The Innovation in Business Model for Sustainability in Biotechnology Start-ups in Indonesia

Abstract

This study explores sustainable innovation in five biotechnology start-ups in Indonesia. We use business model innovation concept to elaborate how the start-ups are driving their business to be more socially and environmentally aware. As an explorative study, this research uses a qualitative approach and identify three drivers of sustainable initiatives: 1) market demand; 2) value chain productivity; and 3) the owner's individual concern. These three drivers create different characters in three approaches of innovation in business model: content, structure, and governance. Keyword-business model innovation, sustainability, biotechnology, start-up I. INTRODUCTION Sustainability development is considered as a solution of the many social and environmental problems that challenge today and future society, such as the high gap of prosperity, climate change, ecosystem degradation, and the scarcity of natural resources ([26], [28]). Today, the entire world's society is driven to contribute in Sustainable Development Goals including business sectors regardless of their size, large or small enterprises. Business is encouraged to view sustainability challenges as an opportunity to spread their impact to the society as well as their competitive advantages ([11], [23], [29]). Accordingly, the discussion on sustainability in business practices is one of the contemporary growing research agendas [29]. Nevertheless, most case studies are dominated by large businesses with little attention on the practices in small business as well as in newly established businesses [18] despite the fact that small businesses are covering around 90% of global business ([12], [21]). A study in MIT stated that 80% of sustainable businesses could maintain their sustainable performance when sustainable issues are incorporated into the business from its young age [19]. It indicates that sustainable initiatives should be considered from the initial development process of a business [15]. This study focuses on exploring sustainable practice among biotechnology start-ups, a promising sector to support the sustainability mission. Biotechnology could provide us with many solutions to combat diseases, protect the environment, produce foods we eat, create new potential energy as well as make other useful products [17]. We intend to explore factors affecting sustainable innovation within this industry and how it works particularly in their business model. Our concern to innovation in the business model is motivated by an interesting finding that revealed business model is more considered among business practices nowadays rather than doing innovation through their products. Innovation regarding product requires more resource intensive both financial and other physical facilities. As a small business, start-ups should be more flexible in designing the business system due to the simple organizational structure. So, we assume that business model innovation is a natural adaptation of this type of business. Integrating this concern with the issues of sustainabilit...

Bibliometric Analysis and Visualization of Bootstrapping Strategy Articles by Indonesian Authors

“…This phenomenon is intricately linked to the increasingly open dynamics of the global economy, which supports the growth of new businesses. In this context, Indonesia demonstrates a progressive stance towards the development of new enterprises, with various initiatives from the government, private sector, and general populace aimed at fostering startup growth across diverse industrial sectors (Anggarini & Famiola, 2019). As one of the countries with the largest populations globally, Indonesia offers a vast and diverse market, thus attracting the interest of numerous entrepreneurs to initiate businesses here (Dailysocial, 2022).…”