Linking sustainable business models and supply chains — Toward an integrated value creation framework

Simon Norris,Julia Hagenbeck,Stefan Schaltegger

doi:10.1002/bse.2851

Abstract

AbstractExtant literature on sustainable business models highlights that value creation stems from resources exchanged in relationships between a focal firm and its stakeholders. In this context, the literature has, so far, focused on direct relationships. However, despite the acknowledged relevance of sustainability issues in supply chains, this relational view of the focal company and its direct stakeholders has not been extended toward value creation for and with indirect stakeholders, such as stakeholders of suppliers. Addressing this gap, this conceptual article integrates a relational view of sustainable supply chain management into the management of sustainable business models. It extends the scope of sustainable business models from relationships between the focal firm and its direct stakeholders to indirect relationships with stakeholders of suppliers. A framework is developed that supports analysis and management of value‐creating relationships between the focal firm, suppliers, and stakeholders of suppliers. By extending the conceptualization of sustainable business models to consider relationship chains beyond direct relationships, this article proposes that a focal firm has to actively manage interactions both with suppliers and with suppliers' stakeholders.

Highlights

To improve the sustainability of the core business and supply chains of companies, the strategic concepts of sustainable business models (SBMs; Schaltegger, Hansen, & Lüdeke-Freund, 2016; Stubbs & Cocklin, 2008) and sustainable supply chain management (SSCM; Seuring & Müller, 2008b) have been developed in management practice and research
Compared to a conventional business model, the value proposition of an SBM is not limited to the customer, and includes direct and indirect stakeholders and the natural environment
Adopting a relational view shifts the origin of value creation from the focal firm to relationship chains between the focal firm, suppliers, and stakeholders of suppliers

Summary

Introduction

To improve the sustainability of the core business and supply chains of companies, the strategic concepts of sustainable business models (SBMs; Schaltegger, Hansen, & Lüdeke-Freund, 2016; Stubbs & Cocklin, 2008) and sustainable supply chain management (SSCM; Seuring & Müller, 2008b) have been developed in management practice and research. While the SBM concept is concerned with the ecological, social and economic value creation of a focal firm (Evans et al, 2017; Schaltegger et al, 2012), SSCM focuses on managing the flow of goods, information and capital and the relationships between suppliers, focal firm, and customers to improve sustainability performance (Preuss, 2005; Seuring, 2011). The comprehensive and systemic ambition of SBMs (Evans et al, 2017; Stubbs & Cocklin, 2008) implies that links between social, environmental, and economic issues along supply chains need to be considered in the

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