scispace - formally typeset
Search or ask a question
Posted Content

Business Models for Sustainable Innovation: State of the Art and Steps Towards a Research Agenda

TL;DR: In this paper, the authors review the current literature on business models in the contexts of technological, organizational, and social sustainability innovations and propose examples of normative 'boundary conditions' that business models should meet in order to support sustainable innovations.
Abstract: The aim of this paper is to advance research on sustainable innovation by adopting a business model perspective. Through a confrontation of the literature on both topics we find that research on sustainable innovation has tended to neglect the way in which firms need to combine a value proposition, the organization of the upstream and downstream value chain, and a financial model, in order to bring sustainability innovations to the market. Therefore, we review the current literature on business models in the contexts of technological, organizational, and social sustainability innovations. As the current literature does not offer a general conceptual definition of sustainable business models, we propose examples of normative 'boundary conditions' that business models should meet in order to support sustainable innovations. Finally, we sketch the outline of a research agenda by formulating a number of guiding questions.
Citations
More filters
Journal ArticleDOI
TL;DR: In this article, sustainable business models (SBM) incorporate a triple bottom line approach and consider a wide range of stakeholder interests, including environment and society, to drive and implement corporate innovation for sustainability, can help embed sustainability into business purpose and processes, and serve as a key driver of competitive advantage.

2,360 citations


Cites background or methods or result from "Business Models for Sustainable Inn..."

  • ...…value creation and business models, Beltramello et al. (2013) on “green’ business models, Wells and Seitz (2005) on closed loop supply chains, Wells and Bristow (2007) and LüdekeFreund (2009), Boons et al. (2013) and Boons and Lüdeke-Freund (2013) who looked into business models for sustainability....

    [...]

  • ...Innovation frameworks were also explored such as Mercier-Laurent (2011) innovation strategy, and the more recent business model innovation framework proposed by Boons and Lüdeke-Freund (2013) (Technological innovation, Organisational innovation, Social innovation)....

    [...]

  • ...While the value proposition is typically concerned with the product and service offering to generate economic return, in a sustainable business, the value proposition would provide measurable ecological and/or social value in concert with economic value (Boons and Lüdeke-Freund, 2013)....

    [...]

  • ...Still, the growing attention to the business model in the literature and practice suggests this is a useful framework for corporate innovation, and hence may be used to drive sustainability innovation forward (Stubbs and Cocklin, 2008; Lüdeke-Freund, 2010; Boons and Lüdeke-Freund, 2013)....

    [...]

  • ...With the exception of some recent literature (e.g. Boons and Lüdeke-Freund, 2013 who propose a classification by social, technical and organisational sustainable business model innovations) few authors have sought to unify the various examples in literature and practice in a useful categorisation…...

    [...]

Journal ArticleDOI
TL;DR: In this paper, the authors employed a literature review to identify and classify the circular economy characteristics according to a business model structure, and defined the components of the business model canvas in the context of circular economy.
Abstract: Switching from the current linear model of economy to a circular one has recently attracted increased attention from major global companies e.g., Google, Unilever, Renault, and policymakers attending the World Economic Forum. The reasons for this are the huge financial, social and environmental benefits. However, the global shift from one model of economy to another also concerns smaller companies on a micro-level. Thus, comprehensive knowledge on designing circular business models is needed to stimulate and foster implementation of the circular economy. Existing business models for the circular economy have limited transferability and there is no comprehensive framework supporting every kind of company in designing a circular business model. This study employs a literature review to identify and classify the circular economy characteristics according to a business model structure. The investigation in the eight sub-domains of research on circular business models was used to redefine the components of the business model canvas in the context of the circular economy. Two new components—the take-back system and adoption factors—have been identified, thereby leading to the conceptualization of an extended framework for the circular business model canvas. Additionally, the triple fit challenge has been recognized as an enabler of the transition towards a circular business model. Some directions for further research have been outlined, as well.

897 citations


Cites background from "Business Models for Sustainable Inn..."

  • ...In Lüdeke-Freund’s framework, the canvas is a central component, but linked with others, both preceding and subsequent....

    [...]

  • ...Lüdeke-Freund [12] applied the business model canvas (BMC) developed by Osterwalder and Pigneur [8] to the context Sustainability 2016, 8, 43 12 of 28 of eco-innovation....

    [...]

  • ...Other studies identified four normative requirements for business models for sustainable innovation, grounded in wider concepts such as sustainable development [21]....

    [...]

  • ...defined variously, for instance: the ReSOLVE (regenerate, share, optimize, loop, virtualize, exchange) framework [4,23], ways of circular value creation [7], normative requirements for business models [21], and areas for integration [22]....

    [...]

  • ...Boons and Lüdeke-Freund [21] (p. 13) also noticed that comparable conceptual notions of sustainable business models did not exist....

    [...]

Journal ArticleDOI
TL;DR: In this paper, the authors analyze the heterogeneous picture research has drawn within the past 20 years with a focus on the innovation practices including different types of SOIs and strategic sustainability behaviors of SMEs through an interdisciplinary, systematic review in a time frame between 1987 and 2010.

887 citations


Cites background from "Business Models for Sustainable Inn..."

  • ...Business model innovation can enable conventional firms to radically change processes, products, and organizational forms in order to more successfully integrate sustainability into core business (e.g. Boons and Lüdeke-Freund, 2012; Schaltegger et al., 2012)....

    [...]

  • ...To introduce radically new processes, organizational forms, and products often requires entirely new business models (Boons and Lüdeke-Freund, 2012; Hansen et al., 2009; Paramanathan et al., 2004; Schaltegger et al., 2012)....

    [...]

Journal ArticleDOI
TL;DR: The 2010 edition of the ERSCP-EMSU 2010 Conference as mentioned in this paper was the first edition of a special issue dedicated to the business model concept for sustainable innovation in the context of sustainable development.

820 citations


Cites background from "Business Models for Sustainable Inn..."

  • ...At a minimum, these elements include (i) the value proposition, (ii) the configuration of value creation, which includes the way in which the firm links to suppliers and customers, and (iii) the revenue model, that is, how costs and benefits are divided over economic actors in the system (Boons and Leudeke-Freund, 2013)....

    [...]

  • ...…include (i) the value proposition, (ii) the configuration of value creation, which includes the way in which the firm links to suppliers and customers, and (iii) the revenue model, that is, how costs and benefits are divided over economic actors in the system (Boons and Leudeke-Freund, 2013)....

    [...]

  • ...Boons and Leudeke-Freund (2013) provide an extensive survey of the business model literature and connect it to sustainable innovation....

    [...]

  • ...First, as Boons and Leudeke-Freund (2013) review in a more detailed way in this SI, at a conceptual and foundational level the need to change existing business models was related to the concept of natural capitalism (Hawken et al., 1999) and to the mechanism of creative destruction of existing…...

    [...]

Journal ArticleDOI
TL;DR: In this article, a review of 100 scholarly articles and 27 grey sources drawn from the period of the three Earth Summits (1992, 2002 and 2012), the authors address four specific deficiencies that have given rise to these limitations: the meaning of SOI, how it has been conceptualized, its treatment as a dichotomous phenomenon and a general failure to reflect more contemporary practices.
Abstract: This article is intended as a contribution to the ongoing conceptual development of Sustainability-Oriented Innovation (SOI) and provides initial guidance on becoming and being sustainable. We organize and integrate the diverse body of empirical literature relating to SOI and, in doing so, develop a synthesized conceptual framework onto which SOI practices and processes can be mapped. SOI involves making intentional changes to an organization’s philosophy and values, as well as to its products, processes or practices to serve the specific purpose of creating and realising social and environmental value in addition to economic returns. A critical reading of previous literature relating to environmental management and sustainability reveals how little attention has been paid to SOI and what exists is only partial. In a review of 100 scholarly articles and 27 grey sources drawn from the period of the three Earth Summits (1992, 2002 and 2012), we address four specific deficiencies that have given rise to these limitations: the meaning of SOI, how it has been conceptualised, its treatment as a dichotomous phenomenon and a general failure to reflect more contemporary practices. We adopt a framework synthesis approach involving first constructing an initial architecture of the landscape grounded in previous studies which is subsequently iteratively tested, shaped, refined and reinforced into a model of SOI with data drawn from included studies: so advancing theoretical development in the field of SOI.

817 citations

References
More filters
Journal ArticleDOI
TL;DR: In this paper, the authors explore the significance of business models and explore their connections with business strategy, innovation management, and economic theory, and understand how the enterprise can organize to best meet customers' needs, get paid for doing so, and make a profit.

6,242 citations


"Business Models for Sustainable Inn..." refers background in this paper

  • ...First, business models can support the strategic marketing of innovative processes, products and services (e.g., Pateli and Giaglis, 2005; Teece, 2010; Zott and Amit, 2008, 2007)....

    [...]

  • ...Common sense amongst strategy-oriented business model scholars is that creating and delivering customer value lies at the heart of any business model (e.g., Afuah, 2004; Chesbrough, 2010; Johnson, 2010; Osterwalder and Pigneur, 2009; Teece, 2010; Zott and Amit, 2010)....

    [...]

  • ...Common sense amongst strategyoriented business model scholars is that creating and delivering customer value lies at the heart of any business model (e.g., Afuah, 2004; Chesbrough, 2010; Johnson, 2010; Osterwalder and Pigneur, 2009; Teece, 2010; Zott and Amit, 2010)....

    [...]

  • ...First, business models can support the strategic marketing of innovative processes, products and services (e.g., Pateli and Giaglis, 2005; Teece, 2010; Zott and Amit, 2008)....

    [...]

Journal ArticleDOI
TL;DR: In this paper, the authors present a literature review on sustainable supply chain management taking 191 papers published from 1994 to 2007 into account, and a conceptual framework to summarize the research in this field comprising three parts.

4,760 citations


"Business Models for Sustainable Inn..." refers background in this paper

  • ...This condition requires that a firm actively engages suppliers into sustainable supply chain management (Seuring and Muller 2008)....

    [...]

  • ...There is substantial literature on how supply chains are reorganized in the process of making them more sustainable (e.g., Boons and Mendoza, 2010; Seuring and Müller, 2008; Vermeulen and Seuring, 2009)....

    [...]

  • ...This condition requires that a firm actively engages suppliers into sustainable supply chain management, which includes, for example, forms of social issue management and materials cycles that avoid/reuse wastes (Seuring and Müller, 2008)....

    [...]

  • ...Also, modeling studies give insight into the complex way in which, for instance, regulatory standards and supply chain pressures interact in a supply chain (Saint-Jean, 2008; Seuring and Müller, 2008)....

    [...]

  • ...Also, modeling studies give insight into the complex way in which, for instance, regulatory standards and supply chain pressures interact in a supply chain (Saint Jean, 2008; Seuring and Müller, 2008)....

    [...]

Book ChapterDOI
TL;DR: In recent years, business increasingly has been viewed as a major cause of social, environmental, and economic problems, and companies are widely perceived to be prospering at the expense of the broader community as mentioned in this paper.
Abstract: THE CAPITALIST SYSTEM is under siege. In recent years business increasingly has been viewed as a major cause of social, environmental, and economic problems. Companies are widely perceived to be prospering at the expense of the broader community.

4,629 citations

Journal ArticleDOI
TL;DR: This article provided a broad and multifaceted review of the received literature on business models in which the authors examined the business model concept through multiple subject-matter lenses and found that scholars do not agree on what a business model is and that the literature is developing largely in silos according to the phenomena of interest of the respective researchers.

3,850 citations

Book
01 Jan 2010
TL;DR: Business Model Generation as discussed by the authors is a handbook for visionaries, game changers, and challengers striving to defy outmoded business models and design tomorrow's enterprises If your organization needs to adapt to harsh new realities, but you don't yet have a strategy that will get you out in front of your competitors, you need Business Model GenerationCo-created by 470 "Business Model Canvas" practitioners from 45 countries, the book features a beautiful, highly visual, 4-color design that takes powerful strategic ideas and tools, and makes them easy to implement in your organization.
Abstract: Business Model Generation is a handbook for visionaries, game changers, and challengers striving to defy outmoded business models and design tomorrow's enterprises If your organization needs to adapt to harsh new realities, but you don't yet have a strategy that will get you out in front of your competitors, you need Business Model Generation Co-created by 470 "Business Model Canvas" practitioners from 45 countries, the book features a beautiful, highly visual, 4-color design that takes powerful strategic ideas and tools, and makes them easy to implement in your organization It explains the most common Business Model patterns, based on concepts from leading business thinkers, and helps you reinterpret them for your own context You will learn how to systematically understand, design, and implement a game-changing business model--or analyze and renovate an old one Along the way, you'll understand at a much deeper level your customers, distribution channels, partners, revenue streams, costs, and your core value proposition Business Model Generation features practical innovation techniques used today by leading consultants and companies worldwide, including 3M, Ericsson, Capgemini, Deloitte, and others Designed for doers, it is for those ready to abandon outmoded thinking and embrace new models of value creation: for executives, consultants, entrepreneurs, and leaders of all organizations If you're ready to change the rules, you belong to "the business model generation!"

3,612 citations


"Business Models for Sustainable Inn..." refers background in this paper

  • ...Common sense amongst strategy-oriented business model scholars is that creating and delivering customer value lies at the heart of any business model (e.g., Afuah, 2004; Chesbrough, 2010; Johnson, 2010; Osterwalder and Pigneur, 2009; Teece, 2010; Zott and Amit, 2010)....

    [...]

  • ...Common sense amongst strategyoriented business model scholars is that creating and delivering customer value lies at the heart of any business model (e.g., Afuah, 2004; Chesbrough, 2010; Johnson, 2010; Osterwalder and Pigneur, 2009; Teece, 2010; Zott and Amit, 2010)....

    [...]