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Embracing the variety of sustainable business models: A prolific field of research and a future research agenda

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Abstract

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.

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... Within this literature stream, many scholars and practitioners view the business models of for-profit firms as a potential source of tackling the broader challenges of corporate sustainability (Martí, 2018), and earlier studies (Dentchev et al., 2018;Evans et al., 2017;Geissdoerfer, Vladimirova, & Evans, 2018;Lüdeke-Freund & Dembek, 2017;Schaltegger et al., 2016) show that "companies developing, and implementing SBMs (sustainable business models) increase the likelihood of being financially viable and contributing to sustainable development" (Lüdeke-Freund, Carroux, Joyce, Massa, & Breuer, 2018, p. 147). Unfortunately, the existing research within this area so far primarily focused on identifying and elaborating various dimensions of a sustainable business model by employing theoretical and qualitative techniques (Lüdeke-Freund & Dembek, 2017;Schaltegger et al., 2016). ...
... Unfortunately, the existing research within this area so far primarily focused on identifying and elaborating various dimensions of a sustainable business model by employing theoretical and qualitative techniques (Lüdeke-Freund & Dembek, 2017;Schaltegger et al., 2016). Surprisingly little systematic attention has hitherto been paid to the implications of adopting sustainability in the overall business model or its specific components (such as value proposition) for a firm's financial performance (Schaltegger et al., 2016;Stubbs & Cocklin, 2008), using mixed-methods and quantitative empirical approaches (Dentchev et al., 2018). ...
... First, it contributes to the discussion of sustainable business models by analyzing the impact of the sustainable value proposition on the financial performance of the firm. In particular, within this research stream, our findings extend the discussion on sustainable business models, allowing us to move from qualitative elaborations (Dentchev et al., 2018;Foss & Saebi, 2017;Lüdeke-Freund & Dembek, 2017;Martí, 2018;Schaltegger et al., 2016) towards quantitative analysis, through assessing the impact of sustainable value proposition on firm market-based performance using large-scale, longitudinal data. Furthermore, our study contributes to the discussion of corporate sustainability by incorporating and stressing the importance of the constructs of the value proposition and business model in the discussion of the association between corporate sustainability and firm financial performance (Grewatsch & Kleindienst, 2017;Peloza, 2009). ...
Article
Considering the immense potential of sustainable business models in tackling the broader challenge of corporate sustainability, this paper integrates the literature streams on sustainability practices and organizational business models to analyze the performance implications of a firm's sustainable value proposition. Based on the analysis of a large panel dataset across different industries, consistent with the proposed theory, a sustainable value proposition has been found to have a positive impact on a firm's market-based financial performance (namely, Tobin's Q). Yet, this impact turns out to be highly context-dependent. In particular, the findings reveal that a firm's R&D capabilities improve the positive effect of a sustainable value proposition on a firm's financial performance. At the same time, the marketing communication capabilities and sustainable practices regarding employee relations reduce the sustainable value proposition's financial performance effect, arguably due to the costs associated with marketing and the loss in employee interest during the process of adopting the sustainable business model elements.
... Stubbs and Cocklin [3] conceptualized SBM by bringing together fields of organizational sustainability and BM. SBM then quickly gained momentum as a field of research [4,5] and attracted researchers from various disciplines [4,[6][7][8][9][10], e.g., environmental sciences, social sciences, engineering, computer science, mathematics, and medicine [1]. ...
... Stubbs and Cocklin [3] conceptualized SBM by bringing together fields of organizational sustainability and BM. SBM then quickly gained momentum as a field of research [4,5] and attracted researchers from various disciplines [4,[6][7][8][9][10], e.g., environmental sciences, social sciences, engineering, computer science, mathematics, and medicine [1]. ...
... Results of our study support suggestions of previous research, emphasizing the need for deeper exploration of the emerging field of SBM [4,5,8], with particular focus on the impacts of IT on achieving sustainability goals [23,34,86]. In the future, interdisciplinary research on sustainability and IS will be needed for further investigation of this dynamic and fast evolving field [17,22,66,71,84,85]. ...
Article
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An extremely dynamic and fast-moving environment is pushing enterprises to continuous innovation and change. Managing sustainability in a digitalized environment seems to be of central importance for policy makers, as information technologies (IT), in combination with sustainability objectives, offer a wide range of opportunities for positive change. Through a systematic literature review and the application of automated content analysis, this study aims to provide insights into the latest research in the interdisciplinary field of sustainable business models and information systems. The results of the analysis, combined with a researcher’s perspective, suggest that IT, which can be used to achieve sustainability objectives, are already in place and have an infinite number of potential implications in the future. The results suggest that positive economic, social, and environmental changes can be achieved by using IT as long as they are used to identify unsustainable actions and enable positive change. The analysis of research trends revealed a discrepancy between the research in the European Union and the rest of the world and pointed to several avenues for future research.
... Extensions of the concept of value creation to include sustainability considerations have been discussed in various fields, including corporate sustainability, sustainable and social entrepreneurship and marketing. However, this idea is of particular importance to sustainable business model (SBM) research (Dentchev, Rauter, Jóhannsdóttir, Snihur, Rosano, Baumgartner, Nyberg, Tang, van Hoof and Jonker, 2018;Lüdeke-Freund and Dembek, 2017), as SVC is its major reference point and the core of its identity. Despite the obvious interest in and increasing use of the notion of SVC, its definitions and theoretical foundations are still weak, possibly because of the variety of theories and concepts underlying discussions and explorations of SBMs in general and SVC in particular (e.g. ...
... Despite the obvious interest in and increasing use of the notion of SVC, its definitions and theoretical foundations are still weak, possibly because of the variety of theories and concepts underlying discussions and explorations of SBMs in general and SVC in particular (e.g. Dentchev et al., 2018;Stubbs and Cocklin, 2008). We are not saying that a single theory or concept -or some other form of monism -is what is needed, but we argue that starting to open up the black box of SVC is crucial for stimulating progress in SBM research. ...
... The field of SBM research (e.g. Dentchev et al., 2018;Lüdeke-Freund and Dembek, 2017), which is the context of the special issue, tries to extend this traditional understanding of value and how it is created. Scholars from this field call for business models and business model innovation that incorporate sustainability principles (e.g. ...
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We discuss traditional assumptions about value creation and confront these with current views on sustainable value creation (SVC). Against this backdrop, the articles contained in the special issue 'Sustainable Value Creation Through Business Models' are introduced, and their contributions to the exploration of SVC are highlighted. The proposed framework identifies cornerstones for theorising about SVC in regard to the what, who and how of value creation. A main finding is that, although value creation and SVC are widely discussed in the literature, there are huge gaps in terms of the who, what and how of value creation, particularly in the sustainable business model (SBM) field. Various theoretical propositions are developed, including notions such as stakeholder-responsive and relational interpretations of value creation.
... The application of the BMIpfS can thus be crucial for driving the development of sustainable BMs (Karlsson et al., 2018) for agricultural businesses in which the creation and processing of ES are important elements. More specifically, to design new and sustainable BMs, greater understanding is needed of business drivers in relation to managerial cognition, behaviours, and decision-making regarding the initiation of the BMIpfS (Dentchev et al., 2018;Evans et al., 2017;Magretta, 2002;Yang et al., 2017). Through BM changes supported by the BMIpfS, paludiculture could become a sustainable value-creating activity for agricultural businesses and their stakeholders (e.g. ...
... The ability of the business manager grows with experience (Dyllick & Muff, 2016;Long et al., 2018;Van Tulder et al., 2013). Moreover, performance-based support systems could be facilitated that can govern the ability of the manager as a producer of sustainable value and can support sustainable value creation as a business opportunity (Dentchev et al., 2018;Long et al., 2018;Smith & Sullivan, 2014). Through updated advisory support and financial subsidies that emphasise profit based on economic, social, and environmental values, sustainable value creation could be considered a long-term investment instead of a short-term solution that compensates for loss of income (Karlsson, 2019a;Nelson et al., 2009;Power, 2010). ...
... Thus, this study can be used to facilitate a more active and proactive approach to the initiation of the BMIpfS. Such a managerial cognition perspective is one way of connecting various research streams to develop BMIpfS theory (Dentchev et al., 2018;Lüdeke-Freund & Dembek, 2017). The discussion on facilitating the initiation of change processes based on managerial cognition amongst the business managers in this study builds on Magretta's (2002) results on how individual motivation is part of the foundation for business models and on Sosna et al.'s (2010) findings on how the business managers' cognition could provide the most important input to the initial stages of business model innovation. ...
Article
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The agricultural sector has a critical role in creating social and environmental value of natural resources in addition to its traditional role of creating economic value by supplying food to the ever-increasing world population. In fulfilling this dual role, the agricultural sector often faces competing pressures: to operate financially profitable businesses and to create, maintain, and benefit from ecosystem services (ES) in their operations. This paper analyses these pressures in an examination of drivers and barriers to the initiation of the business model innovation process for sustainability (BMIpfS) as perceived by ten agricultural business managers who operate farms in southern Sweden. The paper explores the interplay between managerial cognition and business decisions as revealed in semi-structured interviews. The new ES in focus connect to radical land-use change, paludiculture, as used in the rewetting of farmland intended to reduce the greenhouse gas emissions that drained peat soil causes. The paper contributes to the literature by identifying drivers and barriers that moderates the initiation of the BMIpfS. Although the managers acknowledge the importance of long-term, sustainable social, and environmental value creation, they have grave doubts about the profitability of activities associated with the preservation of peat soils and connected ES. These managers would benefit from taking a more proactive, long-term approach to business model changes for sustainability and from acquiring more knowledge about market demand for sustainability-oriented ES. Successful facilitation and implementation of knowledge transfer and government subsidies that support ES could improve the turning of profits based on sustainable value creation.
... It is remarkable that this research field attracts researchers from many diverse disciplines, including management and organisation studies, entrepreneurship and innovation, industrial design, information technologies, engineering, sociology, sustainability studies and many more (e.g. Dentchev et al., 2018;Foss and Saebi, 2017;Massa et al., 2017;Maucuer and Renaud, 2019;Wirtz and Daiser, 2018). This involvement of multiple disciplines speaks not only to the inherent complexities of business models (cf. ...
... From more recent reviews we can conclude that this tendency is becoming more pronounced and that other special interest groups, such as entrepreneurship and sustainability researchers, are adding new camps to the business model research landscape (e.g. Dentchev et al., 2018;Foss and Saebi, 2017;Lüdeke-Freund and Dembek, 2017;Massa et al., 2017;Maucuer and Renaud, 2019). ...
... Cross-disciplinary approaches (in contrast to mono-disciplinary approaches) should be better suited to grasp these issues and to study business models as they actually are: complex and multi-dimensional systems (Massa et al., 2018). As such, business models integrate human interactions, organisational structures, markets and diverse stakeholders, and thus, they typically cross the boundaries of various social, economic and technological systems, for example, by connecting supply and demand, technologies and markets, stakeholders and value creation and so on (for exemplary overviews of the variety in business model research see Lüdeke-Freund and Dembek, 2017;Dentchev et al., 2018;Maucuer and Renaud, 2019). ...
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Purpose: We illustrate how cross-disciplinarity in business model research (multi-, inter-and transdisciplinarity) can help scholars overcome silo-building and span disciplinary boundaries. The seven articles contained in the special issue 'Fostering Cross-Disciplinarity in Business Model Research' are summarised, and the authors' perspectives on the phenomena studied as well as the theories and methods adopted are portrayed. Methodology: We provide literature-based definitions of cross-disciplinary research modes and discuss their potential for business model research informed by insights from the seven special issue articles. Findings: There is much variety regarding the theories applied in business model research. These include design, imprinting , information asymmetry, paradox theories and many more. This variety illustrates that traditional domains, such as organisation, management and entrepreneurship studies, can be extended in creative ways, and hence can be equipped to deal with emerging and complex issues such as sustainability, circular economy, data management and base-of-the-pyramid entrepreneurship. Interdisciplinarity seems to be well developed regarding the use of theories, but more must follow in terms of research methods and collaboration formats. Research Implications and Limitations: The common understanding of the potential and importance of cross-disci-plinarity can be considered the major implication of this special issue. Beyond this, further critical reflection is required. Important questions remain open, primarily regarding research methods and collaboration formats. This editorial article reflects the perspectives of both the guest editors and the authors in this special issue. The presented understandings of cross-disciplinary business model research and implications for its future are of a preliminary nature. Originality and Value: Business model research is growing rapidly and scholars from various fields contribute to expanding our knowledge. An explicit focus on the potential of multi-, inter-and transdisciplinary research approaches is missing so far.
... Sustainable supply chain management, which can be viewed as the improved administration of supply chains through the mix of ecological, financial and social issues, has pulled in critical consideration both in the supply chain and environmental management writing and among specialists in organizations around the world (Dentchev et al. 2018). ...
... Every chance the production network faces brings two key measurements that chiefs ought to consider: the vulnerability related with that chance, that is, how likely the chance will unfurl itself true to form) and its possible rewards and how compensating the chance is as far as its effects, advantages and results. Together they get a chance to capture the opportunity, which is as far as its results and how it can be as far as in terms of financial and other rewards (Dentchev et al. 2018). ...
... t. In this situation, conventional supply chain models have genuine obligations (Dentchev et al., 2018). ...
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The role of financial management is important in the promotion of sustainability of business organizations. In addition to this, it can be also inferred that financial management has a direct relation in case of supply chain finance. The process of supply chain finance is mainly used by the financial institutions in case of any financial transactions. Sustainable financial management promotes global financial growth related to supply chain finance. In addition to this, with the help of enhancing supply chain process, sustainability can be ensured. The findings from the given study highlights that UAE organizations implement effective tools of risk management to maintain effective process of supply chain finance.
... kontekście warto przeanalizować jedną z koncepcji próbujących łączyć działalność biznesową z poszukiwaniem rozwiązań dla wyzwań zrównoważonego rozwoju jaką są zrównoważone modele biznesowe. Jak twierdzą niektórzy, ma ona potencjał, aby rozszerzyć dotychczasowe rozumienie roli biznesu w rozwiązywaniu istotnych problemów społeczno-ekologicznych (Dentchev i in., 2018), ponieważ koncentruje uwagę na ważnym procesie tworzenia wartości i jego efektach (Schaltegger i in., 2016, s. 5). ...
... Częściowo jest to temat już eksplorowany badawczo, np. w zakresie szukania interakcji między gospodarką współpracy i współdzielenia a zrównoważonymi modelami biznesowymi (Aluchna i Rok, 2018) oraz wykorzystywania technologii w zrównoważonych modelach biznesowych do rozwiązywania problemów społeczno-ekologicznych (Dentchev i in., 2018). Jednak z uwagi na obszerność i złożoność zagadnienia bez wątpienia pozostaje tutaj jeszcze wiele wątków do przebadania. ...
Article
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The previous approaches to the implementation of sustainable development are insufficient to create truly revolutionary transformations of organizations, markets and societies. As a result, humanity is on the verge of an ecological catastrophe which will have extremely serious socio-economic consequences. In the face of contemporary challenges of sustainable development, there is a need for a rapid and radical change in the approach of business to people and the natural environment. In this context, the concept of sustainable business models deserves attention, as it extends the existing understanding of the role of business in solving social and environmental problems. The aim of the article is to analyze the current state of knowledge and present the basic concepts, assumptions and definitions of sustainable business models. This is a review paper. The adopted research method is ananalysis and synthesis of English-language literature sources. At the beginning, the article indicates the place of research on sustainable business models in contemporary scientific works. Next, attention is paid to the concept of value as an element combining the logic of a business model and a sustainable business model. In the main part, various approaches and attempts to define sustainable business models and criteria for this type of projects are analyzed and presented. The role and types of innovation in sustainable business models are also presented. Finally, the evolution of the approaches to sustainable business models is considered, as well as the ways in which this concept might develop in the future.
... Boons and Luedeke-Freund (2013) evaluated the diffusion of specific business models, such as product-service systems and the introduction of new management tools for business transition management. Dentchev et al. (2016) sought to capture research on different SBMs, and Dentchev et al. (2018) investigated the benefits of SBMs for society today. ...
... Companies are increasingly applying sustainability practices to improve environmental and social responsibility to increase their performance (Upward and Jones, 2016;Dentchev et al., 2016Dentchev et al., , 2018Dembek, 2017, 2018;Nosratabadi et al., 2019). For Franca et al. (2017), successful businesses increasingly involve understanding the challenges and opportunities associated with society's transition to sustainability and, for example, being able to innovate, design and build business models that are functional in this context. ...
Article
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Purpose This study aims to map scientific publications, intellectual structure and research trends in the sustainable business model (SBM) field. Specifically, it attempts to (1) identify the fundamental contributions of research in this area of knowledge; and (2) determine the research lines that constitute the most prominent intellectual structure. We leverage these insights to formulate and propose a future research agenda for SBM. Design/methodology/approach The authors made recourse to the bibliometric, co-citation and cluster analysis techniques. To evaluate potential patterns among articles, we analysed how articles are jointly cited. We further applied hierarchical cluster analysis to the articles and used co-citation analysis to group the interrelated articles into distinct sets. Findings The results enable the identification and classification of the prevailing theoretical foci in the domain of SBM: (1) SBM implementation; (2) SBM challenges; (3) institutional SBM; (4) circular SBM; and (5) emerging SBM. Originality/value This study identifies, explores, analyses and summarises the main theoretical approaches and themes surrounding SBM research to date, contributing to deepening the literature by identifying the priority areas concerning sustainable business models and encouraging future research of an internationally excellent standard.
... Initiative responsibility is the foremost initial step. At any point, through nontraditional joint efforts, orderly evaluations of esteem-chain impacts, and firm administration structures, driving organizations guarantee that manageability wove into the actual texture of the organization (Dentchev et al., 2018). Dentchev et al. (2018) argue that it is crucial for business organizations to implement green investment strategies. ...
... At any point, through nontraditional joint efforts, orderly evaluations of esteem-chain impacts, and firm administration structures, driving organizations guarantee that manageability wove into the actual texture of the organization (Dentchev et al., 2018). Dentchev et al. (2018) argue that it is crucial for business organizations to implement green investment strategies. These strategies will further help to minimize carbon footprint and positively contribute to the environment. ...
Article
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The given study highlights the impact of financial management on the sustainability of business firms regarding sustainability and risks, green investment, and sustainable capital markets. For longevity to prevail, it is of the highest priority for corporate organizations to take proactive action in reducing both internal and external risks. Proper steps do require evaluating all resources available for business organizations. In Addition, green investment plays a critical role in the sustainable development of business organizations.
... The stakeholder value creation framework emphasizes that value is created in relation to customers, business partners, employees, financial stakeholders and society (Freudenreich et al., 2020). Unlike previous literature focusing on organizational sustainable business models (Evans et al., 2017;Dentchev et al., 2018;L€ udeke-Freund et al., 2020), this paper elaborates value creation processes stemming from SC business models (Trkman et al., 2015) while "involving multiple actors [and being] known as joint value creation" (Freudenreich et al., 2020, p. 5). The following reasoning of how ICT enables sustainable value creation is based on bringing conceptual elements together that create an initial framework, which is intended to be broad to guide future research. ...
... To achieve SSCM, information flows closely linked to the application of ICT as well as other SC flow elements are improved (Th€ oni and Tjoa, 2017). Linking ICT to sustainable business models, Dentchev et al. (2018) argue that technologies can foster the development of sustainable business models. ...
Article
Purpose While the impact of information and communication technology (ICT) on logistics and supply chain management (SCM) is recently much discussed, this is hardly linked to emerging economies and base of the pyramid (BoP) settings. The paper aims as offering a framework linking different conceptual elements to each other for explaining how ICT enables sustainable value creation in emerging economy supply chains (SCs). Design/methodology/approach The paper builds on conceptual reasoning linking constructs from the different fields to each other. Findings Using conceptual reasoning linking constructs, six elements are identified: (1) SC flows, (2) BoP challenges and (3) ICT services as starting points, and environmental conditions driving sustainable value creation. The application of ICT within BoP SC operations drives the process of sustainable value creation by enabling new ways of (4) electronic business (e-business) transactions and (5) SSCM behaviors. This leads to (6) sustainable value for businesses using ICT applications and their respective stakeholders. Research limitations/implications Empirical testing by collecting field data in emerging economy contexts would be demanded to address the limitation of building on conceptual reasonings. Practical implications The framework provides various SC-related measures driving e-business value creation for managers of businesses, charity organizations and policymakers in emerging communities. Social implications Understanding the use of smartphones and other mobile devices for businesses and their supply chains in emerging markets would have wide ranging social implication addressed in the sustainable value creation of the framework offered. Originality/value The conceptual framework brings different elements together offering insights into ICT applications in BoP SCs. Linking SCM, ICT and BoP to each other is a novel contribution having wider implications for the future development of emerging economies.
... 4 Today, the literature has moved on to examine BMI (Berends et al., 2016;Foss & Saebi, 2017;Snihur & Zott, 2020). Moreover, the field of sustainable BMI has emerged to address pressing sustainability concerns (Bocken et al., 2014;Dentchev et al., 2018;Foss & Saebi, 2017). ...
... Second, current BMI research focused on societal impacts is subject to excessive heterogeneity across cases (Dentchev et al., 2018) and a lack of replicable impact measures (Table B2). Homogeneous case subsets based on theoretical reasoning could enable the transferability of findings. ...
Article
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The impact of business model innovation (BMI) on business ecosystems, society, and planet is of growing theoretical and practical importance for strategic management. Increasing sustainability pressures warrant a better understanding of the impact of companies’ BMI through a more comprehensive analysis of innovation and its consequences. We discuss four foci of innovation (BMI, sustainable BMI, ecosystem innovation, and sustainable ecosystem innovation) to broaden the conceptualization of innovation and its economic, societal, and natural environmental impacts. We call for scholarship examining the impact of BMI to advance knowledge through research on value destruction and the dynamics of BMI over time.
... Traditional BMs focus heavily on the economic value that a firm creates, Freund et al., 2017 ;Täusc her and Abdelkafi, 2018 ). And the research approaches are often based on reviews, case studies, surveys or conceptual models ( Dentchev et al., 2018 ). However, the main gaps of these studies are listed as follows: ...
... Boons and Lüdeke-Freund (2013) Review Dentchev et al. (2018) Nosratabadi et al. (2019) Schaltegger et al. (2016 Classification Albino and Fraccascia (2015) Case study Bocken et al. (2014) Review Lüdeke-Freund et al. (2018) Review, survey Lüdeke-Freund et al. (2019) Review, morphology analysis Ritala et al. (2018) Survey Zufall et al. (2020) Case study ...
Article
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Early identification of business opportunities is critical for technology-based manufacturers seeking to develop new sustainable business models (SBMs) for future competitive advantages. However, there exists an insufficiency of identifying business opportunities compared to previous studies which have focused mainly on technology opportunities and service opportunities. To fill this research gap, this study proposes a new systematic approach to identify business opportunities for new SBMs based on information relating to the manufacturers' technologies and patents. To illustrate, an example in the mining machinery industry was examined as a case study. The results demonstrated that 255 patent documents relating to the product were collected. Next, latent Dirichlet allocation was used to generate 26 business topics, which were categorized into the 9 building blocks of the business model canvas (BMC). Then, generative topographic mapping (GTM) was applied to identify 13 vacuums and related technology-driven business opportunities on the basis of BMC-based patent-business vectors. Finally, dynamic business modelling was conducted, which integrated sustainable BMCs and system dynamics in order to evaluate and rank these business opportunities. The proposed approach can promote consensus building between the technology and business planning departments on developing technology-driven SBMs in both public and private sectors.
... In this group, studies are dedicated to understanding the role and characteristics of social entrepreneurs working in the CE. Even while poorly explored in the literature, social entrepreneurship represents a potential influence over introducing sustainable and innovative business models (Dentchev et al., 2018). Social entrepreneurs maintain their place in the chain of value to support movements within the direction of a CE even if, in the meanwhile, there is a lack of visibility among these entrepreneurs as regards other stakeholders in the ecosystem (Staicu & Pop, 2018). ...
... This group highlights that social entrepreneurs are able to embrace CE principles, especially collaborating for positive social outcomes. Again, qualitative methods predominate among the studies, which investigate the textile, agriculture and water supply sectors, except two conceptual studies (Dentchev et al., 2018;Smitskikh et al., 2020). ...
Article
The circular economy (CE) emerged as an alternative model to the linear system to foster sustainable development. Entrepreneurship represents a key factor in capturing new circular business opportunities. Research on circular entrepreneurship remains at an early phase and is correspondingly somewhat dispersed. Thus, the research objective here is to bring entrepreneurship into the focus of discussions on CE through a systematic literature review. In the absence of any systematic review on this theme, this work aims to map the relevant research and identify the themes discussed in the literature straddling entrepreneurship and the CE currently dispersed across the existing literature. Based on a sample of 102 articles collected from the Scopus and Web of Science databases, this approach identified four thematic groups: growing circular SMEs, born circular firms and start‐ups, social entrepreneurship in CE, and support ecosystem for circular entrepreneurship. A greater emphasis on the study of growing circular SMEs to the detriment of other groups is observed. Also, research in the field is mainly focused on European countries. We then propose a future research agenda and a conceptual model for the entrepreneurial process in CE as a point of departure for further developing and deepening the literature on circular entrepreneurship.
... Several scholars agree on the usefulness of case studies in the context of large challenges such as sustainability-related problems [44,45]. In this light, the case study approach represents a suitable way to perform inductive analysis needed in grounded theory methodology [43], especially in nascent or unexplored phenomena. ...
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In the last year, COVID-19 has tested both advanced and developing economies. Within such a context, the global learning crisis is expected to increase due to difficulties in accessing technology or in receiving learning support. Such a huge need, globally identified with the Sustainable Development Goal number 4 (hereafter SDG 4), implies the need for large-scale solutions from governments around the world, especially in terms of dedicated financial resources. In this context, the impact-investing sector offers an innovative financial tool, i.e., impact bonds (IBs), which are widely applied in the education sector, even if their limitations and potentials remain unexplored in academia. Based on these considerations, our work explores whether and how IBs can contribute to funding and improving educational outcomes, with a focus on their potentials in the post-COVID world. This study adopts a qualitative approach by performing a case study analysis of four IBs. Our pilot analysis is based on the following key dimensions: (i) partnerships and contractual arrangements; (ii) financial terms; and (iii) measurement and impact. The results offer interesting insights by deriving a preliminary model on the role of IBs in the post-COVID-19 world.
... Other studies focus on different digital technologies (DTs) for sustainable and/or CBMs (e.g., CEID, 2020; Gupta et al., 2019;Ingemarsdotter et al., 2020;van Fossen et al., 2019). Lopez et al. (2019) point out that research into business models for resource efficiency and circularity is not yet mature, mostly still conceptual (e.g., Dentchev et al., 2018;Urbinati et al., 2017) and covers only individual or a small number of cases (e.g., Franzò et al., 2021;Stumpf et al., 2021;Urbinati et al., 2021). In addition, empirical evidence on DTs for resource efficiency or for circularity is still largely limited to individual case studies (see, for example, the analysis for German small and medium-sized enterprises [SMEs] in VDI ZRE, 2017, or only limited representative empirical evidence is available [see, for example, for Germany by Neligan, 2018a andNeligan et al., 2021). ...
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New circular business models can evolve at all stages of the life cycle of a product. Digitalisation can drive disruptive innovations, new business models and novel ways of collaboration and thus can accelerate the economic transition to more resource-efficient and circular production systems. Yet, there is little empirical research on the enabling role of digitalisation for a circular economy. To address this gap, this paper investigates the role of digitalisation in facilitating circular business models, based on the empirical analysis of a data set of 599 German manufacturing firms and 296 industrial service providers. While relatively few German firms rely on new business models to foster their resource efficiency strategy, we find this share higher for companies with a strong digital focus in the manufacturing sector. This suggests that digitalisation can indeed be a driving force for the implementation of circular business models.
... The proposed conceptual framework deserves to be examined through empirical evidence and should dig into firm dynamics and contexts in which they operate. Second, there is still a limited understanding on the different internal and external factors contingent to sustainability transitions; for example, how leadership and group behavior can influence firms towards operating in a sustainable manner [114][115][116]. Although examples can be scarce in terms of achieving sustainability transitions at the system level, some firms are currently pushing themselves (and are being pushed) to drive wider systematic change, such as Tesla in the area of electric mobility, Fairphone for transparent global value chains for smartphones, and Patagonia for environmental stewardship in the outdoor industry. ...
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Business models direct a firm’s activity to move in coherence with the objectives of the business. Current literature suggests business models can act as vital forces to facilitate sustainability transitions and highlights the urgent research call to understand the role of business model innovations in stimulating sustainability transitions. This paper addresses this research need by investigating how firms create business model innovations for system-level transformation towards sustainability. Through a systematic literature review and deductive content analysis methodology, we identify and categorize different combinations of innovative activities in a firm’s business model. Furthermore, two cases are illustrated to demonstrate the proposed conceptual model. The proposed conceptualization bridges a significant gap in the theme of sustainability and business and presents a defensible and researchable problem for transitions literature. Specifically, we find (1) shared vision and strategic dialogues among firms in different sectors as essential to develop value propositions and leverage business opportunities for sustainability in the long run; (2) companies ensure sustainable value creation and value delivery in the medium term through creation of an interdependent network of the green supply chain and collaboration with stakeholders; (3) in the short term, companies adopt sustainable practices, controlling daily operations, conducting awareness campaigns and experimenting with collaborations to deliver values based on sustainable practices.
... Dentchev et al. [131] note that the extension of the BM conceptualization to the field of SBMs remains in its early stages of development: the operationalization of sustainability-related concepts remains challenging because the "value" inherent in SBMs is subject to debate going beyond value (creation) as expressed in economic terms only. Economic value remains easier to evaluate and measure, for instance through the examination of the company's financial and accounting reports, as compared to social or environmental value created by SBMs, which is much harder to objectively evaluate or express in financial therefore quantitative terms. ...
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By referring to the European Green Deal, this paper analyzes the “intrinsic value” of cultural heritage by investigating the human-centered adaptive reuse of this heritage. This implies questions such as how to improve the effectiveness of reuse, restoration, and valorization interventions on cultural heritage/landscapes and how to transform a cultural asset into a place, interpreted as a living ecosystem, to be managed as a living organism. The autopoietic characteristic of the eco-bio-systems, specifically focusing on the intrinsic versus instrumental values of cultural heritage ecosystem is discussed in detail. Specifically, the notion of complex social value is introduced to express the above integration. In ecology, the notion of intrinsic value (or “primary value”) relates to the recognition of a value that “pre-exists” any exploitation by human beings. The effectiveness of transforming a heritage asset into a living ecosystem is seen to follow from an integration of these two values. In this context, the paper provides an overview of the different applications of the business model concept in the circular economy, for a better investment decision-making and management in heritage adaptive reuse. Matera case is presented as an example of a cultural heritage ecosystem. To conclude, recommendations toward an integrated approach in managing the adaptive reuse of heritage ecosystem as a living organism are proposed.
... The outcome is similar of business models in that the values are now derived in terms of impact of these values. Other similar tools include the value hill business model tool (Achterberg, Hinfelaar, and Bocken 2016) or the Lean Thinking (Schwarz et al., n.d.) and many more that have their own specific relevance in a particular context (Dentchev et al. 2018). However unlike the BMT, they lack in practicality when it is not clear what business model would best fit a given context. ...
Research
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This report investigates the circularity of CDW leading to circular new business models, strategic decision making and operationalization of CDW handling and management.
... (10) Platforms of sharing: promote a platform for collaboration between users of the product, be it individuals or organizations (Dentchev et al., 2018). ...
Purpose This article aims to analyze the specific indicators of the circular economy (CE) in terms of analytical aspects, scope and breadth of metrics and levels of innovation associated with CE. Design/methodology/approach A literature review was developed with a sample of 125 articles, extracted from Scopus, Web of Science, ScienceDirect, Emerald, Google Scholar, Online Library, Sage, Springer, Taylor and Francis and JSTOR databases. Findings The results indicate the lack of integration of the social dimension and predominance of environmental indicators, lack of indicators for the meso level and concentration of metrics for the product level. Methodological criteria of validity and reliability for measurement studies are recommended, as well as paths and proposals for future research in the CE. Research limitations/implications The study’s limitations are linked to the content and method aspects. Although the search was performed in several databases, with a significant number of articles returned compared to other reviews of the topic, the possibilities are limited by the data source and the impossibility of a broader review. The theme is not yet consolidated and this affects the linearity of the revised results. As for the method, the analysis and coding in systematic reviews involve the authors’ capacity for exploration and cognition. Practical implications The article proposes six theoretical propositions and the theoretical framework that portrays the main findings of the study and questions to drive future research in the topic. Social implications The article points out opportunities for companies, universities and the government regarding the possibilities that can be explored to develop knowledge and practice about the field. Originality/value This research advances the CE literature by means of providing a review of the indicators, metrics and tools oriented toward the CE literature that contributes to the improvement and consolidation of the various researches in the field.
... In the light of the study by Dentchev et al. (2018), it is noted that the advent of this trend is primarily social entrepreneurship, particularly SE. As time passes, less attention is paid to sustainable enterprises. ...
... In the light of the study by Dentchev et al. (2018), it is noted that the advent of this trend is primarily social entrepreneurship, particularly SE. As time passes, less attention is paid to sustainable enterprises. ...
... • Hoogendoorn, van der Zwan, & Thurik. (2020). Analyzed whether emerging companies placing more emphasis on environmental value creation rather than economic value are more innovative. Sustainable business models • Dentchev, Rauter, Jóhannsdóttir, Snihur, Rosano, Baumgartner… Nyberg. (2018). Provided an overview of diverse organizational forms, management mechanisms, sustainable solutions, challenges, theoretical approaches and empirical evidence, that is, the key elements in sustainable business models studies. ...
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Sustainable development has emerged by the raised awareness that natural resources consumption has led to ecosystem degradation and damaged populations’ social conditions. Entrepreneurship has been included as an alternative for implementing sustainable development strategies hoping that a shift towards more sustainable products and services will stabilize the development model. The objective of this paper is to analyze the strengths and opportunities of sustainable entrepreneurship in Colombia. To that end, a document review was conducted, focusing on documents prepared in and/or related to the Colombian context. The Scielo, Dialnet plus, JSTOR, proposal, ScienceDirect, EBSCO Academic Search Ultimate, EBSCO Business Source Complete, Emerald Insight databases were consulted, and Colombian universities’ domestic journals and repositories were reviewed. The review concluded that the Colombian entrepreneurship system did incorporate elements at the macro, medium, and micro levels, which constitute strengths while allowing the transition towards sustainability. Among those elements, there are paradigms, regulations, networks, public authorities, policies, and institutions that promote sustainable entrepreneurship and facilitate financing thereof, the niches where innovative ideas and projects, among others, are born. Regarding opportunities for improvement, methodological aspects in assessing business plans need adjusting to include social and environmental factors, and government entities need to provide more significant support and assistance to sustainable entrepreneurs.
... The attention to practical relevance in this field is indicated by the various SBM ontologies (Breuer, 2013;Joyce and Paquin, 2016;Upward and Jones, 2016) and archetypes developed (Stubbs and Cocklin, 2008;Bocken et al., 2014;Yip and Bocken, 2018). Despite the growing body of research with a practical orientation in SBMs, much work still needs to be done to develop stronger and cumulative theoretical knowledge in this scholarly field (Dentchev et al., 2018). ...
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We Need Transdisciplinary Research on Sustainable Business Models Abstract Purpose This paper explores the challenges sustainable business model (SBM) studies may face related to the information gathered during the data collection process, and elaborates on how transdisciplinary research can help to overcome these challenges. Our contribution is based on the theoretical lens of information asymmetry. Design/methodology/approach This paper uses a qualitative methodology based on a transdisciplinary program that aims to support disadvantaged communities in Bolivia. The program started 3 years ago, with as objective to help vulnerable communities through transdisciplinary intervention in 6 projects, viz. 1. Social vulnerability, 2. Integrated water management, 3. Food security, 4. Indigenous rights, 5. Productive development and 6. Transversal. In addition to our experience in the program, we have conducted 57 interviews and 10 focus group discussions with vulnerable entrepreneurs and relevant stakeholders, alongside numerous on-site observations. Findings The findings of our study illustrate that SBM research can face information asymmetry issues such as lack of access to, lack of understanding of and lack of trust in the information provided. We also show how transdisciplinary research helps to bridge such issues of trust, understanding and information availability. Based on our research, we propose 5 suggestions to scholars who wish to adopt transdisciplinary research in their study of SBMs: (i) understand the context, (ii) adapt to the context, (iii) develop relationships of trust, (iv) be flexible with your research focus and (v) systematically present to other disciplines and non-academic actors. We need transdisciplinary research on Sustainable Business Models 3 Originality/value Our contribution is based on the theoretical lens of information asymmetry and argues that a transdisciplinary approach is necessary to accumulate fundamental knowledge on SBMs. Such an approach constitutes a rather sophisticated research methodology that can help us embrace the complexity of sustainable business models and find practical solutions for their scalability.
... In the light of the study by Dentchev et al. (2018), it is noted that the advent of this trend is primarily social entrepreneurship, particularly SE. As time passes, less attention is paid to sustainable enterprises. ...
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This Research Topic consists of 15 articles on various aspects and methodologies of active and sustainable Science, Technology, Engineering, and Mathematics (STEM) education toward educational psychology domain research contributed to by 49 authors. At the time of writing the Research Topic, the articles published have been checked online more than 24,000 times and received abundant citations in the scientific literature. The topic theme, “STEM education,” is an umbrella term for the approaches and methods from different research disciplines and areas, targeted at the improvement of Sustainable Development Goals (SDGs) and the cognitive, affective, behavioral, and multidimensional domain in both academic, professional, and industrial personnel who are involved in this field with their everyday work. Here, the various educational psychology domains are getting increased attention in relation to STEM and SDGs. In the same context, it is still challenging and inspiring because this educational psychology domain needs to reflect the current renewable and sustainable situations that are required to follow and achieve the SDGs in STEM education. With various active approaches and methods becoming available, all these ideas and thoughts in the educational psychology domain could be integrated into the area of STEM toward the SDGs that can diagnose and analyze various peoples’ cognitive, affective, behavioral, and multidimensional patterns as well as their peculiarities.
... The green fund covers the change in respect of natural corruption. For instance, loss of biodiversity, open space, deforestation, medicinal and family waste, uncalled for transfer of mechanical, encroachment of streams, water contamination, and air contamination (Dentchev et al., 2018). ...
Article
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For meeting certain levels of social expectations, it has been seen that companies gain motivation on an increasing level. It is becoming an important part of the strategic system of the companies. Corporate sustainability is one important concept that has taken importance at the organizational level. Changing the nature of the customers' demand is making the companies focused on allowing and offering alternative opportunities so that they could become able to sustain a competitive advantage over other businesses. For the promotion of sustainable business and development practices, it has been seen that the role and contribution of financial management are very important. To measurement, evaluation, and disclosure of business, accounting management practices are used. Still, concerning the bottom line of the development of an organization, well-organized system guidelines and practices are provided by the financial management. For financial stability, it is noted that there is a greater level of importance of high-quality financial management.
... In the light of the study by Dentchev et al. (2018), it is noted that the advent of this trend is primarily social entrepreneurship, particularly SE. As time passes, less attention is paid to sustainable enterprises. ...
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Understanding business trails among promising aspirants may contribute to an actual motive for diminishing ecological tracks and escort to developing devotion toward deciding intentions across various entrepreneurial types and tiers solely from the sustainability domains. Therefore, this study endeavors to comprehend and seek to employ the Theory of Planned Behavior (TPB) to inspect the relationship between antecedents on sustainable enterprise intention and sustainable value creation. In this study, we used the convenience sampling method and the quantitative data of 1,070 respondents from Pakistan and China and applied a SmartPLS structural equation model and partial least square path modeling by mediational and multigroup analyses. Findings divulge that R2 (79.8%) value in the Pakistan sample of attitudes to sustainability, perceived entrepreneurial desirability (PED), and perceived entrepreneurial feasibility (PEF) was comparatively higher than in China. The R2 (75.6%) variance value on sustainable entrepreneurial intentions (SEI) was recorded higher in the Pakistani sample. However, the relationship of environmental values, self-efficacy, and extrinsic and intrinsic rewards show positive and significant mediational effects on both the economies of SEI. The findings disclosed an inconsistent character of extrinsic rewards, general self-efficacy, and job security depict negative significant impacts of aspirations on sustainable entrepreneurship (SE) among promising entrepreneurs on sustainability enterprises in both Pakistan and China. This study extends on existing entrepreneurship literature. Results supported the designed hypothesis and played a significant role in shedding light on an individual trait underpinning a career in a sustainable business startups. The study looks at the issue from the viewpoint of sustainability domains. It seeks to determine the individual PED, PEF, and attitude toward sustainable entrepreneurship (ATSE) as the mediational variables. The study highlights the importance of work values in pursuing sustainability-oriented entrepreneurship programs for promising aspirants to improve their entrepreneurial skills and knowledge podium, which will encourage them to become sustainable future entrepreneurs. Furthermore, the study provides understandings for ratifying sustainable openings and debates the potential paths for sustainable business growth and opportunities among nascent entrepreneurs in both economies
... Contingency theory discussed that firms can continue strategic matching which correspond with the external environment and uncertainties to gain the appropriate competitiveness, business growth performance and sustainability. Contingency theory is the key theoretical lens used to view the firm (Dentchev et al., 2018). The basic principle of the dichotomy of contingency theory would be that organisational effectiveness results from the adaptation of organisational factors, such as structure and contingencies that reflect the organisational situation (Bagnoli & Giachetti, 2015;Penning 1992). ...
Article
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Purpose: The appropriate involvement of Small and Medium Enterprises (SMEs) in industrial activities globally is an incontestable truth. SMEs need to keep pace with a dynamic and changing ecosystem that perpetuates both local and international borders to support their continuous and sustainable contributions to economic growth. Therefore, the main objective of this study is to assess the theories underlying sustainable growth of small and medium enterprises. Most theories are based on separate perspectives because each pattern is explored differently and there is limited knowledge. This study helps to validate the leading theory perspective focusing on the sustainable growth of small and medium enterprises and to unlock a strong view of SMEs. Method: This study assessed the suitable theories underlying sustainable growth of SMEs. Thus, the different theoretical perspectives reviewed would provide a novel contribution to the theories underlying the sustainable growth of small and medium enterprises. Conclusion: Future studies should aim at a more empirical and quantitative approach that could explain the underlying reality of the theoretically advanced seven selected theories for sustainable growth of small and medium enterprises.
... In this study, simulation approaches were proposed to tackle with the coordinative challenges rooted in IS, which follows the research direction suggested by Dentchev et al. (2018). However, the basic understandings concerning the values, societal structures, cultures, underlying world-views and the paradigmatic potential of CE remain largely unexplored (Korhonen et al., 2018). ...
Article
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Since 95% of the Construction and Demolition Waste (CDW) is down-cycled and the material value is not effectively recovered, the Dutch construction industry strives for implementing Circular Economy (CE). From the recycling/reusing perspective, a key enabler towards CE is Industrial Symbiosis (IS). Although IS has been widely applied in manufacturing industries, its implementation is unclear in the construction industry. Particularly, the potential IS economic convenience is hard to predict in the highly fragmented construction supply chain. This study explores the IS based on the Recycled Concrete Aggregates (RCA) in the context of a concrete waste supply chain in the Twente region of the Netherlands. The research tackles with the CE challenge of lacking economic incentives by investigating the Industrial Symbiosis Network (ISN) emerged by replacing Primary Concrete Aggregates (PCA) with RCA. An Agent-Based Modelling (ABM) approach is proposed by integrating Geographic Information Systems (GIS) to present the dynamic supply-demand of RCA. Besides, supply chain actors are simulated as negotiable agents in a platform model to reveal the IS collaboration dynamics under different economic scenarios. It is found that the IS exists in the construction industry but only in an implicit manner because the RCA treatment requires the collaboration of multiple actors across substantial temporal and spatial differences. The study enriches the IS taxonomy by defining Implicit IS and provides instruments to support the decision-making of business collaborations and policy-making for a circular construction industry.
... Moreover, Design Thinking combines isolated thoughts in creative and disruptive manners and can therefore lead to an increased openness towards radical ideas and unusual practices. Additionally, through Design Thinking, processes may be planned by following a precise procedure, but at the same time may offer a lot of room for creative and unusual ideas (Cross 2011). ...
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This paper focuses on Design Thinking as a tool for initiating transformation processes both for the enhancement of company resilience, involving challenges connected to current trends such as digitalization and democratic leadership, as well as for the restructuring of a sustainable socio-ecological company organization. Primary findings of this explorative study show that Design Thinking is a suitable method to promote digital, democratic, and innovative business and leadership transformation, but that it is not primarily operationalized in the context of a further-reaching socio-ecological transformation towards more sustainability.
... Conceptualizations that interpret the business model as a combination of specific mechanisms have become highly popular in research and practice; consequently, they appear to be most advantageous to researchers, managers, and stakeholders (Foss and Saebi, 2017;Palmié et al., 2021a). While these conceptualizations differ in the number of components they specify, the components roughly represent four broad areas: (1) the target customers, (2) the value proposition that an organization offers to its customers, (3) the value-creation and -delivery activities by which the value proposition is produced and brought to the customers, and (4) the value-capture activities dealing with the revenues and costs of creating and delivering the value proposition (e.g., Boons et al., 2013;Dentchev et al., 2018;Geissdoerfer et al., 2018;Palmié et al., 2021a). ...
Article
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As e-commerce has increasingly gained traction in the retail market, many traditional "brick-and-mortar" retailers are innovating their business models and making the transition towards digital business models. While scholars have started to examine the influence of digitalization on various business model elements, they have so far paid little attention to its implications on the external relationships in which firms engage for value creation. Building on a qualitative analysis of seventeen interviews, this study develops a two-stage framework for the transition to digital business models. In Stage 1, retailers collaborate with specialized service providers to implement a digital business model. As firms from the retail ecosystem collaborate with firms from the digital-service ecosystem to create a value proposition for end-customers, a meta-ecosystem emerges. In Stage 2, firms (retailers) seek to differentiate themselves from their competitors in the meta-ecosystem. Physical interactions with the digital service providers, the product suppliers, and the customers are a primary means towards this end. Thus, digitalization does not make physical interactions and close personal ties obsolete. Our study has substantial implications for the academic literature and management practice.
... Recently, business modeling has taken a turn toward an emphasis on ecological sustainability (Bocken, Boons, & Baldassarre, 2019;Boons & Laasch, 2019;Dentchev et al. 2018;Hahn et al., 2014;Joyce & Paquin, 2016;Nielsen et al., 2018;Vladimirova, 2019). There is a similar sustainability-driven turn toward the development of a storytelling science methodology in business storytelling (See, Boje, 2019aBoje, , 2019bBoje, , 2019cBoje & Rosile, 2019;Boje, Rosile & Claw, 2018). ...
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This chapter will provide a general conceptual overview of a sustainability-driven business modeling (SBM) strategy from a "storytelling science" perspective. Storytelling science uses C.S. Peirce's abduction-induction-deduction (AID) approach in a self-correcting series of cycles in order to get closer to what is true for the ecology as a whole, and what regimes of truth can be deconstructed for particular stakeholders (business, government, living systems of nature (ecosystems), and so on. In doing so, we discuss SBM in relation to various truth regimes, aiming to develop new approaches to multiple dimensions of sustainability modeling. Our purpose is to demonstrate how storytelling science can be helpful in exploring differences between sustainability strategies and their connections to some other aspect of business modelling, so that the SBM approach can be better understood, implemented and communicated. We examine several examples to illuminate multiple dimensions of SBM strategies that stand to benefit from the use of storytelling science. We organize our conceptual understanding into three sections: (i) SBM and storytelling in socially responsible capitalism that focuses on what is socially and ecologically sustainable, rather than only what is profitable to particular stakeholders; (ii) methodological and philosophical perspectives; and (iii) drivers, enablers, and barriers in the implementation of an SBM strategy. A general "storytelling science" blueprint of SBM strategy deployment is also included. The benefits of ecologically and socially-sustainability-driven models is they can utilize the storytelling method of AID cycles to find ways of business that do not exceed planetary carrying capacities. In conclusion, we describe potential ways of implementing storytelling science, which can be useful for studies in strategy, entrepreneurship, marketing, management, international business, and a global value chain that focuses on sustainability.
... The finding show that the Facebook user has increased the scope of higher education [15], research methods [16] and friendship facilitation over the past years [17]. In college and university, the students are the most prolific social network user [18]. According to Allen [19] Facebook user get huge attention due to the educational emphasis on technology, and it is indeed a valid research tools to administer the social, health psychometric and so on researches [20], [21]. ...
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The current research intends to evaluate the validity and reliability of the adopted model-BFAS, and investigate relationship between the motives and Facebook addiction in Afghanistan. The adopted instrument were online distributed to undergraduate and postgraduate students and only 431 responded across the country to determine their intentions for using Facebook. The software of RStudio used for descriptive analysis and SEM-PLS approach was applied to hypothesis the relationship between the constructs. Results showed that the BFAS measures intensity of Facebook addiction, although measurement model was reliable and structural model has discriminate validity. Further, the results show that students use Facebook for communication, social interaction and entertainment, and these motives positively predicted Facebook addiction. Based on the results, authors believe that the Facebook addiction is a phenomenon that exists across the countries, and greater use of Facebook would tend to create problem of addiction. In sum up, this research would help parents, serves provider, policy makers, current Facebook users, and students to control their excessive use of Facebook.
Article
Introduction: The uncertainty derived from the availability of natural resources require transformations in strategic management to adopt sustainable production practices without affecting competitive advantage. Objective: This research aims to analyze the behavior and evolution of trends in publications on strategic management for the adoption of sustainable production practices. The Materials and methods: used was Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) and a bibliometric study for 442 publications retrieved from the Scopus database. Indicators of quantity (Pareto's Law, Lotka's Law and Solla Price Law), quality (Impact, h-index), and structure (Co-occurrence and cluster) were analyzed. The Results identified as research trends: environmental innovation; circular economy; Green Supply Chain Management; and bio-economic cost models. Conclusion: Finally, eight clusters emerged: (1) Management and models of sustainability to face climate change; (2) Natural resources conservation; (3) Methodologies, models and strategies of sustainable production; (4) Circular economy and waste management in sustainable production; (5) Energy sources management in productive processes; (6) Education and water management; (7) Risks and uncertainty management; and (8) Public policies for sustainable production.
Article
The concept of circular business models, defined as firm activities to create and capture value in a circular manner by, for example, extending or continuously reusing product materials, has received increasing attention in management research. The emerging literature, however, lacks theoretical underpinning and empirical findings are not cumulative. Therefore, this article analyzes existing and related research in much detail and presents a comprehensive research model on antecedents, moderators, and outcomes of circular business models. The theories and related research streams considered for the research framework include Institutional Theory, Managerial Cognition, Dynamic Capabilities, Corporate Social Responsibility, Business Model Innovation, and Ecosystems. Gaps within and across the respective research streams concerning circular business models are revealed, and relevant avenues for future research are suggested.
Article
This study aims to review the state of the art on the topic of business models for sustainability. The paper screens 1744 peer‐reviewed papers with no temporal limitation and undertakes three stages of literature review analysis of a final set of 134 papers with a combination of systematic, bibliometric and multivariate techniques. The first output is the identification of six wide different but interconnected research streams of business model for sustainability: namely, elements and structure; applications; different types of business model for sustainability; transition process; circularity as sustainability; and technical aspects of innovation. A theoretical framework that allows to understand the themes explored by the literature so far and gives an interpretation of the evolution of the literature has been produced. Finally, the analysis provides opportunities and research directions for future research. The paper originality lies in providing the first co‐citation analysis of business models for sustainability with a descriptive and critical study by identifying main research trends and relevant gaps in the literature and by providing future research directions.
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Sustainable development, and along with it, concepts such as corporate sustainability, corporate social responsibility, creating shared value and the like, has become a buzzword. The same holds true for terms like innovation and sustainable innovation, which have also become trendy terms on their own. In the traditional or conventional economic view, innovations, be they sustainable or otherwise, will be effectuated only if they contribute to creating shareholder value, irrespective of the societal value that is being, or might be, created. This means that, from a neoclassical perspective, creating societal value is a highly randomized and unpredictable process. But is that the case in reality? We seek to answer this question by applying the newly developed sustainable innovation framework. By reviewing the extant literature on sustainable innovation and examining practical examples, we provide our own definition of sustainable innovation, elaborate on the innovation compass and on different innovation spaces, and position them within the proposed framework. We conclude that the societal good of sustainable innovation is largest if sustainable innovations contribute to the economic transition towards a circular economy and the transition towards multiple value creation. The conventional economic regime is predominantly aimed at making things better through incremental – i.e., efficiency enhancing – innovation. We conclude that embarking on the transition towards a circular or sustainable economy requires that things are done differently through radical innovations, one of the most prominent being business model innovation.
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Cite/Reference as: Hoveskog, M., and Halila, F. (eds), (2021). Proceedings of the 6th International Conference on New Business Models: New Business Models in a Decade of Action: Sustainable, Evidence-based, Impactful. Halmstad: Halmstad University Press. http://urn.kb.se/resolve?urn=urn:nbn:se:hh:diva-44872
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Purpose This study aims to investigate the evolutionary pathways adopted by a digital platform to favor the development of an entrepreneurial ecosystem inspired by circular economy behaviors, becoming an enabler in the development of a coevolutionary relationship between entrepreneurial ecosystems and circular economy. Design/methodology/approach An in-depth single-case study method has been applied, investigating the case of circularity.com, the first and only circular economy industrial symbiosis platform in Italy. Findings The paper shows how digital platforms can transition towards circular business models, particularly for small and medium enterprises (SMEs). Moreover, the findings show how sustainable platforms' need to revise their business models to effectively engage with stakeholders. The analysis also shows the central role covered by entrepreneurial ecosystems in the transition towards a more circular and sustainable business models. Originality/value This paper contributes to theoretical development by offering new and insightful explanations of firms' behavior and coevolution, moving beyond the classic interpretation of industry dynamics and analyzing a unique case study. This study has implications for both practice and research, as it offers a better and more holistic understanding of the enabling role of digital platforms for a circular economy.
Article
In the last few years, the Circular Supply Chain (CSC) has gained considerable attention among researchers, practitioners, and policymakers. It offers immense opportunities to embrace supply chain operations in three dimensions of sustainability. This study aims to identify and rank the performance outcomes (POs) realized due to CSC enablers (CSCEs) adoption. The study proposes a hybrid framework of the Pythagorean fuzzy analytic hierarchy process (PF-AHP) and Pythagorean fuzzy combined compromised solution (PF-CoCoSo) to achieve the objectives of this research. PF-AHP is used to obtain the CSCEs relative weights while PF-CoCoSo is used to ranks the POs concerning the CSCEs. An empirical case study is conducted for an Indian manufacturing organization to demonstrate the proposed framework's applicability. The result reveals that ‘global climate pressure and ecological scarcity of resources’ is the most significant CSCE to achieve the sustainability in the supply chain, followed by ‘government rules, legislations and directives for CSC adoption’, ‘environment management certifications and systems’, whereas, ‘reduces waste and promotes green development’ is the most critical PO realized due to adoption of CSCEs in CSC implementation process. The proposed framework is a systematic, more comprehensive, accurate, and structured approach to the business organization to improve its POs in a step-wise manner by implementing CSCEs. Sensitivity analysis is performed to check the effectiveness of the proposed framework. This research provides substantial contributions to sustainable development in the society as well as in the industry, and it will help researchers, practitioners, and policymakers working in the domain of CSC.
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Digital transition in the maritime industry creates new organizational models and affects the relationship between actors. New relationships require new business models (BMs). In addition, due to the paradigm of green shifts towards a zero-emission future of maritime shipping in 2050, stricter regulations require new solutions, and “business as usual” is not actual anymore. Thus, the study aims to investigate key drivers for creating new BMs and factors for their effective implementation by companies. The results of the study point to the main reasons for creating BMs. It was revealed that there are several external and internal prerequisites. Moreover, it was proved that considering the current tendency of the interfaces in relationships with different industries, it is important to talk about the development of BMs not only from a supply chain perspective. Moreover, it should be considered from the point of view of network value. Hence, the study highlights the need for a further investigation that aims to design new solutions, implement, test, and observe the effect of new BMs, considering collaborative ties between interested parties. AcknowledgmentThe study is supported by the grant from the Research Based Innovation “SFI Marine Operation in Virtual Environment (SFI-MOVE)” (Project no: 237929) in Norway.
Article
Currently, sustainable business performance has become the global requirement due to the recent economic disaster, and green measures have been considered the leading solution for it. This situation has gained the attention of recent literature and regulators; thus, the present study examined the green transformational leadership (GTL), human resource management (HRM), and innovation on the sustainable business performance of the manufacturing organizations in China. The moderating impact of perceived organizational support among the association of GTL, green HRM, green innovation, and sustainable business performance of the manufacturing organizations in China was also investigated. The questionnaires method was adopted to collect data, and the smart-PLS was used to test the hypotheses. The results indicated that GTL, green HRM, and green innovation have a significant and direct association with the sustainable business performance of the manufacturing organizations in China. The outcomes also revealed that organizational support significantly moderates among the nexus of GTL, green HRM, green innovation, and sustainable business performance of the manufacturing organizations in China. The current research provides help to the regulators while formulating policies and guides the new researchers while examining this topic in the future.
Article
Social enterprises (SEs) have a high degree of complexity, as they are hybrid organisations that serve two missions: a social mission and a commercial mission. These missions are not always aligned, and tension can form between them as the commercial and social value creating activities compete for the limited resources available in the organisation. How can social enterprises sustainably create social and financial value while managing the tension that these hybrid organizations experience? The aim of this article is to create a conceptual framework (CF) which captures the concepts found in literature that are relevant to this question. The theoretical implication of this paper is the formulation of a comprehensive conceptual framework that consolidates the SE (O350) literature across business model innovation (M130), sustainability (O350), and hybridity (O350).
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HR analytics is a novel approach that has attracted the attention of researchers and practitioners in the recent time and is being applied in organizations as well to a great extent. HR analytics allows the human resource managers to take decision based upon human capital and it influences the outcomes in business. HR analytics is considered as a tool which aims to improve the insights in the organizations in terms of sustainable growth and future advancements or innovation. HR analytics plays a vital role in sustainability and culture of the organization. It is well known that organizational culture is influenced by organizational sustainability. This research attempts to review systematically the numerous studies conducted by the researchers of the recent time on HR analytics, organizational culture and organizational sustainability and their relationships as identified by these researchers.
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Sustainable value creation is a term that is widely used in sustainable business model literature, and it is gaining importance in other management fields. While there is still confusion on the meaning of this concept, researchers encourage studies that take a network perspective to generate new knowledge and a better understanding of it. In this paper, we address this call by taking a supply chain perspective, which is a type of network, and by focusing on one specific supply chain activity: procurement. Through a single case study of a French multinational, we investigate who creates sustainable value and for whom, taking a stakeholder theory lens. The case study is based on an inductive and qualitative-driven mixed-methods approach, involving interviews of key procurement and sustainability employees, ethnographic observation, and content analysis to provide new knowledge in both the sustainable business model and sustainable supply chain management fields. The findings provide empirical data that show, in the case of the firm studied, that the procurement function has a key role to play to create sustainable value for multiple stakeholders within and outside the firm. Sustainable procurement creates sustainable value for the firm, suppliers, clients, investors, municipalities, schools, NGOs, and associations. This value relates to economic, social, environmental and ethical dimensions. To our knowledge, this is the first study that clearly underlines the role of sustainable procurement to create sustainable value, which is relevant to guide researchers in digging further the importance of the procurement function and the supply chain lens in the sustainable business model field. The findings also highlight the need for top management and supporting functions such as finance to build capacity among the procurement department to develop sustainable procurement practices as, with a long-term perspective, it improves the sustainability performance of the firm and its supply chain partners. Overall, this study invites firms to integrate buyers and procurement managers at the core of their strategy to facilitate the operationalisation of their sustainable development goals.
Chapter
Purpose: This literature review aims to answer the calls for further exploration of scaling challenges and opportunities for social entrepreneurs (SEs). We address the scaling issue of social entrepreneurship through the theoretical lens of sustainable business models. Methodology: This paper investigates, on a multilevel approach, 340 journal articles published in one of the 20 peer-reviewed journals in management, entrepreneurship, CSR, organizational behavior, and nonprofit. It also considers influential articles due to their relatively high citation count (i.e., more than 150 times) outside of those selected journals. This paper furthermore analyses in-depth 32 scaling articles. Findings: This study positions the topics of social entrepreneurship over the last decades, together with the six types of scaling strategies: scaling up, scaling down, scaling across, scaling deep, scaling out, and diversification. It also discusses 15 challenges related to the scaling efforts by SEs. It furthermore elaborates on potential leads for research and practice regarding scaling social impact. Social Implications: There are many pathways for SEs to increase their impact on society, even though it remains quite challenging to achieve for most. Understanding what possibilities or limitations apply to individual SEs is but a first step in developing the full potential of social entrepreneurship. Originality: This paper approaches scaling from three complementary levels of analysis, i.e., individual, organizational, and institutional. Thus we provide more clarity and a nuanced perspective on past and future research regarding scaling challenges and opportunities. Keywords: Social impact; scaling; sustainable business models; social entrepreneur; multilevel; literature review
Thesis
La littérature sur les stratégies de rupture s’est attachée à décrire le comportement stratégique des entreprises dans un processus de transformation de marché, de secteur ou d’industrie. Ces dernières décrivent les processus par lesquels les entreprises transforment une industrie et/ou créent un nouveau marché à leur avantage par le biais d’innovations. Bien que la littérature ait reconnu la capacité des innovations de différentes natures à perturber le jeu concurrentiel (technologie, produit, business model), très peu de recherches ont fait le lien entre ces stratégies et les défis environnementaux. Dans cette perspective, nous croisons les cadres analytiques des stratégies de rupture avec celui de l’approche multiniveaux, un cadre d’analyse des transitions vers la durabilité. Ce cadre analytique permet d’appréhender les processus dynamiques à l’intérieur et entre trois niveaux d’un système sociotechnique : la niche, le régime et le paysage. Les recherches sur les transitions vers la durabilité ont souligné le rôle central des organisations dans le processus de transition. Notre thèse ambitionne de participer à la construction de la connaissance en management stratégique en ce qui concerne la participation des entreprises à cette transition. La thèse s’appui sur une étude de cas longitudinale du secteur de la distribution alimentaire française de 1963 - 2019. Notre analyse se base essentiellement sur deux entreprises : l’entreprise établie Carrefour et l’organisation militante Biocoop. Cette thèse met en évidence deux résultats principaux. Premièrement, elle soutient que la durabilité peut en effet dépasser le cadre limitatif de la niche (1). Elle montre également que cette mise à l’échelle de la durabilité est le fruit d’un processus de co-évolution entre les deux firmes étudiées (2). Dans un premier temps l’entreprise militante adopte en partie les règles du jeu sectorielle avec lesquelles elle entretenait un rapport antithétique. Cette intégration partielle des pratiques dominantes va permettre à Biocoop de développer son réseau de magasins et son activité dans un nouveau marché. Les opportunités économiques offertes par ce nouveau marché vont conduire Carrefour à accepter la rupture et de la faire sienne en vue de renouveler son avantage concurrentiel. La participation de l’entreprise établie à la rupture permet de mettre à l’échelle la durabilité et d’accélérer sa diffusion au sein du secteur.
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Over the last decades people have been conducting business in a manner that was mainly oriented towards profits, ignoring the harm they were causing to wildlife, their habitat, as well as to humans. Clearly, efforts to improve the situation are urgently needed, and this is why the topic of sustainability has been increasingly gaining popularity. Many companies try to integrate sustainable development into their day-to-day activities, by means of sustainable business model innovation. Unfortunately, they rarely succeed, as the challenges encountered in this process are numerous and very diverse. In literature, these challenges are depicted as the design-implementation gap of sustainable business model innovation (SBMI). This paper provides an overview and classification of these challenges, eventually focusing on organisational culture (OC). The latter can be a double-edged sword: it can seriously hinder advancement towards sustainable development, but it can, just as well, serve as a strong catalyst, and even become a company’s competitive advantage. For this reason, it is considered as a potential tool for bridging the design-implementation gap of SBMI. Therefore, the goal of this paper was to identify the type of OC that prevails in companies that have succeeded in bridging this gap, and to offer a set of recommendations on how to switch to this particular culture type. This was achieved with the help of the Organisational Culture Assessment Instrument (OCAI) questionnaire, that was sent out to companies detaining the Swiss Venture Club Award and companies detaining the B Corporation Certificate. The result, based on 46 responses, showed a high inclination towards the cult OC, a culture where employees and customers are at the core. By bringing to light this finding, this study provides valuable insights for companies looking to improve their environmental and social impact. Equally, it makes an important academic contribution by closing a research gap and providing avenues for further research.
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The current research intends to evaluate the validity and reliability of the adopted model-BFAS, and investigate relationship between the motives and Facebook addiction in Afghanistan. The adopted instrument were online distributed to undergraduate and postgraduate students and only 431 responded across the country to determine their intentions for using Facebook. The software of RStudio used for descriptive analysis and SEM-PLS approach was applied to hypothesis the relationship between the constructs. Results showed that the BFAS measures intensity of Facebook addiction, although measurement model was reliable and structural model has discriminate validity. Further, the results show that students use Facebook for communication, social interaction and entertainment, and these motives positively predicted Facebook addiction. Based on the results, authors believe that the Facebook addiction is a phenomenon that exists across the countries, and greater use of Facebook would tend to create problem of addiction. In sum up, this research would help parents, serves provider, policy makers, current Facebook users, and students to control their excessive use of Facebook.
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The importance of developing sustainable business models has recently received increased interest in society and among scholars. While firms attempt to innovate their business models towards sustainability or create new businesses to address sustainability issues, it becomes clear that there is no one-size-fits-all model when it comes to sustainable business models. Consequently, firms often struggle to identify, develop, and implement sustainable business models that suit them. This paper aims to address this problem by drawing on the wealth of recently published empirical studies and reviewing 87 cases where firms have performed business model innovation to achieve sustainable business models. Four main sustainable business models are identified that have been achieved through different business model innovation strategies. The review contributes to managers by offering a portfolio of strategies to achieve sustainable business models and to research by clarifying the relation between the business model innovation and sustainable business model concepts.
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Social entrepreneurial ventures are afforded the opportunity to mobilize resources through collaboration with stakeholders. This opportunity relates to the mobilization of resources offered, at little or no cost, by stakeholders closely affiliated with the venture. Based on an empirical examination of participant activities across seven collaborative social entrepreneurial ventures, a model of social entrepreneurial opportunity is developed that relates opportunity recognition, opportunity discovery, opportunity creation and the mobilization of resources without the expectation of monetary reciprocity.
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A stream of literature is emerging where network development and business modeling intersect. Various authors emphasize that networks influence business models. This paper extends this stream of literature by studying two cases in which we analyze how business modeling and networking interact over time. We propose the concept ‘value shaping’ to idescribe this interaction. Value shaping refers to the mutually constitutive process in which on the one hand networking helps to refine and improve the overall business model and on the other hand an improved business model spurs expansion of the network. We identify five micro-level processes through which value shaping occurs. Value shaping is particularly relevant for sustainability-oriented innovations, to help clarify all the types of financial, social and environmental value to which a business model may contribute.
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This paper investigates the means by which business model innovations help mitigate hybrid tensions in sustainable entrepreneurs. By integrating the sustainable business models, and hybrid entrepreneurship literature it highlights the overlap between the discourses in these fields. An in-depth exploration of ten sustainable entrepreneurs then demonstrates common business model innovation to ameliorated hybridity related tensions.
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The service sector has the potential to play an instrumental role in the shift towards circular economy due to its strategic position between manufacturers and end-users. However, there is a paucity of supporting methodologies and real-life applications to demonstrate how service-oriented companies can implement circular economy principles in daily business practice. This paper addresses this gap by analysing the potential of service-oriented companies in the information and communication technology (ICT) sector to build and implement circular economy business models. To this end, the Backcasting and Eco-design for the Circular Economy (BECE) framework is applied in an ICT firm. BECE, previously developed and demonstrated for product-oriented applications, has been developed further here for applications in the service sector. By shifting the focus from a product-oriented approach to a user-centred eco-design, the paper shows how ICT firms can identify, evaluate and prioritise sustainable business model innovations for circular economy. The two most promising business model innovations are explored strategically with the aim of designing circular economy models consistent with the company's priorities of customer satisfaction and profitability. The findings suggest that ICT companies may be able to support the deployment of a circular economy in the service-oriented technology sector. Importantly, micro and small organisations can play a fundamental role if provided with macro-level support to overcome company-level barriers. Finally, the BECE framework is shown to be a valuable resource to explore, analyse and guide the implementation of circular economy opportunities in service-oriented organisations. Further research to verify the application of the findings to other service-oriented organisations is recommended.
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One of the greatest challenges for sustainable business models is achieving a scale of operations that is adequate to meet the quantity and depth of needs in their markets. In this paper, we examine scaling of sustainable business models at the base of the pyramid (BOP). Using within- and cross-case analyses, we study the sustainable business models of three firms that provide affordable housing for people with very low incomes in Mexico. Our analyses reveal the importance of community engagement as well as constraints on the ability to stimulate market forces when serving the very poor. These findings suggest that the literature on sustainable business models should be modified to account for the essential roles of community engagement and government collaboration in lieu of reliance on market forces in enabling social enterprises to scale in order to better serve the very poor.
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Sustainable innovation requires collaboration across organizational boundaries, hence in this research, we take a boundary-spanning perspective on the business model. This perspective focuses on how value is created and captured across organizational boundaries, by investigating the value transfers between the focal organization and the external network of business model actors. We analyze the business models of 64 innovative sustainable organizations from The Netherlands in terms of how environmental and social sustainability is manifested in the content, structure, and governance of their business models. We find that environmental sustainability is mainly represented in value creation content, whereas social sustainability is achieved by serving underprivileged user groups and mainly is reflected in value capture content. We observe that social sustainability in both for-profit and non-profit organizations is often achieved by having an imbalance in value exchanges that is compensated elsewhere in the business model. In terms of business model structure we show that sustainable organizations use the same underlying business model structures as can be found in conventional firms. All in all, we demonstrate that analyzing the environmental and social sustainability of organizations using the boundary-spanning perspective on business models provides complementary insights to the traditional component-based view of the business model.
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Businesses will play a key role in helping the transition towards greater sustainability. To maximise business sustainability performance, sustainability characteristics must be integrated at the business model level, creating business models for sustainability. Creating a business model for sustainability, or transitioning from a traditional business model, is likely to be a complicated and challenging process. Previous research has identified a range of barriers, such as low financial report or little legislative support. The aim of this research is to explore and identify critical success factors and barriers for the transition from traditional business models to business models for sustainability. Previous research provides indications as to the barriers faced when attempting to develop BMfS, but does so using conceptual lenses that emphasise external influences and factors. We seek to explore the process of business model innovation for sustainability from a perspective that pays greater attention to internal processes and from a management perspective, building on concepts of organisational change management. The research focuses on start-ups and small and medium-sized enterprises (SME’s) in the Dutch Food and Beverages Industry. This is an interesting empirical context, as this sector is a dynamic, economically significant in the Netherlands, and is under pressure to improve its environmental performance. Data is collected from 14 cases, using semi-structured interviews, and is then analysed to identify a range of critical success factors and barriers. We find that collaboration, a clear narrative and vision, continual innovation, a sustainable foundation, profitability, and serendipitous external events are all critical success factors for the transition to business models for sustainability. Barriers include external events, principle-agent problems as well as a lack of support from wider actors and systems. The results highlight that businesses wishing to develop a business model for sustainability must make sustainability the key principle upon which the firm is founded. Continual development and improvement is required in addition to the support of a range of different actor’s external to the firm, such as suppliers, customers, and government.
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Until recently, it was commonly assumed that social enterprises – by virtue of the ingenuity of their founders – were extra-ordinarily capable to simultaneously pursue social and financial goals. However, an emerging body of literature considers that social enterprises face tensions and trade-offs as they pursue their divergent goals. While extant research has offered insights into tensions that social enterprises face between social and financial goals, it is not clear whether this is the only trade-off social enterprises face or whether they also have to balance other, related tensions that stem from their social mission. In case tensions and trade-offs manifest themselves in other ways too, how do social enterprises manage the various different tensions and trade-offs while keeping a coherent social mission? The aim of this study is to examine a social enterprise’s balancing act of addressing the various different tensions and trade-offs that arise when trying to deliver a multifaceted but coherent social mission. A qualitative research design was employed to examine tensions and trade-offs by focusing on the case of a German social enterprise from the organic food sector. The case study findings suggest that, initially, social enterprises face social-financial tensions. Yet, as they grow in size and scope, they also begin to experience tensions among their various social goals that we refer to as social mission design tensions. Regarding the management of tensions, we find that in contrast to the current tenor in the social enterprise literature, which espouses that redressing tensions is essentially an act of separation or integration of social and financial goals, we find that, at times, social enterprises accept and live with tensions instead of addressing them.
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This study contributes to the growing literature of Sustainability Business Models (SBM) by introducing a new category coined as Associative Sustainability Business Models (ASBM). We theorize that this category encompasses firms with innovative business models that rely on partnership, association and collaboration to create value in the triple bottom line and address pressing sustainability challenges. Following an inductive research approach, we analyze four case studies of ASBM ventures in the chocolate industry. Our findings reveal the emergence of two key theoretical constructs (firm location and claimant identity) that help to identify differences across ASBM designs and lead to four different subcategories of ASBM. In addition, drawing on the literature of Sustainable Business Models, we develop theoretical propositions that link our four subcategories of ASBM to the business case for sustainability. Therefore, we extend the literature on SBM by providing new insights on how business model innovations based on strong association and collaboration can generate solutions to social and environmental challenges.
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Sustainable business model innovation is increasingly viewed as a lever for systems change for sustainability across businesses and industries. Banks hold a unique intermediary role in sustainable development, but also have a difficult position after the 2008 financial crisis. This paper aims to explore business models for sustainability in the service industry, particularly banking. It explores the receptiveness of customers towards sustainable business models pursued by banks. The retail banking industry in Hong Kong is the focus of this work. First, a practice review and semi-structured interviews are used to develop and validate a set of sustainable business model archetypes for the banking industry. Second, surveys are conducted to test customer receptiveness for the archetypes. Eight sustainable business model archetypes for banking are developed and validated. “Substitute with digital processes”, “adopt a stewardship role” and “encourage sufficiency” are most welcomed by customers. Some archetypes seem at direct odds with current business practice, such as “encourage sufficiency”. This study gives an insight to how to “do good and do well” in the banking industry. Further research on the attributes of these archetypes can be conducted to gain a deeper understanding why customers prefer banks to use these archetypes.
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Entrepreneurial ventures increasingly aim at developing viable business models for solving societal or ecological challenges. Such business models for sustainability (BMfS) build on reinforcing mechanisms of value creation and capture that allow achieving financial and sustainability objectives simultaneously. To date, we do not know much about the successful design of such business models. This research aims to reduce this gap by experimentally exploring their scalability and robustness in different environmental conditions. Rooted in the literature on business models and innovation adoption, we develop a simulation model that integrates various dimensions of BMfS. We apply the simulation to Coursera, an entrepreneurial venture with the social mission of making high-quality education globally accessible. The simulation allows us to test hypotheses about the venture's financial and sustainability performance over time. We find that the business model is highly scalable but shows limited robustness to strong competitive pressure. We derive implications for the effective design of business models and discuss how the findings contribute to sustainability literature.
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Corporate social responsibility is gaining significance in the business world. However, scholars haven't sufficiently examined the factors that influence the small, everyday sustainability behaviors that individual employees might choose to perform. This study had the aim to unravel factors that affect pro-environmental behaviour (PEB) of individual employees. In addition to the known factors of the theory of planned behaviour (attitude towards PEB, subjective norms, perceived behavioural control, and intention to act), factors as leadership support, perceived organisational support for the environment (POS-E) (taken together as institutional support), and leadership (exemplary) behaviour were taken into account. Although the relationship between intention to act and PEB was not significant in this study, based on the findings it can be concluded that leadership behaviour (as exemplary behaviour) and POS-E or in other words the perceived organisational support to act proenvironmentally friendly, are affecting both intention to act and PEB. It is remarkable that leadership support does not affect the intention to act and actual PEB.
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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.
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Many organizations operate multiple business models (BMs) concurrently. Yet, we know little about the challenges of managing a BM portfolio in one organization. In this study, we examine complexity as an important issue facing multi-BM firms. We differentiate complexity within a single BM from the complexity of links between BMs managed by a focal organization. Linking the BM and corporate strategy literatures, we discuss important dimensions and consequences of complexity in a BM portfolio. The sharing of similar activities and partners and the redeployment of activities and partners across BMs are important dimensions of the complexity of an integrated BM portfolio. We also suggest that BM portfolio complexity should be aligned with organizational design in terms of the centralization or decentralization of the decision-making process, and identify the positive effect of BM portfolio complexity on building imitation barriers.
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Over the last 15 years, business model innovation (BMI) has gained an increasing amount of attention in management research and among practitioners. The emerging BMI literature addresses an important phenomenon but lacks theoretical underpinning, and empirical inquiry is not cumulative. Thus, a concerted research effort seems warranted. Accordingly, we take stock of the extant literature on BMI. We identify and analyze 150 peer-reviewed scholarly articles on BMI published between 2000 and 2015. We provide the first comprehensive systematic review of the BMI literature, include a critical assessment of these research efforts, and offer suggestions for future research. We argue that the literature faces problems with respect to construct clarity and has gaps with respect to the identification of antecedent conditions, contingencies, and outcomes. We identify important avenues for future research and show how the complexity theory, innovation, and other streams of literature can help overcome many of the gaps in the BMI literature.
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Recent entrepreneurship research has examined how opportunities are developed, highlighting the engagement of external actors. However, we know little about how entrepreneurs should interact with external actors to sustain their engagement. Since opportunity development is a process that unfolds over time, sustaining actor engagement is critical because it enables continued feedback and access to actors’ resources. We present a process model that explains how entrepreneurs can sustain external actor engagement through two iterative phases: translation and transformation. We also propose that entrepreneurs can sustain actor engagement by structuring the timing of interactions and by modifying actors’ perceptions of the time available for novel opportunity development. We conclude with an agenda for future research on actor engagement and entrepreneurs’ temporal capabilities.
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Offered here is a conceptual model that comprehensively describes essential aspects of corporate social performance (CSP). The three dimensional model address major questions of concern: (1) What is included in the definition of CSR? (2) What are the social/stakeholder issues the firm must address? and (3) What is the organization's strategy/mode/philosophy of social responsiveness. The first dimension is the source of the original four-part definition of CSR originated: economic, legal, ethical, and discretionary (later termed philanthropic). It was later presented at the CSR Pyramid (1991).
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Limited literature exists on how insurance companies incorporate a focus on environmental sustainability into their core business strategy and practices. The article is intended to contribute to the implementation of corporate sustainability practices by presenting a framework or blueprint for insurance companies to follow which will enable them to integrate sustainability goals into their culture, core business, strategy and structure. Findings are based on a case study and interviews involving insurance companies operating in the Nordic region, a follow-up study, and secondary data. On a global level, actions of Nordic insurers include commitments to international agreements, schemes and initiative dealing with environmental issues. On a regional level, actions include collaboration through financial and insurance associations, conferences and publications. National level actions include eco-labelled insurance, commitments and green office programs. Building on earlier literature, and based on the actions of these Nordic insurance companies, a Five C framework for the insurance sector environmental sustainability is developed. The framework identifies five phases in corporate strategy development on the path towards environmental sustainability: (1) commitment, (2) configuration, (3) core business, (4) communication, and (5) continuous improvement. The study findings show that the phases identified in the Five C framework are mainly developed through actions carried out by the larger companies included in the study. The smaller companies appear to be passive or reactive in developing sustainability practices. Therefore, the suggested framework can facilitate positive changes and enable companies with limited resources or those at the early stages of strategy development to learn from sustainability implementation best practices of early adopters. The Five C framework proposed is intended to: (1) help insurance company leaders better understand how, through their actions, they can contribute to industry-wide adoption of sustainability strategies and practices thereby influencing the scale and speed at which these are implemented, and (2) to emphasise the importance of the core business in strategy implementation which has not been adequately addressed in prior academic literature and industry frameworks.
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This paper aims at examining academic production on social entrepreneurship, in order to identify approaches and drivers, as well as offer an analytical overview on the topic. Social entrepreneurs are individuals with a social mission, capable of combining practices and knowledge as well as developing partnerships to promote sustainable social change. The weaving of a social mission into an enterprise can bring about social innovation through the development of solutions to long-standing problems and the improvement of the living conditions of a community. The present paper is the result of a systematic survey in the Web of Science database that aimed at analyzing academic production in the area. Its practical and theoretical contributions will allow the construction of a network of themes and the identification of new emerging areas. Moreover, it analyses the dimensions and drivers of social entrepreneurship research, obtaining thus an integrative perspective. It provides also a panoramic assessment of available researches, allowing the authors to identify gaps of knowledge and, consequently, new topics to be investigated. Finally, it can offer a unique perspective for institutions, companies and communities challenged by the need to perform holistic social innovations. The authors propose a research framework that may offer guidance to specialists and researchers willing to investigate the link between dimensions and elements of a social entrepreneurship from a social development point of view.
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Incorporating entrepreneurship and sustainability as complementary entities is challenging. Within a multi-disciplinary academic context and using a case-study research approach, this paper outlines the design and delivery of an entrepreneurship course to encourage participants' lateral thinking and incorporated intelligence when developing sustainable business models. Results underline the fact that teams, which include participants with a greater diversity of academic backgrounds, tend to think and act more creatively in the conceptualization of new business models compared to less diverse teams in a similar academic context. Participants’ ideas in diverse teams proved to incorporate a wider problem context in their problem-solution proposition. This underlines some conclusive evidence for a positive relationship between social learning and business development in fostering first and foremost intangible learning but also enable concrete tangible outcomes in creating new sustainability business models.
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The production and consumption of energy requires sustainable business models. However, sustainability is a complex phenomenon, particularly in high-technology sectors that require the integration of diverse knowledge for sustainable innovation. Therefore, recent literature on the subject states that business model (BM) innovation, based on networks and partnerships, is crucial for sustainable development. The literature also calls for further research on how BMs change to ensure network adaptability. The resource dependence theory helps to explain how different levels of dependencies induce companies to create network linkages, transforming their business models for sustainability. This study offers empirical evidence on how new forms of interdependencies arising within the network drive changes in the BM of firms by focusing on the three main BM elements: value proposition; value capture; and value creation and delivery. The network forces its participants to widen their definition of value and include value creation for both company and society as a BM goal. The network also allows for the introduction of new concepts, knowledge, and practices, thereby creating and reinforcing a different approach to capturing value, based on new links among the participants. The evidence shows that networks help achieve sustainability goals by solving the problem of resource dependency; however, new resource dependencies on network partners, and the network itself, are seen to emerge. The results have implications for practitioners and future research on networks and sustainable business models.
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Many of the existing tools for design in a sustainable fashion context are too complex, overly conceptual, require experts to apply, have a high cost, were created for large corporations, or fall short in holistically supporting sustainable fashion design entrepreneurial practices. Micro-sized enterprises represent a significant portion of the fashion industry and can meaningfully contribute to the transition to a more sustainable apparel and textile industry. This paper addresses this gap through the development of an original design tool, the reDesign canvas, to support design entrepreneurs in developing sustainable fashion enterprises. Informed by design thinking and systems thinking, the canvas was developed based on an in-depth review of the academic literature and the collection of qualitative data. Qualitative data were gathered through both participatory action research (PAR) and interviews with 38 sustainable fashion design entrepreneurs and experts in sustainable fashion. Both the PAR and the interviews were used to test and refine the reDesign canvas in order to ensure it meets the needs of sustainable design entrepreneurs operating micro-sized companies. The final version of the canvas is based on 12 building blocks that a design entrepreneur would encounter in building a sustainable fashion brand. The reDesign canvas can help advance both the theory and practice of sustainable fashion design.
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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.
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The promotion of entrepreneurial activities and establishment of SMEs to strengthen national competitiveness has accelerated the examination of the business opportunities offered by cleaner technologies, such as bioenergy solutions. Finland is one of the countries which seek new ways for economic growth by boosting e.g. the growth of bioeconomy, and the rural areas in the country are considered as fertile ground for the growth of grassroot-level innovations related to bioenergy. However, the growth does not happen without suitable incentives for bioenergy business development. Thus, it is reasonable to examine the factors which have an influence on the decisions the actors in these rural regions make. In the paper, an integrated model is constructed to widen the knowledge of the process from the discovery of an entrepreneurial opportunity to actual business engagement. This is done by introducing the entrepreneurial process and utilizing the process in conjunction with two widely used theories: the Technology Acceptance Model and the Theory of Planned Behavior. The model offers an opportunity to observe the impact of different enablers and barriers on new business engagement, as they can be related to certain phases of the entrepreneurial process and certain environmental levels surrounding the individual actors. In the empirical study, an integrated model is reasoned in the context of small actors’ engagement in bioenergy by examining the business opportunities offered by biogas production from animal manure. The constructed model is meant to assist in the promotion of entrepreneurial intentions, and that way also to advance the fulfillment of national targets for bio-based economy and SME development.
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Food waste is major problem in developed countries, with the latest studies pointing to one third of the food produced worldwide. This problem occurs throughout the food value stream and has economic, environmental and social consequences. This study focuses on a solution developed in Portugal for a specific type of waste, vegetables and fruits discarded by farmers due to aesthetic reasons. Although with the same quality, their appearance is not within the requirements set by the main retailers and therefore not commercialized and consumed. The project developed to tackle this problem is a non-profit co-op, called Fruta Feia (Ugly Fruit) that commercializes this type of products that farmers cannot sell through the conventional channels. Tested successfully in Lisbon region, is now being replicated in Porto region. This study aims at assessing the sustainability of this project and its business model regarding the three pillars of sustainability – economic, environmental and social. For this, Life Cycle Assessment, investment appraisal, Social-Life Cycle Assessment and Social Return on Investment methods are used and compared, aiming also at the discussion of the key success factors of Fruta Feia project. Results showed not only the sustainability of the project, but also the suitability of the methods applied to assess the sustainability of a business model.
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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.
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This study focuses on information asymmetries between producers and consumers. Mandatory product labeling usually provides little information on a producer's social and environmental behavior. The authors therefore, propose a new product label, a facts panel on Corporate Social and Environmental Behavior (CSEB Facts Panel), and test its effects on consumer response. This study contributes to sustainability research by testing consumers’ reactions to simultaneous, and potentially incongruent, information on social and environmental behavior on products. In four experimental studies 376 European and 126 US consumers evaluated food items and a cellphone that carried the CSEB Facts Panel. The results demonstrate that the CSEB Facts Panel empowers consumers to discern between responsible and irresponsible corporate behavior. Furthermore, the results show when consumers face a tradeoff between social responsibility and environmental responsibility, social responsibility is more important to consumers and individual difference variables, such as social consciousness and environmental consciousness, can influence consumers’ responses to the CSEB Facts Panel. On a practical level this study shows that the CSEB Facts Panel could be a differentiation tool for companies adopting sustainable business models and that a government sanctioned CSEB Facts Panel could be an incentive for companies to conduct their businesses more responsibly.
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Organizations, such as social enterprises, engage in business model innovation when they wish to create, deliver, and capture value for their various stakeholders in ways that effect positive environmental and social change. Despite the increasing research attention paid to social enterprises, the literature on business model innovation in this context is still scarce. Therefore, the purpose of this paper is to explore business model innovation driven by sustainability issues at a social enterprise operating in the Scandinavian electricity retail market. A single case study research approach is taken, and data are collected from sixteen individual interviews and two focus groups with executives, managers, and directors. The study contributes to business model innovation as an organizational change process as well as an outcome of this process. The findings show that business model innovation over time at social enterprises reflects a shift in focus from novelty, via lock-in of customers, to efficiency in internal management routines. Additionally, the study concludes that social enterprises with innovative business models driven by sustainability issues can introduce novel practices that lead to changes in the dominant business model of their industry. The study also suggests how social entrepreneurs might innovate their business models as they focus on environmental and social sustainability. Until: 10/1/18 the article can be accessed here: https://authors.elsevier.com/a/1W5GQ3QCo9NHCt
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This paper proposes new perspectives and systemic changes to the linear fashion scheme, which is currently driven by fast, cheap and low quality production that fosters easy disposal or replacement, due to the low product value for the customer/user. The authors seek to open a discussion on new value creation through social manufacturing, specifically facilitated by do-it-yourself (DIY), do-it-together (DIT) and participatory design strategies. Social manufacturing can be seen as a more open and democratic approach to manufacturing, prompting different levels of user participation in the production process. The authors will illustrate how these alternative design strategies, build within the context of social manufacturing, can offer system-level changes by activating and empowering the end user to become value creators, while forming new, more sustainable innovations in design and manufacturing of fashion. The specific questions asked in this paper are: What types of value are created in social manufacturing through opening the design and manufacturing processes with alternative design strategies? Further, can social manufacturing enable sustainable solutions by transitioning the users to manufacturers of their own garments, prompting a new value system and range of business models in the fashion industry? An alternative value framework, developed within this paper, will enable the analysis of empirical data collected in Finland and the U.S. In the discussion, the authors demonstrate strategies to create wider change in the fashion system through social manufacturing, starting at a local level through empowered consumers.
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The Environmental Management Systems (EMSs) are voluntary tools with which companies manage the environmental aspects of their operations. In Europe, the most widespread are the ISO 14001:2015 international standard and the one defined by the European Regulation EMAS (Eco-Management and Audit Scheme). During the last years, while the number of ISO 14001 certified organizations has constantly grown, EMAS registered organizations have been declining. This phenomenon has occurred also in Italy, which accounts for roughly one-fourth of the 4000 European registrations. Only few scholars have explored this phenomenon and the existing relationship between EMAS outcomes and the decision to renew the Registration. Focusing on the Italian context, this paper aims at reducing this gap. The study presents the results of a survey, targeted to Italian EMAS organizations, that through a questionnaire investigates how the Scheme impacts on organizations' operations. Results have been analyzed using Exploratory Factor Analysis (EFA), Cluster Analysis and Binary Logistic Regressions, with the main goal to evaluate whether EMAS perceived benefits are significant in the decision to maintain the registration. Moreover, it explores the existence of significant linkages between organizations' characteristics and their willingness to renew EMAS. Findings show a significant predisposition to renew the registration, especially for small-sized organizations. Conversely, there is a negative link between renewal intentions and the possession of ISO 14001 certification. Finally, perceived benefits gained with EMAS implementation are not constantly significant predictors of the willingness to renew the registration. Despite the negative growth trend, the high levels of willingness to renew EMAS expressed by the respondents confirm the tool as a valuable resource and a solid baseline toward the implementation of more sustainable business models. Additionally, positive outcomes of EMAS such as the maximization of material productivity and energy efficiency, the creation of value from waste and the implementation of standardized environmental indicators may support organizations in the transition toward circular economy.
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Drawing on the concept of decoupling, from institutional theory in organizational studies, this paper explains how organizations mitigate demands for circularity. Seven Swedish apparel companies that have started collecting used clothes as a form of engagement with circular business models serve as case studies. The paper shows how outsourcing and internal separation allow these companies to buffer their business model and core way of creating value from emerging demands. It also shows how companies pro-actively work at influencing institutional demands for circularity by making these demands compatible with their own interests. The concept of decoupling thereby provides key insights into the development and implementation, or absence thereof, of circular business models.