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Business model based on strong sustainability: Insights from an empirical study
Abstract
The extant literature on traditional and sustainable business models lacks insights into how strong sustainability—that is, constraining economic and social activities within the limitations of natural resources—can shape business models. Thus, the purpose of this article is to propose a business model framework based on the principles of strong sustainability (SSBM). The proposed framework is developed combining available literature and empirical insights from a qualitative abductive study of 12 permaculture business ventures in Sweden. The results identify nature as the primary stakeholder and recommend strong local anchorage, the creation of diversified income sources, deliberate limitations on economic growth, the infusion of the business model with a systemic and ecosystem perspective, and the design of value flows beyond financial aspects. The discussion reflects on the most important results, provides practical implications and managerial guidelines, and suggests future research in the SSBM.
... The methodology used in this work builds on a related study [51] that considers three start-up cases featuring existing sustainable smartphone proposals (Fairphone 1 , Shiftphone 2 , and Puzzlephone 3 ) and analyses how they integrate sustainability dimensions, i.e., navigate their sustainability performance. These three might be considered pioneers of (strong) sustainability business models [52] in the smartphone industry and (strong) sustainable entrepreneurship or sustainopreneurship [53][54][55] as perhaps the most ambitious form of Sustainability Entrepreneurship [56]. To inquire into (potentially) circularsustainable mobile technology ventures and assess the "significant positive benefits […] for the environment and society" ( [57]: 44), one needs to consider both alternative smartphone design and alternative business model innovation conjointly. ...
... For the business and, more concretely, entrepreneurial considerations made in this article, a literature corpus on (strong) sustainable entrepreneurship (SE/SSE), (strong) sustainability business models (SBM/SSBM), and effectuation and non-predictive strategy has been central [48,52,[55][56][57][69][70][71][72][73][74][75][76][77][78]. Based on this theoretical framing of BM and entrepreneurship which also guided the study of three real-world sustainable smartphone ventures (cf. ...
... For the business/venture layer, the SBM framework [57] was adopted and infused with some novel indicators to relate the cases under study to strong sustainability concepts such as sufficiency thinking [57,69,70], strong sustainability business models [52,55], and supply chain redesign for the circular economy [94], in three indicator groups, see Table 1. ...
The smartphone industry is undergoing a slow transition towards sustainable design and circular business models in response to mounting social and ecological concerns. This paper discusses a smartphone concept regarding sustainable value creation over its entire lifecycle—thereby urging the creation of alternative designs and future-fit businesses. Hence, drawing inspiration from existing start-ups seeking to establish a sustainable smartphone market, a speculative business proposal is synthesised. It employs an analytical framework, with the three layers ‘agent-situation’, ‘product system’, and ‘business/venture’, custom-made to explore value creation in smartphone design, production, and consumption for both existing businesses and this study’s case. Through the simultaneous consideration of designing and business modelling, this case exemplifies a sensible navigation between sustainability values, regardless of whether trade-offs or even synergies emerge. The resulting cross-fertilisation of the two fields contributes to stretching notions of what is possible and desirable in an advanced circular society future.
... This arguably reflects the tension that arises from businesses' short-term commitments towards shareholders that prevails in the current economic system and their traditional operational scope. One could argue that the concept of the "Doughnut Economy" [83] suggests a different perspective, as it is based on the foundations of the "Planetary Boundaries" concept. ...
... The implication of the dominance of sustainability and sustainable business concepts that are short-term and human-centric, focusing on economic sustainability and resources, is a deficient transition to a sustainable business model [106]. It will result in the greening of business but not seriously engaging with the long-term consequences of ongoing unsustainable consumption and increasing pressure on planetary boundaries, which could be argued is fundamental to "strong sustainability" in business [1,83,85,107]. ...
... In general, our findings suggest a predominance of articles referencing concepts that present a limited understanding of sustainability. More advanced and credited concepts, including earth systems perspectives, like Planetary Boundaries [24] and the Doughnut Economy [83], present a broad understanding of sustainability, including a human and planet-oriented, long-term perspective. Still, they have only marginal representation in the sample set. ...
Current sustainability challenges force companies to radically rethink their operations to account for their business models’ long-term ecological and social impact. Scholarly works on the topic reveal no solid consensus in defining sustainability for businesses, echoing the sustainability discourse in general. Such lack of clarity might in turn detrimentally impact the business logic that can arrive from such sustainability concepts. The few existing typological reviews of sustainable business literature are lacking in their investigation of underlying theoretical frameworks of sustainability and, more importantly, the implications of their application are largely missing. This study describes and analyses the main sustainability concepts identified in a body of 69 scientific articles from the field of sustainable business literature. Secondly, it proposes a basic sustainability taxonomy to support a critical discussion, and implications of the sustainability concepts, in both discourse and practical application. The findings suggest a predominance of concepts that only partly encompass the key aspects of sustainability, such as social and ecological issues, and long-term perspectives, and they lack the systemic understanding present in fields such as the Earth Sciences.
... A total of 25 studies reflect the principle through an abstract concept: a stakeholder perspective as a normative requirement on SBM. Beyond the scope of this study, the stakeholder view is a core concept in SBM research (see, e.g.,Attanasio et al., 2022;Brozovic, 2020;Lozano, 2018). Hence, SBM research is essentially well equipped to contribute to this principle of DE. ...
... Among those, we identified sufficiency as the only concrete concept that mirrors growth agnosticism at the business model level. Considerably, more research is necessary in order to explore further concrete concepts (cf.Brozovic, 2020). Consequently, our sixth avenue for research is as follows: Avenue (6) Explore growth agnostic SBMs. ...
... A total of 25 studies reflect the principle through an abstract concept: a stakeholder perspective as a normative requirement on SBM. Beyond the scope of this study, the stakeholder view is a core concept in SBM research (see, e.g.,Attanasio et al., 2022;Brozovic, 2020;Lozano, 2018). Hence, SBM research is essentially well equipped to contribute to this principle of DE. ...
... Among those, we identified sufficiency as the only concrete concept that mirrors growth agnosticism at the business model level. Considerably, more research is necessary in order to explore further concrete concepts (cf.Brozovic, 2020). Consequently, our sixth avenue for research is as follows: Avenue (6) Explore growth agnostic SBMs. ...
Research on sustainable business models (SBM) is a young and dynamic stream of research that is essential for exploring how companies propose, create, deliver and capture value (Bocken et al., 2014; Lüdeke-Freund & Dembek, 2017; Lüdeke-Freund et al., 2018; Stubbs & Cocklin, 2008). Recently, scholarly interest has moved towards the question of how SBM fosters broader sustainability transitions and, in turn, how such transitions spawn novel SBM (Aagaard et al., 2021; Proka, Beers & Loorbach, 2018). Scholars refer to this field of research as ‘business models for
sustainability transitions’ and understand ‘sustainability transitions’ as “fundamental change at a societal level” (Aagaard et al., 2021, p.2). This is particularly important in face of worldwide social-ecological challenges like climate change or environmental degradation...
... In terms of resource management, it should be noted that the local ecosystem and nature should be recognized as essential stakeholders. Therefore, all activities and decisions made by different stakeholders should consider their impact on natural resources (Brozovic, 2020). ...
... In Uniejów, geothermal water is used in private houses and public buildings; in Gołdap, clean air and a graduation tower are common assets for all residents. Therefore, the efforts for the sustainable management of these resources in health resorts are the implication of all stakeholders' involvement, who are aware of their potential impact on the natural resources (Brozovic, 2020). Such assumptions are in line with Bernat's (2018) advice to protect natural healing resources and climate's therapeutic properties, to provide all stakeholders (clients, residents) with good living conditions (use of renewable energy sources) and sustainable development. ...
The creation of sustainable value is one of the compelling issues in contemporary scientific research in management. Due to the diverse actors involved and the numerous research contexts, both in management theory and business practice, value creation paradigms are still primarily studied in economic, social, and environmental dimensions. However, the ecological context appears to be an essential but controversial area of analysis, raising questions about the role of the natural environment and its resources in modern businesses and communities. The article aims to present the complexity of the issues of cooperation, creation, and co-creation of sustainable value in Polish health resorts. The article is divided into two major sections: the theoretical part of the article contains an overview of the main concepts and problems related to the creation and co-creation of sustainable value. In the empirical part, case studies present two examples of small Polish health resorts where sustainable value co-creation takes place.
... Stakeholder theory explains how the unique needs and expectations of each stakeholder determine their perception of the value offered by the firm (Donaldson & Preston, 1995;Harrison et al., 2010). Stakeholders perceive a particular use value based on both monetary and nonmonetary outcomes, and the quality of the relationship itself (Bowman & Ambrosini, 2000;Brozovic, 2020;Harrison & Wicks, 2013). However, this perspective on stakeholder value has not been extended in the SBM literature to stakeholders who have an indirect relationship with the focal firm through suppliers (i.e., stakeholders of suppliers). ...
... Additionally, the relationship quality with regard to the just treatment of stakeholders and the social benefits of affiliation to the firm (e.g., reputation) is an important value creator in itself (Harrison & Wicks, 2013). As value is always created with stakeholders, mutually beneficial relationships and reciprocal value flows (Evans et al., 2017;Freudenreich et al., 2020;Harrison & Wicks, 2013) are crucial to support the social and ecological systems the SBM is embedded in (Brozovic, 2020;Cosenz et al., 2020). ...
Extant literature on sustainable business models highlights that value creation stems from resources exchanged in relationships between a focal firm and its stakeholders. In this context, the literature has, so far, focused on direct relationships. However, despite the acknowledged relevance of sustainability issues in supply chains, this relational view of the focal company and its direct stakeholders has not been extended toward value creation for and with indirect stakeholders, such as stake-holders of suppliers. Addressing this gap, this conceptual article integrates a relational view of sustainable supply chain management into the management of sustainable business models. It extends the scope of sustainable business models from relationships between the focal firm and its direct stakeholders to indirect relationships with stakeholders of suppliers. A framework is developed that supports analysis and management of value-creating relationships between the focal firm, suppliers, and stake-holders of suppliers. By extending the conceptualization of sustainable business models to consider relationship chains beyond direct relationships, this article proposes that a focal firm has to actively manage interactions both with suppliers and with suppliers' stakeholders.
... Premièrement, la notion de durabilité forte devient mobilisée pour repenser les modèles d'affaires durables des entreprises (Brozovic, 2020 Toutefois, une vision à long terme ne nie pas la nécessité de prendre des décisions ponctuelles importantes pour réaliser des progrès intermédiaires (Michel & Defiebre-Muller, à paraître). ...
... To specifically address the tension between Strong Sustainability and Economics. A Strong Sustainability Business Model Canvas (Brozovic, 2020) is used to force designers to focus on the value proposition targeted to nature, beyond financial aspects. This canvas presents the living is a primary stakeholder and, consequently, reframes value flows within the business model with the constraints linked to the limitations of natural resources which forces in turn to search for more solidarity and cooperation strengthening resilience and robustness. ...
The emergence of a post-growth era is expected that implies rethinking the production and consumption patterns with novel design models this forces higher educational institutions to reconsider their traditional ways of teaching sustainability in their curricula. Companies also need to overcome strategies that compartmentalize environment, society and economy in their industrial strategy in order to evolve in their support for the transition. The aim of this paper is to present a design process anchored in the Strong Sustainability paradigm to overcome the gap of how Strong Sustainability could be operationalised. Design Research Methodology (DRM) has been chosen as the supporting framework for the development of this project. The Design for Strong Sustainability (DfSoSy) methodology proposed, is built on three aspects of Strong Sustainability (Milieu, Regeneration, Safe and just operating space) successively applied in a sequenced iterative design process. The latter enable the integration of thought patterns associated with integrative, systemic and fractal or multi-scale thinking respectively. Moreover, the principle of sub-optimality is highlighted as a decision principle in SoSy. Results obtain has been validated as well on the pedagogical objectives as in the usefulness of the DfSoSy. The practical contribution of this study is the DfSoSy toolkit©.
... This rationale steers the discussion away from viewing sustainability as an all-encompassing concept without clear boundaries and instead encourages a focused dialogue involving defined tensions. The second aim is to contribute to efforts to operationalise strong sustainability (Brozovic 2020;Neto et al. 2018;Özkaynak, Devine, and Rigby 2004). Organisations seeking sustainability can be managed to align with various sustainability outcomes. ...
... The problems of assessing the financial condition of an enterprise and determining strategies for managing the financial security of enterprises are addressed by both foreign and domestic scholars, namely: O. I. Baranovskyi [1], I. O. Blank [2], V. V. Vudvud [3], Zh. S. Kostiuk [4], V. V. Orlova [5], G. A. Semenov [6]. In addition, the problems of the essence of financial security and the issues of its provision at the enterprise are investigated in the works of the following scientists: D. Brozovych [7], K. S. Goryacheva [8], I. V. Demchenko [9], L. M. Dokiienko [10], O. V. Dymchenko [11], O. I. Karintseva [12], L. S. Martyusheva [13], L. O. Matviychuk [14], L. V. Sokolova [15] and others. ...
This study is devoted to the development of scientific foundations on the issue of managing the financial security of the enterprise that is relevant today. The purpose of the article is to identify the priority vectors and trends of interdisciplinary research on the financial security management of the enterprise and to generalize on their basis the theoretical and methodological principals of its formation and maintenance. With the use of the tools of the Scopus scientometric database, a bibliometric analysis is carried out, a sample from 2022 publications is selected, the dynamics of their indexing for 1996–2023, geographical and subject affiliation, etc. are analysed. With the help of the VosViewer software toolkit, a key word map is built, on the basis of which five clusters of interdisciplinary studies are formed and characterized, within which the issue of managing the financial security of the enterprise is studied, namely: economic sectors, enterprise, and sustainable development; computer science, information, and security; management, finance, and marketing; management and various performance criteria; forecasting and modelling. Scientific approaches to understanding the essence of the concept of financial security are summarized and grouped according to four key aspects as a state of effective use of enterprise resources; a state of protection of the interests of commercial entities; a process of enterprises achieving a certain state; a stable and dynamic provision of the system of financial resources. It is understood as the ability to effectively and stably carry out economic activities based on a complex of interrelated financial diagnostics, tools and means of control, to optimize the use of available resources, ensure their reasonable level, reduce the impact of internal and external environmental risks. The structural components of the formation of the company’s financial security system are analysed, and the mechanism of its provision is characterized. Particular attention is paid to methods of assessing the level of financial security of the enterprise. The obtained results will contribute to the further development of the scientific principles of managing the financial security of the enterprise and may be useful to a wide range of stakeholders.
... Moreover, there has been an expansion of business models aligned with Sustainable Development Goals (SDGs), addressing challenges such as inclusive growth [18,19]. Notably, the recent literature reflects a discernible shift from viewing sustainability as a secondary objective subordinate to economic profit, as exemplified in the win-win argument rooted in financial motivation, towards a perspective where sustainability assumes a central role in 'strong sustainability' business models [20,21]. ...
Amidst escalating environmental and social challenges, this study explores regenerative business models’ definition and characteristics. While sustainable models have made considerable strides in research, policy, and practice, the advent of regenerative business models offers a progressive leap forward. Regenerative business models aspire to contribute to ecological restoration and societal well-being. The regenerative business model concept is, however, still in its infancy and lacks a comprehensive definition. Our study aims to expand this knowledge, using a Delphi-inspired approach that builds on the knowledge of academic and business experts. Our approach includes three rounds of surveys: an open-ended survey, a survey for rating and ranking the earlier responses of all participants, and a final survey to select key characteristics. We investigate patterns and distinctions among regenerative, regenerative business, and regenerative business models, and analyze their positioning vis-a-vis circular and net-positive models. Findings underscore that organizations adopting regenerative business models focus on planetary health and societal well-being. They generate value across multiple stakeholder levels, including nature, societies, customers, suppliers, shareholders, and employees. Despite overlapping with circular and net-positive models, regenerative business models also emphasize interdependencies between humans and nature, and provide a more holistic approach, centered on restoration rather than mere mitigation.
... Third, this research adds to discussions about the factors that promote TL, since, according to Mezirow (1998), premise reflection is part of TL processes. It can be inferred that students who engage in a reflection on their premises in the emancipatory axis are much closer to repositioning sustainability problems according to the principles of strong sustainability toward lasting change (Brozovic, 2020). This goes beyond legalistic and reactive issues and instead grows from other business support bases compared to students who engage in a reflection of the premise in the rational procedures and means axis. ...
The goal of this article is to examine and develop problem-posing case study teaching methods to promote business students’ reflections on their premises around sustainability practices. Literature on transformative learning in sustainability informed our hypothesis that problem-posing instead of problem-solving case study teaching would yield greater incidences of students’ premise reflections at the deepest level. For our quasi-experimental design, undergraduate students at a business school were presented with a teaching case of corporate sustainability then half were given problem-solving prompts for critical reflection while the other half were given problem-posing prompts. Resultant responses were classified to expose differences in the nature and levels of reflection between these two groups. This pedagogical research indicated that the problem-posing group reached deeper levels of reflections, though further research is needed to better understand this phenomenon. We advocate for the utility of a problem-posing approach in sustainability education. This study contributes a problem-posing protocol for business schools, curricula, and professors, as well as suggestions for further research for theoretical understanding of problem posing for transformative learning in sustainability.
... Hence, sufficiency in food production systems "engages social-ecological limits that are linked to community health and well-being, to field-level agroecologies and to their 'nested' positions within wider ecologies" (ibid: 1012). In practice, this would require adopting business models and strategies that treat nature as a key stakeholder and primary constraining factor for production while placing emphasis on value flows that extend beyond just financial ones (Brozovic 2020). Such business models aim at longer-term value creation not only in economic terms but also in ecological and social terms, by prioritising regenerative practices that show care for, not control of, natural cycles. ...
Businesses want to be sustainable but how can they promote sufficiency? Sufficiency-oriented business models focus on creating sustainable value, promoting reduced resource consumption and adjusting production volumes to planetary boundaries. The contributors to this volume present real-life examples of sufficiency-oriented companies across diverse industries. These experts share their insights on sufficiency strategies in business, barriers and opportunities discovered, and the impact on customer behavioural change. They address the far-reaching changes in business, society, and policy required for this paradigm shift and suggest future research directions.
... This paper presents the strategic, i.e. core framework for the decarbonisation of the manufacturing industry. The presented framework is part of a wider range of strategic changes in business, such as sustainability (Evans et al., 2017;Brozovic, 2019;Kristoffersen et al., 2020), circularity and ecosystems (Kanda et al., 2021). The structure of the industrial decarbonisation framework was developed based on available knowledge of the course of the decarbonisation process, which is described in overriding documents (legislative and government programmes) as well as in scientific studies and industrial reports and documents. ...
The paper presents the problematic scope of decarbonisation of the heavy processing of the energy and carbon-intensive industry in relation to Polish conditions. The paper is part of the ongoing discussion of scientists and practitioners on the strategic challenges of the decarbonisation of industry in Poland. The paper is the result of conceptual research carried out on the basis of a review of secondary sources of information. In line with EU requirements, the industrial strategy must include a vision for 2050 decarbonisation. The ambitious “net zero” target – the prospect of zero CO2 emissions by 2050 – requires significant financial outlays and profound technological and organisational changes in many industries. The paper is an introduction to the discussion on the preparation of Polish industry for profound changes in decarbonisation.
... The CE has been developed as a response to the limitations of sustainability, challenging the linear model of "take-make-dispose" (Brozovic, 2020). ...
This paper discusses the transition toward a circular economy ecosystem (CEE) for plastics by assessing and mapping existing ecosystems and coordinating efforts among ecosystem actors. The PlastiCity ecosystem is used as a case study. The study employs ecosystem analysis and mapping to identify the new activities and actors needed to transition toward a CEE. These include local and eco‐friendly transportation, plastic recycling knowledge management, and upgrading the existing recycling infrastructure. The findings emphasize the significance of the joint orchestration of ecosystem actors facilitated by an ecosystem coordinator and knowledge team to achieve a CEE. It presents a tangible and feasible approach to achieving a local plastic CEE. The policymakers are encouraged to support collaborative orchestration efforts among ecosystem actors and establish knowledge management practices that facilitate ecosystem transitions.
... For example, paradox theory highlights competing tensions in sustainability outcomes (Hahn et al., 2018), thus weak sustainability-based schemes may be favored as they offer an easier route to developing business models and satisfying shareholders, regulators, and the public (Brozovic, 2020). Decoupling theory can be applied to explain the existence of gaps between symbolic sustainability policies and actual practices (Meyer & Rowan, 1977), illustrating why adherence to sustainability schemes are often emphasized to the public but internally deprioritized to maintain business-as-usual, weak, sustainability (Bromley & Powell, 2012 Alternative methodologies also present a future research opportunity. ...
While sustainability research is expansive, studies of business-internal practices and resulting sustainability outcomes are largely unexplored. This research fills this gap by assessing the sustainability schemes that organizations internally employ to guide sustainability efforts. Content analysis is applied to 20 environmentally oriented sustainability schemes, through the triangulated lenses of strong sustainability and sen-semaking theories. Each scheme is quantitatively assessed for positioning within the Stages of Sustainability model and rank abundance curves are generated to compare relative sustainability strength among the schemes for potential recommendations in practice or future research. Results show that 100% of the sustainability schemes in this study align with various forms of weak sustainability, although five commendable schemes are more advanced than the others. Given this finding, it is expected that applying the sustainability schemes from our sample in research and practice will perpetuate weak, business-as-usual, sustainability while prolonging the wait for strong ecological sustainability. Novel contributions of this research include empirical evidence to support claims that sustainability schemes are aligned with weak sustainability , and the identification of the sustainability strength of sustainability schemes. Additionally, numerous calls from researchers to consider sustainability strength in research are heeded. Implications for practitioners, scheme developers, and academics relate to the development of schemes, business-internal practices, research, and teaching that aligns with ecological science-oriented, strong sustainability instead of the current approach that aligns with weak sustainability. K E Y W O R D S content analysis, sensemaking theory, strong sustainability theory, sustainability frameworks, sustainability schemes, sustainability standards
... Entre entrepreneuriat responsable, soutenable, durable, humaniste et, plus récemment, humain (Kim, Eltarabishy et Bae, 2018), il est parfois bien difficile de s'y retrouver… Des clarifications sémantiques ne peuvent que contribuer à renforcer la légitimité de ces approches entrepreneuriales plébiscitées par les porteurs de projet sur le terrain, notamment parmi les jeunes générations, qui sont également les plus touchées par le phénomène d'écoanxiété. En outre, des études sur les modèles d'affaires durables sont indispensables pour mieux appréhender toute la complexité inhérente à la création de valeur(s) d'aujourd'hui et de demain marquée par une soutenabilité forte (Brozovic, 2020 Lorsque l'on parle de plateformisation de l'économie on signale que, progressivement, les formes de marché traditionnelles sont remplacées par de nouveaux modes de coordination entre les parties prenantes autour de deux facteurs structurants (Cusumano, Gawer et Yoffie, 2022) : en premier lieu, émerge un acteur central qui coordonne et organise l'activité de différentes communautés ; en second lieu apparaît l'usage et le développement constant d'algorithmes comme nouveaux outils de coordination et de régulation de l'écosystème. ...
Les contextes dans lesquels naissent, croissent, se développent ou disparaissent les PME ont connu d’importantes mutations au cours des dernières années. Les défis que doivent relever les entrepreneurs et les PME se renouvellent rapidement tout en présentant des enjeux nouveaux qui ne peuvent pas toujours être éclairés brillamment par les connaissances actuelles. Pour soutenir nos économies fragilisées par autant de perturbations, il est nécessaire que les chercheurs se commettent dans des réflexions visant parfois à sortir des cadres traditionnels de reproduction de connaissances pour oser s’aventurer sur des sentiers encore en friche. Des théories et des modèles classiques développés dans des contextes qui n’existent plus doivent être remis en question pour mieux comprendre la réalité de nos objets de recherche. Cela demande aux chercheurs de s’engager dans des sujets originaux, mais aussi en ayant recours à de nouvelles méthodes ou en déployant des dispositifs de recherche novateurs. Le but de cet article est de proposer plusieurs avenues de recherche à l’avant-garde de la littérature sur les PME et l’entrepreneuriat permettant de renouveler le corpus de connaissances dans quelques domaines. Celles-ci sont susceptibles d’orienter les chercheurs vers des avenues offrant un réel potentiel de nouveauté, non seulement sur le plan scientifique, mais également sur le plan pratique.
... Business and corporations are also agents of change towards decarbonisation, as demonstrated in the case of PV and battery electric cars (Teece 2018). Beyond new low-carbon technologies, strong sustainability business models are characterised by identifying nature as the primary stakeholder, strong local anchorage, the creation of diversified income sources, and deliberate limitations on economic growth (Brozovic 2019). However, such business models are difficult to maintain if generally traditional business models, which require short-term accounting, prevail. ...
Chapter 5 (Demand, services and social aspects of mitigation),
explores how mitigation interacts with meeting human needs and access to services. It explores, inter alia: sustainable production and consumption; patterns of development and indicators of wellbeing; the role of culture, social norms, practices and behaviour changes; the sharing economy and circular economy; and policies facilitating behavioural and lifestyle change.
This chapter is part of the Working Group III contribution to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC). Electronic copies of this chapter are available from the IPCC website www.ipcc.ch; and https://www.ipcc.ch/report/ar6/wg3/downloads/report/IPCC_AR6_WGIII_Chapter05.pdf
... It is believed that the business model has the potential to represent an "overall framework that helps to simplify and clarify the fit between the elements of the execution and the strategy" (Richardson, 2008, p. 8), to be integrated with the strategic analysis tools required for evaluating internal and external environments (Ghezzi, 2013). In addition, the business model approach is fundamental to implement the principles of strong sustainability (Brozovic, 2021;Cardoni et al., 2020), developing the consistent framework to integrate the financial and sustainability performance (De Giacomo & Bleischwitz, 2020). This link between sustainability disclosure and business model developed the specific topic of "business model disclosure" (Bini et al., 2018;Di Tullio et al., 2019;Melloni et al., 2016;Stacchezzini et al., 2016;Szewieczek et al., 2021). ...
The aim of this paper is to assess small and medium‐sized enterprises' (SMEs') readiness to initiate a mature dialogue with stakeholders in the exceptional context of a strategic crisis, when information on business model sustainability has become universally material for all stakeholders. A quantitative study is carried out by developing a business model content analysis and applying it to a data sample of 109 manufacturing SMEs in Italy with annual revenues ranging from €10 to €50 million. After analyzing the literature on SMEs stakeholder communication and arguing the conflicting influences of stakeholder and legitimacy motivations in the context of a strategic crisis, three hypotheses are tested by collecting data from annual reports. Despite increased stakeholder expectations, the level of communication was limited to a minimum amount of information, demonstrating no relationship with the firms' relative size and proving a prominent influence of legitimacy motivations, with a specific relevance of legal pressures. Under the stress of the crisis, all SMEs, particularly those that were strategically and financially vulnerable, provided extremely limited information, demonstrating the tendency to conceal strategic risks and the difficulties in engaging in mature dialogue with stakeholders. To the best of our knowledge, this is the first quantitative study focusing on unlisted SMEs' sustainability communication. The paper contributes to the policymaker debate on the possibility of extending the current legal obligation on sustainability reporting and transparency to smaller businesses.
... When the firms have resources for BM experimentation, they innovate. The literature on BM innovativeness and SMEs is limited [25] and the focus on the digitalization of SMEs is even limited. SMEs in developing countries are less exposed to the need for digitalization because of a lack of resources and managerial expertise, the slow adoption rate of digitalization, and the lack of guarantee of financial return and success [11]. ...
... The concepts of traditional business model and business model for sustainability have been defined and described through different theoretical perspectives, for instance, the activity perspective (Zott & Amit, 2010), the building block perspective (Osterwalder & Pigneur, 2010) or the value flow perspective (Teece, 2010). The value flow in business model for sustainability consists of value intention (Barth et al., 2017), value proposition, value creation, value delivery, and value capture Short et al., 2014), and it should be aimed at multiple stakeholders (Brozovic, 2020). The stakeholder theory sees organizations at the centre of a network of stakeholders that can influence or be influenced by the organization's objectives (Freeman, 2010). ...
This paper aims to investigate how stakeholder groups engaged by the company contribute to the value flow of business models for sustainability. The research aims to expand the knowledge on business models for sustainability by highlighting the most important contributions of stakeholders that are relevant from a value flow and sustainable development perspective. The research methodology is a multiple case study in five Italian B corporations. The paper contribution is a stakeholder value flow model of business models for sustainability that categorizes the stakeholders engaged in the specific value flow dimension, namely, value intention, value proposition, value creation, value delivery and value capture. The stakeholder value flow model can facilitate a systematic and deeper analysis of stakeholder contributions to the company business model. Moreover, the stakeholder value flow model can be used to map from the company perspective the most significant relationships and to facilitate the stakeholder engagement towards sustainable development.
... Growing awareness of the fundamental unsustainability of the economy (e.g., Jackson, 2011) has motivated practitioners and academics to extend their focus on business models beyond customers (Evans et al., 2017) and also to include environmental and social value (Stubbs & Cocklin, 2008). This triple-bottom line integrates sustainability as a core concern of the business model (Abdelkafi & Tauscher, 2016), problematizes the dominance of profit motives (Stubbs & Cocklin, 2008), and seeks a balance (Brozovic, 2020), moving from an instrumental to an integrative approach to sustainability (Gao & Bansal, 2013). ...
Cross‐sectoral collaboration is argued to be vital for business model innovation for sustainability and the tension‐filled choices it involves but brings its own complexities. We therefore investigate how institutional logics and power affect the interests and dependencies of City planners and real‐estate developers involved in developing a business model for sustainable mobility. Through analyzing how partners deal with tension‐filled choices regarding business model elements, we develop a model to explain how compromises are made in partnerships characterized by conflicting interests coupled to strong interdependencies. We finish by cautioning that conflicting interests and power characteristics may delimit the potential for such cross‐sectoral collaborations to contribute to sustainable development in sectors where public actors are used to rely on their authority.
... For this reasons, BMfS is a solution to help companies meet their economic and sustainability goals simultaneously. Without any business model innovation towards BMfS, any sustainability innovation could take place successfully (Brozovic, 2020;Geissdoerfer, Morioka, de Carvalho, & Evans, 2018;Nosratabadi et al., 2019). ...
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.
... Acting purposively is attempting to resolve an immediate problem at hand or overcome an undesirable situation without seeing this as directed toward some overall goal in mind. This is in alignment with recommendations of MNCs crafting locally responsive strategy approaches to maintain fittingness with the local natural and sociocultural environments (Brozovic, 2020;Duke, 2016). In contrast, to act with a purpose is to act according to a predefined desired outcome (like the building mode). ...
This paper explores the development of strategies by multinational corporations (MNCs) for serving markets at the base of the economic pyramid (BoP). MNCs play an important role in meeting the Sustainable Development Goals (SDGs) formulated by the United Nations (UN), as they are responsible for one‐third of the total economic output and the majority of world trade. However, little is known about how MNCs contribute to meeting the UN SDGs. Through an in‐depth analysis of how Grundfos, a Danish MNC and a leading supplier of pumps, developed a solution for supplying fresh potable water to rural villages in Kenya, we investigate some challenges MNCs face and demonstrate the importance of intimate engagement with the context of strategic action. Tackling sustainable development issues in the context of BoP markets represents a distinctive challenge to MNCs, which often do not have a good understanding of BoP environments. Drawing on contrasting ideas of strategy as navigation or wayfaring, we highlight the dangers of trying to impose existing strategies and business practices in market contexts, which are fundamentally different from existing ones. We add to the existing research by exploring how such frameworks interact with strategizing processes in a novel environment for the operating firm. Specifically, we explore the interrelatedness between planned and emergent approaches to strategizing in BoP market environments.
... We discuss this potential research avenue at the end of the paper. BMs related to specific sectors may be enriched and expanded by exploring the social value they create, in addition to economic and environmental value, in a way to go beyond the traditional BMs (Brozovic, 2019). Further research in this sense may include how the specific kinds of BMs may contribute to the triple bottom line impact of business (Elkington, 1998 ...
Recently, business models for environmental sustainability have gained increasing attention in the management field and among practitioners and stakeholders. This study aims to analyse the state of the art on the topic by reviewing the growing but mainly phenomenon‐driven research. In particular, by identifying main research trends and relevant gaps in the literature and by providing future research avenues, this paper advances the debate on the need for alternative concepts of doing business that go beyond the creation of economic value for a company in a way that generates value for the society.
Our article undertakes two stages of screening the available literature and selects 151 peer‐reviewed articles published between 2007 and early 2019 for the review. The paper provides the first comprehensive systematic review of business models in the field of environmental sustainability with a detailed descriptive and critical analysis and with a discussion of future research opportunities.
... The study of the regional economy as an ontological and concrete component of social systems has been reflected in the works of Kocziszky et al. (2015), Timmer et al. (2019), Partridge (2017), Chen & Zeng (2018), Wood et al. (2017), Brailly (2016), Brozovic (2020), Cosenz et al. (2020), Cano Guervos (2020). Theoretical and applied aspects of tourist services market development are widely studied by such scientists as: Khalid, et al. (2020), Gorban (2017), Guryanova & Prokopovich (2013), Chi et al. (2020), Lohmatov (2011), Aleksushin et al. (2020), Spalding & Parrett (2019), Moiseeva (2018). ...
The article deals with the imperatives of the development of the tourist services market, which determines the parameters of the aggregate value of the sub-indices of the meso- and local levels in the spatial polarization of the regional tourist system. The methodology of spatial polarization of the regional tourist system, which provides convergence of the infra-structural space of tourist services, formation of an innovative nucleus, minimization of manifestation of destructive factors, balancing of interests of regions and the country as a whole is substantiated. It has been proposed the scientific-methodical approach to the definition of the target landmarks for the development of the tourist services market, which implements polarized tourist space in terms of quantitative and qualitative parameters, makes it possible to analyze the destructive determinants of the periphery and determinants-producers of the tourist center of activity, evaluation and forecasting of the safe level of the hierarchy of the regional tourist system, determination of clear impulses for the development of the tourist services market and density of interaction of the periphery with the center. Revenues from the sale of tourist services of local level enterprises have been analyzed. A comprehensive approach to the assessment of the concentration of the aggregate value of the security index of the regional tourist system, which is differentiated by the components of the regional security potential and threats, guarantees the development of the tourist services market and modifies the tourist system on the meso-level as a whole.
... Prändl-Zika (2008) studies the agricultural industry in China and deems multifunctional agriculture the future trend for Chinese agricultural development, as the author believes that there will be a transition in Chinese agriculture from a sector concentrating on production to a sector with multiple functions, such as environmental services, including water protection and natural resource conservation, that targets more sustainable development in rural areas. This transition to sustainable agriculture requires collaboration with multiple stakeholders (Brozovic, 2019), such as government agencies (Nelson & Phillips, 2018) and local villagers (Swaffield, Corry, Opdam, McWilliam, & Primdahl, 2019). ...
The purpose of the paper is to conceptualize and provide empirical evidence for the adoption of industry convergence strategy to sustainably develop the agricultural complex (AC) as a form of multifunctional agriculture in the Chinese context, which aims to achieve environmental sustainability in agricultural production and promotion of farmers' income and employment opportunities. A longitudinal single‐case study method was adopted. Thirty‐six face‐to‐face interviews were carried out with key respondents from various levels and types of government agencies, the Wu‐Sheng Company, and village collectives; participative observations were conducted during the fieldwork between 2016 and 2019. We found sustainability is embedded in and achieved through the industry convergence strategies of AC in the rural area of China. We are the first to formally define AC, propose the four‐stage industry convergence strategies of Wu‐Sheng in the process of developing the AC, and build connection between the AC and sustainable development. The case provides important, rich insights into the AC, industry convergence, and agricultural land use policy and therefore has enormous implications for agricultural companies as well as governments.
Due to climate change concerns, academics and practitioners focus more on environmental management and sustainability. Accounting researchers have focused on corporate environmental disclosure and sustainability reporting in response to stakeholder demand for openness and accountability. Thus, scholarly studies on sustainability reporting have gained momentum with the frequent use of qualitative text analysis to assess company disclosures' completeness and quality. However, sustainability reporting research has major limitations wherein past studies have focused on certain sectors or qualitative content analysis. Coherently with the abovementioned gap, our study intends to examine sustainability reports of companies in agriculture, conventional energy, heavy industry and manufacturing, transport and automotive, and construction, the highly carbon‐intensive industries most vulnerable to physical climate damage and net‐zero transition risk. In doing so, the goal of the present research is to investigate sustainability reporting practice on a larger, cross‐sectoral scale by using automated, machine learning‐powered text analysis methods to complement and strengthen qualitative research results that scholars have previously obtained. The latent Dirichlet allocation topic modelling technique has been used to examine companies' sustainability efforts and identify industry‐specific subtopics based on quantitative distribution. The originality of our analysis lies in determining how companies prioritise issues in sustainability reports. By comparing reports from different industries, we also identify sector‐specific patterns and how organisations in highly carbon‐intensive industries that are most exposed to physical climate damage and net‐zero transition risk prioritise certain themes over others, as well as identifying what type of content is overall more prominently featured in reports, regardless of the industry. Our study adds to sustainability reporting literature by investigating a previously unstudied sample of sectors. Moreover, our study informs practitioners of existing sustainability reporting procedures. The subject model and a cross‐industry view can advise policymakers and industry of which themes are under‐disclosed and what industry‐specific rules may be desirable to suit sector‐specific needs.
Businesses want to be sustainable but how can they promote sufficiency? Sufficiency-oriented business models focus on creating sustainable value, promoting reduced resource consumption and adjusting production volumes to planetary boundaries. The contributors to this volume present real-life examples of sufficiency-oriented companies across diverse industries. These experts share their insights on sufficiency strategies in business, barriers and opportunities discovered, and the impact on customer behavioural change. They address the far-reaching changes in business, society, and policy required for this paradigm shift and suggest future research directions.
Introduction. Development of digital literacy and computational thinking among housewives lie in its potential to address a critical gap in the understanding of digital education and empowerment. This study seeks to ascertain the viability of family enterprises based on digital marketing. In detail, this study examines the relationship between entrepreneurship education, digital literacy, and business sustainability through computational thinking. Study participants and methods. This research involved a quantitative approach using a self-administered survey method. The population in this study were housewives in several regions in Indonesia and the data will be analyzed using partial least square structural equation modeling (PLS-SEM). Sumatra, Java, and Bali homemakers participated in this study. The three islands represent Indonesia's west, center, and east regions. We offered 350 Google Forms questions sent via WhatsApp. Results. The results indicates that entrepreneurship education has a significant effect on business sustainability (t-value =16.620, p-value =.000), and computational thinking skills (t-value =10.916, p-value =.000). In addition, digital literacy has a significant effect on business sustainability (t-value =4.612, p-value =.000), and computational thinking skills (t-value =3.738, p-value =.000). Later, there is robust link between computational thinking and business sustainability (t-value =3.712, p-value =.000). The mediating estimation indicates that computational thinking can mediate the connectivity between entrepreneurship education and business sustainability (t-value =3.398, p-value =.001), as well as digital literacy and business sustainability (t-value =2.516, p-value =.012). Conclusion. Empowering housewives with entrepreneurship education, digital literacy, and computational thinking holds practical significance in managing their business and community development. This research extends beyond housewives empowerment to potential policy assistance and housewives educational reforms to build inclusive business matters.
In a parallel and complementary way to Chapter 3, in this chapter via sustainable business models we try to understand the new paradox and competitive dynamic of firm strategy and the natural environment. Thus, the nature, main features and theories to frame general business models are presented. Then, sustainable business models are analysed, highlighting a sustainable value proposition characterised by the emergence of a new business logic mindset with technological innovation, and value networks of stakeholders as its main feature. Finally, the chapter distinguishes between social and environmental business models.
Given the strategic role of design when addressing societal changes and its prominence in the circular economy (CE) discourse and practice during the past decade, a plethora of tools and methods is nowadays available to support organizations in the transition from a linear model of production to a circular one. The need for an intersection of CE, corporate sustainability, strategic design and strong sustainability is gaining momentum. Considering (a) the critical voices pointing out several limitations to the CE concept, (b) the call for linking CE to a strong sustainability paradigm and (c) the implementation mechanisms for an effective contribution to sustainable development, the focus of this research is to address the gap in CE and circular design frameworks due to missing elements therein for its successful implementation, using a Delphi method approach. Our results strongly suggest that the current CE and circular design concepts and practices are insufficient to meet the challenge of addressing strong sustainability, and new models are needed. To conclude, a new definition of design for CE in a strong sustainability paradigm and a first approach to the main elements of the new model assisted by guiding principles are proposed.
Research on sustainable business models (SBMs) has been hindered by the use of traditional business model (BM) components indiscriminately applied to explain sustainable value (SV). Moreover, little has been done to reveal key components in BMs aiming to address the needs of the poor; that is, that part of the population referred to as the base of the pyramid (BoP). Following a case study methodology, we observe that conventional components are insufficient to clearly explain SV in SBMs for the BoP. The main contribution of this research is that it discloses that in SBMs for the BoP, activities (grouped into elements and components) are distinctively amalgamated to produce SV. This arrangement might be unique to SBMs for the BoP, and here we opt to present it in the form of a framework that articulates both a priori and emergent components and elements. In this framework, value adoption and value transmission are integrated as new components for analyzing this type of BM.
This paper combines theoretical sustainable business models and conflict indices in making practical sustainable (i.e., participatory decisions involving economic, social, and environmental features within weak or strong sustainability paradigms) and rational (i.e., informed and consistent decisions within substantive or instrumental rationality) decisions with respect to what , who , where , when , and how to act. The case study, focused on an offshore gas platform, identified when (i.e., the end as opposed to the beginning of extraction activities) and where (i.e., the economic, social, and environmental contexts of the Adriatic Sea in Abruzzo region, Italy). A face‐to‐face questionnaire, submitted to stakeholders, produced the relative weights required by the tested sustainable business models (Lüdeke‐Freund et al., 2018), and it reached a conclusion about how (i.e., in favor of the majority as opposed to average decisions). An application of a linear conflict index (Fasth et al., 2018) highlighted a lack of stakeholders' representativeness and knowledge and solved these issues with a 50% increase of stakeholders involved and an additional discussion with originally invited stakeholders on specific topics, respectively. In summary, the methodology suggested in this paper produced a (strong) sustainable and (substantive) rational decision about what and who based on relative weights expressed by representative and informed stakeholders being engaged at the smallest cost and with the largest support. Thus, the contribution of this paper is twofold: Theoretically, choices among alternative sustainable businesses depend on the adopted sustainability paradigm, and practically, choices among alternative sustainable businesses should be identified according to the adopted sustainability paradigm.
Product-Service Systems (PSS) are widely recognised as promising models for increasing circularity and sustainability in business, but the extent to which they contribute to sustainability is still debated. While growing and insightful, the literature on PSS sustainability fails to cover all the relevant aspects and to take stock of the ways PSS can be conceptualised as contributing to strong sustainability. We contend that if PSS are to be designed to be strongly sustainable, clear guidance is needed based on both clear normative premises and sound empirical knowledge. Based on systematic and non-systematic literature reviews on the drivers of PSS (un)sustainability and a long-course field work on the development of PSS in Brussels (Belgium), the paper identifies important sustainability challenges that PSS frequently face and that PSS initiatives should address. These challenges are articulated with insights from the sustainable business models literature and anchored in a strong sustainability pre-analytical stance. An original analytical framework based on 5 dimensions (access, substitution, systemic dematerialisation, territorial anchoring and sufficiency) and 15 criteria of Strongly Sustainable Product-Service System (SSPSS) is proposed.
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In this study, we explore sustainable business model (SBM) research through the lens of doughnut economics (DE). By conducting an integrative literature review, we analyse concepts that reflect the seven principles of DE at the business model level. We identify 23 SBM concepts and develop a framework that draws on cognitive science theory to distinguish between seven abstract and 16 concrete concepts. The contribution of our study is threefold: First, the framework enhances the theoretical understanding of SBM concepts that mirror DE. Second, our study presents seven unique avenues for shifting the SBM research agenda. Third, the findings have the potential to inspire SBM innovation in practice.
Resumo Este artigo examina e compreende até que ponto a missão, visão e valores de foodtechs se alinham as premissas de sustentabilidade forte. Um amplo levantamento seguido de entrevistas semi-estruturadas com gestores de foodtechs foi conduzido. Os achados desta pesquisa permitiram prever as necessidades de desenvolvimento de capacidades de circularidade de recursos, de regeneração de materiais, de processos inovadores com potencial de ressignificação de resíduos, sinalizando que a economia circular pode ser um caminho estratégico e relevante para a obtenção de sustentabilidade forte. A principal contribuição do estudo é a evidenciação do discurso da sustentabilidade e o verdadeiro caminho para a obtenção de sustentabilidade forte suportada pelas premissas da economia ecológica. Isso torna o estudo original e um dos pioneiros em apoiar a transição para a sustentabilidade forte com base nas perspectivas da economia circular e das capacidades dinâmicas e relacionais.
Certified B Corps (B Corps) are firms characterized by a hybrid purpose and a sustainable business model that combines profit with social impact. Prior quantitative studies on B Corps have mainly analyzed the impact of certification on firm performance, while only a few have tried to analyze the antecedents of certification or high sustainability performance. Regression models have been used in most cases, often with inconsistent results and some research limitations. The aim of this study is to test the presence of different possible combinations of firm‐level antecedents leading to a high sustainability performance in B Corps. It applies a configurational approach and a qualitative comparative analysis methodology to search for different combinations of organizational factors (size, age, profitability, certification experience, women on board and the “Born B” factor) that lead to a high sustainability outcome, measured by a B Impact Assessment (BIA). Results indicate the existence of four configurations leading to a high BIA, representing as many kinds of impactful B Corps: Born B, small young ventures, small and medium enterprises, and large firms. These results contribute to the literature by showing that a high sustainability performance in B Corps can be reached through different paths (equifinality) entailing both high and low values of each factor (asymmetry) and depends on how factors are combined (conjunction) rather than on their single effect.
Increasing numbers of reports reveal that planet Earth is at significant risk. There are mounting calls to address the damage caused by the unprecedented demand for land, energy and water and environmental destruction, which is attributed to escalating population growth and unparalleled, rising rates of economic growth. Society and its organisations now are expending the Earth’s resources much faster than they can be replenished. Consequently, over the past two decades, sustainability has become an important business issue; growing attention is being paid to organisations’ ecological and environmental performance; and to their impact on the climate and on local and global communities. A number of researchers broadly claim that organisations need to move from Traditional Business Models and adopt Sustainable Business Models, and to deliver a sustainable value proposition aligned with stakeholders’ economic, environmental and social expectations. To achieve this, organisations should expand their perceived stakeholders from customers and shareholders to include all other stakeholders who may be directly or indirectly affected by the organisation’s activities, such as the broader society and the environment. Organisations’ cultures have considerable influence on their attitudes to environmental and social sustainability; their commitment to sustainability; and their environmental and social performance. In order to develop and implement Sustainable Business Models, organisations need to understand their underlying cultural values and develop sustainability-related cultural characteristics. This chapter explains the role of organisational culture and its desired characteristics and discusses actions organisations can take to change their culture. It also discusses steps for embedding sustainability principles across the organisation.
This chapter discusses new approaches presented in the literature to creating sustainable shareholder value that requires companies and investors to adopt a systemic and long-term vision and to understand the financial significance of economic, social and governance (ESG) factors of threats and opportunities. The chapter is based on a literature review and comparative analysis. In the analyses, contingency tables showing the distribution of observations focused on several features at the same time were also applied. These tables provided the basis for calculating the strength of relations between the analysed research areas (represented by a particular feature). The research results confirm the existence of the relations between corporate sustainability and ESG factors (including an evaluation of ESG risk), sustainable business model and sustainable value creation.
Business Models have received attention, both from academia and from the market, especially since 2000, when the amount of research has grown exponentially. During the Covid-19 pandemic, the importance of this tool intensified, especially for the service sector, which was the most impacted during this period. However, there is no agreement among researchers on the concepts, elements, and methods of modeling business models. Given these two facts, the purpose of this article is to present the structure of the Business Model Service Area (BMSA) of an engineering office specialized in structural calculations to assist in the decision-making process to optimize management. The BMSA made it possible to visualize the company as an organizational architecture and helps in the perception of possible improvements and decision-making.
In the context of globalization of markets, the innovative system of services of hotel and restaurant enterprises provides coordination of actions of all participants. The purpose of this article is to consider the determinants of the development of hotel and restaurant enterprises in the intersectoral industry of hospitality and innovative services. On the basis of multidimensional analysis, the methods of modeling the process of development of the subjects of the service sector according to the indicators-characteristics of
the subjects of service activity are determined. The mathematical tools of taxonomic analysis are presented, which allows evaluating separately the indicators of the components of the intersectoral industry of hospitality and innovative services. An integrated assessment of the components of the intersectoral hospitality industry and innovative services of the hotel and restaurant industry of Ukraine and their competitive position in terms of the level of effective operation is determined. The efficiency of functioning of restaurant enterprises according to fractal levels of the hospitality industry and innovative services is calculated.
Chemotherapy‐induced peripheral neuropathy (CIPN) is among the most disabling and frustrating problems for cancer survivors. The neurotoxicity caused by cisplatin varies greatly among patients, and few predictors of appearance, duration of symptoms, susceptibility, or severity are available. A deeper understanding of the mechanisms underlying individual differences in status, severity, or sensitivity in response to cisplatin treatment is therefore required. By analyzing the GSE64174 gene expression profile and constructing a weighted gene co‐expression network analysis (WGCNA) network, we screened gene modules and hub genes related to CIPN status, severity and sensitivity. We first identified the transcriptome profile of mouse dorsal root ganglion (DRG) samples and transformed their genes to human DRG counterparts. We then constructed WGCNA gene modules via optimal soft‐threshold power‐identification and module‐preservation analysis. Comprehensive analysis and identification of module hub genes were performed via functional‐enrichment analysis and significant common hub genes were identified, including “Cytoscape_cytoHubba,” “Cytoscape_MCODE,” and “Metascape_MCODE.” Brown, green, and blue modules were selected to represent CIPN sensitivity, status and severity, resepectively, via trait‐module correlational analysis. Additionally, functional enrichment analysis results indicated that these three modules were associated with some crucial biological functions, such as neutrophil migration, chemokine‐mediated signaling pathway, and PI3K‐Akt signaling pathway. We then identified seven common hub genes via three methods, including CXCL10, CCL21, CCR2, CXCR4, TLR4, NPY1R, and GALR2, related to CIPN status, severity and sensitivity. Our results provide possible targets and mechanism insights into the development and progress of CIPN, which can guide further transformation and pre‐clinical research.
Sustainability is a central topic for an increasing number of companies, as a part of their business strategies. Human sustainability, i.e. preserving and improving the quality of human life, in other words, maintaining and advancing human capital, appears as one relevant issue in that context. Humans and human capital are the foremost resources for professional service firms. Their role in the international economic scenario will most likely depend on how they deal with human sustainability and the wellbeing of their people. In this perspective, the paper investigates the antecedents, and organisational implications, of human sustainability in such firms using a Structural Equation Model (SEM) developed on 4,301 questionnaires filled by Italian Chartered Accountants. Findings shed new lights on some implications of human sustainability. Results show that human sustainability has a direct and significative impact on a firm's ability to innovate, fostering creativity and intellectual capital, thus being significant for corporate performance. As a practical implication, firms should accordingly shape their business strategies towards accounting for human sustainability aspects.
The current sustainability challenges and the required systemic transformation highlight the need for innovations on multiple levels. Ecodesign integrates environmental aspects into product and process design to reduce environmental impacts, whereas eco‐innovation also concerns nontechnological solutions. In this paper, we formulate a model that combines eco‐innovation targets ad mechanisms with sustainability maturity, which also concerns stimuli and barriers faced by companies and ecodesign tools used. The results are based on a questionnaire sent to 902 textile and information technology (IT) companies (N = 104) in the Nordic countries. The tools that Nordic textile and IT companies use in particular are life cycle assessment, type I ecolabel, and carbon footprint. Internal stimuli, especially general willingness, were important for eco‐innovativeness, while legislation and customer demand also pushed companies forward. Specific no‐go barriers were not identified, although increase in costs was a common barrier. The respondents focus often on technological product innovations, but rarely on functional innovation, renting of products, and so forth. This highlights the need to address the availability of the right kind of tools to support a broader suite of innovation that can drive toward the circular economy.
This study explores role of innovative capabilities in determining a manufacturing firm's response to stakeholder pressure for adopting sustainable practices. Drawing on the theory of conservatism, we delineate that the firm's response is idiosyncratic and undergirded in the nature of its innovative capabilities. Our empirical investigation reveals that the response to the stakeholder pressure is mediated by the nature of the firm's innovative capabilities. Indian manufacturing firms are identified as unit of analysis for this study. The individual manufacturing facilities implement the environmental practices. The findings suggest that the manufacturing firm's exposure to exploitative/exploratory innovative capabilities triggers sustainable behaviours with ephemeral focus and enduring focus. Further, the exploratory/exploitative innovation is capable of explaining idiosyncratic behaviour for the firms' sustainability practices adoption. The findings delineate, with analysis, that unlike China, regulatory stakeholder pressures in India inhibit the adoption of sustainable practices with enduring focus in manufacturing firms.
This study explores the impact of supply chain collaboration on eco-innovations in the context of 220 Chinese manufacturing supplier firms involved in global supply chain networks. It investigates how supplier and customer collaborations help firms to enhance product eco-innovations, and/or process eco-innovations, and how the institutional context (i.e., regulatory, market, and community pressures) influences these relationships. The structural equation modeling approach is used to analyze the data captured from medium and large manufacturing enterprises in three major sectors: automotive; electronics; and textiles. The results show that community pressure has a positive effect on supplier collaboration, which further leads to enhanced process eco-innovation. On the other hand, the findings indicate that while market pressure enhances customer collaboration this does not reinforce product eco-innovation. Contrary to our expectation, regulatory pressures do not impact supplier or customer collaboration for innovation. Overall, different institutional factors indicate divergent effects on supply chain collaboration and product/process eco-innovation. The importance of normative pressures, such as those applied through the local community and interest groups, for eco-innovations in production processes is further discussed as a typical feature of the institutional environment of Chinese supplier firms.
A movement to mobilize the Portuguese Ornamental (OS) sector to reduce waste and improve flexibility began in 2004. Boosted by R&D Mobilizing Projects in consortium and fostered by two of the Sustainable Development Goals (SDG9 and SDG12), this mobilization resulted in a new generation of technologies, concepts and innovative practices, matching the needs of Portuguese OS companies, stressing an integrated approach to European Competitiveness that should be fostered by a sustainable industrial policy, combined with innovation and skills. Bearing in mind that the Sustainable Development Goals (SDG) are the blueprint to achieve a better and more sustainable future for all, and considering the importance of following the goals and guidelines of SDGs 9 and 12 in the industrial processes optimization achievement in the Portuguese OS sector, the following research question arises: What is the impact of the R&D Mobilizing Projects on the efficiency and image of Portuguese OS companies?
The objective of this research is to conceptualize an empirical framework based on a mixed methodology, to assess the efficiency and image benefits resulting from participation in these R&D Mobilizing Projects. Through applying the empirical framework to two case studies, it was concluded that for companies that since 2004 have been part of R&D Mobilizing Projects, the evolution in terms of improved energy and raw-material efficiency, soft skills and improved facilities is more positive than in other OS companies. Moreover, there are potential gains in efficiency and image of 9.62%, compared to companies that have never participated in this type of project. This results match with the EU's integrated climate and energy policy and an integrated approach to the sustainable management of natural resources, the protection of biodiversity and ecosystem services. The sustainable production and consumption revealed in the Portuguese OS sector are among the drivers for achieving objectives under both the SDG and the Lisbon strategy.
The core question addressed in the natural resource‐based view (NRBV) of the firm is how to develop and exploit resources beneficial for both the natural environment and firm performance. Due to the resource constraints and increased competition facing small manufacturing firms, achieving this is a challenge for such companies. Building on the NRBV and resource orchestration literatures, we examine the relationship between green purchasing capabilities (GPCs), CEO's environmental orientation (EO), and firm growth. Results from 304 Swedish small manufacturing firms indicate a significant relationship between GPC and growth, and this relationship is positively moderated by the EO of the CEO.
Forest certification plays a notable role in promoting sustainability. This certification shows that forestland holders have adopted innovative practices toward realizing sustainable business models. Relatively little analysis has been devoted to identifying the efforts of transforming a conventional business model into a sustainable version through the application of forest certification. This paper examines the elements of a sustainable business model: value proposition, value creation and delivery, and value capture in certified forestland holders’ business operations. Empirical results have confirmed that certification signifies a successful sustainability transformation within adopting firms. However, these small organizations struggle with obtaining know-how regarding sustainable forest management. There needs to be adequate external support, such as government consultants or academic researchers, in order to successfully adopt third-party forest certification. However, while practicing sustainable forest management activities will not guarantee premium prices, the certification has, in some rare cases, helped to develop a new niche market. Good communication with stakeholders has improved firms’ relationships with local residents, but more channels of communication are still needed to activate green consumers.
During the past two decades of e-commerce growth, the concept of a business model has become increasingly popular. More recently, the research on this realm has grown rapidly, with diverse research activity covering a wide range of application areas. Considering the sustainable development goals, the innovative business models have brought a competitive advantage to improve the sustainability performance of organizations. The concept of the sustainable business model describes the rationale of how an organization creates, delivers, and captures value, in economic, social, cultural, or other contexts, in a sustainable way. The process of sustainable business model construction forms an innovative part of a business strategy. Different industries and businesses have utilized sustainable business models' concept to satisfy their economic, environmental, and social goals simultaneously. However, the success, popularity, and progress of sustainable business models in different application domains are not clear. To explore this issue, this research provides a comprehensive review of sustainable business models literature in various application areas. Notable sustainable business models are identified and further classified in fourteen unique categories, and in every category, the progress-either failure or success-has been reviewed, and the research gaps are discussed. Taxonomy of the applications includes innovation, management and marketing, entrepreneurship, energy, fashion, healthcare, agri-food, supply chain management, circular economy, developing countries, engineering, construction and real estate, mobility and transportation, and hospitality. The key contribution of this study is that it provides an insight into the state of the art of sustainable business models in various application areas and future research directions. This paper concludes that popularity and the success rate of sustainable business models in all application domains have been increased along with the increasing use of advanced technologies.
Despite consensus in the literature that regulation, technology push, and market pull drive eco‐innovation (EI), evidence remains limited on the diverse firm capabilities needed to boost EI. Building on the natural‐resource‐based view of the firm and the EI literature, this paper posits that firms need to renew and realign their capabilities, and ultimately develop distinctive sustainability‐oriented capabilities, in order to meet the rapidly changing regulatory, technology, and market demands. Results of the analysis, based on a survey of U.K. firms, reveal that EIs are more likely to arise when firms (a) build capabilities on voluntary self‐regulation (i.e., executive driven environmental management system and corporate social responsibility) because such organizational capabilities allow them to address increasing regulatory pressures; (b) invest in environmental research and development (i.e., eco‐R&D)—instead of generic research and development—because it provides them with the relevant and specific technological capabilities to tackle technology shifts towards sustainability; and (c) develop capabilities in green market sensing as such capabilities allow them to address green consumption needs.
Modern industrial agriculture is largely responsible for environmental problems, such as biodiversity loss, soil degradation, and alteration of biogeochemical cycles or greenhouse gas emission. Agroecology, as a scientific discipline as well as an agricultural practice and movement, emerged as a response to these problems, with the goal to create a more sustainable agriculture. Another response was the emergence of permaculture, a design system based on design principles, as well as a framework for the methods of ecosystem mimicry and complex system optimization. Its emphasis, being on a conscious design of agroecosystems, is the major difference to other alternative agricultural approaches. Agroecology has been a scientific discipline for a few decades already, but only recently have design principles for the reorganization of faming systems been formulated, whereas permaculture practitioners have long been using design principles without them ever being scrutinized. Here, we review the scientific literature to evaluate the scientific basis for the design principles proposed by permaculture co-originator, David Holmgren. Scientific evidence for all twelve principles will be presented. Even though permaculture principles describing the structure of favorable agroecosystems were quite similar to the agroecological approach, permaculture in addition provides principles to guide the design, implementation, and maintenance of resilient agroecological systems.
This study explores the business model literature within nature tourism, focuses on its sustainability-related aspects, and adopts some of the results of the literature review by Reinhold et al. The research questions concern how scholars use and operationalize the business model concept in the context of nature tourism, and to what extent sustainability-related aspects are included and discussed. A literature review was conducted including a total of 18 scientific articles from various disciplines. The findings suggest that scientific literature about business models in nature tourism is very limited, both in relation to the number of articles and their content. With regard to the latter, the business model concept is sometimes adopted without any clear definition, sustainability-relatedaspects—especiallythoserelativetotheenvironmentaldimension—arescarcely discussed, the perspective adopted is usually static, and innovation for sustainability is only marginally included. This indicates a clear gap in the literature and a considerable potential for future studies. LINK TO OPEN ACCESS ARTICLE: http://www.mdpi.com/2071-1050/10/9/3226
Traditionally, wasted resources are considered a burden that imposes a cost on organizations. However, ecological sustainability principles underpinning the linked discourses of industrial ecology and the Circular Economy conceptualize waste as intrinsically valuable. Our research identified exemplar business organizations that had each changed their business models to resolve the tension of waste as a burden and/or resource. Synthesizing these cases, we found these organizations applied systems thinking to reframe their product and service offerings and developed material circular flows in their business models. Analysis of how our exemplar organizations changed their business models to tackle pressing sustainability issues and to resolve the burden–resource tension show that the focus of change is on reconceptualizing their understanding of the role of waste in the value chain of their products and services. This altered understanding of waste as a resource across their value networks initiated negotiations with their existing suppliers to also modify their supply chain practices.
The current paper uses the concept of imaginaries to understand how permaculture provides alternative ways of organizing in response to the Anthropocene. We argue that imaginaries provide ways of organizing that combine ideas and concrete practices, imagining organizational alternatives by enacting new forms of collective practice. Permaculture movements, because of their combination of local, situated design practices and underlying social and political philosophies, provide an interesting case of imaginaries that make it possible to reimagine the relations between humans, non-human species and the natural environment. We identify and describe three imaginaries found in permaculture movements, conceiving of permaculture respectively as a technical design practice, a holistic life philosophy, and an intersectional social movement. These imaginaries open up possibilities for political and social alternatives to industrially organized agriculture, but are also at risk of various forms of ideological co-optation based on their underlying social premises. We discuss our perspective in terms of developing the concept of imaginaries in relation to organizational scholarship, particularly in contexts where fundamental relations between humans and the natural environment must be reimagined, as in the case of environmentalist organizing in response to the Anthropocene.
Companies commonly issue sustainability or corporate social responsibility (CSR) reports. This study seeks to understand worldviews of corporate sustainability, or the corporate message conveyed regarding what sustainability or CSR is and how to enact it. Content analysis of corporate sustainability reports is used to position each company report within stages of corporate sustainability. Results reveal that there are multiple coexisting worldviews of corporate sustainability, but the most dominant worldview is focused on the business case for sustainability, a position anchored in the weak sustainability paradigm. We contend that the business case and weak sustainability advanced in corporate sustainability reports and by the Global Reporting Initiative are poor representations of sustainability. Ecological embeddedness, or a locally responsive strategy that is sensitive to local ecosystems, may hold the key to improved ecological sensemaking, which in turn could lead to more mature levels of corporate sustainability worldviews that support strong sustainability and are rooted in environmental science. This must be supported by government regulation. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
The triple bottom line (TBL) has reformed management discourse by making sustainability part of the business agenda, yet increasingly the TBL has evolved into a proxy for sustainability, often visually depicted as the mutual maximization of economic, social and environmental dimensions. We use a sentiment analysis to show that the extant literature views the TBL favorably and uncritically, with only 8% of academic studies invoking the term negatively. Next, based on extant management literature, we show that two core assumptions underpin the TBL metaphor: win–win and firm-level sustainability. Then we employ a transdisciplinary comparative analysis to contrast these assumptions with two ecological perspectives: strong sustainability and nested hierarchy. By drawing extensively from the literature of ecologically grounded sciences, our study contributes a critical evaluation of the TBL paradigm of sustainability. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment
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.
Purpose
Exploring the ways in which innovation can serve to create better and more integrated social, environmental, and economic enterprises is a key challenge. How firms innovate and change depends strongly on their management models. Permaculture concepts and principles could help the transition toward more sustainability. The purpose of this paper is to understand how management models could rely on Permaculture principles to facilitate innovations and changes toward sustainability.
Design/methodology/approach
This paper helps meet this challenge by exploring possible innovative management models that could help in pursuing sustainability by aligning enterprises with socio-ecological realities. The possible innovative management models built on the Permaculture concepts will be the object of analysis for this study.
Findings
The literature review shows that there could be innovative management models built on the Permaculture concepts, a potential alternative to western “traditional” management models. They would give preference to long-term objectives, intrinsic motivation, emergent coordination, and collective wisdom in decision making.
Originality/value
It is strategically important to find new concepts, models, methods, and practices that will lead society to be ecologically sustainable and socially responsible, besides being economically efficient. These socio-cultural and economic challenges are central to the design and construction of a society in which all individuals feel integrated and responsible.
Digitalization is feeding globalization, breaking the industrialization-driven business, marketing, and management logics. The industrial revolution came about in order to create efficiency in scale, whereas the digital revolution is scaling creativity and creating inter-industry competition. Customer interface owners are winners in this change, where customer-oriented service design is in the key role and the value chain becomes pull-directed. The internet is accelerating the speed of everything. Product, service, and design life cycles are getting shorter. It is difficult to create a sustainable competitive advantage in a constantly changing business environment, especially with hardly-protected digital components. The durability of the business model has to be constantly compared to the changing business environment, and continuous iterative business development is required for an agile response to challenges and opportunities.
Where digitalization has returned individual customer needs to the center of value creation, replacing industrialization-driven mass production and market share, the transition towards service—dominant business logic (SDL) is accelerated. Based on SDL, in the service economy neither product nor service creates value on its own—value is co-created with the customer. Business model development is an interesting and understudied notion, especially in the value co-creative business environment where business development happens continuously with the customer. The main contribution of this paper is the framework for continuous business model development in a digitalization-driven, service-dominant, co-creative business environment, which we present through a descriptive case study of business model innovation in the health care business.
Business model innovation has seen a recent surge in academic research and business practice. Changes to business models are recognised as a fundamental approach to realise innovations for sustainability. However little is known about the successful adoption of sustainable business models (SBMs). The purpose of this paper is to develop a unified theoretical perspective for understanding business model innovations that lead to better organizational economic, environmental and social performance. The paper examines bodies of literature on business model innovation, sustainability innovation, networks theory, stakeholder theory and product-service systems. We develop five propositions that support the creation of SBMs in a unified perspective which lays a foundation to support organizations to investigate and experiment with alternative new business models. This article contributes to the emerging field of SBMs, which embed economic, environmental and social flows of value that are created, delivered and captured in a value network. It highlights gaps for addressing the challenges of business model innovation for sustainability and suggests avenues for future research.
Sustainable business model innovation is an emerging topic, but only few tools are currently available to assist companies in sustainable business modelling. This paper works towards closing this gap by bringing together ‘design thinking’ and ‘sustainable business model innovation’ to refine the creative process of developing sustainable value propositions and improve the overall business modelling process.
This paper proposes a new workshop framework based on a value mapping process, which was developed by literature synthesis, expert interviews, and multiple workshops. The framework was transferred into a workshop routine and subsequently tested with companies and students.
The resulting ‘Value Ideation’ process comprises value ideation, value opportunity selection, and value proposition prototyping. The integration of design thinking into the innovation process helps to create additional forms of value and include formerly underserved stakeholders in the value proposition. Thus, the Value Ideation process helps companies to improve their performance while becoming more sustainable.
Workshop evaluations revealed that the Value Ideation process assists companies in enhancing their value proposition by including positive economic, societal, and environmental value and a wider range of stakeholder interests. The ‘design thinking’ elements stimulate the ideation process and help to harmonise often conflicting stakeholder interests.
The meaning of sustainability is the subject of intense debate among environmental tal and resource economists. Perhaps no other issue separates more clearly the traditional economic view from the views of most natural scientists. The debate currently focuses on the substitutability between the economy and the environ ment or between "natural capital" and "manufactured capital"-a debate captured in terms of M elk versus strong sustainability. In this article, we examine the various interpretations of these concepts. We conclude that natural science and economic perspectives on sustainability are inconsistent. The market-based Hartwick-Solow "weak sustainability' approach is Far removed from both the ecosystem-based "Holling sustainabilily' and the "strong sustainability" approach of Daly and others. Each of these sustainability criteria implies a specific valuation approach, and thus an ethical position, to support monetary indicators of sustainability such as a green or sustainable Gross Domestic Product (GDP). The conflict between "weak sustainability" and "strong sustainability" is more evident in the context of centralized than decentralized decision making. In particular, Firms selling "services" instead of material goods and regarding the latter as "capital" leads to decisions more or less consistent with either type or sustainability. Finally, we discuss the implications of global sustainability for such open systems as regions and countries. Open systems have not been dealt with systematically for any of the sustainability criteria.
What resources do small enterprises need to develop responsible innovations that enhance sustainable development? Does lack of resources prevent innovation toward sustainability in small and medium-sized enterprises (SMEs) or can innovations be created with scarce resources? This study investigates environmentally and socially responsible innovations of SMEs from a resource perspective, based on empirical data from 13 Nordic SMEs. The findings indicate that SMEs can create responsible innovations with very different resource combinations. The most common resource combination comprises equity, research and development cooperation, networks, industry knowledge and reputation. Except for financial capital in the form of equity, which appears a necessary condition for responsible innovation from SMEs, resource needs vary between technological and business model innovations. Creating business model innovations appears to be possible with scarce resources, at the very least with equity and social capital. Environmental technology innovations call for more abundant resource combinations. In particular industry knowledge appears to be a key resource for such innovations. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment
There are widespread concerns that current trends in resource-use are unsustainable, but possibilities of overshoot/collapse remain controversial. Collapses have occurred frequently in history, often followed by centuries of economic, intellectual, and population decline. Many different natural and social phenomena have been invoked to explain specific collapses, but a general explanation remains elusive. In this paper, we build a human population dynamics model by adding accumulated wealth and economic inequality to a predator-prey model of humans and nature. The model structure, and simulated scenarios that offer significant implications, are explained. Four equations describe the evolution of Elites, Commoners, Nature, and Wealth. The model shows Economic Stratification or Ecological Strain can independently lead to collapse, in agreement with the historical record. The measure "Carrying Capacity" is developed and its estimation is shown to be a practical means for early detection of a collapse. Mechanisms leading to two types of collapses are discussed. The new dynamics of this model can also reproduce the irreversible collapses found in history. Collapse can be avoided, and population can reach a steady state at maximum carrying capacity if the rate of depletion of nature is reduced to a sustainable level and if resources are distributed equitably. (C) 2014 The Authors. Published by Elsevier B.V.
The aim of this paper is to advance research on sustainable innovation by adopting a business model perspective. Through a confrontation of the literature on both topics we find that research on sustainable innovation has tended to neglect the way in which firms need to combine a value proposition, the organization of the upstream and downstream value chain, and a financial model, in order to bring sustainability innovations to the market. Therefore, we review the current literature on business models in the contexts of technological, organizational, and social sustainability innovations. As the current literature does not offer a general conceptual definition of sustainable business models, we propose examples of normative 'boundary conditions' that business models should meet in order to support sustainable innovations. Finally, we sketch the outline of a research agenda by formulating a number of guiding questions.
Purpose
A common thread in the modern marketing theories, such as service‐dominant logic and viable systems approach, is the notion value co‐creation: the locus of value creation is no longer perceived to reside within firm boundaries but value is considered to be co‐created among various actors within the networked market. The evolution of value creation, from value creation by the manufacturing firm to value co‐creation in a network, necessitates a corresponding change in the concepts used to depict value creation. The purpose of this paper is to investigate business models as a broader conceptualization of value co‐creation that captures this change.
Design/methodology/approach
The topic is approached by a combination of literature review and interactive research, including interactions with managers from 12 international companies.
Findings
Business models are defined as configurations of 12 interrelated elements, covering market, offering, operational, and management viewpoints. The effectiveness of a business model in value co‐creation is defined by the internal configurational fit between all business model elements and the external configurational fit between provider's and customers' business models.
Research limitations/implications
The paper contributes to the understanding on value co‐creation by providing a conceptualization of the business model construct depicting value co‐creation in a network. Of the 12 companies providing the empirical data, ten are within business‐to‐business which limits the applicability to business in general. Further, the paper indicates that within a single firm multiple parallel business models are in use.
Practical implications
A firm can radically improve value co‐creation by designing business models that have a high degree of internal and external configurational fit.
Originality/value
The originality and value of this paper lies in its analysis and discussion of co‐creation of value within a business model.
Innovation has been widely regarded as a panacea for sustainable development, but there remains considerable uncertainty about how it will lead to a more sustainable society. We analyze the role of innovation and business models for the link between the integration of sustainable management with other corporate functions and the economic and environmental performance of companies. Drawing on survey data in the manufacturing sector, we apply structural equation modeling to compare differences between business models and the role of different stakeholder groups in a moderation analysis. We find a positive association of the integration of strategic issues and environmental management with the economic and environmental performance of firms. The results also suggest differences in the link between integration and economic and environmental performance, respectively, depending on the type of business model or innovation pursued, and that secondary stakeholders influence sustainability integration. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment.
Agribusiness enterprises link rural landscapes to global and regional markets. The nature of these business–landscape relationships is vital to the sustainability transition. Decisions by farmers and agriculture policymakers aggregate to changes in the ecology of landscapes, but the influence of food supply system businesses on rural landscape sustainability also requires scrutiny. This article uses four international cases to present a conceptual framework for investigating how different business strategies can support agricultural landscape sustainability. Insights from North America, New Zealand, The Netherlands, and Denmark inform the framework dimensions of horizontal/territorial and vertical/systemic business–landscape relationships. Three types of business model that promote rural sustainability are highlighted: provenance, cogovernance, and placemaking. These models engage strategies such as environmental management systems, certification, ecosystem and landscape services, and spatial planning. Research directions that will improve understanding about how business can engage with rural stakeholders for more sustainable rural landscapes are identified, including the need for cross disciplinary perspectives incorporating social, ecological, and business knowledge.
The positive impact of corporate social responsibility (CSR) practices has been recognized over the past years. Recently, research has looked into the impact of CSR practices on employee behavior demonstrating positive results. Drawing from a sample of 190 supervisor‐subordinate dyads, we studied the relationship between perceived CSR practices (external and internal) and employee performance (supervisor‐rated) and two mechanisms that explain this relationship. Specifically, we studied if this relationship was mediated by employees' job satisfaction and affective commitment. Results indicate that there is a direct link between perceptions of external CSR and performance and that job satisfaction partially mediates this relationship. Also, perceptions of internal CSR are related to higher performance via job satisfaction, supporting full mediation. On the other hand, although both internal and external CSR were related to affective commitment, affective commitment did not act as a mediator for the CSR‐performance relationship. Implications for practice and limitations of this study conclude the article.
Our aim is to provide a better understanding of a business model based on circular principles. In particular, we focus on two issues that support the development of a circular business model: (a) the focal actor as orchestrator of the circular network and (b) the circular ecosystem encompassing suppliers, customers, research centers, and public authorities, in which each actor/stakeholder plays a specific role, based on effective interorganizational relationships. The research method applied is an in‐depth nested single case study of a circular project. Our results highlight an exemplar case of an ecosystemic business model in agriculture, involving different types of innovation and strong collaboration among network members, orchestrated by a focal firm. The abductive approach used led to the formulation of some research propositions and to the identification of some adoption factors and barriers to growth in circular business models.
Corporate sustainability has recently been challenging traditional business models that have been based on value proposition, creation and capture. There has been a steady increase in publications using the term “sustainable business models”; however, there have been few that have theoretically defined or characterized the term, and in most cases, they just apply the term. Seven peer‐reviewed papers were selected that aimed to define and explain sustainable business models and that have been widely cited. The papers were analyzed by assessing the elements and activities covered using the corporate sustainability framework, and by comparing them against four approaches to explain organizations. The paper proposes a definition and framework for more sustainable business models aimed at integrating organizational approaches, the company system, stakeholders, change and sustainability dimensions, thus providing a more holistic and systemic approach to discourses on sustainable business models.
THE SUNDAY TIMES BESTSELLER'I see [Raworth] as the John Maynard Keynes of the 21st Century: by reframing the economy, she allows us to change our view of who we are, where we stand, and what we want to be.' George Monbiot, Guardian'This is sharp, significant scholarship . . . Thrilling.' Times Higher Education'[A] really important economic and political thinker.' Andrew MarrEconomics is broken. It has failed to predict, let alone prevent, financial crises that have shaken the foundations of our societies. Its outdated theories have permitted a world in which extreme poverty persists while the wealth of the super-rich grows year on year. And its blind spots have led to policies that are degrading the living world on a scale that threatens all of our futures.Can it be fixed? In Doughnut Economics, Oxford academic Kate Raworth identifies seven critical ways in which mainstream economics has led us astray, and sets out a roadmap for bringing humanity into a sweet spot that meets the needs of all within the means of the planet. En route, she deconstructs the character of ‘rational economic man’ and explains what really makes us tick. She reveals how an obsession with equilibrium has left economists helpless when facing the boom and bust of the real-world economy. She highlights the dangers of ignoring the role of energy and nature’s resources – and the far-reaching implications for economic growth when we take them into account. And in the process, she creates a new, cutting-edge economic model that is fit for the 21st century – one in which a doughnut-shaped compass points the way to human progress.Ambitious, radical and rigorously argued, Doughnut Economics promises to reframe and redraw the future of economics for a new generation.'An innovative vision about how we could refocus away from growth to thriving.' Daily Mail'Doughnut Economics shows how to ensure dignity and prosperity for all people.' Huffington Post
In this study, we examine the diversity of sustainable business models adopted by the largest global corporations — those listed in the S&P 500 index — over the period 2005–2014. We examine press release communications during this period, which represent public data about business-relevant events. We expect that examining this communication can reveal longitudinal patterns in the adoption of sustainable business activities and models. Empirically, we utilize academic and practitioner expert panels to build a set of keywords across nine sustainable business model archetypes and utilize automated content analysis to examine the breadth and nature of a firm's sustainable business activities and practices. We find evidence of the increasing prominence of different types of sustainable business models over time. In particular, the results show that large capitalized firms have mostly adopted the environmentally-oriented archetypes, and to much lesser extent the societal and organizational ones.
The successful adaptation and creation of sustainable entrepreneurial ventures signi
fi
cantly in
fl
uences
the ability to create more environmentally and socially integrated economic systems. Sustainable busi-
ness models are a critical component towards this goal. However, the development of sustainable
business models is a complex process that requires a supportive entrepreneurial ecosystem. Integrating
literature on sustainable business models, network theory, and entrepreneurial ecosystems, we analyze
the in
fl
uence of organizational-level (venture types and venture tenure) and individual-level factors
(types of network actors and their demographic characteristics) that in
fl
uence the social network con-
nectivity of ventures with sustainable and conventional business models. To this purpose, we modeled
two municipal entrepreneurial ecosystems in the Southeast United States through a complex network of
stakeholders (e.g. entrepreneurs, investors, institutional leaders) and analyzed the resulting social con-
nectivity measures. Our results indicate that sustainable entrepreneurs were underrepresented when
compared to conventional entrepreneurs, but that their networks were more densely connected. We also
found that different social clusters emerged, based on type of venture and business model, venture
tenure, type of network actor (e.g. entrepreneur or investor), or demographic characteristic. With this
study, we contribute to the literature on entrepreneurial ecosystems and sustainable business models.
Businesses are increasingly adopting sustainability, yet the environment continues to decline. This research responds to Dyllick and Muff’s assertion that this paradox is caused by a constricted understanding of the meaning of corporate sustainability, lack of inclusion of constructs from related streams of literature, and failure to integrate micro and macro perspectives of sustainability. The current research addresses these concerns through an integration of 22 micro- and macro-level models of stages of development from literature in corporate sustainability, corporate social responsibility, environmental management, and sustainable development. This integration results in a new unified model of stages of corporate sustainability that broadens the current narrowly constricted understanding of corporate sustainability, extends the paradigm of corporate sustainability beyond the business case and into the realm of ecological science and strong sustainability, and sheds light on the paradox.
This study comprehensively reviews the literature on the service transformation of industrial firms, applying the business model (BM) perspective. Despite the wide use of the BM terminology, a true BM approach to this phenomenon is an emergent trend. We provide a threefold contribution to the research debate. First, we identify the reasons of relevance of such a BM approach to the service transformation phenomenon. Second, based on a reference model, we provide a characterization of the service transformation literature according to the BM perspective, both from the structural and the content standpoints. Third, we outline four future research directions: (i) the comprehensive and detailed structural description of BMs; (ii) the adoption of a differentiated approach to BMs; (iii) the internal and external factors affecting the choice of BMs; (iv) the transition paths.
Over the last decade, increasing research into sustainable business models has produced a number of prototypes that address various dimensions and levels of sustainability. What exists is a patchwork of certification and disconnected frameworks that are less than systematic and comprehensive. This article addresses this lack of integrated, holistic sustainability management research and practice guides by bringing together several salient and strategic sustainability management models. The authors then forward a synthesised, integrated environmental and socio-economic sustainability model that can be used by different types of entities, at different levels of human organisation, to identify, apply, assess, evaluate, and improve processes that advance sustainability values. This article concludes by suggesting future directions for modelling and applying the concepts and practices of multiple levels, systems elements, stages, structures, and cultures to advance sustainability management.
Utilization of natural assets to the best efficient level without changing natural balance has become a critical issue for researchers as awareness on climate change takes central position in global debate. Conventional sustainable resource management systems are based on neoclassical economic approach that ignores the nature's pattern and therefore are not actually capable of sustainable management of resources. Environmentalists are lately advocating incorporation of Permaculture as holistic approach based on ethics, equitable interaction with eco-systems to obtain sustainability. The paper integrates philosophy of permaculture with strategic management frameworks to develop a pragmatic tool for policy development. The policy design tool augments management tasks by integrating recording of natural assets, monitoring of key performance indicators and integration of sectorial policies in real time, bringing out policy as a truly live document. The tool enhances the edifice process, balancing short term viewpoints and long term development to secure renewability of natural resources.
In this extraordinary book, the authors combine the latest science with compelling storytelling and amazing photography to create a new narrative for humanity's future. Johan Rockstom and Mattias Klum reject the notion that economic growth and human prosperity can only be achieved at the expense of the environment. They contend that we have unprecedented opportunities to navigate a "good Anthropocene." By embracing a deep mind-shift, humanity can reconnect to Earth, discover universal values, and take on the essential role of planetary steward. With eloquence and profound optimism, Rockstrom and Klum envision a future of abundance within planetary boundaries-a revolutionary future that is at once necessary, possible, and sustainable for coming generations. © Bokförlaget Max Strböm 2015, Text Johan Rockstrom, Text pages 114-115 and photo captions Mattias Klum, All photos Mattias Klum, except photo page 3, NASA/William Anders, and page 51 (top left, polar bear, Johan Rockstrom. All rights reserved.
While a consensus appears to have evolved among many sustainability researchers and practitioners that sustainable development at the societal level is not very likely without the sustainable development of organizations, the business model as a key initiating component of corporate sustainability has only recently moved into the focus of sustainability management research. Apparently, the usual approaches to sustainable development of philanthropy, corporate social responsibility, and technological process and product innovation are insufficient to create the necessary radical transformation of organizations, industries, and societies toward genuine, substantive sustainable development. More in-depth research is needed on whether both modified and completely new business models can help develop integrative and competitive solutions by either radically reducing negative and/or creating positive external effects for the natural environment and society.
Why is it so difficult for established companies to pull off the new growth that business model innovation can bring? Here's why: They don't understand their current business model well enough to know if it would suit a new opportunity or hinder it, and they don't know how to build a new model when they need it. Drawing on their vast knowledge of disruptive innovation and experience in helping established companies capture game-changing opportunities, consultant Johnson, Harvard Business School professor Christensen, and SAP co-CEO Kagermann set out the tools that executives need to do both. Successful companies already operate according to a business model that can be broken down into four elements: a customer value proposition that fulfills an important job for the customer in a better way than competitors' offerings do; a profit formula that lays out how the company makes money delivering the value proposition; and the key resources and key processes needed to deliver that proposition. Game-changing opportunities deliver radically new customer value propositions: They fulfill a job to be done in a dramatically better way (as P&G did with its Swiffer mops), solve a problem that's never been solved before (as Apple did with its iPod and iTunes electronic entertainment delivery system), or serve an entirely unaddressed customer base (as Tata Motors is doing with its Nano - the $2,500 car aimed at Indian families who use scooters to get around). Capitalizing on such opportunities doesn't always require a new business model: P&G, for instance, didn't need a new one to lever-age its product innovation strengths to develop the Swiffer. A new model is often needed, however, to leverage a new technology (as in Apple's case); is generally required when the opportunity addresses an entirely new group of customers (as with the Nano); and is surely in order when an established company needs to fend off a successful disruptor (as the Nano's competitors may now need to do).
The concept of business models has reached global impact, both for company's competitive success and in management science. Its application by authors from diverse areas has led to a previously very heterogeneous comprehension of the concept. Yet, by means of investigating its origin and theoretical development, we state a recently converging business model view. Further, based on analyzing business model definitions, perspectives and components in the literature, we newly define the concept and portray its essential components in an integrated framework. Finally, the compilation of the current state of business model research yields the article's main findings. In this regard, via database search we quantitatively identify 681 peer-reviewed articles. Further, we qualitatively analyze them according to individual research areas that we adopt from an appropriate heuristic frame of reference. In this way, we identify four essential research foci: innovation, change & evolution, performance & controlling and design. In triangulation with assessing future research perspectives through a survey of twenty-one international experts, they also consider the areas of innovation, change & evolution, and design to be significant for the future development of the business model research field.
A government's decision to tackle societal non-sustainability problems by setting up a government corporation also necessitates the choice of a business model. This article seeks to contribute to this debate through an analysis of the (linkages between the key elements of the) business model of the Kringloopfonds (TKF), a Belgian government corporation set up in order to provide finance to sustainable companies. Based on documentary information and semi-structured interviews with stakeholders TKF's business model is reconstructed which next is evaluated by means of program theory. It was found that TKF's portfolio allocation rule did not foresee in sufficient flexibility in order to cope with the shortage in financeable companies TKF was confronted with. This case thereby advocates for more business model flexibility in terms of portfolio allocation rules, time and asset requirements as well as for thorough sensitivity analyses testing business model's resistance to an initial and temporary shortage of sustainable companies.
The business model has become a popular concept in business and management fields. Yet, it is suffering from a paradox between outstanding popularity and severe criticism, which appears to impede the positive development of the scholarly discourse on the business model concept. Against this background, the purpose of this study is to provide insight into the antecedents of this paradox and to understand their implications for the future development of the concept. The following contributions are made. First, the authors apply a narrative approach to recognizing and interpreting the paradox, and introduce the analysis of syntactics of scholarly discourse