Values-Based Network and Business Model Innovation

Abstract

Innovation management falls short in solving urgent societal problems, if it neglects the power of networks and the values of their constituent actors. Even though network and business model innovation have been acknowledged as innovation categories in their own right, their problem-solving potential remains unexplored. In this article, we argue that purposeful innovation requires considering the shared values of those engaging in innovation processes, where values are understood as subjective notions of the desirable. Values-based innovation can motivate the development of new networks and business models that address complex societal problems, such as the unsustainability of current forms of energy supply. We present a theoretical framework and facilitation methods for values-based network and business model innovation. Both have been applied in an exemplary workshop on regional energy networks in Germany. Reflecting upon the lessons learned from theory and practice, we conclude that crucial starting points for systemic sustainability innovations can be found in values-based networks and business models.

Sustainable value and trade‐offs: Exploring situational logics and power relations in a UK brewery's malt supply network business model

“…Thus, business model actors need to understand how to use both shared values and their relative influence to reinforce sustainability cultural resources within their networks. By addressing the calls for greater depth in understanding how power impacts sustainable value creation and is institutionalized in business models (Fuchs et al, ; Randles & Laasch, ; Roome & Louche, ) our work goes beyond both existing literature that recognizes the importance of network‐centric BMI (Bocken et al, ; Boons & Lüdeke‐Freund, ; Evans et al, ) and literature which argues that values (cultural resources) and shared values (complementary logics) are necessary requirements in BMI for sustainable value creation (Breuer & Lüdeke‐Freund, ).…”

“…Value creation is determined by the multiple types of resources involved and how they are combined. Organizations have both structural and cultural resources (Archer, ): structural resources include rules such as laws, contracts and business models; and tangible assets such as input factors of production (ibid., p. 108); cultural resources come from “the world of ideas” (ibid., p. 179) and include languages, ideologies, theories, stories (Bowman & Ambrosini, ; Stubbs & Cocklin, ) and values (Breuer & Lüdeke‐Freund, ; Harris & Crane, ; Linnenluecke & Griffiths, ). Sustainability‐related concepts, values and ethos are seen here as cultural resources.…”

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

“…Stakeholders, such as customers, non‐governmental organisations, or the media, demanding that firms integrate sustainability considerations into their core businesses can be another important motivational factor (Amankwah‐Amoah et al ; Hörisch, Freeman, & Schaltegger, ; Schaltegger, Hörisch, & Freeman, ). And on the individual level, personal values such as altruism, universalism, or benevolence can drive sustainable entrepreneurship (Breuer & Lüdeke‐Freund, , ). One of the most prominent examples is Ray Anderson, late founder and CEO of Interface Inc., who used the reduction of his firm's ecological externalities as an opportunity to revolutionise the floor covering industry.…”

“…The most important uncertainty for sustainable entrepreneurs is whether they can build successful businesses based on their innovations (Schaltegger & Wagner, ), despite the different barriers they may face (Kiefer, Del Río González, & Carrillo‐Hermosilla, ). Depending on personal, organisational, and sociocultural values, business success can be defined as financial returns, nonfinancial effects such as improved innovative capacities, or a positive societal impact through the reduction of ecological and social ills (Breuer & Lüdeke‐Freund, , ). But regardless of personal motivations and success metrics, sustainable entrepreneurs need to commercialise their problem solutions and transform markets to create private and public benefits on a significant scale and for various stakeholders (Freudenreich et al, ; Schaltegger, Lüdeke‐Freund, Hansen, & Lüdeke‐Freund, ).…”

Mapping hotspots and emerging trends of business model innovation under networking in Internet of Things

“…Information networking, especially the wireless communication network, has changed the information flow and decision-making mechanism of traditional business models [10][11][12]. In addition, in view of the growing value of the network [13,14], enterprises have seen the way to promote the development of the enterprise by optimizing the value network. Therefore, networking in IoT also has the characteristics that affect the existing business models.…”