IDEAS home Printed from https://ideas.repec.org/a/bla/bstrat/v31y2022i5p2019-2035.html
   My bibliography  Save this article

Towards sustainable business models with a novel life cycle assessment method

Author

Listed:
  • Giulia Goffetti
  • Daniel Böckin
  • Henrikke Baumann
  • Anne‐Marie Tillman
  • Thomas Zobel

Abstract

Business model (BM) innovation for sustainability is hampered by a lack of tools for environmental assessment and guidance at the BM level. Conventional life cycle assessment (LCA) neglects the economic and socio‐technical mechanisms within a BM, and tools based on the BM canvas (BMC) cannot provide recommendations substantiated by environmental data. Here, a new method, BM‐LCA, is applied to a case comparing the selling and renting of jackets, using profit as basis of comparison. Results identify how business parameters influence environmental performance, permitting analysis for decoupling within a business practice. This is made possible by the unique way the method links physical life cycle and the monetary flows of a BM. Usefulness of BM‐LCA is discussed relative to BM innovation, business strategy and similar tools. BM‐LCA provides insights into a broad range of BM elements and emerges as useful for business strategy. By measuring BM environmental performance, it helps determine what BM to compete with and support critical analysis of business against greenwashing. BM‐LCA also enables identification of BM elements in greatest need of environmental innovation. BM‐LCA appears as a promising tool for guiding business companies towards sustainability, filling a space between LCA and BMC. The method offers a practical way for business and LCA experts to merge their respective knowledge.

Suggested Citation

  • Giulia Goffetti & Daniel Böckin & Henrikke Baumann & Anne‐Marie Tillman & Thomas Zobel, 2022. "Towards sustainable business models with a novel life cycle assessment method," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2019-2035, July.
    • Handle: RePEc:bla:bstrat:v:31:y:2022:i:5:p:2019-2035
    DOI: 10.1002/bse.3005
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/bse.3005
    Download Restriction: no
    File URL: https://libkey.io/10.1002/bse.3005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Saeed Nosratabadi & Amir Mosavi & Shahaboddin Shamshirband & Edmundas Kazimieras Zavadskas & Andry Rakotonirainy & Kwok Wing Chau, 2019. "Sustainable Business Models: A Review," Sustainability, MDPI, vol. 11(6), pages 1-30, March.
    2. Steve Evans & Doroteya Vladimirova & Maria Holgado & Kirsten Van Fossen & Miying Yang & Elisabete A. Silva & Claire Y. Barlow, 2017. "Business Model Innovation for Sustainability: Towards a Unified Perspective for Creation of Sustainable Business Models," Business Strategy and the Environment, Wiley Blackwell, vol. 26(5), pages 597-608, July.
    3. Buxel, Holger & Esenduran, Gökçe & Griffin, Scott, 2015. "Strategic sustainability: Creating business value with life cycle analysis," Business Horizons, Elsevier, vol. 58(1), pages 109-122.
    4. Nancy M. P. Bocken & Ilka Weissbrod & Maria Antikainen, 2021. "Business Model Experimentation for the Circular Economy: Definition and Approaches," Circular Economy and Sustainability, Springer, vol. 1(1), pages 49-81, June.
    5. Marcus Adam & Jochen Strähle & Matthias Freise, 2017. "The Interaction of Product-Service Systems (PSS) and Corporate Environmental Management (CEM): Can PSS Drive Today’s Fashion Industry Toward More Environmental Sustainability?," Service Science, INFORMS, vol. 9(3), pages 235-249, September.
    6. Maria Rosa De Giacomo & Raimund Bleischwitz, 2020. "Business models for environmental sustainability: Contemporary shortcomings and some perspectives," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3352-3369, December.
    7. Nancy Bocken & Lars Strupeit & Katherine Whalen & Julia Nußholz, 2019. "A Review and Evaluation of Circular Business Model Innovation Tools," Sustainability, MDPI, vol. 11(8), pages 1-25, April.
    8. Steven Day & Janet Godsell & Donato Masi & Wanrong Zhang, 2020. "Predicting consumer adoption of branded subscription services: A prospect theory perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1310-1330, March.
    9. Austrian Institute of Economic Research, 2006. "Competitiveness Report 2006," WIFO Studies, WIFO, number 28814.
    10. Marcus Linder & Mats Williander, 2017. "Circular Business Model Innovation: Inherent Uncertainties," Business Strategy and the Environment, Wiley Blackwell, vol. 26(2), pages 182-196, February.
    11. Till Blüher & Theresa Riedelsheimer & Sonika Gogineni & Antje Klemichen & Rainer Stark, 2020. "Systematic Literature Review—Effects of PSS on Sustainability Based on Use Case Assessments," Sustainability, MDPI, vol. 12(17), pages 1-26, August.
    12. Shafer, Scott M. & Smith, H. Jeff & Linder, Jane C., 2005. "The power of business models," Business Horizons, Elsevier, vol. 48(3), pages 199-207.
    13. Wiebke Reim & David Sjödin & Vinit Parida, 2021. "Circular business model implementation: A capability development case study from the manufacturing industry," Business Strategy and the Environment, Wiley Blackwell, vol. 30(6), pages 2745-2757, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Laurene Desclaux & Amaro Olimpio Pereira, 2024. "Residual Biomass Gasification for Small-Scale Decentralized Electricity Production: Business Models for Lower Societal Costs," Energies, MDPI, vol. 17(8), pages 1-26, April.
    2. Simon Stork & Bernd Pölling & Wolf Lorleberg & Rolf Morgenstern & Jan-Henning Feil, 2023. "Clustering Business Models of Heterogeneous Nature-Based Solutions Implementing Innovative Governance and Financing Concepts," Land, MDPI, vol. 12(12), pages 1-22, November.
    3. Sameer Mittal & Muztoba Ahmad Khan & Vinod Yadav & Milind K. Sharma, 2024. "Footwear as product‐service systems: Toward sustainable alternative consumption scenarios," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 726-741, February.
    4. Hampus André, 2024. "Opening the black box of the use phase in circular economy life cycle assessments: Environmental performance of shell jacket reuse," Journal of Industrial Ecology, Yale University, vol. 28(3), pages 542-555, June.
    5. Moa Nyvall & Thomas Zobel & Cecilia Mark‐Herbert, 2023. "Use‐oriented business model," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(3), pages 1314-1324, May.
    6. Zhen Liu & Yixin Liu & Mohamed Osmani, 2024. "Integration of Smart City Technology and Business Model Innovation," Sustainability, MDPI, vol. 16(12), pages 1-30, June.
    7. Cao Dinh Kien & Nguyen Huu That, 2022. "Innovation Capabilities in the Banking Sector Post-COVID-19 Period: The Moderating Role of Corporate Governance in an Emerging Country," IJFS, MDPI, vol. 10(2), pages 1-14, June.
    8. Fabio Neves Puglieri & Rodrigo Salvador & Omar Romero‐Hernandez & Edmundo Escrivão Filho & Cassiano Moro Piekarski & Antonio Carlos de Francisco & Aldo Roberto Ometto, 2022. "Strategic planning oriented to circular business models: A decision framework to promote sustainable development," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3254-3273, November.
    9. Fabio Zagonari, 2024. "Sustainable business models and conflict indices for sustainable decision‐making: An application to decommissioning versus reusing offshore gas platforms," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 180-196, February.
    10. Simon Stork & Rolf Morgenstern & Bernd Pölling & Jan-Henning Feil, 2023. "Holistic Business Model Conceptualisation—Capturing Sustainability Contributions Illustrated by Nature-Based Solutions," Sustainability, MDPI, vol. 15(19), pages 1-20, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Noemi Sinkovics & Denanjalee Gunaratne & Rudolf R. Sinkovics & Francisco-Jose Molina-Castillo, 2021. "Sustainable Business Model Innovation: An Umbrella Review," Sustainability, MDPI, vol. 13(13), pages 1-17, June.
    2. Barbara Brenner & Daria Drdla, 2023. "Business Model Innovation toward Sustainability and Circularity—A Systematic Review of Innovation Types," Sustainability, MDPI, vol. 15(15), pages 1-20, July.
    3. Rita Henriques & Filipa Figueiredo & João Nunes, 2023. "Product-Services for a Resource-Efficient and Circular Economy: An Updated Review," Sustainability, MDPI, vol. 15(15), pages 1-24, August.
    4. Elizaveta Averina & Johan Frishammar & Vinit Parida, 2022. "Assessing sustainability opportunities for circular business models," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1464-1487, May.
    5. Mechthild Donner & Hugo de Vries, 2021. "How to innovate business models for a circular bio‐economy?," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 1932-1947, May.
    6. Sebastian Schroedel, 2023. "The Sustainable Business Model Database: 92 Patterns That Enable Sustainability in Business Model Innovation," Sustainability, MDPI, vol. 15(10), pages 1-27, May.
    7. Winston Jerónimo Silvestre & Ana Fonseca & Sandra Naomi Morioka, 2022. "Strategic sustainability integration: Merging management tools to support business model decisions," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2052-2067, July.
    8. Lukas Alexander Benz, 2022. "Critical Success Factors for Circular Business Model Innovation from the Perspective of the Sustainable Development Goals," Sustainability, MDPI, vol. 14(10), pages 1-18, May.
    9. Roberto Hernández-Chea & Pratheeba Vimalnath & Nancy Bocken & Frank Tietze & Elisabeth Eppinger, 2020. "Integrating Intellectual Property and Sustainable Business Models: The SBM-IP Canvas," Sustainability, MDPI, vol. 12(21), pages 1-30, October.
    10. Fernando E. García-Muiña & María Sonia Medina-Salgado & Anna Maria Ferrari & Marco Cucchi, 2020. "Sustainability Transition in Industry 4.0 and Smart Manufacturing with the Triple-Layered Business Model Canvas," Sustainability, MDPI, vol. 12(6), pages 1-19, March.
    11. Nancy M. P. Bocken & Ilka Weissbrod & Maria Antikainen, 2021. "Business Model Experimentation for the Circular Economy: Definition and Approaches," Circular Economy and Sustainability, Springer, vol. 1(1), pages 49-81, June.
    12. Claudia Ogrean & Mihaela Herciu, 2020. "Business Models Addressing Sustainability Challenges—Towards a New Research Agenda," Sustainability, MDPI, vol. 12(9), pages 1-28, April.
    13. Maryam Hina & Chetna Chauhan & Rajat Sharma & Amandeep Dhir, 2023. "Circular economy business models as pillars of sustainability: Where are we now, and where are we heading?," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 6182-6209, December.
    14. Wiebke Reim & David Sjödin & Vinit Parida, 2021. "Circular business model implementation: A capability development case study from the manufacturing industry," Business Strategy and the Environment, Wiley Blackwell, vol. 30(6), pages 2745-2757, September.
    15. Maria Rosa De Giacomo & Raimund Bleischwitz, 2020. "Business models for environmental sustainability: Contemporary shortcomings and some perspectives," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3352-3369, December.
    16. Nadia Preghenella & Cinzia Battistella, 2021. "Exploring business models for sustainability: A bibliographic investigation of the literature and future research directions," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2505-2522, July.
    17. Joaquin Sanchez-Planelles & Marival Segarra-Oña & Angel Peiro-Signes, 2020. "Building a Theoretical Framework for Corporate Sustainability," Sustainability, MDPI, vol. 13(1), pages 1-21, December.
    18. Antonella Zucchella & Pietro Previtali & Roger Strange, 2022. "Proactive and reactive views in the transition towards circular business models. A grounded study in the plastic packaging industry," International Entrepreneurship and Management Journal, Springer, vol. 18(3), pages 1073-1102, September.
    19. Marcos Ferasso & Tatiana Beliaeva & Sascha Kraus & Thomas Clauss & Domingo Ribeiro‐Soriano, 2020. "Circular economy business models: The state of research and avenues ahead," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3006-3024, December.
    20. Sylwia Lorenc & Tomasz Leśniak & Arkadiusz Kustra & Maria Sierpińska, 2023. "Evolution of Business Models of Mining and Energy Sector Companies according to Current Market Trends," Energies, MDPI, vol. 16(13), pages 1-21, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:bstrat:v:31:y:2022:i:5:p:2019-2035. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-0836 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.