Content uploaded by Florian Lüdeke-Freund
Author content
All content in this area was uploaded by Florian Lüdeke-Freund on Oct 27, 2018
Content may be subject to copyright.
A preview of the PDF is not available
The Sustainable Business Model Pattern Taxonomy – 45 Patterns to Support Sustainability-Oriented Business Model Innovation
Abstract and Figures
The literature on sustainable business models (SBMs) offers different classifications of the available kinds of SBM. Our careful reading of this literature reveals that the received classifications have developed ad-hoc from multiple divergent perspectives. As a consequence, the proposed classifications are only partly overlapping and difficult to reconcile, thus hampering cumulative progress. Building on this premise, we offer a synthesis and consolidation of the available knowledge about SBMs. Following the notion of patterns as problem–solution combinations, we developed, tested, and applied a new multi-method and multi-step approach centred on an expert review process that combines literature review, Delphi survey, and physical card sorting to identify and validate the currently existing SBM patterns. Ten international experts participated in this process. They classified 45 SBM patterns, assigned these patterns to 11 groups along ecological, social, and economic dimensions of sustainability and evaluated their potential to contribute to value creation. The resulting taxonomy can serve as a basis for more unified and comparable studies of SBMs and for new business model tools that can be used in various disciplines and industries to analyse and develop sustainability-oriented business models in a consistent manner.
Figures - uploaded by Florian Lüdeke-Freund
Author content
All figure content in this area was uploaded by Florian Lüdeke-Freund
Content may be subject to copyright.
Supplementary resources (2)
... Mignon and Bankel (2023) point out that companies often struggle to identify, develop and implement sustainable business models that suit them. In the literature on the subject, more and more studies are devoted to patterns of sustainable business models (Schroedel, 2023;Ferreira et al., 2021;Shakeel et al., 2020;Lüdeke-Freund et al., 2018, Bocken 2014. ...
PURPOSE: The influence of environmental, social, and governance (ESG) factors on financial performance has been confirmed in the literature. The article aims to examine the relationship between financial and non-financial factors in enterprises and to indicate for which groups of enterprises the relationship of ESG and financial performance is most visible in the context of building sustainable business models and the ability to adapt to sustainability. The article assumes that enterprises’ financial and non-financial results determine their adaptability to sustainability, and there is a relationship between financial results, non-financial performance, and companies’ sustainable business models. METHODOLOGY: The analysis encompasses 11 EU countries in the period 2008–2020. The study analyzed 6,864 observations, that is, 96,096 data cells. The data are divided into two groups of variables: financial and non-financial. The research is based on clusters analysis and ANOVA. It was carried out in two stages. In the first step, enterprises were grouped into clusters according to the financial condition criterion, considering the enterprise’s size and sector and country in which it operates. In the next step, it was checked whether enterprises with good financial standing also achieve better non-financial results. FINDINGS: It was found that large enterprises achieve better financial results than small and medium-sized enterprises, even though they operate in the same location and sectors. It can be emphasized there are statistical differences between entities with relatively good financial conditions and those with relatively weaker financial conditions in the context of such values as gender employment gap, total population living in households considering that they suffer from noise, greenhouse gas emission, Corruption Perceptions Index. The companies with relatively better financial standing achieve a smaller gender employment gap (at the national level) than entities with relatively worse financial conditions. It is similar to referring to the greenhouse gas (GHG) level. IMPLICATIONS: The results of this study may be useful for managements of companies in developing strategies of transformation towards sustainability, thanks to the fact that they provide information on what factors should be taken into account in the transformation process. ORIGINALITY AND VALUE: The originality of this study lies in the fact that it takes into account both financial and non-financial factors and examines the relationships between these factors in the process of companies’ adaptation towards sustainability and sustainable business model.
... The 6G ecosystem will be associated with both product and service systems (Tsujimoto et al., 2018), and both upstream and downstream value network actors, as well as related technologies and institutions with a varying degree of not fully hierarchically controlled multilateral, non-generic complementarities (Adner, 2017;Iansiti & Levien, 2004;Jacobides et al., 2018). This ecosystemic model will build upon customer-centricity (Weil & Woerner, 2015) and the dynamics of industry transformation, moving toward sustainable business, and can be viewed as an engine of social progress (Lüdeke-Freund et al., 2018), while the value-in-exchange may be captured on multiple levels (Lepak et al., 2007). The discussion above leads to the proposition of seeing ecosystem and platform concepts to be intertwined and thus defines a 6G ecosystemic platform-based business model as follows: An ecosystemic platform-based business model will connect various sides of multi-sided markets to facilitate value co-creation, co-capture, and sharing on multiple levels over a platform that facilitates interaction between users to collectively create innovations via matching, complementing, or sharing their resources sustainably. ...
This chapter introduces the evolution of mobile communications. As the mobile communications’ context is expected to become increasingly platform-based and ecosystemic, it is important to distinguish relevant perspectives and map the developments in the field. This chapter provides an outlook from the first (1G) to fifth (5G) generation of mobile communications by looking at technology and standardization, relevant regulatory developments and contents, and specifically characterizes the business ecosystems toward the sixth generation of mobile communications (6G). The purpose of the chapter is to provide a contextual setting for the discussions presented in the subsequent chapters by showing the emergence and evolutionary continuum of mobile communications from 1 to 6G.
... Due to the sensibility of the topic and the information held by stakeholders, Delphi offered anonymity between participants and helped to avoid bias and confrontation "to achieve the most reliable consensus on a given topic among a group of experts" (Egfjord & Sund, 2020, p. 3). By following Egfjord & Sund (2020); Lüdeke-Freund et al. (2018); Okoli & Pawlowski (2004);and Schmidt (1997), this report obtained, anonymously, individual answers from a group of experts within a set of two repeated interventions. The first round aimed to provide the researcher with the main trends deriving from the respondents' answers and perceptions. ...
Deliverable 6.4. aims to offer a Business Model Innovation (BMI) framework and potential scenarios of change. The objective of the deliverable is twofold. First, a framework is developed and validated to describe the development of the business model configuration of elements and their interrelationships to enable the adoption of Capture Utilization and Storage (CCUS) technologies. Second, it offers a Scenario-analysis which is used to forecast potential economic, technological, and socio-political developments that may make an alternative business model more feasible to unfold by 2032 to adopt Carbon Capture Utilization and Storage (CCUS) by industrial emitters. The report concludes by providing a set of innovation descriptions, potential investment funding strategies, revenue models, cash flow structures, and risk analysis, all part of the Business Models (BM) that enable the adoption of CCUS. Deliverable 6.4 then, aims at shedding light on the potential long-term futures to which the business model might unfold (a general goal of WP6). In doing so, novel business models and scenarios were formulated in close consultations with stakeholders in the North Sea Port CCUS cluster. Key elements discussed during the consultations include the assessment of risks and barriers to the deployment of industrial carbon capture and transport and storage infrastructure, cash flow, risk management instruments, appropriate funding sources, capital financing, and ownership structure.
... These two strands of research are brought together into a matrix where one axis of the matrix consists of the SBM archetypes, and the other consists of value dimensions and stakeholders. For the basic SBM framework template, see Table 5 in Appendix 1. Focusing on the SBM archetype axis, the work by Bocken et al. (2014), Ritala et al. (2018), andLüdeke-Freud et al. (2018) have been particularly instrumental. Consolidation of existing research revealed a total of ten relevant sustainability archetypes (Devine & Sandell, 2023), where an archetype can be thought of as a general sustainability approach which helps to deliver sustainability . ...
All organizations are unique, not least considering when and how certain sustainable business practices are initiated and managed. Organizations therefore need an instrument that is possible to adapt to allow for monitoring sustainability progress. In the Sustainable Business Model (SBM) framework, developed by the authors, the sustainability activities of stakeholders connected to the organization are coded into a matrix formed of sustainability archetypes and value dimensions. The purpose of this paper is to describe how the SBM framework can be adapted and used for depicting sustainability activities and values annually and over time. In the example used to demonstrate the application of the framework an extra archetype had to be added, which resulted in a modification of the model. By analyzing the adapted and applied matrix, not only which archetypes have the most activity can be seen, but also which stakeholders are involved in initiating, delivering, and capturing of value. The contribution of the paper is to show the applicability and versatility of the developed SBM framework when used in practice. Keywords: Sustainable Business Model (SBM) Framework, Sustainability Activities, Sustainability Archetypes, Value Initiation, Value Delivery, Value Capture, Practical application.
Purpose
Sustainability certifications can support green innovation in important consumer sectors such as food and beverage. This research interrogates how certified companies communicate sustainability claims online and whether these practices differ from non-certified counterparts. The purpose of the study is to understand if certification stands to alter online communication about sustainability.
Design/methodology/approach
A discourse analysis of the websites and social media accounts of three highly-rated Canadian B Corps and three matching non-certified companies inductively identified 5 types of sustainability claims: transparency, brand story, green materials/processes, community engagement and sourcing partnerships. A comparative analysis was used to determine if certification alters corporate sustainability communication practices of firms.
Findings
The findings indicate that sustainability certifications alter external online sustainability communication. Of the 457 sustainability claims coded in the sample, 67.6% are from certified firms. Attaining certification also alters the areas of communication focus, increasing communication about the socially oriented community engagement dimension, which is often underrepresented.
Originality/value
The research contributes to the understanding of sustainability communication among privately held small and medium-sized enterprises (SMEs), which are currently underrepresented in the literature. The unique sampling used in this study considers how communication is altered post-certification as a novel way to understand the impacts of sustainability certifications.
Purpose
Business model (BM) canvases have been used in educational institutions and business incubators for over a decade to assist students and start-up entrepreneurs in developing their business projects. Given the urgency of tackling sustainability challenges, several tools have emerged to stimulate sustainable business modeling (SBM). However, these tools are often too complex for nonexperts in business modeling or sustainability, and thus insufficiently user-friendly for educational contexts. This study aims to address this pedagogical gap by describing the design process of the responsible business model canvas (RBMC).
Design/methodology/approach
The authors relied on a design science research methodology involving the active participation of end users, entrepreneurship educators, business coaches and external partners. The authors proposed four criteria and ten subcriteria to analyze existing SBM canvases based on their user-friendliness and to design the initial prototype of the RBMC. The RBMC was subsequently tested in various settings, including classroom assignments and business incubation programs, with over 1,000 university students. The tool was refined and assessed throughout the development process, incorporating feedback from focus groups with start-up entrepreneurs.
Findings
Through the development process, the authors created a user-friendly tool to help novice student and start-up entrepreneurs integrate sustainability into their BMs: the RBMC. The canvas consists of 14 building blocks grouped into four areas: consistency ( mission, vision, values ), desirability ( value propositions, customer segments, users and beneficiaries, customer relationships and channels ), feasibility ( key activities, key resources, key partners and stakeholders and governance ) and viability ( cost structure, revenues streams, negative impacts and positive impacts ).
Research limitations/implications
The research methods and user-friendliness criteria in this study can be applied in other contexts to design tools to support sustainable entrepreneurship education. While the RBMC is currently being used in several educational institutions throughout the world, its impacts in different pedagogical and cultural settings require further validation.
Practical implications
The RBMC is a user-friendly tool to introduce students and start-up entrepreneurs to SBM. It helps raise users’ awareness about sustainability concerns, challenging them to consider issues they might have otherwise overlooked. Some participants even shifted their outlook and were motivated to develop a long-term vision integrating compensatory, mitigative or corrective actions into their BMs.
Originality/value
The RBMC is the outcome of a balanced approach that combines both pragmatic (i.e. user-friendliness) and normative (i.e. sustainability) perspectives. It provides users with a systematic approach for integrating and applying sustainability issues in their business projects.
Purpose
This study aims to analyse the components of sustainable business models (SBMs) in the dairy industry, in relation to firm-relevant organisational features (size, ownership structure and production process) and through the lenses of the business model framework and the sustainable value exchange matrix (SVEM). This contribution proposes a taxonomy of emerging SBMs and sustainable value creation in the dairy industry.
Design/methodology/approach
This research makes use of a multiple case study approach, with cases selected in collaboration with industry experts. The selected firms are highly committed to sustainability transition. Results are drawn from qualitative data obtained from in-depth interviews and secondary sources. The interpretation phases, initially based on open coding, have been enriched by applying the components of business models (BMs) frameworks and the SVEM, and the analyses have been enhanced through an additional interpretative workshop with experts.
Findings
The authors related the BMs characteristics of some typical dairy firms transitioning to sustainability, using SBM components and taxonomies emerging in the literature, based on the formalisation of sustainability practices, the scope of operations, and the degree of integration of the three dimensions of sustainable value. These findings led to the discovery of three types of SBM in this dairy industry, referred to as “Milky Ways”.
Originality/value
This paper contributes to the scant literature on sustainability in dairy firms, highlighting the different paths followed by small and medium-sized enterprises (SMEs), cooperatives and large companies in remoulding their business models towards sustainability and thus achieving sustainable value creation.
The circular economy requires companies to rethink their supply chains and business models. Several frameworks found in the academic and practitioner literature propose circular economy business models (CEBMs) to redefine how companies create value while adhering to circular economy principles. A review of these frameworks shows that some models are frequently discussed, some are framework-specific, and some use a different wording to refer to similar CEBMs, pointing to the need to consolidate the current state of the art. We conduct a morphological analysis of 26 current CEBMs from the literature, which includes defining their major business model dimensions and identifying the specific characteristics of these dimensions. Based on this analysis, we identify a broad range of business model design options and propose six major CEBM patterns with the potential to support the closing of resource flows: repair and maintenance, reuse and redistribution, refurbishment and remanufacturing, recycling, cascading and repurposing, and organic feedstock business model patterns. We also discuss different design strategies to support the development of these CEBMs.
A shared understanding of the basic requirements for modelling sustainability-oriented business is currently missing. This is hindering collaboration, exchange, and learning about sustainability-oriented business models as well as the development of suitable and widely-accepted modelling tools. We contribute toward such a shared understanding based on a theoretical discussion of boundary-spanning and interactive business model development for sustainable value creation. The theoretical discussion feeds into a comparative analysis of the six currently available practitioner tools supporting the exploration and elaboration of sustain-ability-oriented business models. By synthesizing findings from theory and available tools, we define four guiding principles (sustainability-orientation, extended value creation, systemic thinking, and stakeholder integration) and four process-related criteria (reframing business model components, context-sensitive modelling, collaborative modelling, managing impacts and outcomes) for the development of sustainability-oriented business models.
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.
This chapter describes avenues for future research to develop a “sustainable business model pattern language.” The chapter reflects on how sustainable business model (SBM) patterns can be identified, described, and turned into a design language to support the development of more sustainable organisations. Such organisations solve ecological, social, and economic problems through new approaches to proposing, delivering, capturing, and creating value. Theoretical and conceptual elements as well as methodological issues of developing an SBM pattern language are discussed. The value of using patterns in practice is illustrated with two business model innovation tools, one analogue and one digital, that use different patterns, including revenue and pricing, circular economy, and SBM patterns. Finally, questions for future research are proposed.
A shared understanding of the basic requirements for modelling sustainability-oriented business is currently missing. This is hindering collaboration, exchange and learning about sustainability-oriented business models as well as the development of suitable and widely-accepted modelling tools. We contribute toward such a shared understanding based on a theoretical discussion of boundary-spanning and interactive business model development for sustainable value creation. The theoretical discussion feeds into a comparative analysis of the six currently available practitioner tools supporting the exploration and elaboration of sustainability-oriented business models. By synthesising findings from theory and available tools, we define four guiding principles (sustainability-orientation, extended value creation, systemic thinking and stakeholder integration) and four process-related criteria (reframing business model components, context-sensitive modelling, collaborative modelling, managing impacts and outcomes) for the development of sustainability-oriented business models.
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.
Business models—the underlying structures of how companies create, deliver and capture value—form the engine of our economy. They determine the speed at which economies grow, and the intensity at which our resources are consumed. They determine the number and type of jobs in our cities, the provenance of the products we buy, and the price of the food we eat. They contribute to the quality of our communities and our lives.
The business case for corporate social responsibility has become increasingly influential. it is the central message of most books on CSR, it is widely believed by executives and many business students, and it underlies the business model of socially responsible investment funds. it is attractive to many CSR advocates, since if CSR "pays," then the profit motive will drive corporations to act increasingly responsibly. However, the business case for CSR is weak. The results of studies that seek to correlate social and financial performance are inconclusive: socially responsible investment funds perform no better than non-socially screened funds and many relatively responsible companies have not been financially successful.
There is ambivalence and uncertainty surrounding the stakeholder value impacts of increasingly influential collaborative consumption (CC) business models. While we observe such models expanding from developed to emerging economies we lack an understanding of the role played by the local context in which they are embedded. It can be assumed that stakeholder value impacts, both positive and negative, are particularly pronounced in emerging economies. We thus ask, what are the stakeholder value impacts of CC business models and how are they influenced by an emerging economy context? Based on case studies in transport and cleaning services in South Africa, we develop a model of the three-way interactions between local context, CC business model, and stakeholder value impacts. Further, we define CC business models as manifestations of two-sided markets, which allows us to better understand their positive and negative impacts on their key stakeholders. Our analysis shows that both new and established CC business models must be carefully adapted to local contexts to make best use of their potential to create stakeholder value and to avoid unintended negative impacts on vulnerable social groups.