Business Model Innovation for Strong Sustainability: Conceptualizing Degrowth Value Creation in the Dutch Fashion Industry

Anatomy of sustainable business model innovation

Purpose of the paper: The research aims to better comprehend the mechanisms that allow the generation and dissemination of sustainable value. In particular, assuming the business model as conceptual framework and as unit of analysis, the purpose of the study is to understand factors and processes able to orient the strategic conduct of a company towards sustainable innovation. Methodology: The study adopts a research approach oriented to the discovery and it privileges the analysis of a business case with a high explanatory power. Findings: In highlighting the drivers for the creation of sustainable value and sustainable innovation at the base of the analysed company business model, the research proposes a framework for the Sustainable Business Model Innovation (SBMI). Research limits: The analysis of a single case study, although explanatory, does not allow to reach a generalization of the results. Practical implications: The study offers a contribution to the development of managerial theories on innovation with reference to business models oriented to sustainability. The case analyzed is also a best practice that could guide managers and entrepreneurs to plan innovation and sustainability-driven business models already in the start-up phase. Originality of the paper: In response to a gap in the literature, the study proposal is focused on how companies should incorporate the logic of sustainable development and innovation into their business models at a strategic and holistic level.

The need to develop sustainable business models, which have a positive effect on environment and society, has received increasing attention in research and practice in the last years. Describing the sustainability of these business models, however, often takes place without robust assessments and without consideration for the wider system within which they are embedded. Early in the innovation process, in particular, a lack of quantitative data, time, and competencies presents an issue. At the same time, Systems Thinking has long been described as necessary for innovating business models for sustainability, but it has not been made clear how exactly Systems Thinking can be used early in the innovation process to assess the sustainability of a business model innovation. This article develops guidelines for embedding Systems Thinking principles into tools for sustainability assessment for use in the early stages of sustainable business model (SBM) innovation. It does so by exemplifying Systems Thinking principles in the context of SBM innovation and analysing their integration in three selected tools for early-stage sustainability assessment. The article shows how, by embedding Systems Thinking into tools for the SBM innovation process, unintended consequences and negative trade-offs can be reduced and the sustainability of the innovation better understood. Eight design guidelines are proposed for effectively using Systems Thinking in tools for early-stage sustainability assessment of SBMs: (1) Define scope of application, (2) Design for collaboration, (3) Integrate the principles “Interconnections”, (4) “Causal relations & feedback loops”, and (5) “System change & adaptation”, (6) Consider sustainability dimensions, (7) Ensure flexibility of integration, and (8) Ensure compatibility with other assessment tools.

Sustainable business model innovation is an all-round innovation of value proposition, value creation, value acquisition and value network guided by sustainable development, fully integrates the contribution of enterprises to sustainable development, the requirements of stakeholders and social responsibility, and finally creates comprehensive value and shared value covering economy, society and environment. From the perspectives of triple bottom line, stakeholders, enterprise strategy, organizational management and resource integration, this paper reveals the connotation deepening and extension of sustainable business model to traditional business model, and comprehensively combs the concept understanding, design scenarios, driving factors and implementation process of sustainable business model innovation. Among them, the social enterprise and benefit corporation organization scene focusing on organizational system, the bottom of pyramid （BoP） focusing on users, and the circular economy scenario focusing on products are the main scenarios for sustainable business model design. Sustainable entrepreneurship from the perspective of entrepreneurs, creation of shared value from the perspective of strategic competition tools, legitimacy construction and profit from the perspective of neo-institutionalism, and social pressure from the perspective of stakeholders are the important driving factors of sustainable business model innovation, while sustainable entrepreneurship, responsible digital technology innovation, and organizational paradigm innovation are the main ways to achieve sustainable business model innovation. We suggest that future research should focus on clarifying the basic theoretical framework and internal drivers of sustainable business model innovation, analyzing the mechanism of sustainable business model innovation on enterprise performance at different levels, and deepening the research on sustainable business model innovation in the new digital era.

Design thinking to enhance the sustainable business modelling process – A workshop based on a value mapping process

Sustainable business model innovation of an emerging country startup: An imprinting theory perspective

Purpose This paper aims to explore the potential for repositioning multi-capital accounting (MCA) from a diagnostic tool for assessing the (un)sustainability of existing operations to a strategic asset in the strategic innovation process to help regenerative business model innovation emerge and gain traction. Design/methodology/approach This paper draws on existing literature and on the practical experience of the author in supporting business model innovation for strong sustainability to explore opportunities for MCA to facilitate the shift from volume-based to regenerative approaches. Findings The analysis highlights the importance of bringing a systemic perspective to performance and a new hierarchy of norms into the strategic innovation process. It shows how MCA could effectively capture the unique performance dynamics and complexities of regenerative business models as a holistic management information system and serve as a source of institutional support. To achieve this repositioning of MCA as a proactive resource in the conception, design, evaluation and management of innovative or inherently regenerative business models, it is imperative to forge connections between MCA researchers and those specializing in business model innovation for sustainability. Practical implications By aligning MCA models with the strategy innovation process, strategic decision-makers can benefit from better data, insight and confidence to identify opportunities for innovative business models for regeneration. They also develop the relevant analytical and information infrastructure to improve the ability to properly operate these innovative business models. Social implications Failure to accelerate business model innovation will further delay progress on achieving the sustainable development goals with potentially devastating consequences for people and the planet. Originality/value The discussion calls for building a bridge between MCA and business model innovation for regeneration, which could be mutually beneficial. It encourages these research and practice communities to collaborate in better integrating MCA with the strategic innovation process. Ultimately, this would transform MCA from a reporting tool based on past performance into a forward-looking instrument that assists a company’ decision-makers in designing their strategy and addressing key strategic asset for a broader range of stakeholders.

Value uncaptured perspective for sustainable business model innovation

Bridging sustainable business model innovation and user-driven innovation: A process for sustainable value proposition design

PurposeThis study evaluates the important role of humane entrepreneurship (HE) on sustainable business advantage (SBA) and sustainable business performance (SBP) by exploring the mediating role of sustainable business model innovation (SBMI) under the influence of knowledge management (KM) in small and medium-sized enterprises (SMEs). Encouraging businesses to implement a combination of KM and HE facilitates the implementation of SBMI that brings value to businesses, communities and the environment in emerging economies.Design/methodology/approachThis study uses an empirical quantitative research method using primary information based on data collected by questionnaires. The study sample resulted in 424 valid responses (66.77% response rate). The target audience of the study is middle and senior managers in SMEs. This study aims to perform structural modeling analysis with the maximum likelihood estimates method to examine structural relationships.FindingsThis study found a positive relationship between KM and HE to SBMI. At the same time, SBMI plays an important role for businesses to achieve SBA and SBP. Similarly, a positive relationship was also found between HE to SBA and SBP. And SBA strongly promotes SMEs to achieve SBP. In addition, the mediating role of SBMI and SBA is clarified to have a positive impact between HE–SBP and SBMI–SBP. HE plays an important role in motivating businesses to innovate sustainable business models, making it easier to gain sustainable competitive advantages, thereby bringing sustainable business results.Practical implicationsThis research helps SMEs realize the importance of KM and HE in SBMI. At that time, SMEs take advantage of internal and external information sources and innovate their business models based on HE mechanisms. Applying HE mechanisms will allow businesses to innovate their business models by combining concerns between stakeholders and the social environment for sustainable development. Therefore, businesses will achieve their SBA toward SBP.Originality/valueThe present literature shows that there are few empirical studies on the mechanism mediating SBMI in the relationship between HE and SBP; and SBA in the link between SBMI and SBP. In addition, the impact of KM and HE on SBMI is also very important in the current context. The study's findings could have huge implications for entrepreneurs and senior managers in SMEs in emerging economies. Help them realize the importance of KM and HE for SBMI, thereby building strategic perspectives that help businesses achieve sustainable competitive advantages and increase SBP for businesses.

Business model innovation for sustainability offers responsible managers a practice that enables the (re-)consideration of how they care for and deliver value to stakeholder constituents, and create solutions to key sustainability challenges such as climate change, biodiversity and poverty. In this chapter we seek to provide an overview of key themes within the field of business model innovation for sustainability in relation to responsible management. In particular, we give consideration to conceptualisations of business models for sustainability, identification of patterns of business model components, understanding the innovation process, unpacking the innovation challenges, and providing tools and frameworks. Based on this overview we offer three opportunities for responsible management research to further help responsible managers to innovate business models for sustainability: (1) developing context sensitivity to connect business models to the needs of socio-ecological systems; (2) enhancing approaches to experimentation through new tools and frameworks, and; (3) investigating new ways of innovating business models for sustainability through changing components of value proposition, creation and capture.

Sustainable business model innovation (SBMI) is particularly important in rural economies, yet SBMI research has largely ignored rural contexts and lacked a holistic treatment of drivers. Rural entrepreneurs face heightened vulnerability due to their reliance on natural amenities sensitive to disruption, and their limited access to resources, networks, and institutional support. SBMI provides a critical pathway for enhancing the economic and socio-ecological resilience of firms and local communities, enabling diversification while integrating sustainability into business strategies. In rural contexts, SBMI likely unfolds differently compared to better-studied urban settings, and enabling mechanisms are underexplored. To advance the field, we develop a holistic conceptual framework of SBMI that is salient to these oft-ignored rural contexts and offer propositions on how these mechanisms may operate to drive rural SBMI. We incorporate four interrelated factors—entrepreneurial networks (ENs), rootedness in place (RIP), dynamic capabilities (DCs), and sustainability orientation (SO)—that together shape how rural entrepreneurial organizations adapt practices to environmental and market shifts and integrate sustainability into their business models. By emphasizing the interplay between rural ventures, their networks, and their embeddedness within rural places, the framework underscores the centrality of place and entrepreneurial ecosystems in fostering rural SBMI. It offers theoretical and practical insights for designing interventions that strengthen resilience, promote sustainability, and support the long-term vitality of rural entrepreneurial ecosystems. What drives rural entrepreneurs to innovate their business models to be more sustainable, incorporating people and the planet with profitability? Integrating academic literature, our paper develops a concept where sustainable innovation of business models—the recipes for the business itself—is driven by the capabilities of the rural firm to adapt to new conditions, the firm’s views on sustainability principles, and the connections the firm has to its rural place due to local culture, resources, and networks. Rural entrepreneurs are deeply rooted within their local contexts and often utilize unique natural and social resources to build profitable businesses, making their ability to adapt practices for greater sustainability critical. Based on our new conceptual framework, we chart a course for future research through quantitative and qualitative methods to better understand what drives rural entrepreneurs’ ability to innovate for more sustainable business practices.

This research aims to understand how sustainable business model innovation (SBMI) can learn from business model innovation. For this, first, we conducted a bibliometric analysis to evaluate the relationships between business model innovation and SBMI literature. After this, we performed a systematic literature review to create a comprehensive framework for managing SBMI. The bibliometric analysis showed that the SBMI stream grew quickly and significantly in recent years, evolving into a separated new research stream, which does not leverage recent business model innovation advancements. Through the performed analyses, we were able to discuss critical gaps in the SBMI literature and shed light on possible pathways to solve these gaps through lessons learned from business model innovation. We depicted five critical gaps for managing SBMI; (1) the need to understand the sustainable business model as a wicked problem, in which SBMI leads to “better than before” solutions calling for systematic SBMI, (2) the poor definition of distinctive dimensions of dynamic capabilities for SBMI, (3) the lack of studies exploring the role of open innovation for improving the SBMI process, (4) the lack of tools supporting SBMI implementation and (5) the need to explore game-changing, competitive advantages of SBMI. The findings of this study contribute to guiding future research on SBMI, which can be a basis for further efforts towards sustainable development.

PurposeSustainable business model innovation (SBMI) is a change in the way a firm operates in order to create positive impacts or to reduce negative consequences for the environment and the society. The aim of this paper is to explain what pathways a firm can take when it implements a sustainable business innovation process in line with Sustainable Development Goals (SDGs).Design/methodology/approachThe article starts with the analysis of the existing literature about BMI and SBMI in order to extrapolate the main elements of these topics.FindingsThanks to the combined information from academic and nonacademic sources, the study proposes a new framework. It is divided into three sectors: value proposition, value capture delivery and value capture according to the main studies about the business model.Research limitations/implicationsRegarding theoretical implications, this study contributes to developing a theory of both BMI and sustainable innovation. Indeed it helps in the understanding of the dynamic vision about how the business model changes in order to incorporate triple sustainability.Practical implicationsFrom a practical view, the paper can serve as a guideline for corporate reorganization.Originality/valueThe new framework differs from some recent academic efforts first of all for its theoretical characteristics: BMI construct and not business model concept is the core of the framework. The business model represents the subject of innovation, not its vehicle. Another unique aspect that can be derived from the approach adopted is that it links theoretical with practical sources.

Developing sustainable business model innovation through stakeholder management and dynamic capability: A longitudinal case study