The Business Model in Sustainability Transitions: A Conceptualization

Roberto Hernández-Chea, Akriti Jain, Nancy M. P. Bocken and Anjula Gurtoo
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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
Anjula Gurtoo: Centre for Society and Policy, Department of Management Studies, Indian Institute of Science—Bangalore, Mathikere, Bengaluru, Karnataka 560012, India

Sustainability, 2021, vol. 13, issue 11, 1-25

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.

Keywords: sustainable business models (SBM); activity-system approach; circular economy; sustainability transition; transition management; transitions studies (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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