Integrated business model for sustainability of small and medium-sized enterprises in the food industry

Abstract

Purpose The ecological footprint of the food industry and the requirements of the bio-based economy result in the need for deepening the concept of corporate sustainability. CSR provokes the implementation of eco-innovation with high value added. A main source of value added and sustainability is the integrated implementation of ecodesign practices . The purpose of this paper is to systemize an integrated model for the product ecodesign implementation, which combines not only the industrial and process ecodesign but also the overall organizational and socio-economic context of SMEs in food industry, reflected in CSR and value added for stakeholders. Design/methodology/approach The methodology for implementation of business model for sustainability of the SMEs in the food industry through ecodesign is based on vertical and horizontal integration of well-known self-relevant environmental, social and economic tools such as corporate social responsibility, life-cycle assessment, MET matrix, ecolabelling and stakeholder approach for production and marketing of high-value-added eco-products. Findings This study proposes an algorithm for implementation of an integrated business model for SMEs sustainability in the food industry, focusing on high-value-added delivery for stakeholders, based on corporate social responsibility, functional innovation and eco-efficiency. The ecodesign based on CSR business practice in food industry allows simultaneous optimization of environmental aspects and cost structure of products in conditions of improved quality and functionality. Thus, ecodesign contributes to the diversification not only of the company’s product portfolio, but also to opening of new marketplaces and the implementation of new market strategies by increasing the value added. Practical implications The research identifies actions, which SMEs in food industry can follow to achieve ecological redesign of their business and production processes that simultaneously enhance product functionality and resource efficiency. Originality/value The academic and the social value of the research is the focus on ecodesign and its implementation in SMEs in the food industry as a tool for creation of multidimensional high value added for stakeholders in bio-based economy.

What are the drivers and barriers for green business practice adoption for SMEs?

“…For SMEs thinking about, or just beginning to develop, green business practices, it may be easier to start with lower-cost strategies, such as recycling materials and reducing waste. These types of strategies are more easily implementable, with benefits that are more readily realizable, and these practices have been found to directly contribute to a company’s financial profits (Broccardo and Zicari 2020 ; Chang and Slaubaugh 2017 ; Topleva and Prokopov 2020 ). For more advanced SMEs that have already implemented some level of green business practices, more progressive (and costly) actions, such as adopting renewable energy, may be an alternative path forward.…”

“…In the European Union (EU), 64% of industrial pollution is caused by SMEs, but few of them proactively engage in actions to reduce their environmental impact (Organisation for Economic Co-Operation and Development 2018 ). SMEs, thus, represent potentially important drivers of broader green innovation, which can also enhance SME performance and add business value through the promotion of sustainability (Aboelmaged and Hashem 2019 ; Broccardo and Zicari 2020 ; Gupta and Barua 2018 ; Topleva and Prokopov 2020 ). Despite the large number of SMEs in most nations, including the U.S., their importance as key players in green innovation is sometimes overlooked (Allen and Malin 2008 ).…”

Identifying medium-sized agricultural enterprises with the greatest potential for innovation development

“…A comparative analysis of the results obtained using the Altman Z score method indicates a significantly larger number of food processing enterprises operating in the white zone. Population growth, technology development and differentiation of taste preferences expand the importance and role of food industry in the contemporary society (Topleva, Prokopov, 2020). Compared to medium-sized agricultural enterprises, medium-sized enterprises operating in the food processing industry have greater financial stability, asset liquidity and productivity, more profitable operations and more progressive market share.…”

Opportunities of Artificial Intelligence and Machine Learning in the Food Industry

“…It offers its customers with ten-minute dinner kits and has more than thousands of regular customers with different menu choices. It collects the data such as buying history, customer behavior, and feedback and food preference of different time frames to ensure the readiness to meet the demands [39]. Gobble is a demand-driven example of a company that utilizes the artificial intelligence within the food industry and can surely serve as a blueprint for other businesses in their domain.…”