Sustainable Business Model Innovation Research Articles

A typology of sustainable circular business models with applications in the bioeconomy

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.

‘Renewable Energy + Energy Storage’ Business Model Innovation -- An Emerging Sustainable Business Model Innovation

Recent reforms in the power industry include the promotion of ‘dual carbon’ targets, the development of large-scale and high-penetration, renewable energy and grid-connected consumption, and deep integration of digital technology and power services. The ‘renewable energy+energy storage’ combined innovation is the important direction of business model innovation for energy power enterprises. The data-driven, intelligent empowerment, green and low-carbon are all interesting items. This paper analyzed smart green business model innovation for the motivation, essential connotation and basic structure of ‘renewable energy+ energy storage’. Combining application scenarios, analyzing typical cases and practical effects of sustainable business model innovation were analyzed. the mechanism of digital technology empowering smart green energy business model innovation is explored. Finally, the general rules of sustainable business model innovation of smart green energy are summarized. The study will help power enterprises to promote the green and low-carbon transformation of energy and help to provide actionable guidance for achieving the goal of ‘double carbon’.

Data mining research on sustainable business model innovation of enterprises based on particle swarm algorithm

Data mining research on sustainable business model innovation of enterprises based on particle swarm algorithm

A multi-objective optimisation of sustainable business model innovation strategies regarding the challenges of new and emerging technologies in service business

A multi-objective optimisation of sustainable business model innovation strategies regarding the challenges of new and emerging technologies in service business

Data mining research on sustainable business model innovation of enterprises based on particle swarm algorithm

Data mining research on sustainable business model innovation of enterprises based on particle swarm algorithm

Sustainable business model innovation: Design guidelines for integrating systems thinking principles in tools for early-stage sustainability assessment

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.

Business model innovation for the Sustainable Development Goals

AbstractBusiness model innovation can be a key driver to realizing the transformation needed to achieve the United Nations Sustainable Development Goals (SDGs). At the same time, the SDGs can support organizations as they identify and tackle opportunities for business model innovation. This study uses a constructive research method to build a managerial approach that supports business model innovation for the SDGs. The approach helps organizations assess their contribution to the SDGs, explore and prioritize SDG‐oriented business opportunities and risks, and formulate business model innovation strategies accordingly. The proposed approach was developed through participatory action research conducted in collaboration with two companies operating in the medical and educational sectors and then applied to Ørsted, a multinational power company, which is strongly committed to a sustainability‐driven business transformation and aspires to contribute strongly to SDG 7 (Affordable and clean energy) and SDG 13 (Climate action). The study furthers the academic and practical debate on business model innovation for sustainability by providing new academic and practical knowledge on how organizations can use the SDGs to stimulate business model innovations.

Sustainable Business Model Innovation: From Value Uncaptured to Value Opportunities

COVID-19 pandemic crisis threatened the stability of economy and the survival of many firms, but it has been also the chance to challenge the current economic development path and to rethink firms’ business models according to a more sustainable approach. Academic literature states that business model (BM) innovation is a driver for the transition to sustainability. Sustainable business models (SBMs) incorporate sustainability vision in the main components of business model, which are value proposition, value creation and value capturing. Nevertheless, the usual approach to business models, based on a positive concept of value, can underestimate some areas of potential opportunities to catch. For this reason, in this paper we suggest to adopt a novelty approach that emphasizes the negative concept of value (value uncaptured) to identify unexploited value opportunities. This approach can help firms innovating their BMs towards SBMs.

Business research for sustainable development: How does sustainable business model research reflect doughnut economics?

AbstractIn this study, we explore sustainable business model (SBM) research through the lens of doughnut economics (DE). By conducting an integrative literature review, we analyse concepts that reflect the seven principles of DE at the business model level. We identify 23 SBM concepts and develop a framework that draws on cognitive science theory to distinguish between seven abstract and 16 concrete concepts. The contribution of our study is threefold: First, the framework enhances the theoretical understanding of SBM concepts that mirror DE. Second, our study presents seven unique avenues for shifting the SBM research agenda. Third, the findings have the potential to inspire SBM innovation in practice.

Sustainable business model innovation and scaling through collaboration

Over the past decade, scholars and practitioners have increasingly paid attention to sustainable business models (SBM). How to upscale SBMs is a key question in transition research, but current research has rarely adopted a firm-level perspective to discuss the scaling strategies that initiators of SBMs can use. Collaboration with other actors is one of these scaling strategies, but its adoption by firms hinges on different factors. Considering the type of initiator of the SBM (newcomer vs. incumbent firm) and the differentiation of the SBM's value proposition (high or low), we propose a framework which distinguishes four ‘scaling-through-collaboration’ strategies that firms can use. We explain each strategy with illustrative examples and discuss the array of potential partners and the incentives to pursue collaboration with them. Our work shows how firms can contribute to sustainability transitions by leveraging collaboration to scale their SBM.

THE PROCESSES, CHALLENGES AND IMPLEMENTATION IN THE SUSTAINABLE BUSINESS MODEL INNOVATION

Organizations continually realise that fulfilling their sustainability objectives requires emerging innovations and innovation in the business model. Initially, most research revolved around product or method innovations with a new field of concern for the innovation in the business for its sustainability. A variety of new techniques & strategies have been designed to promote sustainability in the business models. While creating a large variety of business models, very few have been introduced successfully. Despite the topic's importance, research shows that many business model innovations fail. The causes of failure are largely unexplored and there is a lack of a comprehensive review of the literature on innovation in sustainable business models. The identified gaps in the areas of sustainable business model innovation that undermine bridging the design-implementation gaps are; the process of implementing business model innovation; its tools; and its challenges. The Cambridge Business Model innovation process (CBMIP) enables current and newly designed tools to be incorporated into the market modelling process, showing deficiencies.

The governance of sustainable business model innovation—An Ordonomic Approach

This paper develops an ordonomic approach to the governance of sustainable business model innovation (SBMI). We clarify the distinctive roles of optimization and governance for the management of sustainable value networks and develop a sustainability cube as a new management tool for the governance of SBMI. Our cube helps management to identify and overcome social dilemmas within value networks, i.e. to form and reform relevant business relationships, thus creating and tapping second-order win-win-win potentials. Furthermore, our cube encourages management to interpret negative externality problems as “missing markets”, i.e. as an entrepreneurial challenge and as a business opportunity to serve as yet unmet needs. Finally, our cube offers an avenue to develop and strengthen the specific management competencies that foster a successful governance of SBMI.

Approaching Tensions in Business Model Innovation for Sustainability: An Ordonomic Meta-Framework on Tensions

Business model innovation for sustainability (BMIfS) has recently seen a surge in academia and practice. This article introduces an ordonomic BMIfS meta-framework to further stimulate the growing research interest on how available approaches to tensions in BMIfS can be purposefully reconciled to improve the management of BMIfS. The ordonomic BMIfS meta-framework proposes an opportunity to mediate between the normative desiderata of integrative approaches and ‘practical’ instrumental ones to tensions, which feature prominently in the contemporary literature. Within this meta-framework, both approaches play equally important but categorially different roles. This article contributes by proposing to actively shape the ‘boundary conditions’ in BMIfS processes to prevent tensions manifesting in irreconcilable tradeoffs.

Sustainable value propositions and customer perceived value: Clothing library case

The core of any sustainable business model is a sustainable value proposition, i.e., the benefits a company aims to deliver to its customers and society through its offering. Thus far, most research on sustainable business model innovations has focused on designing sustainable value propositions, but the value perceived by customers through the value propositions has rarely been addressed. However, in practice, it is not self-evident that the sustainable value propositions intended by companies are perceived by customers as such. The present study proposes value perceived by customers as a means to assess the perceived sustainability of business models. This study combines the concepts of the sustainable business model, sustainable value propositions by a company, and customer perceived value. Furthermore, the study introduces a new approach to assess the matches and mismatches between the intended sustainable value propositions by a company and customer perceived value. This approach combines the triple bottom line (the environmental, social, and economic dimensions of value) perspective on value propositions and the PERVAL (the financial, functional, emotional, social, epistemic, and conditional dimensions of value) perspective on customer perceived value. Applying a multi-case study research strategy, the study explores two Finnish clothing libraries which provide customers with a service for borrowing clothes from a collaborative wardrobe through the proposed approach. According to the study's findings, the key message is that customer perceived value assists the design of dynamic sustainable value propositions to respond to market changes and builds an understanding of the expected sustainability impacts. This study proposes that sustainable value propositions and customer perceived value should be managed simultaneously to identify areas for environmental and social impacts and sustainable value creation.

Design principles for sustainability assessments in the business model innovation process

Assessing business models’ sustainability impacts has become necessary to help firms transition towards a more sustainable and circular economy. Most firms face multiple challenges in developing sustainable business models. Many of these challenges can be solved by assessing the sustainability impacts of various business model designs. Various sustainability assessment tools and processes have been developed, each fitting different organizational needs in the sustainable business model innovation process. This paper seeks to develop a deeper understanding of this organizational process by analyzing the extant sustainability assessment frameworks and tools for business models and synthesizing the findings into a set of design principles (as meta-artifacts). We draw on a systematic literature review using a qualitative meta-synthesis approach. The proposed design principles can serve as guidelines in helping a company integrate sustainability assessment into its business model innovation process. The paper concludes by presenting a research agenda for future work in this area.

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

Sustainable business model innovation can effectively cope with the complex and changing external environment in the digital economy, which is the key for enterprises to gain sustainable competitive advantage, and entrepreneurship is closely related to sustainable business models. However, the process and mechanism of the role of entrepreneurship on sustainable business model innovation are not clear in existing studies. The purpose of this article is to illustrate how entrepreneurship leads to and influences sustainable business model innovation. Based on the perspective of digital capabilities, this article adopts an exploratory single-case study to explore the new connotation of entrepreneurship and its influence mechanism on sustainable business model innovation. The study found that innovation spirit, adventure spirit, and co-benefit entrepreneurship have emerged in the digital economy. Through the inherent role of digital sensing capabilities, digital seizing capabilities, and digital transformation capabilities, sustainable business model innovation is effectively designed and implemented to achieve multidimensional value creation and capture. This article adds to the latest literature on sustainable business model innovation for enterprises through case evidence.

Developing Sustainable Business Models: A Microfoundational Perspective

Sustainable business models (SBMs) integrate economic with social and/or environmental value creation. Many relevant aspects of organizing for sustainable business model innovation (SBMI) have yet to be accounted for to understand how firms can add a new SBM to their already existing portfolio of business models. Specifically, how the development of a new SBM is influenced by managers’ cognitions, capabilities, behaviors, and interactions, and how the SBMI process can be supported by organizational processes and structures is less well understood. Taking a microfoundational approach, we identify the capabilities at the managerial and organizational level that enable established firms to add a new SBM to their business model portfolio. In a longitudinal study, we explore how Telenor, a multinational telecommunications company headquartered in Norway, introduced a new SBM targeted at providing digital health services in Bangladesh. We offer a framework that highlights key microfoundational elements supporting each of the phases in the SBMI process.

Towards Sustainable Business Model Innovation for the Pharmaceutical Industry

This study examines pharmaceutical companies in the context of BMI. The purpose is to develop an SBM for the pharmaceutical industry and then to validate the causal relationships of the variables in such a business model. This study used purposive sampling by issuing questionnaires to 12 companies. The research consisted of the following four studies: Study 1: construction of dimension conceptualization. The conceptualization of BMI consists of three dimensions, i.e., technological, social, and organizational. Study 2 and study 3 are about process development and the construction of a unique BM. Study 2 explores the evolution of innovations in an SBM on the basis of a balance scorecard. Study 3 develops a unique SBM by referring to a focus group comprised of senior executives. Study 4: model validation. This stage is about the synthesis of research frameworks in the literature on BMI and an empirical study on the causal relationships in the context of SBMI.

Impact of Crisis on Sustainable Business Model Innovation—The Role of Technology Innovation

The transformation of old and new technologies, the normalized crisis situation, and global economic integration blur industrial boundaries and cause the business pattern to fluctuate and become unsustainable, especially when considering the impact of the COVID-19 pandemic. This study focuses on crisis situations and combines the types of technology innovation (introduction, socialization, and differentiation) and sustainable business model innovation (efficiency, novelty, and co-benefit innovations) to theoretically analyze the dynamic impact of technology innovation on different types of sustainable business model innovations. Using a multi-case comparative analysis method, typical enterprises are selected as the sample cases. This study discusses the influences of different technology innovation schemes on sustainable business model innovation in different crisis situations. Enterprises should consider introducing technology for rapid value updates to maintain an efficient business model in an urgent production factor crisis, search for valuable and scarce technical components or introduce other entities to facilitate technical cooperation and form a novel business model in a market environment crisis, and use big data, artificial intelligence, and other technologies to create co-benefit business model innovation in a business ethics crisis. The conclusion guides enterprises and provides a framework for the optimal technical scheme under the corresponding crisis.

Sustainable business model innovation: Scale development, validation and proof of performance

Sustainable business model innovation (SBMI) has recently drawn great interest among academia and in practice. However, notwithstanding the surge in related academic and non-academic literature, a validated measurement scale for SBMI is not yet available. This study attempts to fill the gap by proposing a scale for SBMI, using an initial sample of 20 respondents (for qualitative enquiry), followed by a quantitative validation (using two sample sets of 130 and 200 SMEs from Saudi Arabia). The findings provided a 10-item scale, conceptualized under three factors, namely: sustainable value proportion innovation, sustainable value creation and delivery innovation, and sustainable value capture innovation. The study provides important implications for SME owners and managers, by highlighting that SBMI will result in enhanced SME performance as well as a competitive advantage.