;Wainstein and Bumpus, 2016;Wells, 2013). In turn, transition researchers have emphasized the critical role of organizations in societal transitions ( Garud et al., 2016;Geels, 2006) and the need to better understand the interrelations between their business models and transitions (Loorbach, 2010;Loorbach and Wijsman, 2013;Wells and Nieuwenhuis, 2012). ...
... The integration of research on business models and transitions acknowledges the interrelation between organizations and their wider environment, emphasizing their importance for achieving sustainable develop- ment. Interest in the topic is currently rising, which we see re- flected in recent calls for papers and conferences (Dentchev et al., 2016;Garud et al., 2016;Schaltegger et al., 2016a) as well as pio- neering work in renowned journals (Bolton and Hannon, 2016;Huijben et al., 2016;Loorbach and Wijsman, 2013;Sarasini and Lindner, 2017;Schaltegger et al., 2016b;Tongur and Engwall, 2014;Wainstein and Bumpus, 2016). We hope that our paper will contribute to further advancing research in this important field. ...
Conference Paper
This paper explores the role of business models for socio-technical transitions, i.e. large-scale changes in the way societal functions are fulfilled. In a first conceptual attempt it integrates research on business models and research on transitions. Using the multi-level perspective on socio-technical transitions we show that business models can impact transitions in their roles as (1) devices to commercialize technological innovation, (2) a dominant business model logic that is part of the current socio-technical regime and (3) niche innovation competing with this dominant business model logic. Our findings theoretically underpin why non-technological innovation, such as business model innovation, has a higher leverage on achieving radical societal shifts than technological innovation. Exploring the role of business models for transitions is of relevance to researchers and practitioners trying to understand the dynamics behind transitions, such as the ones required for a shift towards more sustainable consumption and production.
... As a result, effectuation and causation both affect BMI and internal corporate venture can be seen as an entrepreneurial guideline a firm can follow. Dentchev et al. (2016) Along with Dentchev et al. (2016), also Olofsson et al. (2018) indicate the importance of BMI when it comes to environmental and social changes of an organization in general. Moreover, Olofsson et al. (2018) add to Mongelli & Rullani (2017) that social enterprises focus primarily on social and environmental missions in order to become sustainable in the long-term. ...
... As a result, effectuation and causation both affect BMI and internal corporate venture can be seen as an entrepreneurial guideline a firm can follow. Dentchev et al. (2016) Along with Dentchev et al. (2016), also Olofsson et al. (2018) indicate the importance of BMI when it comes to environmental and social changes of an organization in general. Moreover, Olofsson et al. (2018) add to Mongelli & Rullani (2017) that social enterprises focus primarily on social and environmental missions in order to become sustainable in the long-term. ...
Researching business models and in specific business model innovation recently receives growing attention by academics and practitioners due to increasing global competition and the constant need for adjustment to changing environments among others. Therefore, the main objective of our study is to provide an overview of the state-of-the-art of research on business model innovation by conducting a systematic literature review. Our review provides a deeper understanding and breakdown of key components of BMI. Likewise, our study identifies organizational, environmental, and societal factors influencing BMI and proposes avenues for future research.
... The CSRD factor may also refer to "sustainable business models." It is primarily oriented toward solving social and environmental issues (Dentchev et al., 2016;McIntyre et al., 2016;Rajala et al., 2016), which are expressed in reports on social responsibility and relations with communities (Rodrigues and Mendes, 2018). The emphasis lies on the role of small-and medium-sized enterprises (SMEs) on achieving social and environmental practices as a way to enhance OP (Hernández-Perlines and Rung-Hoch, 2017; Dey et al., 2018), where committed SMEs toward sustainability do consider the advantages of sustainability in relation to the market by also considering innovation as an asset (Klewitz and Hansen, 2014;Jansson et al., 2017). ...
... The MD constitute an important strategy for market evaluation and the transformation of such knowledge into product and process innovations (Hult et al., 2003;Baker and Sinkula, 2005;Rakthin et al., 2016). These drivers represent the means of obtaining and expanding innovative capacities, productive parameters and socio-environmental premises (Eisenhardt and Martin, 2000;Baker and Sinkula, 2005;Hörisch et al., 2015;Dentchev et al., 2016;Jansson et al., 2017). P3 suggests the existence of a positive relationship between the MD and the mediators of SO (INN, PRO, CP and DC), which are established as follows: ...
Article
Purpose The purpose of this paper is to propose a framework for analyzing the relationships between the antecedent factors, mediators and consequences of sustainable operations (SO), which can be applied for empirical studies in the manufacturing industry. Design/methodology/approach Based on the importance of identifying the determinants of SO, a qualitative and exploratory research was developed through an extensive review of the literature. Findings The main theoretical contribution of this research on organizational studies is the SO analysis proposition framework, which allows the elaboration of scales, based on observable variables of each factor, as well as evaluating the influence intensity of the relations between the constructs. Research limitations/implications The proposed framework of this research was developed to analyze companies of the manufacturing industry. In order to use the proposed framework in other industries (commerce, services), it will be necessary to make adaptations and adjustments on the observable variables and constructs. Originality/value The paper has an important theoretical value in proposing scales for the SO factors and can be useful for future quantitative approach and surveys. Consequently, the researcher will be able to evaluate the scales of the factors and the intensity of the relations between observable variables in the formation of the constructs, as well as the intensity of influence among the constructs.
... Business models are changing due to a new way of thinking [5]. As an example, sustainable business models that create value and not primarily focus on profit generation got in the focus of research in recent years [22]. Evaluating this work highlights the potential of this emerging field for academics and practitioners [23]. ...
... In comparison, current models often lack in managing this creation of multiple values that can especially be found in services [5,19]. The involvement of stakeholders in the value-creation process also comes along with certain challenges that are also interesting for research [22]. Co-creative organizations of different actors can lead to complex ecosystems that are hard to manage and understand [25]. ...
Article
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Open source software and open innovation are an important resource for today's industries. Communities collaboratively create different kind of publicly available value, boosting innovation and also technology. However, whereas this value is generated and captured by various involved parties, the outcomes are, in many cases, commercialized by companies who build their business models on this openness. Thus, current business model representations used for these open systems mainly focus on the commercial side of companies, not directly regarding the value creation and distribution by the underlying communities. This results in a lack of potential representation of alternative value created by individuals and communities that are not necessarily aiming for direct monetary compensation. In this work, we show, by the example of open source projects, how communities create value and their potential to be represented by the upcoming domain of new business models. The emerging idea of new business models, based on sharing, collaboration, and the circular economy, not only considers economical viewpoints, but also social and ecological. New trends in research are intensively starting to investigate these models and how they can be brought to practice. The co-creation of value, collaboration of various actors, and following a shared vision are just some of the identified overlaps that are also essential for a potential representation of open communities. This first review unveils that new business models and open source software projects have a variety of aspects in common. We highlight the potential of open communities to be seen as new business models themselves, instead of just being a pure enabler for firms' business models. This approach is leaving room to explore new organizational and economical aspects of open ecosystems, enhancing the understanding of co-creative communities and the definition of collaborative value.
... New digital artifacts such as new information systems are embedded into socio-technical systems (STS) consisting of human, organizational, technological and social structures, which are enclosed by a societal context [5][6][7]. Beside general aims of participants in a business ecosystem such as monetary or other types of profit, the wide spread awareness of ecological challenges accompanied by recent developments in the area of ecological movements and their claim for sustainable development [8] fosters the need for strongly sustainable business models [9] (also denoted as New Business Models (NBM) [10,11]) and a general inclusion of these needs into approaches to design and manage their business models. In this regard, we follow Upward and Jones [9] (p. ...
... The emerging discipline of New Business Models (NBM) is based on concepts of sustainable development as described above and incorporates economic, social, environmental and technical expertise in an interdisciplinary way to create sustainable business models. The underlying research community pursues the goal of developing sustainable and socially acceptable business models often triggered or enabled by new technologies [10,11]. As stated by Schaltegger et al. [61] (p. ...
Article
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New technological possibilities and paradigm shifts from product-centered to service-centered offerings are one of the main drivers of business models. Business ventures today are more and more networked. Often, various partners are needed to deliver a service or product to frequently cross-linked customers with sometimes bi-or even multi-variant roles. Furthermore, business models are embedded in socio-technical systems where different kinds of needs and values of all actors, including social, ecological, technical and economic values, have to be balanced. The resulting complex network of actors, needs and values requires continuous management in order to create and operate viable and sustainable business models. This paper proposes a multi-layer framework to analyze existing business models as well as to shape new business ventures in a networked and values-based way and to support the identification of tacit network effects within business ecosystems. Based on an existing multi-layered analysis toolkit, focusing on legal and business dynamics aspects, an enhanced visualization and analysis tool is proposed that focuses especially on ethical, social and environmental aspects to foster the creation of (strongly) sustainable business models. The research process to create the presented approach followed the Design Science Research paradigm by applying argumentative-deductive analysis (ADA) and first applications in real-world case studies. A practical case from an international Open Source Software (OSS) project serves as an example to illustrate this values-based visualization and analysis layer and its benefits for managers and decision makers in the area of business model and information system management.
... Business excellence models (BEM) are intended to provide a roadmap that can be adapted by an organization to achieve business excellence [25,26]. Comparatively, sustainable enterprise research additionally focuses on devising a mechanism to enhance organizational ability to maintain and excel its business performance in future markets [27][28][29][30][31]. Schaltegger, Hansen [32] explored the evolution of research in business models for sustainability by evaluating the number of proposed business models for sustainability (SBMs), for example, the sustainability business model [18], the sustainability innovation cube [33], business models for relocalisation [34], generative models of social enterprise [35], and industry-level business models for sustainability [36]. ...
Article
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This paper is intended to design and provide a reliable and valid measurement instrument to aid organizations that wish to self-assess their performance and positioning relative to sustainable enterprise excellence. Recent research trends in performance excellence, quality management, and organizational sustainability have been directed towards integrated management systems (IMS). Sustainable Enterprise Excellence (SEE) is among these integrated management systems. SEE is undergoing ongoing development and its measurement scale is rudimentary, hence it lacks the more sophisticated sorts of measurement scales often used for organizational self-assessment purposes. A scientific approach is used herein to devise a more comprehensive SEE-oriented organizational assessment against six proposed performance results-oriented domains or constructs: governance and strategy, process implementation, sustainability performance, financial performance, innovation performance, and human capital performance. Each organizational performance construct is to be measured by ten attributes-based items. Maturity scale ratings that range from 0 to 10 reflect organizational performance relative to the associated item and the sum of item ratings across a construct reflects performance within the specific domain, the summation of the six construct scores then yields a measure of the overall organizational performance with respect to SEE. The assessment areas against which organization performance compares poorly suggest opportunities for improvement of associated business processes, the achievement of which will contribute to a sustainable future.
... Consistently, CP is a proactive environmental strategy with tremendously positive consequences on the environmental corporative management [115]. Entrepreneurial characteristics of an organization must involve environmental activities [116], because EO can influence CP and enhance the overall performance. Thus, integration between EO and CP can increase an automobile company's performance. ...
Article
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The automobile industry has significantly contributed towards China's economy. After producing approximately 24.5 million vehicles in 2015, China's automobile industry has achieved its greatest height by emerging worldwide as the top automobile producer. However, China's automobile industry could not sustain this achievement and it witnessed a sudden growth rate decrease in 2016-2017, reflecting their poor export performance. To address this problem, the prime objective of this research is to explore the roles of total quality management (TQM), entrepreneurial orientation (EO), export market orientation (EMO), brand orientation (BO) and cleaner production (CP) in firm export performance (FEP). For this reason, a quantitative research approach with cross-sectional research design was adopted by gathering the data from 347 respondents working as export managers at Chinese automobile companies via simple random technique. Partial least square structural equation modeling (PLS-SEM) through software smartPLS-3.2.7 employed to analyze data. Results revealed that the TQM, EO, EMO, BO, and CP has a significant association with FEP. Additionally, findings confirmed CP as a moderating variable that contributes positively to FEP. The research has eminently contributed to the export performance of the automobile industry, specifically in China. It is very beneficial to practitioners in the Chinese automobile industry as it will assist them in regaining and exceeding their record export performance while also contributes to resource-based-view theory.
... Sustainability practice is imperative to resolving social and environmental issues (Dentchev et al., 2015). A formal inception began in the 1980's with the publication of a new policy includes World Conversation Strategy (IUCN, 1980) and the Brundtland report in World Commission on Environment and Development of the United Nations (Brundtland, 1987). ...
Article
Sustainability has become a business imperative and every organization needs to respond it. In practicing sustainable organizations, practitioners require to implement Sustainable Enterprise Resource Planning (S-ERP) systems in order to aid them in solving a segregation problem over extended value chain. The concept of the S-ERP system can be adopted from an Enterprise Resource Planning (ERP) system, however, they have distinction in terms of philosophical perspective. S-ERP system adds new dimensions of complexity, including new data types, new sources of data, and new stakeholders. It is more challenging to be implemented successfully than ERP system. Although various software vendors have developed S-ERP software applications, however, the organizations still have a difficulty to implement it due to lack of master plan that provides a holistic approach to implement the system. This problem motivates the researchers to introduce a concept of the S-ERP master plan in this study. Generally, the design of the master plan is developed based on the concept of project management as it can handle complex and complicated projects. The structure of the master plan contains of three essential components: roadmap, framework, and guidelines. These three components are closely interrelated and each of them has its own role in the S-ERP system implementation. An introduction of the S-ERP master plan concept in this paper perhaps would give a bird’s eye view to the practitioners about the imperative of the master plan in order to mitigate problems that occur during the S-ERP implementation projects.
... Sustainable business models are oriented toward social and environmental issues, not profit (Dentchev et al., 2016). They employ information technology (IT) to improve performance and productivity (Alimam, Bertin & Crespi, 2015), including information systems delivered through the intranet, enterprise resource planning, and electronic data interchange. ...
Article
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This empirical study analyses current conceptions regarding the social business model in Lithuania. Social businesses seek to maximize social welfare by applying business practices that recover costs and pass profits to customers, who benefit from low prices, adequate services and better access to social amenities. A hybrid social business model is one in which the main goal is to maximize economic value and explore international markets by the use of partnerships and social profit. Modern businesses engage to create socioeconomic value for society by solving social problems; therefore, the objects of social business models are analysed. Our results advance the understanding of adoption of best practices related to social business models in Lithuania and determine the recipients of the benefits accrued.
... While lean startup and SBM offer new approaches to innovation, lean startup does it within the parameters of the dominant economic paradigm (zeroing in on customers), while SBM tries to disrupt it (by considering a wide range of values and stakeholders). "The missing centrality of profit generation in sustainable business models" (Dentchev et al. 2016, p. 1) appears to make it more, not less, difficult for SBM entrepreneurs navigating their way in an economic system that is still optimized for "business as usual" considerations. ...
Article
There is a growing consensus that millennials (people born between the early 1980s and the early 2000s) have embraced the sharing economy in large numbers, adopting a new mindset in which access to goods and services is seen as more valuable than ownership of them. While surveys suggest this shift may be underway, little research has been done on behavior directly. This paper is a step in that direction. My project examines student engagement with the sharing economy through experiential learning. For one month, students were asked not to buy anything new, other than food and absolute necessities. Instead, they were expected to rely on the sharing economy to meet their needs and then to describe their experiences. I use mixed-methods design to analyze the resulting data quantitatively and qualitatively. Although the findings do not generalize to millennials as a whole, they point to a possible research program with which to test millennial engagement with the sharing economy. The results also suggest that a shift toward this new, access-driven mindset may be more challenging than popularly assumed.
... Since the development of the TPB and the TEE, a vast stream of literature has focused the entrepreneurial intentions and yielded five related themes: the main entrepreneurial intentions models, link between entrepreneurial behavior and intentions, determinants of entrepreneurial intentions at cultural, institutional and regional level, entrepreneurship educational aspects, and contextual setting of social and sustainability-driven entrepreneurship (Liñ an . In view of Dentchev et al. (2016), who emphasized that the emergence of the last theme is mainly related to the entrepreneurial intentions in social entrepreneurship. Furthermore, among various types of entrepreneurship, particularly in the context of sustainable entrepreneurship, little focus has been given to entrepreneurial intentions over time. ...
Article
Promoting sustainable ventures among aspiring entrepreneurs could lead to an effective solution to reduce ecological footprints and help achieve the Sustainable Development Goals. Such an understanding has led to growing attention towards exploring entrepreneurship intentions across different entrepreneurial tiers and types, especially from the sustainability viewpoint. This study aimed at investigating the drivers of sustainable start-up intentions among university students which envision promoting the conservation of natural and ecological resources. This was accompanied by extending the theory of planned behavior to include attitude towards sustainable entrepreneurship and work values. The data set for present work consisted of responses obtained from 650 students pursuing university education in Punjab, Pakistan. The results reveal that attitude towards sustainable entrepreneurship, perceived entrepreneurial desirability and perceived entrepreneurial feasibility complement students’ sustainability-driven entrepreneurial intentions. Environment value, extrinsic reward, intrinsic reward and general self-efficacy indirectly impact sustainability-driven entrepreneurial intentions. The study also reveals a contradictory role of job security inversely driving aspirations of sustainable entrepreneurship among budding entrepreneurs. Findings of the study highlight the importance of work values in the uptake of sustainability-driven entrepreneurship. This study provides insights for promoting sustainable opportunities and discusses the potential for sustainable entrepreneurship development. Moreover, findings also extend the existing literature on sustainable entrepreneurship, work values and uptake of sustainable ventures, and opportunities connected with sustainable ventures.
... It is used to promote organizational as well as economic development (Antoncic and Hisrich, 2004). Intrapreneurship is helpful in creating new business and incorporating them into already existing overall organizational business portfolio (Dentchev et al., 2016). The research on organizational intrapreneurial behavior has grown rapidly within last two decades. ...
Article
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This Study seeks to build a conceptual model of Intrapreneurial behavior among employees of banking sector of Pakistan. That model elaborates the concept of Intrapreneurship along with its prerequisites. The proposed model intends to elaborate the main factors affecting Intrapreneurship phenomenon and elaborates the constructs of Intrapreneurship that may affect organizational outcomes. Further, based on literature review, it also seeks to establish that organizational culture potentially moderates the relation between organizational factors and Intrapreneurial behaviour. This paper identifies and explains the existing and previous literature on prerequisites, phenomenon and outcomes of Intrapreneurial behaviour as a basis for analysis and establishing a model of Intrapreneurship in Banking Sector of Pakistan. This is a conceptual paper is based on previous research work that supports our proposed model. This conceptual paper provides a model for banking sector of Pakistan in which organizational factors effect Intrapreneurial behaviour and further investigates the impact of this behaviour on outcomes. The current study accompanies a number of researches that explain how Intrapreneurial behaviour contributes to the organizational outcomes in banking sector of Pakistan. This proposed frame work may help scholars in developing further studies that advocate Intrapreneurial behaviour as a source of improving business performance or outcomes. This study may explore the new insights about Intrapreneurship and its practical implications for banking sector of Pakistan and opportunities for further research are established.
... SBMI has become prominent in literature and practice as a way to gain competitive advantage, while resolving social and environmental issues (Dentchev et al., 2016;Massa et al., 2017). It is about changing the way business is done, by incorporating societal and environmental concerns into core business practices (Foss and Saebi, 2017;Massa et al., 2017). ...
Article
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Sustainable business model innovation (SBMI) in large multinational corporations is increasingly perceived as a key driver for competitive advantage and corporate sustainability. While the SBMI literature acknowledges that corporations require dynamic capabilities to innovate their business model for sustainability, the role of organization design to nurture dynamic capabilities for this purpose has been scantly addressed. By taking a qualitative research approach, we address how organization design affects dynamic capabilities needed for SBMI. Accordingly, from an organization design perspective, we identified barriers and drivers on three levels: the institutional, the strategic, and the operational. The contributions of our study are threefold. First, we contribute to a recent discussion on how organizational design affects dynamic capabilities needed for business model innovation. Second, we present a multi-level framework to show how interconnected barriers and drivers obstruct or enable SBMI. Third, our study answers a call to advance theoretical perspectives on SBMI.
... In particular, this paper addresses sustainable business models (SBMs), as an attempt to systematically integrate sustainability principles (Morioka and Carvalho, 2016a), e.g., triple bottom line (TBL) goals, multi-stakeholder satisfaction and long term perspective (life cycle thinking), into core business. Despite interesting discussions about SBM, this literature is still recent (Boons and Lüdeke-Freund, 2013) and there is a need to better understand the mechanisms behind it (Dentchev et al., 2015). ...
Article
This paper addresses sustainable business models (SBMs), as an attempt to systematically integrate corporate sustainability principles (including economic, environmental and social goals; multi- stakeholder perspective and long-term outlook) into core business. However, understanding the mechanisms for this systematic integration is still challenging, given complexities of sustainable development. Therefore, SBM concept risks that, by trying to include everything, it may end up losing meaning and connection to practical solutions. To do so, we employ a multi-method approach encompassing a systematic literature review to ensure conceptual basis for the proposed framework and thirteen qualitative interviews with practitioners for face validation of the tool. This paper proposes the Sustainable Value Exchange Matrix, a visual framework to help academics and practitioners discuss sustainable business models, based on solid theory analysis and practice-oriented application. The tool proposed provokes reflections about organization's reason of existence and deployment of this purpose into the business model dimensions from a multistakeholder and from a value exchange perspective.
... SBMI has become prominent in literature and practice as a way to gain competitive advantage, while resolving social and environmental issues (Dentchev et al., 2016;Massa et al., 2017). It is about changing the way business is done, by incorporating societal and environmental concerns into core business practices (Foss and Saebi, 2017;Massa et al., 2017). ...
Article
Paper presented at Academy of Management but currently under review.
... Nevertheless, being entrepreneurially oriented does not seem to be enough these days for organizations that want to survive over the long run. Some research studies demand an analysis of sustainable business models that connect entrepreneurship with sustainability in order to meet sustainable development goals (e.g., Varadarajan 2014;Dentchev et al. 2015) and increase profitability. Miles et al. (2009) propose assessing sustainable corporate entrepreneurship as a compilation of sustained regeneration, organizational rejuvenation, strategic renewal and domain redefinition. ...
Article
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This article studies the effects of sustainable entrepreneurial orientation on business performance within an intrapreneurial context. Even though intrapreneurship is associated with entrepreneurially oriented organizations, researchers do not agree on its relationship with business performance. To that end, the authors suggest an integrated approach to intrapreneurship by building a contingent model with sustainable entrepreneurial orientation as an antecedent. From a dynamic capabilities perspective, this variable refers to a multiple strategic orientation that allows companies to both incorporate sustainability into their strategy and take on an intrapreneurial mindset. The moderating variable proposed is intrapreneurship consequences, which is understood as the result of entrepreneurial activities carried out within the organization. To test the model, measures adapted from the existing literature are used. Hypotheses are tested using the partial least squares method on a multi-sector random sample. The results confirm the direct effect of sustainable entrepreneurial orientation on business performance and the moderating effect of intrapreneurship consequences. However, the inclusion of this moderating effect barely modifies the model’s results. From a theoretical standpoint, the findings provide some advances in sustainable entrepreneurial orientation conceptualization and measurement, sustainable intrapreneurship, the dynamic capabilities perspective, and the multiple strategic orientation view. From a managerial point of view, the findings point to sustainable entrepreneurial orientation as a strategic pillar for organizations in order to promote sustainability and improve their performance. Further research lines are provided.
... The adoption of strategies to improve the relational accessibility of organizations managing protected areas can be framed on the one hand by policies for the social responsibility of public and private entities, and on the other hand by policies and tools for the development of the competitiveness of organizations. Referring to the theme of social responsibility, sustainable business models (Bocken et al., 2014) are oriented towards resolving social and environmental issues within a variety of frameworks (Dentchev et al., 2016). ...
Article
Human - nature relationship concept has recently been reconsidered, emphasizing the benefits humans beings receive from ecosystems. This study moves from the awareness of the importance for organizations that manage protected areas to design strategies and actions aimed at improving the relatedness between the natural world and people, and between individuals. Starting from this premise, the study proposes a voluntary framework of relational accessibility, with the aim of improving the visitor-organization relationship and the human-nature relatedness, and thus creating value for the organizations themselves. After defining the relationship concept, the approach and the content of the framework are set, based on multidisciplinary fields and approaches. The framework follows a cyclical approach and consists of a set of general and specific requirements and guidelines. To support the definition of the framework, relational accessibility is investigated within a specific protected area, through a focus group and a direct survey with children. The framework is then defined in more general terms, so that it can suitable for application to other environmental and organizational contexts. The relational accessibility framework is discussed with the managing board of the study site and compared with other sustainability tools. The implementation of the relational framework within the management system of protected areas could increase the social and economic value of these areas, while at the same time pursuing environmental goals.
... A recently emerging discipline, which brings together economic, social, and technical experts, is the 'New Business Models' community pursuing the goal to develop sustainable and socially acceptable business models often triggered or enabled by new technologies. This field is inspired by the idea to create holistic business models, which do not only focus on maximizing profit, but also includes social and environmental aspects to enable business models that meet long-term environmental sustainability goals and meet social needs of stakeholders and actors affected by the business [37][38][39]. This community is relevant for the work presented, since it also emphasizes a holistic and networked view on value creation as described by [40], but from a business level and a top-down driven approach. ...
Article
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Digital innovation is a key success factor for business enterprises and organizations concerned with public safety. Increasingly shorter technology cycles produce a stream of highly promising gadgets and smart devices and this innovative provision opens a gap between what is currently in use for the value-creation processes of an organization and what could potentially be used. The presented framework provides guidance on how to implement dynamic capabilities needed for business model and service innovation within a complex socio-technical system. A way to combine technology and use-case sensing with the ultimate aim of creating innovative artifacts for organizations is presented. While Business Model Innovation (BMI) literature mainly focuses on a strategic top-down process, we propose a bottom-up process-driven approach to complement business frameworks. Based on these insights, new service artifacts can be designed and analyzed in a systemic way. The applied research methodology is based on the design science research concept. A qualitative approach with focus groups was used to gather user requirements and facilitate participatory and user-centered design of information systems. In this paper, we provide a framework that supports business executives as well as IT experts on how to cope with and integrate new technologies into organizations, their processes, and their business models. In addition to a comprehensive theoretical overview of the proposed framework, we also provide practical results, since this framework was applied in the course of a service design and engineering research project. A use case of alpine rescue missions serves as an example to demonstrate the practical application of the proposed framework.
... Developing the capability to integrate stakeholders is an important strategic management task (Bhupendra and Sangle, 2017;Dentchev et al., 2016;Litz, 1996;Morioka et al., 2017). In this respect, when drawing up a CSR or sustainability report, it is important to identify a company's relevant stakeholders (Epstein and Roy, 2001). ...
... Source Definition ( Dentchev et al., 2015) "Sustainable business models are in the first place oriented to resolving social and environmental issues. In this vein, profit generation is not their predominant concern." ...
Article
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The capability to rapidly and successfully move into new business models is an important source of sustainable competitive advantage and a key leverage to improve the sustainability performance of organisations. However, research suggests that many business model innovations fail. Despite the importance of the topic, the reasons for failure are relatively unexplored, and there is no comprehensive review of the sustainable business model innovation literature. This research provides a review of the literature, using a systematic database search and cross-reference snowballing. Its key contributions are: (1) a review of the key underlying concepts, discussing their similarities and differences and offer new definitions where there is an identified need; (2) we identify a research gap; and (3) we deduct research questions to address the gap.
... While lean startup and SBM offer new approaches to innovation, lean startup does it within the parameters of the dominant economic paradigm (zeroing in on customers), while SBM tries to disrupt it (by considering a wide range of values and stakeholders). "The missing centrality of profit generation in sustainable business models" (Dentchev et al. 2016, p. 1) appears to make it more, not less, difficult for SBM entrepreneurs navigating their way in an economic system that is still optimized for "business as usual" considerations. ...
Chapter
Godelnik and van der Meer offer a crucial bridge between the practice of lean startup and the theories of sustainable business models (SBMs). Reviewing the remarkable progress in research regarding SBM, the authors reveal a critical gap. While lean startup tools and practices provide a clear working framework for entrepreneurs, SBM provides a vague roadmap for founders who seek to consider sustainability challenges while going through the process of venture formation. Godelnik and van der Meer present the Lean SBM framework, which proposes a new direction regarding how SBM should be considered in an entrepreneurial context. The chapter concludes with the framework applied to describe founders’ decisions in companies that reside within four emerging entrepreneurship movements: B corporations, the Zebra movement, Nordic entrepreneurs, and platform cooperatives.
... For instance, in Europe there are specific initiatives to foster social innovations through cooperation between traditional businesses and the social economy sector. Business model innovations are also present in some cases of green innovations and ecoinnovations, for instance, in grassroots green innovation (Dentchev et al., 2016;Gupta, 2010). ...
Article
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What is our current understanding of innovation and how many types of innovation do we know? Broadly, innovation landscapes are characterized by well-established categories, such as product, process, organizational, and marketing innovation, explained and theorized in terms of their links with technological innovation. However global challenges and changes in the structure of knowledge production, have led to diverse innovations, and recognizing and classifying such innovations is more complex, fragmented, and geographically dispersed than ever before. The progressive incorporation of hidden and non-technological innovations, together with the emergence of the fourth industrial revolution, is contributing to change our understanding of innovation and its measurement. This paper provides an overview of the most salient types of innovation in recent decades, enabling both researchers and practitioners to navigate the complex web of innovation definitions and typologies. Innovation studies face the challenge of finding a comprehensive and inclusive definition that captures the significance of innovation, and overcoming the terminological ‘Babel'ization and increased fragmentation of the field of innovation research. Keywords: Innovation, Nature of innovation, Innovation types, Knowledge society, Technological innovation, Social innovation
... Nous partageons les constats de (Baumgartner, 2016) sur le rôle des entreprises quant à la transition vers la durabilité et l'inefficacité des outils et méthodes déployées aujourd'hui : « les entreprises sont des acteurs centraux dans toute transition sociale vers la durabilité. Cependant, même si des concepts tels que la RSE, la gestion de l'environnement et la gestion de la durabilité des entreprises font l'objet de discussions depuis de nombreuses années, les progrès réalisés sont encore limités. ...
Conference Paper
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Bien que le terme développement durable ait envahit les espaces publics, politiques et médiatiques, il est important de rappeler que la définition séminale du développement durable comme « un développement qui répond aux besoins des générations du présent sans compromettre la capacité des générations futures à répondre aux leurs » (Brundtland, 1987) est critiquée par de nombreux auteurs. Ce modèle de développement anthropocentré fixe les objectifs dans la sphère sociale : « le principal objectif du développement consiste à satisfaire les besoins et aspirations de l'être humain ». Illusion trompeuse car la sphère marchande a très largement phagocyté les deux autres. En effet, cette approche ne remet pas en cause l'économie de marché capitaliste et la consommation de masse qui y est associée, ni le concept de croissance, pourtant à l'origine de l'essentiel des problèmes écologiques actuels (Buclet, 2011). Dans le cadre de nos travaux sur l'accompagnement des entreprises industrielles vers la durabilité (Allais et Al., 2017), nous avons adopté une définition hétérodoxe de la durabilité proposée par (Figuière et Rocca, 2008) : la durabilité vise le développement humain dans le respect des limites écologiques de la planète en considérant l'économie comme moyen pour la transition. Le politique doit reprendre l'ascendant sur l'économique et considérer les spécificités locales, les territoires devenant les lieux de mise en oeuvre de cette prise de décision commune. C'est autour de cette définition que ces réflexions ont été menées. Cette communication pose la question de la (re-)territorialisation des activités industrielles comme élément favorisant de la transition systémique vers la durabilité en réinterrogeant les liens du triptyque territoire, durabilité et (ré-)industrialisation. Dans un premier temps, nous reviendrons sur le concept de territoire à travers le prisme disciplinaire puis, à travers différents cas d'études, nous expliquerons le cheminement ayant mené à l'émergence de ces réflexions, ces quelques exemples seront complétés, mis en abîme au travers des études de cas et présentations de la session.
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This paper focuses on the perspective of commercialising innovation in the quest to create sustainable value. Against a background of a growing societal awareness of global sustainability challenges, which both threaten mankind’s prospects for long-term survival while simultaneously presenting huge potential to create new economic opportunity, it systematically examines a selection of key concepts related to New Business Models (NBM) and Reverse Innovation (RI) via a qualitative, theoretical approach. Linking corporate responsibility with organisational value creation structures and processes at the interface between business and society, the authors critically examine the potential effects of RI as a mechanism for enabling pathways and solutions to achieve sustainable value creation (SVC). By defining the relevant key terms, conceptualising the RI process which derives from a Base of the Pyramid (BoP) context, and by presenting case study examples of RI in action, the authors investigate the characteristics and critical success factors of successful NBMs. This highlights the prospects of NBMs and RI for optimally leveraging organisations as catalysts for positive change in society. They tentatively conclude, that this theoretical study of the SVC potential of RI strategies, furnishes initial evidence to indicate that RI can play a valuable role within a NBM context.
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The aim of this paper is to explore the intersection between sustainability and the humanities, specifically the Pentecostal faith—entrepreneurship—sustainability nexus in Zimbabwe. It focuses on The Zimbabwe Assemblies of God Africa (ZAOGA) and associated Forward in Faith Ministries International (FIFMI), which is one of Zimbabwe’s largest and most established Pentecostal churches with a global international presence. ZAOGA-FIFMI has a well-known faith-based entrepreneurship model, commonly known as Matarenda (talents), which is claimed to have a positive impact on the lives of poor Zimbabweans, both locally and internationally. The paper explores the Pentecostalism-entrepreneurship-sustainability nexus surrounding the Matarenda model and its basis in Christian faith, and its translation into practical entrepreneurship activity through the use of primary fieldwork comprising personal observations, semi-structured interviews and focus groups. In so doing it highlights the central role of education (both formal and informal) in entrepreneurial venture. By adopting an interdisciplinary and international approach, the paper focusses on the sustainability of the model in terms of economics, finance, human capital and theology. This paper will be useful to anyone interested in exploring the impact of African Pentecostalism and, more generally, religious practice on entrepreneurship and sustainable development.
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This research, based on the analysis of social business models’ concepts, aims to identify tendencies of social business models implementation in Lithuania. The theoretical part of the article highlights the main features of a pure social business model and a hybrid social business model, as well as discusses their differences. Having evaluated the implementation state of social business models, the authors reveal that the existing practice of public enterprises restricts development of social business potential, mainly accountability and transparency of social business. Therefore, transition of public enterprises to other forms of social business models should be promoted so that to ensure competitiveness in the market and continuous pursuit of social objectives. The findings revealed that the most popular forms of social business in Lithuania are volunteering, charitable activities, and sponsorship. However, despite the fact that some practices of social business are applied, development of social business models is a little-known phenomenon to the public thus might be confused with the definition of a social enterprise.
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Pultruded FRP (fibre reinforced polymer) materials have attracted the attention of civil engineers with their high strength weight ratio and environmentally friendly production and use. Mechanical analysis of pultruded FRP profiles is complex since the material is anisotropic and becomes more complex when thin FRP dedicated hollow cross sections are involved. This is particularly relevant with square or rectangular construction forms where the corners of the material are suspected to produce weak points under compressive loading. FRPs are also believed to behave contrarily when subjected to heat and thermal duress. This research investigates problems in predicting their behaviour under compression (hollow square pultruded FRP sample) using different analytical and modelling approaches. The mechanical behaviour of the material is investigated under different thermal conditions through finite element simulation and the results are then compared with previously conducted laboratory research analysis. The large deformation in anisotropic materials is simulated to provide better prediction regarding the failure mechanism of this material. Finite element simulation is then used to estimate the performance of similar and often competitive construction materials to GFRP (i.e: wood, concrete and steel) under similar thermal and compressive duress.
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Base of the Pyramid (BoP) ventures seek to create “mutual value” for the business and poor communities. These initiatives, largely using conventional business models minimally-adapted for the complexities of the BoP context, have been less successful than expected; some harmed communities they purported to help. Sustainable business models (SBMs) provide a new lens through which to see business models and multi-stakeholder value creation (Lüdeke-Freund, 2010). SBMs offer a promising alternative path to mutual value, but BoP-based SBM studies are scarce. This article uses a single in-depth qualitative case study to explore whether and how SBM characteristics manifest in the business model and value outcomes of Manila footwear manufacturer Habi, which has succeeded in creating mutual value with its BoP suppliers. We find that key SBM characteristics underpin Habi’s dual-structure business model (value chain/shop) and success in four ways: viewing profits as a tool for community development led them to design both product and business model around community strengths; understanding communities as systems helped Habi address the complexities of poverty; balancing short-term business needs with a long-term, slow-growth approach was achieved by selecting appropriate investors; and implementing community value capture mechanisms ensured enduring community benefit. These findings provide an example of how business models that incorporate BoP suppliers can be “repurpose[d] for society” (Bocken et al 2014), and demonstrates the potential that integrating SBM and BoP research holds for ventures seeking to create mutual value. The findings also show ways to design around common practitioner challenges when sourcing from BoP communities.
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This study analyzes the influence of sustainable and innovative behavior on the entrepreneurial intention of Brazilian and Portuguese university students. It seeks to develop a model based on behavioral theory planned for entrepreneurial intention, an adaptive-innovation theory for innovative behavior and sustainability. An exploratory survey was conducted with university students from the Federal University of Ceará (Brazil) and the University of Algarve (Portugal). For data analysis, multivariate analysis techniques such as factorial analysis, logistic regression and classification and regression trees (CART) were used. The results confirm: (i) there is a positive relation between the entrepreneurial intention of the university students and the existence of their own businesses; (ii) there is no positive relationship between the professional experience of university students and their entrepreneurial intention; (iii) there is a positive relationship between the innovative behavior of university students and their entrepreneurial intention; (iv) there is a positive relationship between the sustainable behavior of university students and their entrepreneurial intention. In general, the results contribute to overcome the gap in the empirical literature that aligns phenomena such as entrepreneurship, innovation and sustainability, giving this study an innovative character, which allows recommendations for future research. Keywords: Sustainable behavior. Innovative behavior. Entrepreneurial intention.
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In this chapter, we discuss the role of circular thinking in more sustainable business models. To become more sustainable, companies need to go from traditional, linear business models based on “take, make and dispose” to circular business models based on reuse, resource efficiency, the sharing economy and closed loops. This can counteract resource depletion, reduce pollution and be a source of cost reductions, new revenue streams and better risk management for companies.
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Entrepreneurship has been the engine propelling much of the growth of the business sector as well as a driving force behind the rapid expansion of the social sector. This article offers a comparative analysis of commercial and social entrepreneurship using a prevailing analytical model from commercial entrepreneurship. The analysis highlights key similarities and differences between these two forms of entrepreneurship and presents a framework on how to approach the social entrepreneurial process more systematically and effectively. We explore the implications of this analysis of social entrepreneurship for both practitioners and researchers.
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Purpose – The purpose of this paper is to introduce this special issue, conceptualized and realized by a group of scholars engaged in the Global Organizational Learning and Development Network (GOLDEN) for Sustainability programme. It aims to adopt the overarching research question of the GOLDEN research programme “How do firms learn to integrate and manage sustainability in their business models, including their organizational purpose, strategy, processes, systems and culture?” as the guiding principle for case selection. Design/methodology/approach – The paper first presents the key ideas underpinning the previous research question and illustrates the research approach and agenda of GOLDEN for Sustainability. Second, it introduces the eight case studies presented in this special issue. Findings – The cases offer good illustrations of the ongoing transition by both medium-sized and multinational corporations dealing with learning and change challenges posed by the identification and management of sustainability issues. The selected cases represent firms operating in diverse contexts and industries, and are developed by scholars specializing in various fields connected to corporate responsibility and sustainability. Originality/value – The paper presents cases of organizations that have made sense of the sustainability challenge and also the different approaches taken to tackle the challenge, and the results stemming from their efforts..
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This study provides a comparative analysis of 7 cases of social entrepreneurship that have been widely recognized as successful. The article suggests factors associated with successful social entrepreneurship, particularly with social entrepreneurship that leads to significant changes in the social, political, and economic contexts for poor and marginalized groups. It generates propositions about core innovations, leadership and organization, and scaling up in social entrepreneurship that produces societal transformation. The article concludes with a discussion of the implications for social entrepreneurship practice, research, and continued development.
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This paper undertakes an analytical, critical and synthetic examination of “social entrepreneurship” in its common use, considering both the “social” and the “entrepreneurship” elements in the concept. On both points, there is a range of use with significant differences marked by such things as the prominence of social goals and what are thought of as the salient features of entrepreneurship. The paper concludes with the proposal of a suitably flexible explication of the concept: social entrepreneurship is exercised where some person or persons (1) aim either exclusively or in some prominent way to create social value of some kind, and pursue that goal through some combination of (2) recognizing and exploiting opportunities to create this value, (3) employing innovation, (4) tolerating risk and (5) declining to accept limitations in available resources.
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Social entrepreneurship, as a practice and a field for scholarly investigation, provides a unique opportunity to challenge, question, and rethink concepts and assumptions from different fields of management and business research. This article puts forward a view of social entrepreneurship as a process that catalyzes social change and addresses important social needs in a way that is not dominated by direct financial benefits for the entrepreneurs. Social entrepreneurship is seen as differing from other forms of entrepreneurship in the relatively higher priority given to promoting social value and development versus capturing economic value. To stimulate future research the authors introduce the concept of embeddedness as a nexus between theoretical perspectives for the study of social entrepreneurship.
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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.
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Companies, the authors argue, are increasingly turning toward business model innovation as an alternative or complement to product or process innovation. Drawing on extensive research they conducted over the course of the last decade, the authors define a company's business model as a system of interconnected and interdependent activities that determines the way the company "does business" with its customers, partners and vendors. In other words, a business model is a bundle of specific activities - an activity system - conducted to satisfy the perceived needs of the market, along with the specification of which parties (a company or its partners) conduct which activities, and how these activities are linked to each other. Business model innovation can occur in a number of ways: (1) by adding novel activities, for example, through forward or backward integration, (2) by linking activities in novel ways, or (3) by changing one or more parties that perform any of the activities. Changes to business model design can be subtle, the authors note; even when they might not have the potential to disrupt an industry, they can still yield important benefits to the innovator. The authors offer a number of examples of business model innovation and pose six questions for executives to consider when thinking about business model innovation: 1. What perceived needs can be satisfied through the new model design? 2. What novel activities are needed to satisfy these perceived needs? 3. How could the required activities be linked to each other in novel ways? 4. Who should perform each of the activities that are part of the business model? 5. How is value created through the novel business model for each of the participants? 6. What revenue model fits with the company's business model to appropriate part of the total value it helps create?
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The concept of shared value—which focuses on the connections between societal and economic progress—has the power to unleash the next wave of global growth. An increasing number of companies known for their hard-nosed approach to business—such as Google, IBM, Intel, Johnson & Johnson, Nestlé, Unilever, and Wal-Mart—have begun to embark on important shared value initiatives. But our understanding of the potential of shared value is just beginning. There are three key ways that companies can create shared value opportunities: By reconceiving products and markets • By redefining productivity in the value chain • By enabling local cluster development • Every firm should look at decisions and opportunities through the lens of shared value. This will lead to new approaches that generate greater innovation and growth for companies—and also greater benefits for society. The capitalist system is under siege. In recent years business increasingly has been viewed as a major cause of social, environmental, and economic problems. Companies are widely perceived to be prospering at the expense of the broader community. Even worse, the more business has begun to embrace corporate responsibility, the more it has been blamed for society's failures. The legitimacy of business has fallen to levels not seen in recent history. This diminished trust in business leads political leaders to set policies that undermine competitiveness and sap economic growth. Business is caught in a vicious circle. A big part of the problem lies with companies themselves, which remain trapped in an outdated approach to value creation that has emerged over the past few decades. They continue to view value creation narrowly, optimizing short-term financial performance in a bubble while missing the most important customer needs and ignoring the broader influences that determine their longer-term success. How else could companies overlook the well-being of their customers, the depletion of natural resources vital to their businesses, the viability of key suppliers, or the economic distress of the communities in which they produce and sell? How else could companies think that simply shifting activities to locations with ever lower wages was a sustainable "solution" to competitive challenges? Government and civil society have often exacerbated the problem by attempting to address social weaknesses at the expense of business. The presumed trade-offs between economic efficiency and social progress have been institutionalized in decades of policy choices.
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This paper provides the first formal model of business model innovation. Our analysis focuses on sponsor-based business model innovations where a firm monetizes its product through sponsors rather than setting prices to its customer base. We analyze strategic interactions between an innovative entrant and an incumbent where the incumbent may imitate the entrant's business model innovation once it is revealed. The results suggest that an entrant needs to strategically choose whether to reveal its innovation by competing through the new business model, or conceal it by adopting a traditional business model. We also show that the value of business model innovation may be so substantial that an incumbent may prefer to compete in a duopoly rather than to remain a monopolist.
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Purpose – The purpose of this paper is to describe the concept of “transformative business sustainability”. “Business sustainability” refers the total effort of a company – including its demand and supply chain network – to reduce the impact on the Earth's life- and eco-systems –, i.e. the total e-footprint. “Transformative” highlights the need for an open minded, dynamic and flexible approach to “business sustainability” not governed by blinkers. Design/methodology/approach – This paper discusses a conceptual development of transformative business sustainability, derived from a frame of reference. The essence is the introduction of a multi-layer model of units (i.e. different businesses or other stakeholders), a network of e-footprint sources and a “recovery pool and redistribution buffer” at the interface. Findings – Transformative business sustainability is both a theoretical and managerial concept. It could also be seen as a roadmap to plan, implement and evaluate business sustainability. Research limitations/implications – Transformative business sustainability provides opportunities for development. Suggestions for further research are presented. Practical implications – E-footprint sources in business, applying an Earth-to-Earth approach, are described. The concept of transformative business sustainability contributes by achieving genuine and continuous business sustainability and awareness at strategic, tactical and operative levels of business, avoiding use of buzzwords and window dressing. Originality/value – Well-being of the planet Earth has to be at the core of business sustainability. The authors contend that the “recovery pool and redistribution buffer” is crucial in the planning, implementation and evaluation of transformative business sustainability.
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The paper provides a broad and multifaceted review of the received literature on business models in which we examine the business model concept through multiple subject-matter lenses. The review reveals that scholars do not agree on what a business model is, and that the literature is developing largely in silos, according to the phenomena of interest to the respective researchers. However, we also found emerging common themes among scholars of business models. Specifically, 1) the business model is emerging as a new unit of analysis; 2) business models emphasize a system-level, holistic approach towards explaining how firms “do business”; 3) firm activities play an important role in the various conceptualizations of business models that have been proposed; and 4) business models seek to explain how value is created, not just how it is captured. These emerging themes could serve as catalysts towards a more unified study of business models.
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The three specific types of disruptive innovations, business-model innovations, and radical (new to the world) product innovations, are discussed. The two innovations create different kinds of markets, pose different challenges for established firms and have different implications for managers. The first model innovators simply redefine what an existing product or service is and how it is provided to the customer. The second model innovation introduces new products and value propositions, disturbing the prevailing consumer habits and behaviors in a major way. All the three types of innovation may follow a similar process to invade existing markets and may have equally disruptive effect son incumbent firms.
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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.
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"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.
Introduction to the SEJ special issue on business models: business models within the domain of strategic entrepreneurship
  • B Demil
  • X Lecoq
  • J Ricart
  • C Zott
Demil, B., Lecoq, X., Ricart, J., Zott, C., 2015. Introduction to the SEJ special issue on business models: business models within the domain of strategic entrepreneurship. Strat. Entrepreneursh. J. 9 (1), 1e11.