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Business Models’ Innovations to Overcome Hybridity-Related Tensions in Sustainable Entrepreneurship

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  • Daniele Eckert Matzembacher

    (School of Business Administration, Federal University of Rio Grande do Sul (UFRGS), Porto Alegre 90010-460, Brazil)

  • Mervi Raudsaar

    (School of Economics and Business Administration, University of Tartu, 51009 Tartu, Estonia)

  • Marcia Dutra de Barcellos

    (School of Business Administration, Federal University of Rio Grande do Sul (UFRGS), Porto Alegre 90010-460, Brazil)

  • Tõnis Mets

    (School of Economics and Business Administration, University of Tartu, 51009 Tartu, Estonia)

Abstract

This paper aims to investigate how sustainable entrepreneurs innovate in business models to overcome their hybridity-related tensions to achieve environmental, social, and financial goals. A case study was conducted on 12 organizations in seven countries from October 2018 to June 2019 through observation visits, interviews, and secondary data collection. To analyze the data, a content analysis was applied with the help of NVivo Software. The analysis category is based on the definition of the pillars of business models: (1) Value proposition, (2) value creation/delivery, and (3) value capture. Concerning value proposition, organizations engage various stakeholders on developing emotions related to sustainable behaviors. They use the idea of community to promote it, fostering the sharing of intangible values. Associated with these actions, organizations offer more convenience accessing these products or services, home deliveries, facilitating access by geo-location, price reduction, and promoting consumers’ education. Regarding value creation/delivery, companies promote partnerships with other stakeholders as part of the main business strategy. They run the business while promoting a social movement. One is dependent on the other. In their engagement in sustainability discussion forums and practical activities, they put together consumers, suppliers, and also other agents outside their vertical supply chain. Operations of all companies are highly internet-based. Social media and transparency are also relevant to their operations. The main characteristic of value capture is that organizations integrate sustainability into their strategy in a way that, just by doing business, they fulfill their social, environmental, and economic missions. Therefore, through innovation in business models, these organizations overcome hybridity-related tensions and achieve financial stability while positively impacting society. The contribution to the literature was achieved by identifying business model innovations in sustainable entrepreneurship, analyzing their characteristics and mechanisms to overcome hybridity-related tensions, and providing empirical evidence about how business models can create and capture different and multiple forms of value.

Suggested Citation

  • Daniele Eckert Matzembacher & Mervi Raudsaar & Marcia Dutra de Barcellos & Tõnis Mets, 2020. "Business Models’ Innovations to Overcome Hybridity-Related Tensions in Sustainable Entrepreneurship," Sustainability, MDPI, vol. 12(11), pages 1-17, June.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:11:p:4503-:d:366448
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    References listed on IDEAS

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    1. Daniele Eckert Matzembacher & Mervi Raudsaar & Marcia Dutra de Barcellos & Tõnis Mets, 2019. "Sustainable Entrepreneurial Process: From Idea Generation to Impact Measurement," Sustainability, MDPI, vol. 11(21), pages 1-26, October.
    2. Julia Trabskaja & Tonis Mets, 2019. "Ecosystem as the Source of Entrepreneurial Opportunities," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 13(4), pages 10-22.
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    8. Daniele Eckert Matzembacher & Rogério Leite Gonzales & Carlos S. V. Saldanha, 2019. "Can street entrepreneurs be Schumpeterian entrepreneurs? The case of food trucks as family firms in an emerging country," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-24, December.
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    Cited by:

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    2. Carolina López-Nicolás & Jesús Ruiz-Nicolás & Enrique Mateo-Ortuño, 2021. "Towards Sustainable Innovative Business Models," Sustainability, MDPI, vol. 13(11), pages 1-19, May.
    3. Jay Sheppard & Maral Mahdad, 2021. "Unpacking Hybrid Organizing in a Born Green Entrepreneurial Company," Sustainability, MDPI, vol. 13(20), pages 1-30, October.
    4. Ridge McGibbon Armstrong & Sara S. Saartjie Grobbelaar, 2023. "Sustainable business models for social enterprises in developing countries: a conceptual framework," Management Review Quarterly, Springer, vol. 73(2), pages 787-840, June.
    5. Sudhanshu Joshi & Manu Sharma & Banu Y. Ekren & Yigit Kazancoglu & Sunil Luthra & Mukesh Prasad, 2023. "Assessing Supply Chain Innovations for Building Resilient Food Supply Chains: An Emerging Economy Perspective," Sustainability, MDPI, vol. 15(6), pages 1-21, March.
    6. Hernita Hernita & Batara Surya & Iwan Perwira & Herminawaty Abubakar & Muhammad Idris, 2021. "Economic Business Sustainability and Strengthening Human Resource Capacity Based on Increasing the Productivity of Small and Medium Enterprises (SMEs) in Makassar City, Indonesia," Sustainability, MDPI, vol. 13(6), pages 1-36, March.
    7. Rosaria Ferlito & Rosario Faraci, 2022. "Sustainable Hybrid Business Model of Benefit Corporation: The Case of an Italian Film Production Company," Sustainability, MDPI, vol. 14(10), pages 1-17, May.
    8. Mara Del Baldo & Federica Palazzi, 2023. "High-Growth Benefit Corporations: Leveraging on Intangibles—Insights from Italy," Sustainability, MDPI, vol. 15(14), pages 1-20, July.

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