Sustainable Business Model Innovations in the Value Uncaptured Manufacturing Industry: Fitting Gains—Gain Creators

Burhan, Udisubakti Ciptomulyono, Moses Laksono Singgih and Imam Baihaqi
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Burhan: Industrial and System Engineering, Institut Teknologi Sepuluh Nopember, Surabaya 60111, Indonesia
Udisubakti Ciptomulyono: Industrial and System Engineering, Institut Teknologi Sepuluh Nopember, Surabaya 60111, Indonesia
Moses Laksono Singgih: Industrial and System Engineering, Institut Teknologi Sepuluh Nopember, Surabaya 60111, Indonesia

Sustainability, 2021, vol. 13, issue 10, 1-23

Abstract: Increased manufacturing activity has an impact on environmental quality degradation. Waste generated from manufacturing activities is one of the causes. Previous studies have referred to this waste as value uncaptured. Minimizing value uncaptured is a solution to improve environmental quality. This study aims to reduce value uncaptured by converting it into value captured. This process requires a value proposition design approach because of its advantages. One of the advantages of this approach is that it can improve existing or future products/services. To do so, this research uses a case study of a furniture company. To implement a converting process, a sustainable business model is proposed to solve this problem. This business model combines several methods: value proposition design, house of value and the product sustainability index matrix. Recently, the existing value proposition problem-solving has been using the value proposition design method. This research proposed implementing a house of value to replace the fitting process. The questionnaire is developed to obtain various value uncaptured in the company. To the weight of the value uncaptured, this research utilized the pairwise comparison method. Then, the weights could represent the importance of jobs. Based on the highest weight of these jobs, the alternative gains would be selected. To provide the weight of the gain creators and value captured, the house of value method is developed. Referring to three pillars of sustainability, the value captured should be considered. This research proposed implementing a product sustainability index which in turn produces eco-friendly products. This study produces “eco-friendly products” as sustainability value captured. The sustainability business model could be an alternative policy to minimize the existence of value uncaptured.

Keywords: value captured; value uncaptured; sustainable business model; value proposition design; the house of value; fitting (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 (2)

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