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When does it pay off to integrate sustainability in the business model? – A game-theoretic analysis

Author

Listed:
  • Henner Gimpel

    (FIM Research Center, University of Augsburg, Project Group Business & Information Systems Engineering of the Fraunhofer FIT)

  • Valerie Graf-Drasch

    (FIM Research Center, University of Augsburg, Project Group Business & Information Systems Engineering of the Fraunhofer FIT)

  • Alexander Kammerer

    (FIM Research Center, University of Augsburg)

  • Maximilian Keller

    (FIM Research Center, University of Augsburg)

  • Xinyi Zheng

    (FIM Research Center, University of Augsburg)

Abstract

Acknowledging sustainability as a challenge of utmost importance, organizations face questions on dealing with different dimensions of sustainability. Respective actions include a fundamental shift in the purpose of business and almost every aspect of how it is conducted, or in short: an integration of sustainability in organizations’ business model. However, as sustainability is no altruistic end in itself, respective transformation must resonate with organizations’ economic conditions and their position in the market. But when does it pay off for organizations to integrate sustainability in their business model? Within this research paper we find answers by applying a game-theoretic framework and examining competition strategies for organizations integrating sustainability in their business model. Hereby we consider different market scenarios where symmetric and asymmetric, weak and strong, as well as a varying number of organizations interact. Our results suggest different strategies organizations can apply to gain competitive advantage.

Suggested Citation

  • Henner Gimpel & Valerie Graf-Drasch & Alexander Kammerer & Maximilian Keller & Xinyi Zheng, 2020. "When does it pay off to integrate sustainability in the business model? – A game-theoretic analysis," Electronic Markets, Springer;IIM University of St. Gallen, vol. 30(4), pages 699-716, December.
    • Handle: RePEc:spr:elmark:v:30:y:2020:i:4:d:10.1007_s12525-019-00361-y
    DOI: 10.1007/s12525-019-00361-y
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    Cited by:

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    2. Nora Nahr & Marikka Heikkilä, 2022. "Uncovering the identity of Electronic Markets research through text mining techniques," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(3), pages 1257-1277, September.

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    More about this item

    Keywords

    Sustainability; Sustainability business model; Game theory;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions

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