Sustainable Business Model Development from Cultural Heritage: A Study of Apatani Traditional Costume Practices

As an approach to sustainable development, circular business models are increasingly being developed. However, many circular business models focus on environmental or technological contributions to sustainability rather than considering all dimensions of sustainability simultaneously. Based on existing sustainable business model archetypes, a hierarchical business model typology is developed that allows a stepwise exploration of sustainable business model innovation opportunities incorporating an environmental, social and economic dimension. An analysis of business model components generates a closer look on the six newly defined Sustainable Circular Business Models. Finally, a conceptual application for organic waste valorization technologies, supported by examples from literature, allows a practical view on the implementation of the business models in the bio-economy. The typology offers a guide toward sustainable business model design or innovation opportunities centered around technologies creating value from waste.

Sustainable business modeling: The need for innovative design thinking

The circular economy is used as a concept to advance and push the green and sustainability transition process in businesses to a more circular, green, resource effective economy. However, it has turned out to be much more complex to innovate, develop, implement, operate and not least measure Circular and Sustainable business models for businesses – especially for SME’s and Startups – although the approach – by many – is emphasized as “easy” strategies and implementation. Achieving Circularity and Sustainability (environmentally, economically and socially parameters) – at the same time – related to business models has not yet been clearly defined, shown, proven and measured. Achieving environmental, economic and social goals – equal to sustainability – at the same time – the ”triple bottom line” approach – in a circular perspective is a great dilemma to many businesses because the parameters often conflict each other. Advanced sensor technologies, 5G and 6g technologies gives great hope to be able to make it more visual and transparent to what businesses are really doing and strategically want to do. Advanced technology could help to visualize the process and the dilemma – in close to real time. Advanced sensor, 5G, 6G technologies imbedded in Business Model’s (BM) and Circular Sustainable Multi Business Model Innovation and Development processes gives hopes for a new leadership and management era together with better measurement tools, practice, and approaches. It also gives hope to a higher speed on circular and sustainable transition – visualizing and thereby hopefully preventing greenwashing. The EU project Greenbizz II A and B’s vision is to speed up the Circular and Sustainable Multi Business Model Innovation and Development (CSMBMID) process in SME’s and Startups together with their business value network. The aim is to achieve and implement Scope 3 – but under the goal to also create at the same time effectiveness, efficiency and sociality in CSMBMID. By reengineering AS IS BM’s – and designing Circular and Sustainable Business Models (CSBM) – the vision of Greenbizz II A and B are however very complex by nature. It requires a manifold of activities, different network constellations and not least further research, innovation and development of sensors, 5G and 6G technologies, learning and traning and a CSMBMID Brain. Greenbizz II A and B build on top of EU Greenbizz 1 project, as Green, Economic and Social parameters are seeked measured and achieved together with circularity at the same time in a new “Circular Sustainable Triple Bottom Line” measurement framework. A new advanced monitoring smartboard using advanced sensors and wireless technologies prototyped in SMEs/Startups – and their business value networks – will be prototyped and tried to be implemented from 2024 – 2026 in 96 SME and Startup businesses. The paper discuss through 3 case examples in different Business Model ecosystems contexts, challenges to do CSMBMID and how advance sensor, 5G and 6G technologies is expected to help and support circular sustainable BM transition in businesses. It points to how CSBM’s can be innovated, developed and implemented supported by advance sensor, artificial intelligence, deep learning, persuasive technologies, Multi Business Model Innovation pattern analysis and libraries of BM archetypes.

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.

Anatomy of sustainable business model innovation

The global textile industry offers huge potentials regarding the transformation towards sustainability. These improvements require a facilitation of business model innovations embedding shifting consumer demands. How can the textile industry drive responsible and sustainable business practices in terms of social sustainability? Tackling this question, a qualitative content-based analysis of current literature conducted highlights main themes and concepts on business model innovations, textile industry, and social sustainability. In addition, an exploratory multiple case study design was used. Results show social sustainability patterns are seldom and often linked to external pressures. This chapter proposes a reorientation towards stronger holistic and inclusive approaches for sustainability and reflects on socio-cultural aspects linked to sustainable textile business models. Progressing sustainability in the textile industry needs both a single consideration of environmental and social issues as well as an integrative and systemic perspective in academia as well as in practice.

SMEs, including cultural and creative firms, are encountering increasingly difficult obstacles in today’s competitive landscape. In particular, during the COVID-19 pandemic, these SMEs had to confront significant challenges that endangered their survival, requiring a shift in their business model. Many successful firms responded to this crisis by adopting business model innovation (BMI) as a strategic solution. The pandemic also emphasised the importance of sustainable practices and the necessity to enhance readiness for and responsiveness to future challenges. This study proposes examining Sustainable Business Model Innovation in the light of the Theory of Planned Behavior. While some studies have explored BMI through the TPB framework, we expand the interpretative schema by introducing an additional predictor: the influence of open innovation ecosystem partnerships. From an open innovation perspective, the new construct proposes how peer professional organisations and technological clusters play a significant role in managers’ intentions to implement SBM. A purposive sample of 122 Spanish cultural and creative firm managers and business owners was surveyed and analysed using PLS-SEM. The data collected supports the model and supports the prominent role of open innovation environments as a mediation effect of the intention to implement a sustainable and innovative business model. The study adds new insights into the theoretical framework to better understand the implementation of sustainable business models’ innovation actions, with specific support for the role of open innovation ecosystems such as professional organisations and technological clusters. Practitioners and open innovation ecosystem promoters can gain new clues for initiatives to promote the diffusion of innovations among creative and cultural SMEs.

The opportunities of persuasive technology in facilitating sustainable innovation and business model innovation have been witnessed continuously during the last decade. The unique ability of persuasive technology in interacting and mediating across users, customers, decisions makers and other stakeholders provides access to core knowledge about behavior and opportunities to influence and even change their behavior in a positive and more sustainable manner. Sustainable innovation and business model innovation is gaining more and more competitive leverage due to customer requirements, the growing strength of NGO's and the increasing sustainable agenda of global businesses. However, getting knowledge of the stakeholders and their behavior as well as the potentials in actively supporting more sustainable behaviors provides totally new and unique opportunities for radical and customer-focused sustainable innovation and business model innovation, which is explored through a theoretical review and case examples in the present study. The findings reveal a number of key opportunities to pursue and a number of critical challenges to adjust to as presented in propositions.

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.

A literature and practice review to develop sustainable business model archetypes

Purpose of the paper: This paper aims to analyze how small-medium enterprises (SMEs) contribute to the development of a sustainable innovations in the energy sector such as geothermal heat pumps (GHPs) by implementing effective sustainable business models. Methodology: The study carried out an exploratory multiple case study with 8 SMEs operating in the Italian GHP market on the role of sustainable business models in supporting the development of sustainable innovations. Results: The analysis shows that sustainable business models exert a supporting function between sustainable innovation and sustainable value creation thanks to their ability to overcome the existing barriers to adopt sustainable innovations (i.e. GHP systems). This supporting role thus results from the firms’ capabilities and knowledge to assess and promote the peculiarities of selected sustainable innovation. Moreover, the analyzed business models foresee an ongoing support of customers before and after the adoption of sustainable innovation by communicating potential environmental benefits and providing additional services. Research limits: The main limitation is that the findings derive from a national case study with specific market conditions for GHPs which might influence the development of sustainable business models. Practical implications: The study supports firms aiming to develop and implement business models for boosting sustainable innovations through an effective assessment of selected sustainable innovation and dialogue with policy makers. Originality of the paper: The study opens the black box of unexplored relationships between sustainability innovations and business models by analyzing their main components (value proposition, supply chain and public institutions, customer interface and financial model).

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.

Objective: This study reviews the existing literature on sustainable business models for food waste management within the circular economy context. The findings aim to map the research landscape, highlight significant contributions, and suggest future research directions to inspire further studies in this domain. Theoretical Framework: Business model innovation is crucial for companies to remain competitive and sustainable, with a focus on integrating environmental considerations. The circular economy, emphasizing renewable and closed-loop product life cycles, offers a sustainable alternative to traditional economic models. In this topic, the main concepts and theories that underpin the research are presented. Method: Using bibliometric analysis and mapping, this study examines the intensity, influence, and key topics of research articles, journals, and authors from 2016 to January 2023 via Scopus. Keywords were selected based on prior studies, and a Prisma diagram was adapted. A descriptive approach is used for frequency analysis, while co-occurrence clustering reveals literature evolution, topic interlinkages, and research focus areas to guide future studies. Results and Discussion: This study highlights the critical role of business models in addressing food waste within the circular economy and sustainable production and consumption contexts. By mapping recent literature and research trends from 2016-2023, the study identifies essential concepts such as sustainable and circular business models, circular food systems, and food waste recovery methods, digitalization's role, alongside themes like zero waste, food sustainability, smart cities, urban recycling, and upcycling. Research Implications: To understand the research trends, orientations, concepts, and interrelations between these concepts, this study presented a literature review on food waste and business models for 2016-2023. The paper discusses some essential concepts surpassing all industries and waste types in the sustainability context: circular economy, sustainable business models, and circular business models. The study calls for further research and well-structured roadmaps to enhance the global impact of food waste business models and facilitate a shift toward circular economy frameworks. Originality/Value: This study contributes to the literature by revealing in the integration of food waste management with retail and supply chain dynamics, underscoring the need for collaborative solutions and sustainable packaging innovations. This analysis contribute to reflecting the accumulated knowledge landscape to the research and practice community and elaborating on the research gaps and possible research venues to guide future practices.

PurposeThe study aimed to analyze the association between dynamic capabilities and sustainable business model innovation of startups in the Brazilian logistics sector.Design/methodology/approachA qualitative approach was used through a multiple case study that was operated from semi-structured interviews and secondary data analysis.FindingsThe evidence found pointed to different types of innovations in sustainable business models and distinct activities inherent to the three dynamic capabilities surveyed. In addition, the results confirmed that dynamic capabilities can be considered internal drivers that stimulate sustainable business model innovation, since the conception until the change or dissemination.Research limitations/implicationsThe diffusion of a model that jointly addresses the theory of dynamic capabilities and sustainable business model innovation.Practical implicationsFor managers, the study provides insights into the archetypes of sustainable business model innovation and guidance on how to incorporate into the organization's strategic activities aimed at the different dynamic capabilities to achieve sustainable innovation.Originality/valueSustainable business model innovation is seen as a key factor for competitive advantage and corporate sustainability. However, a more comprehensive understanding is necessary for those that promote the design and innovation of sustainable business models. Therefore, the paper addresses this gap by (1) systematizing sustainable logistics initiatives, (2) detailing the processes that support the development of startups' sustainable dynamic capabilities and (3) proposing a framework that establishes connections between capabilities, business model innovation processes, business model archetypes and the environmental, social and economic impacts.

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.