Business cases for sustainability: the role of business model innovation for corporate sustainability

Schaltegger, Stefan; Lüdeke‐Freund, Florian; Hansen, Erik G.

doi:10.1504/ijisd.2012.046944

Cited by 935 publications

(830 citation statements)

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“…An increasing number of researchers have seen business model innovation as a crucial part of the approach to improve sustainability for entrepreneurs and managers (Boons and Lüdeke-Freund, 2013;Girotra and Netessine, 2013). However, the field of sustainable business model innovation is still under-researched, although interest is growing (Nidumolu et al, 2009;Schaltegger et al, 2012;Wells, 2013). There is a need for a more comprehensive understanding of the value system and approaches to promote sustainable business model innovation.…”

Section: Literature Backgroundmentioning

confidence: 99%

“…This recognises that the core of a sustainable business is still creating and delivering customer value (Chesbrough, 2010;Osterwalder and Pigneur, 2010;Teece, 2010;Zott et al, 2011), but one in which the environmental and social benefits are embedded. To develop new business models for sustainability, it is essential to consider the integration of social and environmental goals into a more holistic meaning of value in business models (Schaltegger et al, 2012). A sustainable business is not only achieved through innovation in technologies, products or services, but also through business model innovation (Girotra and Netessine, 2013).…”

Section: Business Model Innovation Refers To a New Integrated Logic Omentioning

confidence: 99%

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Value uncaptured perspective for sustainable business model innovation

Yang

Evans

Vladimirova

et al. 2017

Journal of Cleaner Production

324

232

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Sustainability has become one of the key factors for long-term business success. Recent research and practice show that business model innovation is a promising approach for improving sustainability in manufacturing firms. To date business models have been examined mostly from the perspectives of value proposition, value capture, value creation and delivery. There is a need for a more comprehensive understanding of value in order to promote sustainability. This paper proposes value uncaptured as a new perspective for sustainable business model innovation, and develops four forms of value uncaptured: value surplus, value absence, value missed and value destroyed. This paper also proposes a framework of using value uncaptured for sustainable business model innovation. This framework has been validated in case studies in six product-service systems firms with advanced manufacturing technologies. The empirical studies identify 26 main sources of value uncaptured throughout the product life cycle. The findings show that (a) the new perspective of value uncaptured can help manufacturing firms understand the negative aspects of their business models; (b) the four forms and 26 sources can assist firms in identifying value uncaptured in a structured way; and (c) the identified value uncaptured can trigger the discovery of new value opportunities which lead to new business models with higher sustainable value. This paper extends the existing studies on business models from the perspectives of value proposition, capture, creation and delivery, to value uncaptured. The proposed framework has helped firms identify value opportunities that trigger the innovation of sustainable business models. Therefore, this paper contributes to both theory and practice in the field of sustainable business models innovation.

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Section: Literature Backgroundmentioning

confidence: 99%

Section: Business Model Innovation Refers To a New Integrated Logic Omentioning

confidence: 99%

Value uncaptured perspective for sustainable business model innovation

Yang

Evans

Vladimirova

et al. 2017

Journal of Cleaner Production

324

232

View full text Add to dashboard Cite

show abstract

“…Sustainability scholars adopted the business model perspective because it allows them to explain how companies can overcome barriers against implementing sustainability improvements when they go against the existing business model as represented by the value proposition, infrastructure, customer relationship and financial logic. Adapting or redeveloping the business model to support sustainability make possible changes in the organisation and product portfolio Lüdeke-Freund (2009), Boons and Lüdeke-Freund (2013), Schaltegger et al (2012) and Schaltegger et al (2016a) Organisational ambidexterity for driving sustainability innovation Ambidexterity is about creating organisational structures and processes for enabling companies to simultaneously pursue two innovation modes that often conflict-incremental and radical innovation. Recently, the ambidexterity concept has been adopted by scholars in sustainability and innovation research in order to analyse how conventional firms could embark towards sustainability while also retaining their existing core business , Seebode et al (2012), Wicki (2015) and Wicki et al (2015) Sustainability Balanced Scorecards and their Architectures: Irrelevant or Misunderstood?…”

Section: The Sbsc As a Tool For Radical Change Towards Sustainability?mentioning

confidence: 99%

“…In both cases, we can observe that ''a business case for sustainability has to be created-it does not just happen'' (Schaltegger et al 2012). Third, as the result of a strategy-making process, a strategy map represents a narrative of how top management sees the organisation both as a competitor in the market and as an agent of sustainable development (Baker and Schaltegger 2015).…”

Section: Tensions and Conflicts Between Different Sustainability Aspementioning

confidence: 99%

Sustainability Balanced Scorecards and their Architectures: Irrelevant or Misunderstood?

Hansen

Schaltegger

2017

J Bus Ethics

Self Cite

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In a recent systematic review of the Sustainability Balanced Scorecard (SBSC) literature in this journal, we developed a typology of architectures as a basis for the process of SBSC design, implementation, use, and evolution. This paper addresses a comment by designed to stimulate further research. We argue that the existing literature demonstrates that the SBSC management tool can play an important role in corporate sustainability. The SBSC architectures-as representations of goals and priorities-form an integral and iterative part of the corporate sustainability strategy-making process and therefore cannot be isolated from it. However, the concept as such should not be overloaded (e.g. as a tool for radical change). In this paper, we first reflect on the potentials and constraints of the SBSC in relation to (1) radical or transformational change and (2) measuring performance outcomes on the level of humanearth systems. Second, we discuss the importance of SBSC architecture concerning (1) how it enables the integration of sustainability into business organisations; (2) how both strictly hierarchical cause-and-effect chains and less hierarchical designs can allow companies to seek inclusive profits; and (3) the contingency-based use of generic architectures (i.e. using the sustainability strategy and value system to determine a fitting architecture) in contrast to its use as a diagnostic tool (i.e. the architecture revealing the sustainability strategy and value system).

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“…The presented function innovations (and thereby also most of the PSS innovations) all require adaptations to a varying degree of a company's business model, and thus it is often spoken of business model innovations (Chesbrough 2007;Hansen et al 2009;Schaltegger et al 2012; see also [Business Model Innovation]). For example, a car manufacturer engaging in car sharing services follows an entirely new value proposition linked to new pricing and revenue models, completely changed sales organization, and (probably) new partners in the value chain.…”

Section: Against This Background Product-service Systems (Pss)mentioning

confidence: 99%