Development of Sustainable Business Models for Innovation in the Swedish Agri-sector: Resource-Effective Producer or Stewardship-Based Entrepreneur?

Abstract

This chapter focuses on the development of sustainable business models for innovation in the Swedish agri-sector. This is important for several reasons. Many of society’s challenges are linked to social, environmental and economic aspects of agriculture, and numerous agri-companies have been reduced to subcontractors with little influence, and are struggling with low profitability. Previous research regarding agri-companies have mainly focused on production and cost-efficiency aspects. Research regarding sustainable innovation and sustainable business models in the agri-sector is limited to date. To fill in this gap, the aim of this chapter is to illustrate and analyse how Swedish agri-companies develop sustainable business models. An integrated theoretical framework combining research regarding sustainability-oriented innovation and sustainable business model archetypes has been developed in order to collect and analyse the eight agri-companies in the study. Swedish agri-companies focus not only on optimization but also on their organizational transformation and systems building when developing sustainable innovation. They have developed diversified business models. A common, important factor is to adopt stewardship roles. Further, the value intention of agri-entrepreneurs is a relevant factor when developing sustainable business models.

Sustainable value creation – a farm case on business model innovation

“…Hence, the agricultural sector has a strong production focus, with knowledge and innovations focusing on production-related issues rather than market developments (Spendrup and Fernqvist, 2019). Consequently, many agri-food companies focus on low-cost production to maintain profitability, which prevents them from developing more robust sustainable practices (Dobermann and Nelson, 2013;Ulvenblad, 2021;Ulvenblad et al, 2016).…”