Abstract

AbstractThis chapter focuses on the development of sustainable business models for innovation in the Swedish agri-sector. This is important for several reasons. Many of society’s challenges are linked to social, environmental and economic aspects of agriculture, and numerous agri-companies have been reduced to subcontractors with little influence, and are struggling with low profitability.Previous research regarding agri-companies have mainly focused on production and cost-efficiency aspects. Research regarding sustainable innovation and sustainable business models in the agri-sector is limited to date. To fill in this gap, the aim of this chapter is to illustrate and analyse how Swedish agri-companies develop sustainable business models. An integrated theoretical framework combining research regarding sustainability-oriented innovation and sustainable business model archetypes has been developed in order to collect and analyse the eight agri-companies in the study.Swedish agri-companies focus not only on optimization but also on their organizational transformation and systems building when developing sustainable innovation. They have developed diversified business models. A common, important factor is to adopt stewardship roles. Further, the value intention of agri-entrepreneurs is a relevant factor when developing sustainable business models.

Highlights

  • This chapter focuses on the development of sustainable business models for innovation in the Swedish agri-sector

  • The eight companies and cooperatives will be positioned in the combined framework of sustainability-oriented innovations (SOI) and different sustainable business model archetypes

  • The research presented in this chapter builds on, and adds to, previous research regarding sustainability-oriented innovation (Adams et al 2016), business model archetypes (Bocken et al 2014) and building blocks of business models (Barth et al 2017)

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Summary

Introduction

This chapter focuses on the development of sustainable business models for innovation in the Swedish agri-sector. Many of the small cooperatives and networking firms in the agri-sector have either joined or become large multinational companies through mergers and acquisitions Though this trend has led to cost-effective production and distribution systems, has it built barriers for sustainable business model innovation in the agri-value chain?. Large companies mainly look for standardized products that suppliers produced at low cost, and innovations developed by smaller companies along the food chain making products better but different can be difficult to integrate into big companies’ business plans and delivery systems These are important issues, because of the increased worldwide competition, advanced technological developments and large-scale production existing in the agri-sector, and with a resulting general trend towards fewer and larger farms (OECD 2016), it remains to be seen whether the global goals of sustainable agricultural development can be met. Based on the most salient learnings from the research, guidelines for agri-entrepreneurs will be provided as well as suggestions for future research

Sustainability in the Agri-sector
Sustainability-Oriented Innovation (SOI)
Business Models
Sustainable Business Models
Eight Sustainable Business Model Archetypes
A Combined SOI and SBM Archetypes Framework
Develop scale-up solutions
Maximize material and energy efficiency
The Case of Sweden
Methodology
Högared Milk Farm
Gäsene Dairy
The Gudmund Farm
Ästad Vineyard
Wapnö Farm
Green Farms
The South Forest Owners (Södra)
The Farmers (Lantmännen)
Analysis
Conclusions, Future Research Avenues and Practical Implications
Practical Implications
Findings
Concluding Remarks
Full Text
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