A Conceptualization of Firm Activities Toward Sustainability Transitions

Abstract

This paper explores firm level perspectives for sustainability transitions by analysing the activity system of a firm from the transition management lens. While sustainable business model studies provide useful inputs for firms’ sustainability actions, their role in contributing to sustainability transitions over decadal time scales remains largely unexplored. By identifying the content, structure and governance activity system of a firm we conceptualize their role in sustainability transition. Our conceptual framework suggests that specific activities from the value mechanisms of sustainable business models can change unsustainable dominant practices in organizations (short-term); internal and external operational structures (medium-term), and logics at the industry/sector and consumption levels (long-term). The paper details the above through a framework. The paper also contributes to theory by integrating the concepts of activity system approach and sustainable business model with transition management. Further, we understand how firm business model support transitions from a governance perspective. We provide recommendations for future research to further develop knowledge and help practitioners and policy makers in this urgent matter. Keywords: Sustainable business models; activity-system approach; sustainability transition, transition management