Barriers and drivers for sustainable business model innovation based on a radical farmland change scenario

Abstract

AbstractThe agricultural sector has a critical role in creating social and environmental value of natural resources in addition to its traditional role of creating economic value by supplying food to the ever-increasing world population. In fulfilling this dual role, the agricultural sector often faces competing pressures: to operate financially profitable businesses and to create, maintain, and benefit from ecosystem services (ES) in their operations. This paper analyses these pressures in an examination of drivers and barriers to the initiation of the business model innovation process for sustainability (BMIpfS) as perceived by ten agricultural business managers who operate farms in southern Sweden. The paper explores the interplay between managerial cognition and business decisions as revealed in semi-structured interviews. The new ES in focus connect to radical land-use change, paludiculture, as used in the rewetting of farmland intended to reduce the greenhouse gas emissions that drained peat soil causes. The paper contributes to the literature by identifying drivers and barriers that moderates the initiation of the BMIpfS. Although the managers acknowledge the importance of long-term, sustainable social, and environmental value creation, they have grave doubts about the profitability of activities associated with the preservation of peat soils and connected ES. These managers would benefit from taking a more proactive, long-term approach to business model changes for sustainability and from acquiring more knowledge about market demand for sustainability-oriented ES. Successful facilitation and implementation of knowledge transfer and government subsidies that support ES could improve the turning of profits based on sustainable value creation.