Business model innovation has become a buzzword in managerial studies as companies try to keep up with the dynamic and ever-changing business environment. At the heart of business model innovation is the idea of reconceptualizing the underlying logic behind the creation, capture, and delivery of value. However, in recent years, there has been a shift towards incorporating sustainability into the business model innovation process. This new form of innovation is known as sustainable business model innovation (SBMI).
SBMI involves a change in the way a company operates to create positive impacts or reduce negative consequences for the environment and society. While there is a general consensus about the importance of sustainability, there is still much to be learned about how to transform a company into a sustainable organization. This is where a new framework for sustainable business model innovation comes in.
The aim of this paper is to present a new multidimensional framework that allows researchers to study the changes that occur when a business model moves towards sustainability, as well as firms that design and manage this transformation process. The framework is divided into three sectors: value proposition, value creation and delivery, and value capture.
To develop this framework, we combined elements and characteristics of various academic and practical matrices. We looked at the three concepts of value proposed by Richardson (2008), the ten types of stakeholders identified by Bocken et al. (2013) in the value mapping tool, and the nine building blocks of the business model canvas proposed by Osterwalder and Pigneur (2010). We also analyzed non-academic sources, including the four areas of the B Impact Assessment methods promoted by Blab and the elements of the Sustainable Development Goals (SDGs) implementation framework created by the United Nations.
The new framework differs from recent academic efforts in that it focuses on the BMI construct, rather than the business model concept, as the core of the framework. The business model represents the subject of innovation, not its vehicle. Additionally, the framework links theoretical with practical sources, providing a guideline for corporate reorganization.
The framework contributes to the literature on sustainable business model innovation by adopting a dynamic perspective on the business model and presenting a new tool to help understand how the business model changes to incorporate triple sustainability. This holistic framework could be a learning tool for researchers to help identify current assumptions about the phenomenon and improve them. Moreover, from a managerial perspective, the paper offers new tools that can serve as a guideline for companies to design and manage the transformation process towards sustainable business model innovation.
Takeaway
It is clear that the new framework for sustainable business model innovation presents a valuable opportunity for companies to design and manage their transition towards sustainable business practices. Through the incorporation of economic, environmental, and social considerations into their value proposition, value creation and delivery, and value capture sectors, companies can create positive impacts that not only benefit the environment but also society as a whole. By adopting this approach, companies can achieve a win-win situation in which they not only create value for themselves but also contribute to sustainable development, thus improving the quality of life for all.
Moreover, the integration of sustainability into business models can lead to increased competitiveness, greater brand value, and a better reputation among stakeholders, which can further enhance the long-term success of the company. It is evident that businesses that are committed to sustainable practices are more likely to attract and retain customers who are also environmentally and socially conscious.
Therefore, it is imperative that companies recognize the importance of sustainable business practices and embrace the new framework for sustainable business model innovation. By doing so, they can pave the way for a better and brighter future, where economic prosperity and social and environmental responsibility go hand in hand. Let us strive towards a sustainable future, one innovative business model at a time.
