Potentials of business model innovation and values-based management approaches in the mining sector

Abstract

Mining is known to cause high ecological and social impacts especially due to its extractive nature on one hand and its resources and reserves mostly being located in developing or emerging economies on the other hand. Thus, it can be considered to have a paramount role in terms of making a significant contribution to sustainable development. Bearing in mind the growing economic output generated by humans and the growing world population, it is no wonder that related human-driven activities have never had such a strong (and at the same time burdening) influence on the biosphere resulting in exceedance of the planetary system boundaries. The critical reflection of the interaction between material cycles and economic growth is essential for reducing environmental burdens resulting from unthinking consumption patterns and production, and initial material extraction. The latest findings in academia confirm this assumption and point out that most practitioners are already aware of the urgent need for a redefinition of the sector’s understanding of success, taking into account the needs of both shareholders and stakeholders. Furthermore, the extractive sector has gained an image of being outdated. Agrowing number of decision-makers sees the necessity for a sustainable approach to business models that also embraces digitalization. The purpose of the paper is to analyze the standard business model that still dominates the mining industry, followed by a comparison of recent scientific findings on sustainability-oriented business model innovation and values-based innovation management to derive recommendations for potential sector-specific business model archetypes that contribute to the urgent redefinition.