Towards a Conceptual Framework of 'Business Models for Sustainability'

Florian Lüdeke‐Freund

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Sustainable Supply Chain Management Environmental Sustainability in Business Sustainability and Innovation in Business

Abstract

Theorists and practitioners highlight the importance of business for progress in sustainable consumption and production (SCP). In this context business models are discussed as meta factors that can support the adoption of cleaner products and processes, sustainable supply chains and further contributions towards SCP. The article is about business modelinnovation and the creation of private and public benefits. From a strategy perspective business model innovation is an approach to design, implement and change business models to create and secure competitive advantage. It is supposed that business models can also support eco-innovations. If companies subscribe to sustainability strategies, their business models can help bridging technological innovations, organizational aspects and market positions. Furthermore, the business model itself can become subject to eco-innovation and thus support the realization of business cases for sustainability. The article follows a theoretical, deductive approach. A conceptual framework is developed that combines sustainability strategies, eco-innovation, the role of business models and pivotal ideas about value creation with regard to private and public benefits. This approach is discussed as essential driver of eco-innovations. Starting with sufficiency, efficiency and consistency strategies helps identifying primary challenges and is assumed to be the obvious first step towards a broader research agenda on ‘business models for sustainability’. The framework includes definitions such as ‘business model eco-innovation’ and ‘extended customer value’ and propositions about how these concepts interrelate. It allows for developing further theoretical and empirical research topics. The review shows that the state-of-the-art literature is far from offering such an agenda.

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References

1960The Problem of Social Cost 2009Business Models, Business Strategy and Innovation 2002Beyond the business case for corporate sustainability 2009Business Model Innovation: Opportunities and Barriers 2001Strategy and the Internet.2000Redefining innovation — eco-innovation research and the contribution from ecological economics 2009Business Model Design: An Activity System Perspective 2002Why business models matter.

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