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related 4.86 — strongly supporting 28 facts
Sustainability and business models are intrinsically linked, as firms increasingly seek to integrate environmental, social, and economic dimensions into their operational frameworks {fact:9, fact:19}. Research explores how entrepreneurs can design or modify business models to improve their sustainability performance {fact:2, fact:20}, noting that this integration is a complex process requiring alignment across multiple system levels {fact:13, fact:27}.
Facts (28)
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Does the combination of sustainable business model patterns lead ... link.springer.com 17 facts
claimCombining economic, environmental, and socially focused patterns into a single business model can result in an unsustainable or 'seemingly sustainable' model that fails to achieve full sustainability potential.
claimA firm's business model may shift from a sustainable to an unsustainable state or a lower level of sustainability when internal or external contingency factors change over time, requiring adaptations to maintain high sustainability performance.
claimWhen a platform firm invests in its own equipment to provide as a service alongside third-party owners, it integrates a new activity into its business model, which can negatively impact sustainability by increasing total unused capacities in the wider system.
claimSustainability in business models is a matter of degree or level rather than a binary state.
claimWhen one dimension of sustainability is emphasized in a business model, the implications for other sustainability dimensions must also be addressed.
quoteLüdeke-Freund et al. (2018b) state: '…patterns and taxonomy are meant to help corporate leaders, entrepreneurs, organisation designers, and business model developers in modifying or creating new business models with a stronger orientation towards sustainability issues.'
claimThree levels of analysis define the boundary conditions impacting the sustainability level of business model pattern combinations: (i) the business model system level, (ii) the wider system in which the business model is embedded, and (iii) the internal and external contingencies related to the business model and the wider system.
claimTradeoffs between natural and produced capital in business models can be managed by decoupling sustainability dimensions or by adopting advanced technologies that reconcile previously inconsistent business model patterns, such as combining sharing economy and pay-per-use patterns through technological platforms.
claimBusiness model patterns can be combined to stimulate entrepreneurial creativity and support the design of innovative business models for sustainability.
referenceThe authors identify three critical levels for analyzing whether a business model is truly sustainable: the business model as an inherent system, the larger system in which the business model is embedded, and the contingency factors impacting sustainability effectiveness over time.
claimThe authors pose the research question: 'How can entrepreneurs and managers improve the sustainability of developed business models based on frameworks of SBM patterns?'
perspectiveIntegrating economic, environmental, and social patterns into a single business model does not guarantee that the resulting business model is unconditionally sustainable, as combining patterns is a necessary but not sufficient condition for sustainability.
claimA business model that fails to sustain itself in a changing environment cannot be considered truly sustainable, even if it appeared sustainable at the beginning.
claimThe authors propose a framework for checking business model patterns in a specific sequence to help entrepreneurs and managers improve the sustainability of their business models, as merely combining patterns is insufficient for true sustainability.
referenceBradley, Parry, and O’Regan (2020) proposed a framework to explore the functioning and sustainability of business models in their article 'A framework to explore the functioning and sustainability of business models'.
claimIncluding economic, environmental, and social business model patterns in a single business model is a necessary but not sufficient condition for achieving true sustainability.
claimBusiness models that appear sustainable within a limited system boundary may prove to be environmentally and socially unsustainable when the system boundary is enlarged to include a broader range of stakeholders and interactions.
Business Model Innovation: a Framework for Assessing Corporate ... link.springer.com 10 facts
claimCompanies often treat sustainability and corporate social responsibility as an additional, improperly integrated component of their business models rather than reconfiguring their economically sustainable business models around the Sustainable Development Goals (SDGs).
claimPatagonia, IKEA, and Unilever are identified as companies at the forefront of integrating sustainability into their business models, though their levels of embodiment vary.
procedureThe research paper employs a 4-step process to develop an analysis grid: (1) review the interdependence between sustainability and profitability, (2) investigate the dependency between business models and sustainability, (3) consider the relationship between innovation and business models, and (4) reflect on the coexistence of innovation and sustainability.
claimIkea's lack of modularity in product design represents a weak link in the alignment of sustainability and business models, as the company's bio-based glue initiative does not address broader design challenges.
claimLüdeke-Freund claims that embedding sustainability within business models requires a comprehensive alignment of economic, environmental, and social dimensions.
procedureThe literature review search process identified 'business model,' 'sustainability,' and 'innovation' as key search terms.
claimA study in Europe found that companies that adapt their business models toward sustainability using innovations experience improvements in overall performance.
claimUnilever's anchored innovation highlights the challenges of overcoming legacy constraints in traditional industries regarding the alignment of sustainability and business models.
procedureThe authors of the paper utilized the Gioia et al. method to develop a new framework for analyzing the interdependence between business models and sustainability.
referenceFreudenreich, Lüdeke-Freund, and Schaltegger (2020) applied a stakeholder theory perspective to business models to examine value creation for sustainability in their paper 'A stakeholder theory perspective on business models: value creation for sustainability' published in the Journal of Business Ethics.
(PDF) ECONOMIC PARADIGMS AND BUSINESS MODELS TO ... researchgate.net 1 fact
referenceThe article titled 'ECONOMIC PARADIGMS AND BUSINESS MODELS TO ACHIEVE THE SUSTAINABILITY OF COMPANIES' aims to describe the diversity of three economic paradigms: the lean economy, the green economy, and the circular economy.