Sustainable entrepreneurship, innovation, and business models: Integrative framework and propositions for future research

Abstract

This article introduces the business models for sustainability innovation (BMfSI) framework to study how business models mediate between sustainability innovations and business cases for sustainability. The BMfSI framework integrates two major perspectives (implicitly) found in the sustainable business model literature. The first is the agency perspective. It takes into consideration that some form of agency is needed, that is, "someone" who takes decisions and acts. Sustainable entrepreneurs are discussed as those agents who align their new or existing business models with sustainability innovations in order to be successful in business and to create value with and for stakeholders. The second perspective is the systems perspective, which acknowledges that business models are always embedded within sociotechnical contexts through which, for example, public policies, private financing, or stakeholder interests influence whether and how business models can be developed. The agency and systems perspectives are integrated in the so-called business model mediation space. This theoretical notion embraces the decisions and activities pursued by sustainable entrepreneurs as they align their business models with sustainability innovations on the one hand and the influence of environmental contingencies, barriers, and stakeholders from the sociotechnical context on the other hand. The paper concludes with propositions for future research derived from the BMfSI framework.

The role of entrepreneurs in advancing sustainable lifestyles: Challenges, impacts, and future opportunities

“…They are able to overcome existing challenges by leveraging the growing consumer awareness, value chain partnerships, IT, social networks and sustainability-focused policies, to launch innovative products or services which offer time or cost savings, quality service, and a range of social and environmental benefits. In this process they help educate and influence other important actors such as NGOs, large companies, and policy makers, confirming previous research by Geels (2010) and Ludeke-Freund (2020) . Sustainability entrepreneurs, however, are unable to achieve a market effect and a shift to SLs on their own, which requires political support and new regulations.…”

“…al. 2017 ; Horisch, 2015; Ludeke-Freund, 2020 ). For instance, the proliferation of Fixit Clinics in the U.S. has attracted the support of politically-active public advocacy groups which are working with citizens and progressive policy makers to adopt new “Right to Repair” mandates at state levels (U.S. PIRG, 2019).…”

“…Providing financial support to entrepreneurs and other organizations in the form of grants, low interest loans, or business incubators, is critical for supporting smaller companies as previously reported in the literature ( Lowitt, 2008 ; Rizos et. al., 2015 ; Ludeke-Freund, 2020 ). In addition, government agencies could partner with non-profit organizations to help raise awareness about the importance of waste prevention and reuse versus recycling, by launching carbon footprint labels, awards, benchmarking studies or networks promoting SLs.…”

“…(2016) call for more empirical research on the different pathways taken by sustainable niche pioneers and other market actors, and the challenges and opportunities they face. Ludeke-Freund (2020) integrates two major perspectives about the role of entrepreneurs – agency perspective and systems perspective – and calls for more empirical research to examine “if and how sustainable entrepreneurs can unfold agency within given systems such as industries and markets” and “if and how sustainable entrepreneurs actually use their business models to benefit from public policies.”…”

Literature Trend Identification of Sustainable Technology Innovation: A Bibliometric Study Based on Co-Citation and Main Path Analysis

“…Some literature review studies indicated that social system dimensions [65] and sustainability integration [66] can potentially become new themes of SBM. Luedeke-Freund [67] explored how business models achieve sustainability by balancing sustainable innovation with business cases and summarized two research perspectives, namely the agency and system perspectives.…”