Sustainable business model innovation is about creating superior customer and firm value by addressing societal and environmental needs through the way business is done. Business models require intentional design if they are to deliver aspired sustainability impacts. Scant research has been done on 'ecologies' of different business models in order to understand and improve these and create positive impact on the environment, society, economy and other key stakeholders. Hence, in this paper a novel framework is presented to enable a systemic form of sustainable business model experimentation. The framework is based on the recognition of three key issues which have not yet been sufficiently incorporated in the literature on sustainable business models: construct clarity, boundary setting and uncertainty about outcomes. These concepts are discussed first. Building on earlier work, the resulting framework incorporates potential side-effects and boundary setting based on the concept of an 'ecology of business models'. Second, an approach is proposed that could stimulate more profound forms of sustainable business model innovation: The Ecology of Business Models Experimentation map. Third, the approach is illustrated through two cases. The approach could help minimize symbiotic dependency on less sustainable business models; help destroy unsustainable business models by outcompeting them; and maximize contributions to favourable institutional infrastructures for more sustainable business models. This paper contributes to research on sustainable business model innovation, design and experimentation by providing a potential approach for 'business model ecology redesign'.
Industrial Symbiosis (IS) is a collective approach to competitive advantage in which separate industries create a cooperative network to exchange materials, energy, water and/or by-products. By addressing issues related to resource depletion, waste management and pollution, IS plays an important role in the transition towards sustainable development. In the literature, two conceptual perspectives on IS can be identified: the Industrial Ecology (IE) and the Circular Economy (CE) perspective. Despite the recognition of these two perspectives, their relationship remains unclear and explicit attempts to develop an integrated perspective have not been made yet. Consequently, the goal of this research is to highlight and start addressing this critical gap of knowledge in order to support future research and practice geared towards the design of new IS clusters. We pose the following research question: How can the IE and CE perspectives on IS be combined in order to support the design of IS clusters? To this end, we first investigate the two perspectives more in depth and compare them in terms of nature, features and relevance for the study of IS. This is done by applying them as conceptual lenses for the analysis of the same case study, an existing IS cluster. The comparative analysis provides insights into how the two perspectives differ, ultimately demonstrating that they are complimentary and both necessary to fully describe an IS cluster. While the CE perspective is more suitable to explain how a cluster functions from a business standpoint in the operating phase, the IE perspective is more suitable to explain its development over time and its impacts on the environment, the economy and society. Building upon the outcomes of the comparative analysis, we leverage on the discipline of Strategic Design and integrate the two perspectives into a process for designing new IS clusters. We suggest two directions for future research. First, improving our comparative analysis of the two perspectives by looking at a wider and sample of IS clusters of different sizes and in different contexts. Second, focusing with more specificity on the issue of how IS clusters can be designed, potentially by trying to apply the process we propose on a real case aimed at designing a new IS cluster.
Circular business model experiments may help firms transition towards a circular economy. Little is known about how the participants of experimentation-entrepreneurs, intrapreneurs, innovation managers-develop and test their assumptions during the experimentation process to achieve more circular outcomes. Using a design-science approach, we investigate this process and develop principles to improve it. This is done during three workshops in different contexts: an innovation festival with 14 early-stage circular startups, a workshop with a health technology incumbent, and a workshop with six growthoriented startups. We find that analyzing their available means-what they find important and prefer to happen (part of their identity), what they know (their skills and knowledge), and whom they know (their social network)-helps to understand how the participants develop and test their assumptions. We show how the mindset and awareness of the participants impact how much attention they pay to the circularity potential of their envisioned circular business models. Based on these insights, we propose a set of principles to prepare the innovation participants for experimentation, and to increase their ability to reflect on their circularity assumptions. Future research is needed to further grow our understanding of the types of principles that can guide meaningful experimentations towards a circular economy.
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