Strategies, practices, and tensions in managing business model innovation for sustainability: The case of an Australian BCorp

This article provides new insights into sustainable innovation through the lens of business model innovation for sustainability. The article presents a case study of a new and underexplored business model for sustainability, the BCorp model. BCorps are profit‐orientated businesses certified to meet rigorous standards in relation to environmental and social performance, accountability, and transparency. This article examines the strategy, structure, and practices of an Australian BCorp and the tensions in reconciling economic, social, and environmental imperatives. The study found that the BCorp focuses on the social and economic aspects, with environmental performance only just recently being addressed in response to its poor performance on the environmental categories in the BCorp certification process. The social and economic aspects are strongly integrated in some practices (e.g., recruitment and marketing), but trying to balance these two has created tensions and conflict in other areas (e.g., ownership structure, performance measurement, sales, and product design). The study contributes to understanding the structures, strategies, and practices that facilitate sustainable innovation initiatives, the tensions that arise, and how they are managed.