Hybrid business models in the sharing economy: The role of business model design for managing the environmental paradox

Abstract

With the primary emphasis on the tensions that platform organizations face between both for‐profit and environmental value‐creation goals, we know very little about the managerial drivers and mechanisms through which they realize multiple goals. Based on a qualitative, inductive case study of a UK‐based digital platform's business model, we uncover the role of business model design. We find that the emphasis managers put on either the redistribution or the accessibility design theme shapes the environmental and financial value‐creation, respectively and that a hybrid business model (i.e., realizing both for‐profit and for‐purpose value‐creation) hinges on their integration. Two managerial drivers—strategic synergies and dynamic coupling—enable platform organizations to increase integration. We contribute to the literatures on hybrid business models, paradox, and business models for sustainability, suggesting that digital platforms not only create, but can actively manage the environmental paradox by integrating multiple design themes within hybrid business models.

Integrating decision support tools into businesses for sustainable development: A paradoxical approach to address the food waste challenge

“…Sustainable development and related tensions necessitate businesses to reconsider their strategies (Edwards, 2021). For instance, environmental value-creation through business model design in digital platforms to manage environmental tensions (Reuter, 2021).…”

“…Sustainable development and related tensions necessitate businesses to reconsider their strategies (Edwards, 2021). For instance, environmental value‐creation through business model design in digital platforms to manage environmental tensions (Reuter, 2021). Leaders can respond to these tensions by considering opposing sustainability objectives regardless of their direct and indirect business value.…”

The sharing economy and collaborative consumption: Strategic issues and global entrepreneurial opportunities

“… Continuous innovative capacity regarding growth and expansion is limited in many sharing systems. “Hybrid business models” (Reuter 2021 , p. 603), imitation, and “follow the leader” growth strategies are pursued by those firms that carry limited experience, financial clout, and market coverage. The car rental sharing system has witnessed the arrival of local and small companies in the USA and global markets because of consumer demand, convenience, and availability of new apps, and technologies.…”

A stakeholder perspective on managing tensions in hybrid organizations: Analyzing fair trade for a sustainable development

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