How does the local dimension change a company's business model ? The case of local energy systems

Our current consumption and production models present a significant challenge for companies striving to operate sustainably while creating economic value and addressing environmental and social concerns. Sustainable business models are a solution to tackle these matters. Nevertheless, their implementation still lacks due to multiple barriers. Indeed, some sustainable activities require strong local embeddedness to ensure their success. To explore the operationalization of local sustainable business models, this study focuses on two activities in the energy sector: methanization and district heating systems. Local sustainable energy systems are a particularly relevant set of activities to study the impact of local activities on a company's business model. The findings highlight the requirements to operationalize sustainable business models and maximize their positive impact at a local level. We build up on the RCOV framework to detail the specificities of the local dimension on a company's business model. The successful integration of these local models depends on the company's ability to understand the local ecosystem by (1) focusing on local value creation (LVC), (2) developing local capacities and capabilities to mobilize locally available technical, human and natural resources, and (3) reorganizing internally through territorialization and externally through specific governance and structuring of local ecosystem at hand.