IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i11p5763-d558963.html
   My bibliography  Save this article

The Business Model in Sustainability Transitions: A Conceptualization

Author

Listed:
  • Roberto Hernández-Chea

    (The International Institute for Industrial Environmental Economics (IIIEE), Lund University, Tegnérsplatsen 4, 223 50 Lund, Sweden)

  • Akriti Jain

    (Centre for Society and Policy, Department of Management Studies, Indian Institute of Science—Bangalore, Mathikere, Bengaluru, Karnataka 560012, India)

  • Nancy M. P. Bocken

    (The International Institute for Industrial Environmental Economics (IIIEE), Lund University, Tegnérsplatsen 4, 223 50 Lund, Sweden
    Maastricht Sustainability Institute, School of Business and Economics, Maastricht University, Tapijn 11 Building D, 6200 MD Maastricht, The Netherlands)

  • Anjula Gurtoo

    (Centre for Society and Policy, Department of Management Studies, Indian Institute of Science—Bangalore, Mathikere, Bengaluru, Karnataka 560012, India)

Abstract

Business models direct a firm’s activity to move in coherence with the objectives of the business. Current literature suggests business models can act as vital forces to facilitate sustainability transitions and highlights the urgent research call to understand the role of business model innovations in stimulating sustainability transitions. This paper addresses this research need by investigating how firms create business model innovations for system-level transformation towards sustainability. Through a systematic literature review and deductive content analysis methodology, we identify and categorize different combinations of innovative activities in a firm’s business model. Furthermore, two cases are illustrated to demonstrate the proposed conceptual model. The proposed conceptualization bridges a significant gap in the theme of sustainability and business and presents a defensible and researchable problem for transitions literature. Specifically, we find (1) shared vision and strategic dialogues among firms in different sectors as essential to develop value propositions and leverage business opportunities for sustainability in the long run; (2) companies ensure sustainable value creation and value delivery in the medium term through creation of an interdependent network of the green supply chain and collaboration with stakeholders; (3) in the short term, companies adopt sustainable practices, controlling daily operations, conducting awareness campaigns and experimenting with collaborations to deliver values based on sustainable practices.

Suggested Citation

  • Roberto Hernández-Chea & Akriti Jain & Nancy M. P. Bocken & Anjula Gurtoo, 2021. "The Business Model in Sustainability Transitions: A Conceptualization," Sustainability, MDPI, vol. 13(11), pages 1-25, May.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:11:p:5763-:d:558963
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/11/5763/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/11/5763/
    Download Restriction: no
    ---><---

    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. Henning Breuer & Klaus Fichter & Florian Lüdeke-Freund & Irina Tiemann, 2018. "Sustainability-oriented business model development: principles, criteria and tools," International Journal of Entrepreneurial Venturing, Inderscience Enterprises Ltd, vol. 10(2), pages 256-286.
    3. Leen Gorissen & Karl Vrancken & Saskia Manshoven, 2016. "Transition Thinking and Business Model Innovation–Towards a Transformative Business Model and New Role for the Reuse Centers of Limburg, Belgium," Sustainability, MDPI, vol. 8(2), pages 1-23, January.
    4. Tom Lahti & Joakim Wincent & Vinit Parida, 2018. "A Definition and Theoretical Review of the Circular Economy, Value Creation, and Sustainable Business Models: Where Are We Now and Where Should Research Move in the Future?," Sustainability, MDPI, vol. 10(8), pages 1-19, August.
    5. Markard, Jochen & Raven, Rob & Truffer, Bernhard, 2012. "Sustainability transitions: An emerging field of research and its prospects," Research Policy, Elsevier, vol. 41(6), pages 955-967.
    6. Moroz, Peter W. & Gamble, Edward N., 2021. "Business model innovation as a window into adaptive tensions: Five paths on the B Corp journey," Journal of Business Research, Elsevier, vol. 125(C), pages 672-683.
    7. Gianmarco Bressanelli & Federico Adrodegari & Marco Perona & Nicola Saccani, 2018. "Exploring How Usage-Focused Business Models Enable Circular Economy through Digital Technologies," Sustainability, MDPI, vol. 10(3), pages 1-21, February.
    8. Diaz Lopez, Fernando J. & Bastein, Ton & Tukker, Arnold, 2019. "Business Model Innovation for Resource-efficiency, Circularity and Cleaner Production: What 143 Cases Tell Us," Ecological Economics, Elsevier, vol. 155(C), pages 20-35.
    9. Thuc Uyen Nguyen-Thi & Caroline Danièle Mothe, 2010. "The Link Between Non Technological Innovations And Technological Innovation," Post-Print hal-00920069, HAL.
    10. Geels, Frank W., 2002. "Technological transitions as evolutionary reconfiguration processes: a multi-level perspective and a case-study," Research Policy, Elsevier, vol. 31(8-9), pages 1257-1274, December.
    11. Houda Elmustapha & Thomas Hoppe, 2020. "Challenges and Opportunities of Business Models in Sustainable Transitions: Evidence from Solar Energy Niche Development in Lebanon," Energies, MDPI, vol. 13(3), pages 1-18, February.
    12. Edurne A. Inigo & Laura Albareda & Paavo Ritala, 2017. "Business model innovation for sustainability: exploring evolutionary and radical approaches through dynamic capabilities," Industry and Innovation, Taylor & Francis Journals, vol. 24(5), pages 515-542, July.
    13. Tykkyläinen, Saila & Ritala, Paavo, 2021. "Business model innovation in social enterprises: An activity system perspective," Journal of Business Research, Elsevier, vol. 125(C), pages 684-697.
    14. 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.
    15. Frank W. Geels, 2005. "Technological Transitions and System Innovations," Books, Edward Elgar Publishing, number 3576.
    16. Serhan, Hiam & Bris, Gwenola Yannou-Le, 2018. "Sustainability Business Model: A Case Study of The Evolution of Activity System by Eco-Design and Eco-Innovation Practices to Value Wine Production," 6th International OFEL Conference on Governance, Management and Entrepreneurship. New Business Models and Institutional Entrepreneurs: Leading Disruptive Change (Dubrovnik, 2018), in: 6th International OFEL Conference on Governance, Management and Entrepreneurship. New Business Models and Institutional Entrepreneurs: Leading Disrupt, pages 61-85, Governance Research and Development Centre (CIRU), Zagreb.
    17. Isaac Lemus-Aguilar & Gustavo Morales-Alonso & Andres Ramirez-Portilla & Antonio Hidalgo, 2019. "Sustainable Business Models through the Lens of Organizational Design: A Systematic Literature Review," Sustainability, MDPI, vol. 11(19), pages 1-20, September.
    18. Hillman, Joanne & Axon, Stephen & Morrissey, John, 2018. "Social enterprise as a potential niche innovation breakout for low carbon transition," Energy Policy, Elsevier, vol. 117(C), pages 445-456.
    19. 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.
    20. Binz, Christian & Truffer, Bernhard, 2017. "Global Innovation Systems—A conceptual framework for innovation dynamics in transnational contexts," Research Policy, Elsevier, vol. 46(7), pages 1284-1298.
    21. Bolton, Ronan & Hannon, Matthew, 2016. "Governing sustainability transitions through business model innovation: Towards a systems understanding," Research Policy, Elsevier, vol. 45(9), pages 1731-1742.
    22. Hiam Serhan & Gwenola Yannou-Le Bris, 2018. "Sustainability Business Model: a case study of the evolution of activity system by eco-design and eco-innovation practices to value wine production," Post-Print hal-01813504, HAL.
    23. Silvia Cantele & Sara Moggi & Bettina Campedelli, 2020. "Spreading Sustainability Innovation through the Co-Evolution of Sustainable Business Models and Partnerships," Sustainability, MDPI, vol. 12(3), pages 1-19, February.
    24. Deborah Sumter & Jotte de Koning & Conny Bakker & Ruud Balkenende, 2021. "Key Competencies for Design in a Circular Economy: Exploring Gaps in Design Knowledge and Skills for a Circular Economy," Sustainability, MDPI, vol. 13(2), pages 1-15, January.
    25. Rocío González-Sánchez & Davide Settembre-Blundo & Anna Maria Ferrari & Fernando E. García-Muiña, 2020. "Main Dimensions in the Building of the Circular Supply Chain: A Literature Review," Sustainability, MDPI, vol. 12(6), pages 1-25, March.
    26. Durwin H.J. Lynch & Pim Klaassen & Lan van Wassenaer & Jacqueline E.W. Broerse, 2020. "Constructing the Public in Roadmapping the Transition to a Bioeconomy: A Case Study from the Netherlands," Sustainability, MDPI, vol. 12(8), pages 1-18, April.
    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. Maria Csutora & Gabor Harangozo & Cecilia Szigeti, 2022. "Factors behind the Consumer Acceptance of Sustainable Business Models in Pandemic Times," Sustainability, MDPI, vol. 14(15), pages 1-18, August.
    2. Magdalena Zioło & Iwona Bąk & Anna Spoz, 2023. "Theoretical framework of sustainable value creation by companies. What do we know so far?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(5), pages 2344-2361, September.
    3. Anna Yström & Marine Agogué & Romain Rampa, 2021. "Preparing an Organization for Sustainability Transitions—The Making of Boundary Spanners through Design Training," Sustainability, MDPI, vol. 13(14), pages 1-17, July.
    4. Signe Pedersen & Christian Clausen & Michael Søgaard Jørgensen, 2023. "Navigating value networks to co‐create sustainable business models: An actionable staging approach," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 240-258, January.
    5. Juliana Kurek & Luciana Londero Brandli & Marcos Antonio Leite Frandoloso & Amanda Lange Salvia & Janaina Mazutti, 2023. "Sustainable Business Models Innovation and Design Thinking: A Bibliometric Analysis and Systematic Review of Literature," Sustainability, MDPI, vol. 15(2), pages 1-22, January.
    6. Monrudee Theeraworawit & Suparak Suriyankietkaew & Philip Hallinger, 2022. "Sustainable Supply Chain Management in a Circular Economy: A Bibliometric Review," Sustainability, MDPI, vol. 14(15), pages 1-21, July.

    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. 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.
    2. Milou Derks & Frank Berkers & Arnold Tukker, 2022. "Toward Accelerating Sustainability Transitions through Collaborative Sustainable Business Modeling: A Conceptual Approach," Sustainability, MDPI, vol. 14(7), pages 1-20, March.
    3. 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.
    4. 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.
    5. 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.
    6. Mura, Matteo & Longo, Mariolina & Toschi, Laura & Zanni, Sara & Visani, Franco & Bianconcini, Silvia, 2021. "The role of geographical scales in sustainability transitions: An empirical investigation of the European industrial context," Ecological Economics, Elsevier, vol. 183(C).
    7. 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.
    8. Li, Francis G.N. & Trutnevyte, Evelina & Strachan, Neil, 2015. "A review of socio-technical energy transition (STET) models," Technological Forecasting and Social Change, Elsevier, vol. 100(C), pages 290-305.
    9. Jonas Heiberg & Christian Binz & Bernhard Truffer, 2020. "The Geography of Technology Legitimation. How multi-scalar legitimation processes matter for path creation in emerging industries," Papers in Evolutionary Economic Geography (PEEG) 2034, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Aug 2020.
    10. Walrave, Bob & Talmar, Madis & Podoynitsyna, Ksenia S. & Romme, A. Georges L. & Verbong, Geert P.J., 2018. "A multi-level perspective on innovation ecosystems for path-breaking innovation," Technological Forecasting and Social Change, Elsevier, vol. 136(C), pages 103-113.
    11. Kejia Yang & Johan Schot & Bernhard Truffer, 2020. "Shaping the Directionality of Sustainability Transitions: The Diverging Development Patterns of Solar PV in Two Chinese Provinces," SPRU Working Paper Series 2020-14, SPRU - Science Policy Research Unit, University of Sussex Business School.
    12. Jonas Heiberg & Christian Binz & Bernhard Truffer, 2020. "Assessing transitions through socio-technical network analysis – a methodological framework and a case study from the water sector," Papers in Evolutionary Economic Geography (PEEG) 2035, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Aug 2020.
    13. Fuenfschilling, Lea & Binz, Christian, 2018. "Global socio-technical regimes," Research Policy, Elsevier, vol. 47(4), pages 735-749.
    14. Kadia Georges Aka & François Labelle, 2021. "The Collaborative Process of Sustainable Innovations under the Lens of Actor–Network Theory," Sustainability, MDPI, vol. 13(19), pages 1-32, September.
    15. Jing Shao & Cedric Aneye & Alyona Kharitonova & Wei Fang, 2023. "Essential innovation capability of producer‐service enterprises towards circular business model: Motivators and barriers," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4548-4567, November.
    16. Barton, John & Davies, Lloyd & Dooley, Ben & Foxon, Timothy J. & Galloway, Stuart & Hammond, Geoffrey P. & O’Grady, Áine & Robertson, Elizabeth & Thomson, Murray, 2018. "Transition pathways for a UK low-carbon electricity system: Comparing scenarios and technology implications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 2779-2790.
    17. Franz Tödtling & Michaela Trippl & Veronika Desch, 2022. "New directions for RIS studies and policies in the face of grand societal challenges," European Planning Studies, Taylor & Francis Journals, vol. 30(11), pages 2139-2156, November.
    18. Roberta Angelis, 2022. "Circular Economy Business Models: a Repertoire of Theoretical Relationships and a Research Agenda," Circular Economy and Sustainability, Springer, vol. 2(2), pages 433-446, June.
    19. Marlin Hoffman & Catherina J. Schenck & Frederick Herbst, 2022. "Exploring the Intersection Where Business Models, a Circular Economy and Sustainability Meet in the Waste Economy: A Scoping Review," Sustainability, MDPI, vol. 14(6), pages 1-14, March.
    20. Heiberg, Jonas & Truffer, Bernhard & Binz, Christian, 2022. "Assessing transitions through socio-technical configuration analysis – a methodological framework and a case study in the water sector," Research Policy, Elsevier, vol. 51(1).

    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:gam:jsusta:v:13:y:2021:i:11:p:5763-:d:558963. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.