A Stakeholder Theory Perspective on Business Models: Value Creation for Sustainability

Freudenreich, Birte; Lüdeke‐Freund, Florian; Schaltegger, Stefan

doi:10.1007/s10551-019-04112-z

Cited by 583 publications

(678 citation statements)

References 56 publications

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“…This interpretation of business cases is closely related to the notion of stakeholder value creation (Freudenreich et al, ), which is less limited than a supposedly financial interpretation of business success. Stakeholder value creation implies that entrepreneurs, for example, through their innovations, create portfolios consisting of different kinds of value (e.g., dividends, customer solutions, reliable contracts, employment, or reduced environmental harm), which are created with and for multiple stakeholders.…”

Section: Theoretical Backgroundmentioning

confidence: 96%

“…Stakeholder value creation implies that entrepreneurs, for example, through their innovations, create portfolios consisting of different kinds of value (e.g., dividends, customer solutions, reliable contracts, employment, or reduced environmental harm), which are created with and for multiple stakeholders. Theoretically speaking, business cases for sustainability leading to value creation with and for stakeholders should be synonymous with sustainable value creation (Evans et al, ; Freudenreich et al, ; Hörisch et al, ). And this is where the business model and its mediating function can play an important role.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

“…Every business model depends on various stakeholders and their willingness to engage in mutual relationships with a firm as a precondition for business cases for sustainability and thus value creation with and for stakeholders. Freudenreich et al () discuss this issue in detail and propose a framework that considers an initial, nonexclusive list of stakeholders (customers, business partners, employees, societal stakeholders, and financial stakeholders). Some of these are indicated in the BMfSI framework (Figure ).…”

Section: Bmfsi—integrative Frameworkmentioning

confidence: 99%

“…Sustainable entrepreneurs face this challenge whenever they try to disseminate new solutions to sustainability problems through commercial activities and whenever they aim for large market shares and socio‐political influence (Hockerts & Wüstenhagen, ; Schaltegger, Hansen, & Lüdeke‐Freund, ; Schaltegger & Wagner, ). Sustainable entrepreneurs tie their business success directly to the achievement of positive effects for the natural environment and humankind and thus to the creation of value for a broad range of stakeholders (Freudenreich, Lüdeke‐Freund, & Schaltegger, ). However, current research reveals significant uncertainties related to innovation‐centric approaches: “Innovation has been widely regarded as a panacea for sustainable development, but there remains considerable uncertainty about how it will lead to a more sustainable society” (Hall & Wagner, , p. 183).…”

Section: Introductionmentioning

confidence: 99%

“…Depending on personal, organisational, and sociocultural values, business success can be defined as financial returns, nonfinancial effects such as improved innovative capacities, or a positive societal impact through the reduction of ecological and social ills (Breuer & Lüdeke‐Freund, , ). But regardless of personal motivations and success metrics, sustainable entrepreneurs need to commercialise their problem solutions and transform markets to create private and public benefits on a significant scale and for various stakeholders (Freudenreich et al, ; Schaltegger, Lüdeke‐Freund, Hansen, & Lüdeke‐Freund, ). This means that they must reduce or even eliminate the market imperfections and negative externalities that lead to humanity's unsustainable development (Cohen & Winn, ).…”

Section: Introductionmentioning

confidence: 99%

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Sustainable entrepreneurship, innovation, and business models: Integrative framework and propositions for future research

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This article introduces the business models for sustainability innovation (BMfSI) framework to study how business models mediate between sustainability innovations and business cases for sustainability. The BMfSI framework integrates two major perspectives (implicitly) found in the sustainable business model literature. The first is the agency perspective. It takes into consideration that some form of agency is needed, that is, "someone" who takes decisions and acts. Sustainable entrepreneurs are discussed as those agents who align their new or existing business models with sustainability innovations in order to be successful in business and to create value with and for stakeholders. The second perspective is the systems perspective, which acknowledges that business models are always embedded within sociotechnical contexts through which, for example, public policies, private financing, or stakeholder interests influence whether and how business models can be developed. The agency and systems perspectives are integrated in the so-called business model mediation space. This theoretical notion embraces the decisions and activities pursued by sustainable entrepreneurs as they align their business models with sustainability innovations on the one hand and the influence of environmental contingencies, barriers, and stakeholders from the sociotechnical context on the other hand. The paper concludes with propositions for future research derived from the BMfSI framework.

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Section: Theoretical Backgroundmentioning

confidence: 96%

Section: Theoretical Backgroundmentioning

confidence: 99%

Section: Bmfsi—integrative Frameworkmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Sustainable entrepreneurship, innovation, and business models: Integrative framework and propositions for future research

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Circular solutions in developing countries: Coping with sustainability tensions by means of technical functionality and business model relevance

2022

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To foster sustainable development, transition to circular economy should happen globally. Lately, however, the implementation of circular solutions has been particularly slow in the developing countries where these solutions could bring about particularly positive changes. A successful circular solution couples technical functionality with business model relevance. In developing countries, the implementation of circular solutions reveals sustainability tensions that originate in resource scarcity, institutional voids, and market affordability. We have studied implementation of circular solutions that small companies operating in these conditions have developed. The systematic analysis of 79 cases shows how sustainability tensions influence on companies' everyday business conduct and their long-term strategic orientation toward circular economy. We have also identified commonly applied business model features that allow companies to cope with the sustainability tensions. These features include:(1) locally tailored value proposition, (2) collective action approach in value creation, and (3) creativity in value capture. Ultimately, locally functional, embedded, and widely accepted circular solutions have potential to facilitate wider socio-technical transitions toward more sustainable business practices.

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Linking stakeholders need and sustainable business performance: Unleashing the power of shared value creation for competitive advantage—Study on selected banks in Ethiopia

Waktola,

Singh,

Singh

2024

Bus Strat Dev

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Integrating social and environmental considerations into business strategies has become imperative for companies seeking competitive advantage in today's dynamic and complex business environment. This study explored the effect of Shared Value Creation Practices on Competitive Advantage within banks. The study focused on how banks can achieve competitive advantage by creating shared value that addresses business goals and social needs. Data were collected from 463 customers of selected commercial banks in Ethiopia. The self‐administrative questionnaire was given to the customers selected by convenience sampling method. The study used the Structural Equation Model to test relationship between variables. The Study findings reveal that Shared Value Creation Practices significantly enhance banks' competitive advantage. The study suggests that banks can strategically leverage Shared Value Creation practices to gain a sustained advantage in a competitive market. Banks should continuously innovate and adapt strategies to address evolving stakeholders' needs. The banks should consider shared value creation integral to their strategic planning.

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A Stakeholder Theory Perspective on Business Models: Value Creation for Sustainability

Cited by 583 publications

References 56 publications

Sustainable entrepreneurship, innovation, and business models: Integrative framework and propositions for future research

Sustainable entrepreneurship, innovation, and business models: Integrative framework and propositions for future research

Circular solutions in developing countries: Coping with sustainability tensions by means of technical functionality and business model relevance

Linking stakeholders need and sustainable business performance: Unleashing the power of shared value creation for competitive advantage—Study on selected banks in Ethiopia

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