Towards a holistic framework for sustainable value analysis in business models: A tool for sustainable development

Abstract

This article analyzes how the concept of sustainable value is used in the business model literature to understand and structure the concepts used in analyzing the value creation process in business models to date. We found that in discussing sustainable business models, sustainable value, a term encompassing the environmental, social, and economic benefits of a given model, has been used in place of the conventional term, value. However, the conceptual implications of this substitution have not been sufficiently addressed. A systematic literature review reveals both positive and negative perspectives of value as well as the misuse of several multilevel value concepts.We categorize these concepts according to their meaning, differences, similarities, and implications. As a result, we propose a holistic framework that structures them, integrates both positive and negative perspectives of value, and proposes an activitybased analysis for sustainable value in business models. The contributions of this paper are twofold: theoretically, it structures value concepts in order to better understand the sustainable value process in business models, and practically, it offers a tool for sustainable development by providing a framework to analyze sustainable value in a variety of business models as a basis for improvement in sustainability.

Stakeholder engagement in business models for sustainability: The stakeholder value flow model for sustainable development

“…Indeed, according to Stubbs (2019), sustainability is increasingly becoming a changing behaviour, and less a technical challenge, because the types of approaches to sustainable innovation are shifting from internally oriented and incremental and focused on efficiency to more radical and systemic ones (Adams et al, 2016). Company attention to value is increasing because of its economic and societal implications (Méndez-Le on et al, 2021). Particularly, companies are entities able to produce shared value and long-term prosperity (Porter & Kramer, 2011).…”

“…Evans et al, 2017; Schaltegger, Hansen, & Lüdeke‐Freund, 2016) to create sustainable value. Sustainable value is intended as the whole social, environmental and economic benefits that come from a wide range of exchanges in business model (Méndez‐León et al, 2021; Tao & Yu, 2018). Therefore, value is obtained through the multi‐stakeholder collaboration, intended as the participation by diverse people and organizations with several different competences and resources (Hörisch et al, 2014).…”

From negative to positive sustainability performance measurement and assessment? A qualitative inquiry drawing on framing effects theory

“…To go beyond conventional business framings, Stubbs and Cocklin (2008) emphasize that sustainable production systems must focus on the “respect for persons and nature, and social equity” (p. 104) and on “improving the welfare of their stakeholders” (p. 106). Recently, Méndez‐León et al (2021) suggested that sustainable value creation requires both a positive value perspective next to a negative value perspective (focused on value destroyed).…”

“…In particular, George (2001) argued that merely mitigating unsustainability lacks ambition and has slim potential to contribute to sustainable development because such practices miss opportunities for positive sustainability performance (PSP). Such opportunities include reframing sustainability as a "positive, movingtowards future state" (McDonald, 2018(McDonald, , p. 1359, understanding both negative and positive sustainable value (Méndez-Le on et al, 2021), and developing sustainable business models that deliver ecological or social benefits rather than merely counteracting negative business outcomes (Bocken et al, 2014).…”

Strategic sustainability integration: Merging management tools to support business model decisions

“…Sustainable business models (SBMs) systematically integrate concepts, principles and goals oriented to sustainability, aiming to maximize benefits and reduce damages in the economic, social and environmental dimensions (Cosenz et al, 2020; Méndez‐León et al, 2021; Morioka et al, 2018). The development of a SBM implies the definition of strategies to create economic, social, and environmental value (Baumgartner & Rauter, 2017; Bolis et al, 2021; Porter & Kramer, 2011).…”