Sustainable Value Proposition Research Articles

Exploring Sustainable Leisure Farm with Intelligent of Things (IoT) Technology Solution for Aging

Amid the increasingly severe challenges faced by traditional agricultural development, it has become necessary for farms to undergo operational transformations. In considering the direction of this transformation, the growing proportion of older adults in the population and the maturation of modern smart technologies applied to industries must be taken into account. By integrating intelligent Internet of Things (IoT) solutions to aid business operations, leisure farms are expected to provide significant benefits to both operators and visitors. Taiwan, which has long been a leader in precision agriculture, serves as a benchmark in Asia for the successful transformation of traditional farms into leisure farms, becoming a model for neighboring countries. This study investigates the transformative potential of intelligent IoT technology solutions on leisure farms, highlighting their capacity to attract senior citizens and create sustainable business models in competitive, homogeneous markets. The primary objective of this research is to uncover the advantageous factors associated with the adoption of intelligent IoT technology solutions in leisure farms. Employing a grounded theory approach, this research conducted face-to-face semi-structured interviews with 40 leisure farm operators to gain insights into the innovative and sustainable value propositions of leisure farms. This study identifies six key advantageous factors and six constraint factors. This research provides forward-looking insights into the application of intelligent IoT technology solutions in leisure farms, emphasizing strategic directions for operators. The integration of these solutions presents a unique opportunity for leisure farms to meet the demands of elderly individuals seeking safe, natural environments without compromising their interests. By offering tailored leisure activities and entertainment, these solutions enhance the quality of life of seniors and promote rural lifestyles, positioning leisure farms as innovative and competitive players in the market. The insights provided in this study can also inform government policymakers and serve as a foundation for future researchers to extend related studies from a customer perspective.

The impact of Artificial Intelligence on E-commerce supply chain sector in achieving cost efficiency and economic growth: A business and economics perspective

The study aims to find how much cost effectiveness is achieved when e-commerce supply chain operations use automation and AI technologies. therefore,ing technology of AI and its models have essentially proved to be impactful in making data driven decisions by the organisations gaining leverage in productivity and profit sustainability in a way that the companies achieve competitive advantage therefore creating sustainable value propositions from business and economics perspective. Aim/Purpose The aim of the paper is to explore the positive relationship between AI technologies and productivity levels in the e-commerce supply chain sector through achieving cost effectiveness and economic growth. Methodology/Approach The study focussed on reviewing literature on how Artificial Intelligence driven technology can optimise various supply chain functions within e-commerce sector. Solow-Swan growth model has been applied to investigate the value AI creates in utilising capital, labour input to achieve output growth. Positivist approach that allowed for objective observation and independent conclusions has been adopted. For primary data, quantitative methodology is used through survey questionnaires to gather data from a sample of 206 employees, managers, data analysts in e-commerce supply chain sectors. Findings The findings from the secondary sources inform that the use of AI and automation in the e-commerce industry leads to a high rate of productivity in terms of reducing costs and promoting economic growth. The primary research methods, through survey questionnaires collects real-time data that helps achieve quantifiable and measurable values to conclude that AI-led technology can increase productivity and competitive advantage as it saves cost while increasing productivity and overall economic input. Descriptive statistics of measures of central tendency were used to present findings in simpler, presentable way followed by interpretations of the data in percentages. Practical implications Managers and decision-making directorial board members have important lessons to learn from these findings as the quantifiable values may give them an insight into how much capital investment should be allocated for AI technologies and how predictive analytics and data analysis can accelerate their service towards becoming customer centric. Significant strategic planning and implementation of resource management can lead to higher rates of productivity profitability and eventually higher economic growth.

Innovative sustainable business model: A case study of eco-tourism in Bukit Lawang

Sustainable development has become a crucial issue and a moral obligation for all nations. However, the implementation of sustainable business practices in Indonesia, especially in the field of the tourism industry, including the Bukit Lawang tourist destination, is still weak. This encourages tourism managers to change their business model as a step towards making Bukit Lawang an international tourist destination. This can be achieved through competency development sustainable business management model. This article attempts to apply the design thinking model to creating innovative sustainable business model in tourism in the Bukit Lawang area, using qualitative research methods and design thinking procedures. The population of this study includes tourism managers and visitors in Bukit Lawang area. Sampling techniques such as stratified sampling and purposive sampling, and both primary and secondary data were collected. This article presents a framework for sustainable tourism businesses model in Bukit Lawang, which is built based on three dimensions: facilities, services and systems. This dimension serves as a key differentiator of sustainable value propositions in tourism businesses related to the three pillars of sustainability: economic, social and environmental. The focus of this framework is creating value sustainable tourism business regarding impact reduction, risk mitigation and compliance.

Developing Capabilities for Sustainable Business Models –Exploring Project Maturity for Innovation Processes

Companies must cultivate new dynamic capabilities to meet the demands for sustainable solutions in an uncertain and dynamic world. This longitudinal case study explores the significance of project maturity as a critical capability within complex innovation processes for developing sustainable business models. The purpose of the study is to gain a better understanding of the central factors companies encounter when making efforts to build sustainable business models through innovation projects. Tracking a market-leading company's journey from ideation to implementation over an extended period, this study focuses on creating a sustainable business emphasising waste reduction, heightened customer satisfaction, and profitability. Key insights emerge through qualitative methods, including interviews, observations, and document analysis. 
 The findings highlight the pivotal role of project maturity in innovation projects centred around sustainable value propositions. Project maturity is salient in creating an autonomous unit, fostering agility, and promoting open collaboration. It encompasses organisational ambidexterity and collaborative engagement with vital stakeholders. Furthermore, proficient project managers well-versed in agile project management and innovation processes and contextual resolution emerge as crucial drivers in innovation projects aimed at developing capabilities for sustainable business models. By tailoring project maturity to the specific needs of each project and integrating agile methodologies, organisations can forge the necessary capabilities for crafting sustainable business models. Additionally, dynamic capabilities can be cultivated by aligning projects with the overall business strategy and implementing practices that facilitate continuous learning and improvement. 
 This study underscores the importance of project maturity within innovation processes and its role in creating profitable and sustainable business models by developing new dynamic capabilities. The research findings offer valuable insights for businesses seeking to design effective innovation processes supporting sustainable business model realization.

Pro-environmental enterprise support: Developing a framework to unlock the potential of SMEs in sustainability transitions

Although entrepreneurship is well recognised as a crucial element in fostering economic development and growth, it is yet to be viewed as a significant force in sustainability transitions. Public policy related to the performance and growth of small businesses has, to date, paid little attention to the support mechanisms that help SMEs build capacity towards sustainable development. This paper offers a framework of pro-environmental enterprise support developed through a two-round e-Delphi study, followed by a 2.5-h virtual focus group involving 21 experts across the spectrum of business support agencies, local authorities, and EU-funded projects delivering pro-environmental enterprise support in England. The findings indicate that support for pro-environmental SME capacity building includes attention to eco-innovation, environmental strategy, environmental capability development, responsible leadership, sustainable value proposition, greening of supply chains, and clean growth skills. The study also concludes that support programmes and interventions need to be more attuned to the specifics of entrepreneurial learning; the challenges small business face in accessing, capturing, and utilising resources; and that broadening the scope and reach of pro-environmental support programmes needs to be matched by the competences of business support professionals.

Mapping circular economy principles and servitisation approach in business model canvas: an integrated literature review

It is a common perception that circular economy (CE) principles positively influence the servitisation strategy. The firms improve their productivity and resource/energy efficiency by engineering functional efficacy in a sustainable product. However, the managerial practices that support this distinctive business model (BM) are relatively sparse despite their liaisons. Therefore, this paper is focused on addressing this gap by investigating the managerial practices that firms can implement to explore the downstream opportunities of CE and servitisation BM. This paper uses a systematic literature review (SLR) approach to frame a theoretical model. The findings were improved by cross-validation using a text mining technique, demonstrating how organisations may co-create and extract value through CE and servitisation to develop a flexible management system. This study used the business model canvas antecedents to map a set of managerial practices to understand the mythography of the servitisation approach with CE principles. The findings show that identifying key stakeholders assists a firm in selecting an appropriate strategy based on sustainable value propositions that include cost structure and revenue streams to close the resource loop. Managerial commitment is critical in achieving the maximum economic, environmental, and societal potential. A few research agendas with distinct research orientations are proposed to mitigate the significant research gaps in CE and servitisation literature. This study provides managers and practitioners with some intriguing insights as it emphasises the need to select a suitable strategy to utilise a firm's resources successfully.

Comparative Analysis of Sustainability of Driyarkara College of Philosophy and Widya Sasana College of Philosophy According To ISO 26000 Perspective

Philosophy can help giving an ethical foundation for promoting sustainability of nature and respect for humanity in management and business practices. In this case, schools of philosophy need to take a role in promoting philosophy related to the theme of sustainability. This research aims to analyze the sustainability of schools of philosophy by taking Sekolah Tinggi Filosofi Driyarkara and Sekolah Tinggi Filosofi Widya Sasana as objects. The research is conducted according to the perspective of ISO 26000 and using in-depth interview as the method for collecting data from 62 respondents. The variables of research are the strategies of sustaining inclusivity, competitive advantage (Sustainable Value Proposition), integration of SDGs and the concept of social responsibility within curriculum, governance according to ISO 26000, and the relation between curriculum and SDGs no. 4, 5, and 16. Findings show that both institutions still need to adjust their curricula and governances according to ISO 26000.

Comparative Analysis of Sustainability of Driyarkara College of Philosophy and Widya Sasana College of Philosophy According To ISO 26000 Perspective

Philosophy can help giving an ethical foundation for promoting sustainability of nature and respect for humanity in management and business practices. In this case, schools of philosophy need to take a role in promoting philosophy related to the theme of sustainability. This research aims to analyze the sustainability of schools of philosophy by taking Sekolah Tinggi Filosofi Driyarkara and Sekolah Tinggi Filosofi Widya Sasana as objects. The research is conducted according to the perspective of ISO 26000 and using in-depth interview as the method for collecting data from 62 respondents. The variables of research are the strategies of sustaining inclusivity, competitive advantage (Sustainable Value Proposition), integration of SDGs and the concept of social responsibility within curriculum, governance according to ISO 26000, and the relation between curriculum and SDGs no. 4, 5, and 16. Findings show that both institutions still need to adjust their curricula and governances according to ISO 26000.

A strategic framework for developing sustainable value propositions

The discussion on firms’ sustainability performance has resulted in business organizations becoming more conscious of sustainability issues and implementing strategies to ensure sustainable value propositions. The purpose of this study is to explore strategies that firms could use to develop sustainable value propositions. Through an extensive literature review, the study proposed a conceptual framework and further developed hypotheses suggesting that the strategies such as stakeholder involvement, flexible decision-making, and social and environmental values could influence sustainable value propositions. The hypotheses were tested through quantitative research analysis using data collected from owners/managers in 143 SMEs in the coastal areas of Ghana. The data supported almost all the hypotheses, namely H1, H2, and H5-H8 with T-values and P-values of > 1.96 and < 0.05, respectively. This finding indicates that all three core antecedents of sustainable value propositions contributed 78 percent of variations in the model. However, contrary to expectations, the result also showed that shareholder orientation and employee orientation with T-values and P-values of ˂ 1.96 and ˃ 0.05, respectively, did not support sustainable value propositions resulting in rejecting H3 and H4. Despite this outcome, the study concludes that all three strategies are relevant and valuable to firms in developing sustainable value propositions. AcknowledgmentThis paper was supported by IGA/FaME/2021/004: SME Innovation Performance, Firm Sustainability performance and Influence of Pandemic on Entrepreneurial wellbeing.

On the encroachment of sustainable value propositions: Business model innovation for impact

In this study, the encroachment of Sustainable Value Propositions (SVP) which contribute to Sustainable Development Goals (SDGs) is examined in different markets. The encroachment of SVPs is examined through a thematic analysis and the development of causal networks. The findings reveal that high-end encroachment applies to the examined SVPs following two streams in the value chain, i.e., the customer and stakeholder stream. In the customer stream, customers’ awareness of sustainability issues linked to SDGs and the price of SVP contribute to SVP encroachment. Encroachment is realized if the customer is willing to pay a premium based on a true price and is willing to contribute to solving sustainability issues. In the stakeholder stream, the purpose on creating and delivering impact via a ripple effect in the value chain is advanced. Maintaining systematic transparency, spreading best practices in the value chain and providing information concerning true price contribute to the diffusion of SVPs.

Sustainable business model for climate finance. Key drivers for the commercial banking sector

The identification of a reference framework—the sustainable business model structure—exposes a new tool for banks to reanalyse their business models and adapt to a climate-resilient economy. The identification was done by a combination of analysis of current literature with regard to common and sustainable business models, which indicated three key levers for commercial banks looking to boost climate: target, sustainable value proposition, and sustainable value creation. Through a case study comparing the application of sustainable business model structure to a selection of five global banks, a collection of best practices was gathered to improve a bank’s profitability while reducing its clients and its own contribution to climate change. These banks were chosen through a series of criteria that ensure their eligibility as global commercial banks undergoing a business model transition to adapt to a climate-resilient economy.

Mechanisms fostering the sustainability of actualized value propositions of implemented e‐Government projects in Sub‐Saharan Africa: A realist evaluation case of Nigeria and Rwanda

AbstractThis study examines the mechanisms fostering sustainable value propositions of implemented e‐Governments projects in sub‐Saharan Africa (SSA) as a research focus. Value propositions identify how public organizations use e‐Government to fulfill citizens' needs across different roles. Using a concept‐centric systematic review, we identified such value propositions as effective public organizations, quality service delivery, open government and democratic values, as well as social values and well‐being. We chose some selected e‐Government projects in Nigeria and Rwanda; adopted realist evaluation (RE) multiple case studies as a methodology and introduced affordance actualization, self‐determination theory, and sustainability framework for e‐Government success as theoretical lenses. To collect data, we adopted a mixed method RE approach and used a contingent valuation method (CVM) as a quantitative aspect to identify the actualized value propositions in operations in the implemented e‐Government projects in Nigeria and Rwanda as outcomes. Sequentially followed by a realist interview as a qualitative approach to collect and analyze data we uncovered the generative mechanisms causing such outcomes to exist and be sustainable. Our findings revealed technological cognizance and autonomy as well as competence as individual mechanisms identified for sustaining such outcomes. While organizational mechanisms revealed are continuous availability of funds, institutional, administrative, and coordinating capacity with leadership and political support. Other organizational mechanisms include institutionalizing the technology within local settings with ongoing monitoring and improvement evaluation enabled by both internal and external contextual conditions. We synthesized our findings into an actualized value sustainability framework for implemented e‐Government projects in SSA to contribute to academics and practice in ICT4D, particularly RE application in e‐Government study, which is nascent.

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.

The contribution of manufacturing companies to the achievement of sustainable development goals: An empirical analysis of the operationalization of sustainable business models

AbstractThis study aims to identify the sustainable business practices operationalized in the sustainable business models of manufacturing companies and highlights these companies' contributions to achieving Sustainable Development Goals (SDGs). The results outline that a clear sustainable value proposition is operationalized through a large and various range of sustainable practices that, although some of them are legally promoted, are mostly voluntarily adopted. Unlike previous studies, this research shows a widespread commitment not only to the economic and environmental dimensions of sustainability but also to the social one, above all to promote workers' well‐being, improve the workplaces, and engage the employees. Furthermore, the study reveals an across‐the‐board dimension of sustainability operationalized by the adoption of local embeddedness strategies, networking development, and creation of a sustainable ecosystem and contributes to extending—and improving all dimensions of—the triple bottom line framework. Finally, the companies investigated contribute to the achievement of 11 of the 17 SDGs by highlighting dimensions in which companies already have a strong impact and those in which they could enhance their practice. Based on these results, this research advances theoretical knowledge and offers practical implications to improve sustainable business management further.

Integrating business model for sustainability and performance management to promote occupational health and safety—A discussion of value

The concept of business model has been around in scientific discussions for over half a century, but the adoption of business model for sustainability is much more recent. What constitutes a business model for sustainability is far from clear, and what drives the business model for sustainability to success needs further elaboration. The current paper adopts a conceptual approach to clarify the components of the business model for sustainability, focusing on the discussion of value addressed in its concept, and the interplay between the business model for sustainability and the internal performance management system. Furthermore, we connect our discussion to occupational health and safety because employee health and safety, one of the important elements of human capital, have been regarded as critical to the sustainable development of companies and society. We argue that OHS should be a fundamental cornerstone in doing business and should not be viewed as an afterthought of production and financial concerns. Therefore, OHS and employee relations should be addressed within the business model. The more important issue is the alignment of the value propositions, value creation, and value capture that underpin both the business model for sustainability and the internal performance management system. If the performance management system is decoupled from the business model, the long-term and short-term occupational health and safety advantages and the sustainable value propositions to stakeholders will not be realized.

Entrepreneurship Education: The international pedagogical project COTADAS – Co-Creation to analyses and development of strategic scenarios

The “new normality” and the growing uncertainty that the world faces determine the development of different business and innovative ways of work. To this end, a new mindset and new competences are required to the actors that will participate in these new social and business contexts. Higher Education will certainly have its role in shaping this mindset and competences of the future managers who should be able to participate in the co-creation of value propositions for companies.
 The project COTADAS (CO-creation To Analyses and Development of Strategic Scenarios) aims to contribute to the training of these future managers. The project aims to analyse and develop strategic scenarios that facilitate intelligent and sustainable value propositions, through digital and intelligent tools. Supported in a multidisciplinary approach and using innovative methodologies, it is intended to facilitate the acquisition of knowledge in less attractive areas for students, namely the areas of finance, revealing how this knowledge can leverage emerging and important areas of knowledge such as innovation, entrepreneurship, and sustainability.
 The objective of this article is to describe and evaluate the COTADAS project, developed in two Higher Education Institutes (Polytechnic Institute of Setúbal and Federal Institute of Santa Catarina) with Portuguese and Brazilian students.
 This study is structured in two main parts. In the first part we present a theoretical approach and in the second part we describe the project and the results of the assessment. A questionnaire was applied to participants to evaluate the degree of satisfaction with the project and its impact on entrepreneurial skills. The results revealed a high degree of student’s satisfaction, as well as a valuable impact on the acquisition and development of entrepreneurial skills. Several advantages in participating in COTADAS were pointed out as well as some possible improvements that can enrich the next project edition. Finally, the results allowed us to understand that both successes and failures were important aspects in the students' learning and personal growth.

Co-creating sustainable competitiveness in an unpredictable business reality

Abstract Businesses nowadays must perform in an overcrowded market. Globalisation and access to technologies have made the competition fierce and the differentiation complicated. New challenges related to sustainability have emerged as a result of an increased environmental awareness from consumers. Their demand is shifting, and companies must adapt to the competitive pressures, social demands and legal regulations towards sustainability. However, implementing sustainable initiatives might be costly and do not ensure enhanced financial outcomes. Co-creation was found in the literature to offer potential solutions to sustainability challenges by enabling businesses to benefit from knowledge from external resources, involving consumers in their activities and seeking their engagement and approval. But the current research lacks a sustainable applicability. Hence, this theoretical study reviewed the current literature to offer an updated state of the art regarding sustainable co-creation between businesses and consumers. It aims to provide answers to how this joint collaboration can support sustainable development for companies, what type of value it generates for both parties, and what factors make market competitiveness possible despite an absence of financial value creation. We were able to create a theoretical framework including the following factors: 1) Value sharing, which considers engaging consumers’ proactive behaviours to overcome inertia and engage in a process of sustainable self-improvement; 2) Relationship management, where common interests will be merged, and consumers empowered to investigate how sustainable development can be implemented in an objective of positive long-term co-evolution; 3) Knowledge sharing, where mutual learning and understanding will lead to a synergy of power and allows to elaborate a marketable and sustainable value proposition; and 4) Innovation, which is the outcome of an efficient co-creation, where internal and external capabilities are recombined to overcome barriers related to sustainable development. The study concluded that a combination of those factors results in competitive value creation.

Adding sustainable value in product-service systems business models design: A conceptual review towards a framework proposal

Product-Service Systems (PSS) are offered to deliver superior value propositions to customers while achieving better results for business organizations. To achieve these benefits, PSS business models should be designed to cover improvements in sustainability's economic, environmental, and social dimensions. Nevertheless, these sustainable aspects regarding PSS business model are dispersed in the literature and generally not considered when developing a PSS. In this sense, this study is a conceptual literature review aiming to synthesize PSS and business model publications from a sustainable value perspective. The review was developed in three stages to cover a diversity of publications on PSS and business model. Based on the literature content analysis, this paper deals with PSS value architecture components: value proposition, creation, delivery, capture, and value network. A set of opportunities to enhance sustainable production and consumption were pointed out with regard to the PSS business model's value architecture components and sub-components. Creating sustainable value propositions could be improved by maximizing utilization of resources and skills, employing effective operations, and aligning the product-service system solution with the triple concern people-planet-profit. The developed framework aims at contributing to both the development of theory on PSS and servitized business models. In addition, the framework also contributes to enhance PSS business models focusing on sustainable and responsible practices.

Sustainable Hybrid Business Model of Benefit Corporation: The Case of an Italian Film Production Company

In the last decade, individual awareness of the impacts generated by the activities of businesses has increased more than ever. Consumers, employees and investors have begun to criticize business behaviors that negatively affect either society or the environment. Given this context, and relying on the literature relating to hybrid organizations and sustainable business models, our research aims to investigate how dual logic affects the business model of benefit corporations in the Italian film production industry. To capture the complexity of this type of firm, we adopted a qualitative research method, the case study approach. The case selected was ARE FILMS srl, a creative film production company. It has been a benefit corporation since it was founded. The study suggests that the capacity of hybrid businesses to achieve a hybrid mission is intrinsically embedded in their business model. A young film production benefit corporation is more likely to adopt a semi-integrated business model that does not create an external perception of dual corporate identity and does not affect economic sustainability. Moreover, the sustainable value proposition emerges even without the formal application of accepted protocols. Furthermore, we realized that the size of the firm affects business modelling. Finally, this research underlines the fact that benefit corporations do not require external pressure to implement sustainable practices.

How do companies launch circular service business models in different countries?

Companies experiment with new circular service business models (CSBMs) to respond to environmental and competitive pressures. CSBMs help companies to conserve and reuse products and materials over time while providing unique customer service. Companies typically launch a business model in one country and then roll it out to others. This comes with many challenges and strategic choices. Little is known about the external factors that influence the launch of CSBMs in different countries. This study draws on interviews within eight internationally operating companies that launched CSBMs in different countries, to develop a conceptual framework of seven external factors: environmental, knowledge & information, technology & infrastructure, socio-cultural, supply & partner network, market, and regulatory. We also discover six adaptation strategies to anticipate these factors: 1) promote learning for sustainability and circular economy, 2) reframe the sustainable value proposition based on cultural context, 3) collaborate to create new circular service rules and infrastructure, 4) develop location-specific technology capabilities, 5) build momentum and trust in service models, and 6) customise product and service offerings. This research contributes knowledge to CSBM design in different countries. It supports practitioners in better managing the launch of new CSBMs in different countries, and allows policymakers to create a better enabling environment.