Applying a Sustainable Business Model Lens to Mutual Value Creation With Base of the Pyramid Suppliers

Base of the pyramid (BoP) ventures seek to create “mutual value” for themselves and poor communities, but often use business models unadapted for the BoP context, and have been less successful than hoped. Sustainable business models’ (SBMs) multi-stakeholder lens offers a promising alternative path to mutual value, but BoP-based SBM studies are scarce. This single case study explores whether and how SBM characteristics manifest in the business model and value outcomes of Habi, a Manila footwear company successfully creating mutual value with BoP suppliers. We find SBM characteristics underpin Habi’s dual-structure business model (value chain/shop) and success in four ways: viewing profits as a tool for community development resulted in designing both product and business model around community strengths; understanding communities as systems helped Habi address the complexities of poverty; balancing short-term business needs with a long-term, slow-growth approach led to their choice of investors; and implementing community value capture mechanisms ensured enduring community benefit.

Download Full-text

Valuing Value in Innovation Ecosystems: How Cross-Sector Actors Overcome Tensions in Collaborative Sustainable Business Model Development

Business & Society ◽

10.1177/0007650320907145 ◽

2020 ◽

pp. 000765032090714 ◽

Cited By ~ 3

Author(s):

Inge Oskam ◽

Bart Bossink ◽

Ard-Pieter de Man

Keyword(s):

Business Model ◽

Business Models ◽

Model Development ◽

Innovation Ecosystem ◽

Sustainable Business ◽

Value Capture ◽

Innovation Ecosystems ◽

Sustainable Business Models ◽

Individual Value ◽

Business Model Development

This article aims to uncover the processes of developing sustainable business models in innovation ecosystems. Innovation ecosystems with sustainability goals often consist of cross-sector partners and need to manage three tensions: the tension of value creation versus value capture, the tension of mutual value versus individual value, and the tension of gaining value versus losing value. The fact that these tensions affect all actors differently makes the process of developing a sustainable business model challenging. Based on a study of four sustainably innovative cross-sector collaborations, we propose that innovation ecosystems that develop a sustainable business model engage in a process of valuing value in which they search for a result that satisfies all actors. We find two different patterns of valuing value: collective orchestration and continuous search. We describe these patterns and the conditions that give rise to them. The identification of the two patterns opens up a research agenda that can shed further light on the conditions that need to be in place in order for an innovation ecosystem to develop effective sustainable business models. For practice, our findings show how cross-sector actors in innovation ecosystems may collaborate when developing a business model around emerging sustainability-oriented innovations.

Download Full-text

A Boundary Tool for Multi-stakeholder Sustainable Business Model Innovation

Circular Economy and Sustainability ◽

10.1007/s43615-021-00103-3 ◽

2021 ◽

Author(s):

M. G. E. Velter ◽

V. Bitzer ◽

N. M. P. Bocken

Keyword(s):

Business Model ◽

Business Models ◽

Business Model Innovation ◽

Sustainable Business ◽

Organizational Boundaries ◽

Stakeholder Collaboration ◽

Sensitive Topics ◽

Sustainable Business Models ◽

Stakeholder Alignment ◽

Multi Stakeholder

AbstractSustainable business model innovation cannot reach its full sustainability potential if it neglects the importance of multi-stakeholder alignment. Several studies emphasize the need for multi-stakeholder collaboration to enable sustainable business model innovation, but few studies offer guidance to companies for engaging in such a collaborative process. Based on the concept of boundary work, this study presents a tested process tool that helps companies engage with multiple stakeholders to innovate sustainable business models. The tool was developed in three iterative phases, including testing and evaluation with 74 participants in six sustainable business model innovation cases. The final process tool consists of five steps to facilitate multi-stakeholder alignment for sustainable business model innovation: (1) defining a collective ambition, (2) mapping and negotiating the changing organizational boundaries, (3) exploring opportunities and tensions for aligning stakeholders, (4) defining first interventions and (5) developing a collaboration pitch. We found that the tool enables discussions and negotiations on sensitive topics, such as power reconfigurations and mutual responsibilities to help stakeholders align. For companies, the boundary tool enriches sustainable business model innovation by offering guidance in the process of redesigning their multi-stakeholder system, assessing their own organizational boundaries, exploring, negotiating and prioritizing strategic actions based on organizational boundary changes and kick-starting new partnerships.

Download Full-text

Designing a business model to reduce CO2emissions from construction machinery: Aligning business and environmental objectives

International Journal of Construction Supply Chain Management ◽

10.14424/ijcscm901019-01-19 ◽

2019 ◽

Vol 9 (1) ◽

pp. 1-19

Author(s):

Jahan Sanne ◽

◽

Anders Bjork ◽

Bo Sahlberg ◽

Hakan Stripple ◽

...

Keyword(s):

Business Model ◽

Value Chain ◽

Business Models ◽

Environmental Benefits ◽

Value Chains ◽

Sustainable Business ◽

Construction Machinery ◽

Carbon Reduction ◽

Environmental Objectives ◽

Sustainable Business Models

The literature on sustainable business models suggests a large potential for radical environmental benefits in many industries based upon current technological opportunities. However, there is a lack of empirical knowledge on how to design, implement and spread such business models in complex value chains. Based on a qualitative exploratory study, a concept for sustainable business models to reduce carbon emission when using construction machinery has been developed and measures needed to implement and design such a model within the construction industry is identified. The study is based upon interviews, study visits and a workshop, with participants representing all important actors in the value-chain. In conclusion, business and environmental objectives can be aligned through a result-oriented business model, supported by life-cycle data, contractual incentives, standardised emission measures and driver visualization. The concept is generalisable to the greening of value chains beyond carbon reduction and also to other complex business to business value-chains.

Download Full-text

Business model transformation toward sustainability: the impact of legitimation

Management Decision ◽

10.1108/md-09-2019-1296 ◽

2020 ◽

Vol 58 (8) ◽

pp. 1643-1662

Author(s):

Roberto Biloslavo ◽

Carlo Bagnoli ◽

Maurizio Massaro ◽

Antonietta Cosentino

Keyword(s):

Business Model ◽

Business Models ◽

Single Case ◽

Business Model Innovation ◽

Innovation Theory ◽

Sustainable Business ◽

Case Study Methodology ◽

Content Type ◽

Sustainable Business Models ◽

The Impact

PurposeThis study aims to identify the legitimacy issues raised during a sustainable business model innovation, deployed by an Italian company, which was analyzed through the lens of the legitimation theory and the business model innovation theory.Design/methodology/approachA single case study methodology is employed for empirical research. Semistructured interviews, with top and middle management, were conducted together with the analysis of several internal and external documents, to corroborate the case analysis.FindingsResults show how the potentiality of digital technologies allows the development of new sustainable business models, which, though, still need to gain legitimation to be accepted. The study findings allow drawing both on the business model innovation theory and on the legitimation theory, as they show how legitimation is a dynamic concept that involves internal as well as external stakeholders to support business model innovation.Originality/valueThe paper is novel, since it addresses the topic of sustainable business models development, showing how companies can get legitimation. The paper builds on existing theories and provides a practical example.

Download Full-text

The Role of Social Enterprise Hybrid Business Models in Inclusive Value Chain Development

Sustainability ◽

10.3390/su13020499 ◽

2021 ◽

Vol 13 (2) ◽

pp. 499

Author(s):

Bob Doherty ◽

Pichawadee Kittipanya-Ngam

Keyword(s):

Business Model ◽

Value Chain ◽

Social Impact ◽

Business Models ◽

Rural Poverty ◽

Sustainable Business ◽

Middle Income ◽

Low Middle Income Countries ◽

Development Literature ◽

Hybrid Organisations

This study contributes to the growing interest in hybrid organisations, sustainable business models and inclusive value chain development (IVCD). Recent work has identified that of some 570 million farmers in the world, more than 475 million farmers are smallholders in low-middle-income countries experiencing increasing food insecurity and rural poverty. Research argues that there is a lack of research that provides work on appropriate solutions for smallholders. This paper answers this call by a qualitative study of ten case studies, which draws on hybrid organising, sustainable business model and IVCD research to identify the novel business model characteristics that hybrid organisations use to create and manage more inclusive value chains for smallholders. These hybrid organisations are designed to create a value proposition that delivers sustainability upgrading for smallholders via both product, process and governance upgrades, empowers smallholders to achieve development goals and creates multiple value for social impact. We therefore identify the important characteristics of the hybrid business model to provide appropriate solutions for smallholders and overcome the challenges identified in the inclusive value chain development literature.

Download Full-text

Sustainable Business Models of SMEs: Challenges in Yacht Tourism Sector

Sustainability ◽

10.3390/su10103437 ◽

2018 ◽

Vol 10 (10) ◽

pp. 3437 ◽

Cited By ~ 12

Author(s):

Cinzia Battistella ◽

Maria Cagnina ◽

Lucia Cicero ◽

Nadia Preghenella

Keyword(s):

Business Model ◽

Business Models ◽

Service Industry ◽

Small And Medium Enterprises ◽

Case Study Research ◽

Tourism Industry ◽

Sustainable Business ◽

Bottom Line ◽

Sustainable Business Models ◽

Sustainability Challenges

Despite the high number of active small and medium enterprises (SMEs) in all sectors, current studies have barely developed investigations on the sustainability of their business models so far. The aim of this study was thus to bridge the gap between sustainable business models of SMEs in the service industry, to uncover the challenges that SMEs face when seeking business model reconfiguration toward sustainability. More specifically, the empirical investigation adopted a case study research design in the context of yacht tourism, as one business form among many within the tourism industry and thus within the broader category of the service industry. Interviews were conducted with seven European SMEs, whose business models were analyzed through the lens of the triple bottom line and sustainability challenges in their business models. The results display a varied typology of case studies, where business model components reveal diverse expressions of facing sustainability challenges. The work discusses reported findings with a cross-case comparison among detected business models and outlines a list of propositions for sustainable business models of SMEs. The paper contributes in continuing the discourse on sustainable business models, adopting the perspective of the challenges for SMEs and offers food for thought for managers of SMEs in comparing their own business with the identified business model types.

Download Full-text

Technology Resilience and the S.T.O.R.M. Factory

Symphonya Emerging Issues in Management ◽

10.4468/2018.02.09 ◽

2018 ◽

Author(s):

Marco Pironti ◽

Paola Pisano ◽

Armando Papa

Keyword(s):

Value Chain ◽

Business Models ◽

Sustainable Business ◽

Rapid Changes ◽

Self Tuning ◽

Dual Perspective ◽

Sustainable Business Models ◽

New Challenges ◽

Operational Aspects

Opportunities opened up by the Industry 4.0 paradigm are related to the acceleration of flexible and open business planning and governance mechanisms to foster the adaptability of the value chain to the rapid changes during ongoing operations by reducing gaps and controlling efforts. The constant search for a dual perspective (short- to medium/long term) and a twofold equilibrium (micro and macro vs. internal and external) is creating new challenges for sustainable business models. The Self-Tuning Open Reengineering Model (STORM) is well suited to explain the organizational behaviours of both industrial and craftsman firms in terms of the strategic and operational aspects of the smart factory paradigm.

Download Full-text

Sustainable Business Model Innovation

Collective Creativity for Responsible and Sustainable Business Practice - Advances in Business Strategy and Competitive Advantage ◽

10.4018/978-1-5225-1823-5.ch008 ◽

2017 ◽

pp. 140-159 ◽

Cited By ~ 4

Author(s):

Job Taminiau ◽

Joseph Nyangon ◽

Ariella Shez Lewis ◽

John Byrne

Keyword(s):

Sustainable Development ◽

Business Model ◽

Business Models ◽

Sustainable Energy ◽

Business Model Innovation ◽

Sustainable Business ◽

The Sustainable Development ◽

Mitigation And Adaptation ◽

Sustainable Business Models ◽

Development Goals

Establishing a sustainable energy future can justifiably be considered the next frontier in global sustainable development under the agenda laid out in the Sustainable Development Goals (SDGs). The newly adopted Paris Agreement which seeks to hold global average temperature increase to “well below 2°C” above pre-industrial levels inserts additional urgency into this agenda. To realize the commitments outlined in the agreement, implementation of innovative sustainable business models capable of producing strong mitigation and adaptation outcomes is required ‘on the ground' and needs to be available for subsequent diffusion across different countries, contexts and domains. This chapter explores the value of polycentric climate change governance through an investigation of sustainable business model innovation. An example of a sustainable business model, called the Sustainable Energy Utility (SEU), is evaluated and an assessment of United Nations-based programming to aid future diffusion of such business models is conducted.

Download Full-text

Communicating Sustainable Business Models to Consumers: A Translation Theory Perspective

Organization & Environment ◽

10.1177/1086026620953448 ◽

2020 ◽

pp. 108602662095344

Author(s):

Viktorija Viciunaite

Keyword(s):

Social Media ◽

Data Analysis ◽

Business Model ◽

Business Models ◽

Translation Theory ◽

Product Attributes ◽

Sustainable Business ◽

Sustainable Business Models ◽

Key Resources

Firms can embed sustainability efforts in business model elements such as key resources, key activities, or key partners. To capitalize on their sustainability efforts, firms must present these efforts in a way that is meaningful to consumers that is—translate them. This study explores how sustainability efforts are translated to consumers on webpages, newsletters, and social media profiles of Norwegian yarn firms. Data analysis revealed that firms’ sustainability communications could be related to underlying business model elements. At the same time, to consumers they were framed as product attributes or consequences to consumers, society, or the environment. This shows that firms conveyed business model information, but not in business model terms, which supports the idea of business model translation. The findings also indicated variation in how sustainability efforts were framed based on the firm’s sustainability focus.

Download Full-text