Business model based on strong sustainability: Insights from an empirical study

This paper explores the development of strategies by multinational corporations (MNCs) for serving markets at the base of the economic pyramid (BoP). MNCs play an important role in meeting the Sustainable Development Goals (SDGs) formulated by the United Nations (UN), as they are responsible for one-third of the total economic output and the majority of world trade. However, little is known about how MNCs contribute to meeting the UN SDGs. Through an in-depth analysis of how Grundfos, a Danish MNC and a leading supplier of pumps, developed a solution for supplying fresh potable water to rural villages in Kenya, we investigate some challenges MNCs face and demonstrate the importance of intimate engagement with the context of strategic action. Tackling sustainable development issues in the context of BoP markets represents a distinctive challenge to MNCs, which often do not have a good understanding of BoP environments. Drawing on contrasting ideas of strategy as navigation or wayfaring, we highlight the dangers of trying to impose existing strategies and business practices in market contexts, which are fundamentally different from existing ones. We add to the existing research by exploring how such frameworks interact with strategizing processes in a novel environment for the operating firm. Specifically, we explore the interrelatedness between planned and emergent approaches to strategizing in BoP market environments.

Section: Navigating and Wayfaring In Bop Strategizingsupporting

confidence: 65%

Weaving a strategy for a base‐of‐the‐pyramid market: The case of Grundfos LIFELINK

Andersen

Esbjerg

2020

“…For this reasons, BMfS is a solution to help companies meet their economic and sustainability goals simultaneously. Without any business model innovation towards BMfS, any sustainability innovation could take place successfully (Brozovic, 2020; Geissdoerfer, Morioka, de Carvalho, & Evans, 2018; Nosratabadi et al, 2019).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Exploring business models for sustainability: A bibliographic investigation of the literature and future research directions

Preghenella

Battistella

2021

This study aims to review the state of the art on the topic of business models for sustainability. The paper screens 1744 peer-reviewed papers with no temporal limitation and undertakes three stages of literature review analysis of a final set of 134 papers with a combination of systematic, bibliometric and multivariate techniques. The first output is the identification of six wide different but interconnected research streams of business model for sustainability: namely, elements and structure; applications; different types of business model for sustainability; transition process; circularity as sustainability; and technical aspects of innovation. A theoretical framework that allows to understand the themes explored by the literature so far and gives an interpretation of the evolution of the literature has been produced. Finally, the analysis provides opportunities and research directions for future research. The paper originality lies in providing the first co-citation analysis of business models for sustainability with a descriptive and critical study by identifying main research trends and relevant gaps in the literature and by providing future research directions.

“…transition. We discuss this potential research avenue at the end of the BMs related to specific sectors may be enriched and expanded by exploring the social value they create, in addition to economic and environmental value, in a way to go beyond the traditional BMs (Brozovic, 2019). Further research in this sense may include how the specific kinds of BMs may contribute to the triple bottom line impact of business (Elkington, 1998…”

Section: Retamal 2017mentioning

confidence: 99%

Business models for environmental sustainability: Contemporary shortcomings and some perspectives

Giacomo

Bleischwitz

2020

Recently, business models for environmental sustainability have gained increasing attention in the management field and among practitioners and stakeholders. This study aims to analyse the state of the art on the topic by reviewing the growing but mainly phenomenon-driven research. In particular, by identifying main research trends and relevant gaps in the literature and by providing future research avenues, this paper advances the debate on the need for alternative concepts of doing business that go beyond the creation of economic value for a company in a way that generates value for the society. Our article undertakes two stages of screening the available literature and selects 151 peer-reviewed articles published between 2007 and early 2019 for the review. The paper provides the first comprehensive systematic review of business models in the field of environmental sustainability with a detailed descriptive and critical analysis and with a discussion of future research opportunities.