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Lookup NU author(s): Professor Noemi SinkovicsORCiD
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Sustainability issues are on the rise and companies are pressured to respond [1]. Arguably, company response is a rather reactive approach and insufficient given the evidence regarding broken planetary boundaries and the immediate need for business transformation and alignment of the economic system with the planetary system [2]. For appropriately communicating social and environmental priority issues, and prompting discussions regarding natural resources and energy [3], the business model concept has become an increasingly useful tool [4,5]. Indeed, issues related to the environment, natural resources and climate change are increasingly looked at through the lens of business model innovation, adaptation and transformation processes to examine value generation at economic, social and environmental levels [6,7]. A unique feature of the business model perspective is that it allows non-science managerial audiences to appreciate discussions about planetary boundaries and system change requirements, which otherwise would be suppressed by the narrow focus on management concepts such as revenue and profit. The business model and sustainable business model innovation literatures thus offer a mechanism to reorient firm-level innovation towards sustainability, supporting conservation of natural resources [8], and addressing social and environmental concerns [9] [10]. Societal and environmental concerns are not a recent phenomenon, but have been raised in various circles since the 1960s/70s [11,12]. For reasons related to economic prioritisation over the environment, as well as industrial-strength denial [13], real actions and sustainability innovations, however, have not entered the mainstream of the business and management literature until very recently [14]. The business model is an important conceptual advancement in this context, as it helps to balance economic with sustainability imperatives. Bocken, et al. [15] investigate how businesses might create balanced social, environmental and economic value through integrating sustainability more fully into the core of their business. Joyce and Paquin [16] introduce a triple layered business model, based on the traditional business model canvas, to address and incorporate sustainability issues. They argue for vertical and horizontal coherence of the business models regarding the economic, environmental, and social layer of the business model. Yang, et al. [17] promote the idea of business model innovation as successful transformation towards sustainability. Furthermore, it is important to be aware that sustainable innovation has become an essential feature internationally [18]. Although the diffusion of sustainable innovation remains a challenge for many, it is indispensable in order to overcome economic barriers and gain user acceptance [9]. The rationale for becoming a sustainable company lies in the value proposition and the capacity for innovation development [17]. In fact, an increasing number of start-ups are committed to the use of innovation as a vehicle for differentiation [19], through the use of sustainable technology [20]. As a consequence of the importance of sustainability today, more and more business models are emerging with sustainable innovations and a global approach, where innovation and technology become key tools for their development [21,22]. Thus, there has been a shift in business models around the world, which pay close attention to sustainability as a vehicle to evolve and achieve success [23]. Business models and the notion of business model innovation (BMI) has received considerable scholarly interest in the last decade in the manufacture and service domain [24]. Lopez-Nicolas, et al. [25] found significant gender differences in business model innovation for Small and Medium Enterprises (SMEs) and Sinkovics, Sinkovics and Yamin [4] have looked at the business model reformulation at the bottom of the pyramid. The idea of transforming the logic of the organization through business model and business model innovation [26] has also been applied to the area of sustainability, although the notion of sustainable business model innovation, in this context, has sometimes been reduced to (economic) business continuity. This is why, within this special issue, we deliberately focus on ‘sustainability’ as it relates to social, and environmental issues, above and beyond economic business model innovation aspects [18]. Considering sustainability and incorporating green as a core part of a business can help many companies today to reduce costs, seize opportunities in emerging markets and gain a competitive advantage in the marketplace [9]. Some authors have suggested that sustainable business models can create social and customer value as a consequence of integrating the environment into business activities [23]. This has led more and more organisations to prioritise the diffusion of clean and renewable energy [5]. Although interest is growing, sustainable innovation in business models has not yet received the full attention it deserves [17] and there is some debate about its conceptualisation [27]. In particular, many countries still ignore the potential of sustainable innovation within the firm, so that initiatives for new government regulations are rare [20]. In short, innovation in current business models is already a necessity to generate new innovative solutions in social [28], customer [29], environmental [30] and sustainable aspects [10]. For successful commercialisation of sustainable innovations, it can be crucial to have a value proposition that provides green values, a supply chain that engages suppliers to take environmental responsibility, along with initiatives that motivate customers to take consumption responsibilities [18]. In addition, a financial model is needed that shows a balance between economic and ecological costs/benefits among the participants involved in the business model [5]. This special issue is concerned with the study of different aspects related to sustainable business models. We invited papers to take such questions further. How can the renewal of business models lead to improved responsiveness and firm-resilience in a resource-constrained world? Is it possible to achieve systematically higher performance outcomes over traditional business models [20]? What are the promises and perils of new technologies and analytical tools such as big data and advanced ICTs [31] for business model innovation [3]? Is there any guidance for sustainability entrepreneurs? [1] and how can we control and avoid the “dark sides” of such advanced technologies? [32]. After several rounds of review, different works have been selected that have focused on studying the evolution of this concept, its application to different areas (waste management or healthcare industry) and future lines of action to be taken into account for the correct implementation of sustainable business models. The following section describes the main contributions of this work and their theoretical and empirical implications.
Author(s): Molina-Castillo F-J, Sinkovics N, Sinkovics RR
Publication type: Article
Publication status: Published
Journal: Sustainability
Year: 2021
Volume: 13
Issue: 16
Online publication date: 09/08/2021
Acceptance date: 04/08/2021
Date deposited: 06/09/2024
ISSN (electronic): 2071-1050
Publisher: MDPI
URL: https://doi.org/10.3390/su13168906
DOI: 10.3390/su13168906
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