Enablers and Barriers: The Conflicting Role of Institutional Logics in Business Model Change for Sustainability

Abstract

How underlying norms influence the introduction of sustainability in existing commercial business models is under-researched. We present an ethnographic study of a professional services firm operating under commercial and professional logics and responding to the introduction of the sustainability logic. We find that different logic characteristics can be core in each business model component, leading to distinct enablers and barriers to change towards sustainability. We show how the alignment of practices between logics of responding to a specific client and employee expectations are enablers for sustainability. Conversely, barriers are created when clients or employees do not require action. We find enabled actions are bound by barriers of not being open to leading clients in sustainability, requiring professionals to integrate sustainability into service delivery, and taking on risk to shareholder returns. This study shows that logics and how they are expressed impact the antecedents of business model change for sustainability.