The Business Model in Sustainability Transitions: A Conceptualization

Abstract

Business models direct a firm’s activity to move in coherence with the objectives of the business. Current literature suggests business models can act as vital forces to facilitate sustainability transitions and highlights the urgent research call to understand the role of business model innovations in stimulating sustainability transitions. This paper addresses this research need by investigating how firms create business model innovations for system-level transformation towards sustainability. Through a systematic literature review and deductive content analysis methodology, we identify and categorize different combinations of innovative activities in a firm’s business model. Furthermore, two cases are illustrated to demonstrate the proposed conceptual model. The proposed conceptualization bridges a significant gap in the theme of sustainability and business and presents a defensible and researchable problem for transitions literature. Specifically, we find (1) shared vision and strategic dialogues among firms in different sectors as essential to develop value propositions and leverage business opportunities for sustainability in the long run; (2) companies ensure sustainable value creation and value delivery in the medium term through creation of an interdependent network of the green supply chain and collaboration with stakeholders; (3) in the short term, companies adopt sustainable practices, controlling daily operations, conducting awareness campaigns and experimenting with collaborations to deliver values based on sustainable practices.

Comprehensive approach to the efficiency assessment of the business model of the aviation enterprise based on business process innovation

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“…There is a significant positive relationship between SPA and CA in tourism SMEs. (Hernández-Chea et al, 2021) companies adopt sustainable practices, controlling daily operations, conducting awareness campaigns, and experimenting with collaborations to deliver values based on sustainable practices. By adopting the new technological advancements and applying them to their new or improved organizational contexts to engage partners and customers, firms can introduce innovation in marketing (e.g., promotion, pricing, channels, and packaging) to respond to the uncertainties of the competitive landscape (Cheah et al, n.d.).…”