Business Models for Sustainability

Abstract

The relevance of business models for corporate performance in general and corporate sustainability in particular has been widely acknowledged in the literature while sustainable entrepreneurship research has started to explore contributions to the sustainability transformation of markets and society. Particularities of the business models of sustainable niche market pioneers have been identified in earlier research, but little is known about the dynamic role of business models for sustainable entrepreneurship processes aiming at upscaling ecologically and socially beneficial niche models or sustainability upgrading of conventional mass market players. Informed by evolutionary economics, we develop a theoretical framework to analyze co-evolutionary business model development for sustainable niche pioneers and conventional mass market players aiming at the sustainability transformation of markets. Core evolutionary processes of business model variation, selection and retention, and evolutionary pathways are identified to support structured analyses of the dynamics between business model innovation and sustainability transformation of markets.

The Role of SMEs’ Green Business Models in the Transition to a Low-Carbon Economy: Differences in Their Design and Degree of Adoption Stemming from Business Size

“…Others, falling under the literature related to Green BMs [29,30] and Sustainable BMs [23,31,32], cover different environmental aspects associated with BMs, but without focusing explicitly on decarbonization. In addition, although SMEs account for about 99% of the business fabric of EU countries [33] and are jointly responsible for a large volume of the environmental impact [34], which many authors set at about 70% (this figure has attained a mythical status, albeit unjustifiably, because national economic statistics on SMEs do not usually include data on emissions, so it is debatable whether SMEs' contribution to contamination can be calculated [34], however, we agree with Hillary that given the large number of SMEs in the main economies, collectively, they have a great environmental impact [34]) [35][36][37], most studies focus on large corporations, while the study of SMEs is limited to the analysis of certain cases with a proactive attitude [31,38].…”

“…Although this literature has improved knowledge regarding the determinants of environmental strategy, strategic vision seems insufficient to achieve the transformation that organizations need for the transition to a low-carbon economy [21,38]. More overarching approaches are necessary to assess carbon reduction strategies and their consequences, and BMs may be an appropriate tool for this.…”

The Inter Business Index Developing a Tool for Measurement and Comparability of Holistic Sustainability in Businesses

“…Businesses are not only entities that respond to the environment, but they also affect the environment and earth in a direct way (Ehrlich & Ehrlich, 1987;Svensson & Wagner, 2011). Companies have an immense impact on society, and business activities have caused many of the problems we face today, making them influential actors in the pursuit of sustainable development on a global scale (Schaltegger, Lüdeke-Freund, & Hansen, 2016). This was made even clearer by the EU Commission in 2016, when the adoption of directive 2014/95/EU made it mandatory for large public entities in the EU to disclose non-financial information.…”

“…Businesses have the resources and political power that can help contribute to sustainable development (Shrivastava, 1995;Asif, Searcy, Garvare, & Ahmad, 2011). Frontrunners and pioneers of sustainable business can, in turn, also exert influence and pressure on markets and other businesses, acting as change agents in a way that may sometimes even be more influential and effective than regulators or NGOs (Schaltegger et al, 2016). More importantly, corporations have the means and capacity to effectively address such issues and create conditions for human wellbeing and global welfare in a way that few other actors can.…”

“…Previous studies have also stressed the importance of embedding sustainability in the core of the business and throughout all operations and strategy as a way to make a significant change (Schaltegger et al, 2016;Belz & Peattie, 2012;Eccles, Miller Perkins, & Serafeim, 2012;Epstein, 2008;Esty & Winston, 2009;Laszlo & Zhexembayeva, 2011;Smith & Lensen, 2009;Dyllick & Muff, 2016). Many of the pioneers in business sustainability have integrated sustainability in the core of their business models (Hall, Daneke, & Lenox, 2010;Jolink & Niesten, 2015;Schaltegger et al, 2016).…”