Sustainable Business Model Innovation Research Articles

Uncaptured value in sustainable business model innovation: the missing link

Uncaptured value in sustainable business model innovation: the missing link

Operationalizing leverage points in business model design for sustainable systems change

AbstractSystems change can help to address sustainability challenges and interventions at deep leverage points of a system can be applied to do so. By studying 9 sustainable entrepreneurial businesses, this paper looked at how entrepreneurial firms used their business to intervene at deep leverage points to facilitate systems change. We then proposed how deep leverage points can be operationalized by developing an approach for sustainable business model innovation and how entrepreneurs can consciously target leverage points when designing their business models to influence sustainable systems change.

Towards sustainability: Digital capability, sustainable business model innovation, and corporate environmental responsibility of high‐performing enterprises in an emerging market

Towards sustainability: Digital capability, sustainable business model innovation, and corporate environmental responsibility of high‐performing enterprises in an emerging market

Sustainable business model innovation, dynamic capabilities, and organizational design: Insights from Norwegian aquaculture

AbstractFirms must increasingly grapple with complex sustainability challenges. Business model innovation is needed to achieve radical sustainability improvements. Recent research highlights the interrelatedness between business model innovation, dynamic capabilities, and organizational design, calling for empirical work to better illuminate these relationships. These connections are relevant in sustainability contexts, where organizational barriers and drivers have been shown to either facilitate or hinder the development of dynamic capabilities for sustainable business model innovation (SBMI). This paper presents a case study of an emergent low‐carbon offshore aquaculture value chain in Norway to illuminate the importance and roles of these organizational factors. Based on our analysis, we identify those barriers and drivers present in the Norwegian salmon aquaculture industry; add to the body of theory around organizational design, dynamic capabilities, and SBMI; and offer insights for practitioners in the aquaculture sector aiming to develop dynamic capabilities for SBMI.

The Relationship between Sustainable Business Model Innovation and Customer's Stigma (An Empirical study at 5-Stars Hotels in Egypt)

The Relationship between Sustainable Business Model Innovation and Customer's Stigma (An Empirical study at 5-Stars Hotels in Egypt)

How can sustainable business models distribute value more equitably in global value chains? Introducing “value chain profit sharing” as an emerging alternative to fair trade, direct trade, or solidarity trade

AbstractGlobal supply chains often distribute value inequitably among the Global North and South. This perpetuates poverty and contributes to indecent work in raw material‐producing countries, thus creating challenges to sustainable development. For decades, corporate social responsibility, social entrepreneurship, and sustainable business model innovations have aimed to distribute value more equitably across global value chains, for instance via fair trade, alternative trade, and direct trade. This article examines a novel and hitherto understudied innovation for equitable value distribution in global supply chains: “value chain profit sharing.” We draw on interview and archival data from two cases of social entrepreneurs working in the coffee sector to develop a generalized model. One of the model's key features is that the entrepreneur pays suppliers in multiple installments that reflect market conditions (as opposed to a single lump sum based on prediction). We show how this can increase value creation, appropriation, and equitable distribution. Although our research suggests that this model may be highly contingent on leaders' skills, resources, sense of place, and accountability to suppliers, we find no evidence that its applications are limited to specific countries or sectors. Our research further extends extant theory by showing how “value chain profit sharing” may relieve some of the tensions often associated with sustainable business models, including distributing value to suppliers while maintaining financial solvency; creating value while pursuing a social mission; providing benefits to suppliers without curtailing their market opportunities; responding to market conditions while maintaining commitments to suppliers; and scaling without diluting benefits. It thereby contributes to the literatures on sustainable business model innovations, equitable value distribution in global supply chains, novel application of revenue‐sharing contracts, and innovative methods of profit sharing. It furthermore provides actionable guidance for social entrepreneurs, corporate social responsibility practitioners, and supplier cooperatives aiming to achieve more equitable value distribution and sustainable supply chains.

Neutrosophic bipolar fuzzy decision-based approach for developing sustainable circular business model innovation tools

The circular economy (CE) has been identified as a possible catalyst for sustainable development by business, academics, and policymakers. To aid company developers in creating and improving business models that incorporate circularity, a variety of tools for circular business model innovation (CBMI) have been proposed. Nevertheless, the existing tools failed to consider sustainability or CE in their advancements. Currently, there is no research that has presented a complete dataset including all potential tools that may be created based on the CE’ sustainability performance attributes. Moreover, there has been a dearth of research conducted to assess and model these tools in order to determine the most efficient ones, which has resulted in a research gap. This paper constructs a decision matrix of CBMI tools by intersecting 100 CBMI tools with 10 CE’ sustainability performance attributes. The modeling of CBMI tools falls under Multiple Attribute Decision Making (MADM) due to the presence of many attributes, varying importance levels of these attributes, and the and variation in data. Thus, the fuzzy weighted with zero inconsistency (FWZIC) method is reformulated under neutrosophic bipolar fuzzy sets (NBFS) to determine the weight of CE's sustainability performance attributes. The matrix that has been constructed and the resulting weight values are fed into the CODAS method in order to model CBMI tools and identify the most sustainable tool. The results indicate that the NBFS-FWZIC method gave a weight value of 0.1031 to A7, which is the greatest weight value. On the other hand, A3 had the lowest weight value of 0.0944. The CODAS method modeled the 100 CBMI tools, with Tool39 being identified as the most sustainable tool and Tool26 as the least sustainable tool. The robustness and durability of the proposed method are evaluated using a sensitivity analysis, Spearman's rank correlation test, and comparison analysis.

Circular and Sustainable Multi Business Model Innovation and Development:

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.

Circular Economy Business Model in Integrated Waste Management to Encourage Self-reliance in Jongbiru Village

The circular economy has been expected to be an effort to build a competitive and sustainable society. This study aims to develop a circular economy-based business model for waste management in Jongbiru Village, Kediri Regency. The research method used is descriptive-qualitative by developing a sustainable business model innovation framework. The model used is a development of the Business Model Canvas (BMC) by involving business aspects of the environment. The research data were collected through observation and interviews at the location of the research object. The results showed that the waste disposal site (TPS) in Jongbiru Village had implemented a circular economy business with the 3R principle (reduce, reuse, and recycle), which was managed independently. However, there are shortcomings in long-term planning and efforts related to the role of the community. Moreover, the findings in the field also show the potential that needs to be optimized through supporting facilities and social capital. The implications of this research encourage the role of stakeholders in planning the long-term development of business projects with a community engagement approach.
 Keywords: village self-reliance, circular economy, social capital, business model canvas

Review and Categorisation of Support Types for Business Model Innovation for Sustainability

Sustainability is increasingly becoming a priority for business leaders as it challenges the very existence of the traditional way of conducting business. Businesses aim to reinvent themselves by engaging in business model innovation for sustainability (BMIfS). However, this journey is challenging, complex, and associated with a high risk of failure. It involves multiple development stages and changes in various business model components and may take different avenues. Researchers are increasingly addressing this challenge and have developed types of support to guide businesses on this journey. However, there is no overarching support type to address BMIfS. This article provides an overview and categorisation of 40 types of support available to business practitioners pursuing BMIfS efforts. Our work categorises the types of support based on five dimensions: BMIfS innovation stage, BMIfS type, BMIfS component, dynamic and iterative perspective, and validation status. This comprehensive overview can serve as a database for both scholars and business practitioners. Through the review and categorisation process, we uncovered BMIfS dimensions that are in need of further investigation and support. Notably, we found no available support type that addresses the acquisition of sustainable start-ups as a type of BMIfS—an increasingly prevalent BMIfS strategy employed by incumbents.

Retracted: Entrepreneurship, Digital Capabilities, and Sustainable Business Model Innovation: A Case Study

Retracted: Entrepreneurship, Digital Capabilities, and Sustainable Business Model Innovation: A Case Study

Sustainable by design: An organizational design tool for sustainable business model innovation

When firms want to meet ambitious sustainability targets, they often fail to deliver on more radical innovation at the level of the business model. They often struggle to design and successfully implement new, sustainable business models in practice. While sustainability tools might help bridge the design-implementation gap in business, they often lack a grounding in both theory and practice. In this study, we build on empirical research that recognises the importance of dynamic capabilities to develop sustainable business models, and the barriers and drivers that might exist at the organizational level. We investigate the following research question: How can firms address organizational design issues in order to develop the dynamic capabilities necessary for sustainable business model innovation? The research method consists of four stages derived from the iterative, user-involved method of design science research: 1) identifying the problem and defining objectives for a solution; 2) design and development; 3) demonstration; and 4) evaluation. The work results in the “Sustainable By Design” tool which was used in a workshop setting with two large multinational companies seen as sustainability leaders in their sectors: DSM and IKEA Retail (Ingka Group). The work makes two contributions. First, we contribute the Sustainable By Design tool which practitioners can use to evaluate their current organizational design, identify barriers and drivers for sustainable business model innovation, and develop strategic interventions to engage in organizational transformation. Second, we elucidate the theoretical connections between organizational design, dynamic capabilities, and sustainable business model innovation, and suggest directions for future research.

Can alternative wine networks foster sustainable business model innovation and value creation? The case of organic and biodynamic wine in Tuscany

Over the past two decades, the wine sector has witnessed a significant rise in sustainable practices driven by concerns about sustainability and their impact on wine quality. However, the lack of a common framework for sustainability concepts has resulted in a wide range of practices. Among these, biodynamic viticulture has gained remarkable traction among producers due to its perception as a strong quality indicator, despite the lack of scientific consensus and regulatory alignment across countries. Biodynamics traces its origins back to the organic movement and is viewed by some scholars as a radical progression of organic agriculture. The surging popularity of biodynamics is rooted in the expanding organic movement, reflecting consumer demand for ecologically-conscious, premium goods. Amid this complex backdrop, the wine industry grapples with navigating diverse sustainability approaches and formulating effective business models for competitiveness. Vital is comprehending and adeptly conveying sustainability values to consumers. Prior research mainly quantified sustainability’s impacts, external drivers, and motivations. However, a gap remains in exploring sustainable business models’ role in driving innovation and value creation through alternative networks in the wine sector. This paper presents findings from a phased qualitative study in Tuscany (Italy), reflecting on the evolving landscape. The results underscore synergies between biodynamic and organic approaches, emphasizing their strong connection with the territory. These strategies synergistically promote sustainability and differentiation, enhancing product quality, reducing environmental impact, and fostering territorial engagement. The study accentuates the role of territorial and business context, profoundly influencing collaborative and proactive strategies among producers, exemplified by networks like Lucca Biodinamica. These networks catalyze innovation, knowledge dissemination, and collaborative initiatives, profoundly impacting strategy adoption and advocating for sustainability. Within such ecosystems, a nurturing environment for sustainability practices is cultivated, spurring innovation and winery cooperation. Case studies vividly illustrate that wineries within these networks frequently adopt proactive sustainability stances, grounded in shared environmental and societal commitment. Conversely, some scenarios feature place-rooted leadership models tied to factors like origin, winemaking tradition, and wine tourism, driving innovation. Participating in alternative wine networks represents a strategic choice with lasting personal and economic implications–a framework for innovation and embracing sustainability.

Sustainable international business model innovations for a globalizing circular economy: a review and synthesis, integrative framework, and opportunities for future research

AbstractThe global imperative has increased in recent years for international firms to respond to major threats such as unintended environmental, social, and economic problems arising from ecological destruction, population growth, and economic activity. To respond to this confluence that has created an emerging existential crisis, we identify that a globalizing circular economy (CE) is required and subsequently define a new construct: sustainable international business model innovations. In doing so, we introduce circular inputs, sharing platforms, product as a service, product use extension, and resource recovery as business models that contain the potential to reply to these grand challenges. Based on CE principles, the innovations and designs introduced are contrasted with the traditional linear economic model and are presented as actionable standardization/adaptation alternatives for companies responding to differing informal and formal international institutions. Based on the theoretical underpinnings of the resource-based, dynamic capabilities, and international business model innovation perspectives, we introduce an integrative framework that is accompanied by a series of detailed research questions to provide future research opportunities for the domain. This conceptual approach holds that international resource design influences marketing capabilities adaptation which, in turn, impacts international performance and offers a foundation from which to build the literature.

The influence of sustainability and digitalisation on business model innovation: The case of a multi-sided platform for food surplus redistribution

While digital multi-sided platforms have been primarily investigated from a technical or economic perspective, the evolution of their business models over time and the significance of social and environmental sustainability for their success received relatively less attention. Through a longitudinal case study on the evolution of a digital platform for food surplus redistribution, we analyse how the business model of a multi-sided platform evolved to balance and integrate the objectives of economic viability with social and environmental sustainability goals. Data were collected through interviews with the platform stakeholders and then coded following the Gioia methodology. By adopting the lens of sociotechnical theory, we develop a set of four propositions to provide a generalisation of our findings to the broader literature on digital multi-sided platforms. Based on the results, we argue that the sustainable business model innovation process of a digital multi-sided platform must consider the mutual influence between business model innovation, sustainability dimensions internal to the business model, and the leverage of opportunities offered by digital technologies. Eventually, we underline the fundamental role of the platform leader in guiding such evolutionary process and its ability to generate benefits for all stakeholders through both sustainability and digitalisation levers.

Emerging Technologies: A Catalyst for Sustainable Business Model Innovation

Grand Challenges are global problems requiring coordinated effort from stakeholders at different levels. For-profit businesses, as loci of innovation, can play a pivotal role in advancing Grand Challenges by fostering social impact collaboration. Business Model Innovation is a useful mean to combine the possibilities offered by emerging technologies with the needs of sustainable challenges. Blockchain is widely recognized as an emerging technology, rapidly growing, highly novel and with a prominent impact on different sectors. We adopt a Comparative Case Study in the field of the Voluntary Carbon Market, unregulated markets where organizations can offset their impact by compensating their negative externalities on the environment by buying carbon credits generated through certified mitigation projects following international standards. As climate change is a main Grand Challenges and a threat to humanity, as recognized by the United Nations Sustainable Development Goals, this research aims to explore the role of blockchain as a catalyst for Sustainable Business Model Innovation. This study makes two significant contributions to the field of business model innovation, emerging technologies and Grand Challenges. First, it highlights the importance of Business Model Innovation to address Grand Challenges and overcome their managerial problems, including valuating, coordination, trust, access and reach. Our study presents a novel conceptual model anchored in the Business Model as an activity system view, revealing three actionable characteristics of blockchain that can help to design novel activities configurations able to advance managerial problems encountered by for-profit organizations while advancing effort towards Grand Challenges: asset enabler, trust machine and coordinated and collaborative action enhancer. Second, from a technology-oriented perspective, it offers insights into how an emerging technology can be leveraged to foster complementarity by converging with existing assets and technologies, thereby generating new value. For practice, our findings provide a framework for both startups and established companies to leverage blockchain technologies to create meaningful and lasting impact.

The Varying Effects of Four Components of Employee Psychological Capital on Sustainable-Business-Model Innovation in the New Normal

In view of the intensification of market uncertainty and complexity, interest in sustainable-business-model innovation (SBMI) has increased among both global companies and educational institutions in the new normal. However, although many organisations find it challenging to accomplish their sustainability goals, limited research has delved into SBMI in the post-pandemic era. To address this research gap, we adopt a unique micro-foundational approach to investigate how the four components of employees’ psychological capital (PsyCap) affect SBMI. Based on a primary survey of 430 employees of small and medium-sized Chinese enterprises using online and offline methods, we used structural equation modelling to analyse the results. We found that optimism, hope, and self-efficacy were each positively related to SBMI, with resilience moderating these positive associations. The main theoretical contribution of our study is the use of a micro-foundational approach to unravel the different effects of the four dimensions of PsyCap on SBMI, thus offering novel insights into a deeper, more comprehensive understanding of relevant issues in the age of the COVID-19 pandemic. Practically, our findings can help global managers to develop strategies to leverage the psychological resources of individuals in order to cope with firm-level innovation challenges during this turbulent time.

Industry 5.0 implications for inclusive sustainable manufacturing: An evidence-knowledge-based strategic roadmap

Despite the hype surrounding Industry 5.0 and its importance for sustainability, the micro-mechanisms through which this agenda can lead to socio-environmental values are largely understudied. The present study strived to address this knowledge gap by developing a strategic roadmap that outlines how Industry 5.0 can boost sustainable manufacturing. The study first conducted a content-centric literature review and identified 12 functions through which Industry 5.0 can inclusively boost sustainable manufacturing. The study further developed a strategic roadmap that identified the complex contextual relationships among the functions and explained how they should be synergistically leveraged to maximize their contribution to sustainability. Results reveal that value network integration, sustainable technology governance, sustainable business model innovation, and sustainable skill development are the most driver and tangible implications of Industry 5.0 for sustainable manufacturing. Alternatively, renewable integration and manufacturing resilience are among the most dependent and hard-to-reach sustainable functions of Industry 5.0, and their materialization requires major strategic collaboration among stakeholders. The strategic roadmap outlines how Industry 5.0 stakeholders can leverage the technological and functional constituents of this agenda to promote sustainable manufacturing inclusively.

Sustainable Business Model Innovation Within a Complex Environment

Sustainability is becoming an emerging issue since it attempts to fulfill current needs without sacrificing future generations. The role of the private sector is considered necessary in supporting sustainability, including the Sustainable Development Goals (SDGs). Implementation of a sustainable business model (SBM) has the potential to enable support for sustainability. Many business organizations have claimed to produce an SBM, but many have failed or are insufficient to provide sustainability benefits due to complexity. Therefore, available concepts regarding principles in SBM innovation need to be improved to have greater capacity in dealing with complexity. This paper explores principles for SBM innovation and the relationships between the elements based on empirical evidence through a longitudinal case study in a technology-based organization in Indonesia’s agriculture sector. The results show that seven principles, so-called “ecosystem-centric principles,” are a building block to successful SBM innovation. One principle determined the success of the other principles, and as a whole, work simultaneously and systemically in creating SBM innovation. The business model combines several basic SBMs and develops as an accelerator type of business model and, in a particular phase, combines the model with the crisispreneur. Compared to other SBM principles, the ‘ecosystem-centric principles’ is superior to dealing with a complex environment.

Holding hands on the platform: Exploring the influence of municipal open innovation platforms on sustainable business model innovation

Municipal open innovation platforms have been employed to gather and guide business sector interest in addressing challenges to urban sustainability. However, the influence of this type of innovation support on business model innovation remains poorly understood. This paper explores the potential for municipal influence on sustainable business model innovation by analysing work conducted within four municipal open innovation platforms. The results indicate that influence falls into two separate categories. First, influence can be direct, involving the stipulation of desirable business model archetypes and the provision of resources, or indirect, such as the arrangement of meetings between clients. Second, influence can be formal, including official statements on business models or innovation, or informal, involving interactions outside of the platform and the use of unofficial information material. Established actors were attracted by direct and formal support but also had power to influence the platforms. Platform staff would identify and assess those clients who sought informal and indirect support and, if desirable, introduce them to other types of innovation support. The study highlights the need to consider the complexities of balancing local administrative, political, and business interests when designing and staffing open innovation platforms.