Organization & Environment, 29(1), 1135. Johnson, M. W., & Lafley, A. G (2010). International Journal of Innovation Management, 17(1). Understanding sustainable innovation: A systematic literature review. For addressing these gaps, this paper aims to simplify the study of the change of a business model that becomes sustainable. In particular, the questions addressed by this study are follows: how to understand the way value proposition, value creation, and value capture within a business model change to include economic, environmental, and social issues. The business model: An integrative framework for strategy execution. Does the firm manage the privacy and data security of its customers? At the end of the design process, we identified three macro-areas, namely value proposition, value creation and delivery and value capture, and several elements to describe each of them. Toward a theory of business model innovation within incumbent firms. It is relevant notice that the governance became a central element to consider within this dimension despite studies on the business model often do not consider it. Sustainable business model innovation: A review. Baldassarre, B., Calabretta, G., Bocken, N. M. P., & Jaskiewicz, T. (2017). Technological Forecasting and Social Change, 135, 4450. The process of certification generates a B Report that includes several broad categories: governance, workers, community and environment. Die Geschaftsmodellinnovations-Matrix: geschaftsmodellinnovationen analysieren und bewerten. The most famous is the classification provided by Geissdoerfer etal. Moreover, the process of implementing a sustainable business model remains unclear. It requires firms to capture economic value for shareholders and investors and environmental and social value for stakeholders. We have analyzed the theoretical papers to describe the framework's single elements identified in the previous phase. So, managers must connect people and processes to anticipate market trends and integrate strategic assets creatively. Business model innovations for electric mobilitywhat can be learned from existing business model patterns? We can affirm that in the SBMI, the subject-matter experts link the value concept to impact and sometimes replace it. The last area of the framework focuses on the impact and its measurement. This research is subject to certain limitations: we have used a theoretical approach in SBMI, and we have proposed a framework that may be interpreted differently by various researchers. Management decision. Some environmental dimensions of sustainability activities refer to reducing greenhouse gas emissions and waste management. (2008). Labb, M., & Mazet, T. (2005). With this objective in mind, we have first organized the information into three macro-areas: value proposition, value creation and delivery and value capture. Long Range Planning, 43(2-3), 172194. For example, AUDI aims to make all the activities carbon neutral by 2050, from the supply chain until production. The SBMI also considers the value creation in the carried-out activities and its delivery as eco-social benefits balanced among all the players. Journeying toward business models for sustainability: A conceptual model found inside the black box of organisational transformation. Which activity has led to savings in economic costs? The main question concerns how the firm assesses the impact. What are the goals and actions for next year. Ldeke-Freund, F. (2020). We have also considered the SDG implementation framework linked to 17 Sustainable Development Goals to deepen the single elements. Finally, the authors have discussed the results among them. From a practical view, the paper can serve as a guideline for corporate reorganization. Then we propose a new conceptual and integrative framework as a guideline in the business model transformation toward sustainability. Clarifying business models: Origins, present, and future of the concept. Mitchell, D., & Coles, C. (2003). Disregarding some of the principles mentioned earlier can cause them to lose consistency, and it will therefore fail if implemented (Osterwalder, Pigneur, & Tucci, 2005). Such metrics can assess the last years turnover and net income, the number of new offices, the hiring of new workers, the new investments attracted, the environmental indices and the customer feedback (Breuer, Fichter, Ldeke-Freund, & Tiemann, 2018). Does the firm have written ethical marketing, advertising, or customer engagement policies? Does the firm have a recycling program for the materials used? So, this activity is complex because the transformation process often involves incorporating heterogeneous metrics besides including various stakeholders needs (Snihur & Wiklund, 2019). It deals with a new way to do business aiming at prosperity in a dynamic environment through the reconceptualization of the underlying logic behind the value creation, capture and delivery (Richardson, 2008; Teece, 2010). Chesbrough, H. (2007). About practical implications, the proposed framework can serve as a guideline for a reorganization that aspires to increase the level of sustainability within an organization. Business model innovation strategy: Transformational concepts and tools for entrepreneurial leaders. The 17 SDGs are a worldwide initiative introduced by United Nations in 2004 to encourage firms to adopt social and environmental behaviors. In this regard, a framework can help and support the change process. Harvard Business Press. Presenza, A., Messeni Petruzzelli, A., & Natalicchio, A. Customers are interested in corporate sustainability. The business model represents the theme of innovation. Geissdoerfer etal., 2018) has highlighted a gap in the SBMI design and implementation. Bruneel, J., Moray, N., Stevens, R., & Fassin, Y. You can join in the discussion by joining the community or logging in here.You can also find out more about Emerald Engage. 19 No. The final search on SCOPUS returned 68 results. (2016). The second step concerns transparency, which is often associated with the amount of information an organization is willing to disclose. Is the mission of the company that includes aspects related to sustainability written in a document, publicly discussed or formally shared with the firms employees? Der Betr, 17, 897e902. Disruptive innovation: In need of better theory. Published in Innovation & Management Review. Does the firm monitor, record and disclose its energy or water consumption? These keywords must be present in the abstract, the title and the papers keywords. This can comprise the development of entirely new business models, the diversification into additional business models, the acquisition of new business models, or the transformation from one business model to another. Lozano, 2018) and BMI for sustainability (i.e. Santos, J., Spector, B., & Van der Heyden, L. (2009). Does the firm publicly disclose the mechanisms and results of stakeholder engagement? Another theoretical contribution lies in the approach adopted to find the critical areas of the new framework: we have linked theoretical and practical sources. Despite this complexity, the literature on the sustainable business model (i.e. Evans etal., 2017), To have a multi-stakeholder approach that requires systems thinking (Seiffert & Loch, 2005) and. Journal of Business Strategy, 25(1), 1626. Another element refers to resources considered essential, such as personnel and the environmental. Furthermore, scholars have used BMI as a strategic tool or unit of analysis to study how firms can overcome the competitive threat of a specific industry, such as the creative and cultural industry (i.e. Roome, N., & Louche, C. (2016). The first step is aligning the firms aims with sustainable principles. Business model innovation and competitive imitation: The case of sponsorbased business models. When companies come together with industry partners, they further raise the playing field for all and pave the way to engage with governments and policymakers to drive action. SBMI is a scientific topic that has received significant attention both in the literature of sustainability innovation and business models of the last ten years (Cillo, Messeni Petruzzelli, Ardito, & Del Giudice, 2019). (2019). Seiffert, M., & Loch, C. (2005). Due to products' social and environmental characteristics, managers can increase customer loyalty and willingness to pay, allowing firms to capture higher product prices. Transparency cannot exist without ethical action as the presence of an ethical code and an ethical audit (Depken & Zeman, 2018). Bucherer, E., Eisert, U., & Gassmann, O. Does the firm implement some civic participation practices such as community services and investments, partnerships with non-profit organizations, free use of company facilities to host community events? Technovation, 92. There are several metrics that firms can use to assess the triple bottom line integration in the new business model. Is the firm adopting remote working practices? The core activity is transforming the value proposition toward a sustainable value proposition that allows value creation by considering the needs of customers, shareholders, suppliers, partners, community, society and environment (Baldassarre, Calabretta, Bocken, & Jaskiewicz, 2017). SMEs faced with these complex processes may become discouraged and implement the organizational change process incorrectly or not implement it at all. For each of the three dimensions, we have provided some questions the managers should answer at the end of the sustainable business innovation process and which scholars should study in-depth to provide further theoretical insights. From the theoretical point of view, a comprehensive framework for developing SBMI could represent a learning framework for researchers. Business Strategy and the Environment, 26(5), 597608. The section related to value proposition includes the description of new sustainable value. Long Range Planning, 43(23), 262271. Journal of Social Entrepreneurship, 7(3), 263288. Schaltegger, S., Hansen, E. G., & Ldeke-Freund, F. (2016). From a managerial perspective, the paper offers new tools that can serve as a guideline for a reorganization that aspires to increase sustainability within firms and reduce resistance to modifying existing business models. We have made up each dimension by different elements deriving from the literature. It moves away from the idea that innovation is possible only if it is technological, applied to a product or process. CasadesusMasanell, R., & Zhu, F. (2013). We have identified three helpful principles to structure our framework: To focus on value to integrate it into the triple bottom line dimensions (i.e. These categories include further subcategories: the governance category includes transparency and accountability; the workers category includes compensation benefits and training, ownership and work environment; the community category includes community products and services and further enumerated community practices; and the environment category includes environmental products and services, and further enumerated environmental practices. Organization & Environment, 21(2), 103127. What pathways can an organization take? To achieve our goal, we propose a new multidimensional framework that allows researchers to study the changes that occur when a business model moves toward sustainability and to study firms that design and manage this transformation process. A value mapping tool for sustainable business modelling. This approach is still rare in the published scientific articles and other theoretical frameworks dealing with BMI. Quality of code of ethics: An empirical analysis on the stakeholder employee. Strategy and Leadership, 35(6), 1217. Wellbrock, W., Ludin, D., Rhrle, L., & Gerstlberger, W. (2020). Andreini etal. Lemus-Aguilar, Morales-Alonso, Ramirez-Portilla, & Hidalgo, 2019; Presenza, Messeni Petruzzelli, & Natalicchio, 2019). According to the example given by Enel, since 2002, it has adopted the Code of Ethics, which expresses the commitments and responsibilities in conducting business (Mazza & Furlotti, 2019). Journal of Product Innovation Management, 23(1), 1925. Corporate Social Responsibility and Environmental Management, 26, 10121025. Breuer, H., Fichter, K., Ldeke-Freund, F., & Tiemann, I. The article starts with the analysis of the existing literature about BMI and SBMI in order to extrapolate the main elements of these topics. Business models for sustainability: Origins, present research, and future avenues. The scenario forces large corporations to follow the strict business model transformation processes and monitor them with indicators for implementing sustainability. Does the firm assess or monitor the social and environmental impact of its main suppliers? Another unique aspect that can be derived from the approach adopted is that it links theoretical with practical sources. For example, we can mention the listed companies that use the GRI Indicators to disclose their sustainable results in most cases. Therefore, it resides in the transformation of the business model and expresses how to do business in a new way (Amit & Zott, 2020). To illustrate, the Salvatore Ferragamos Group considers the well-being of its workers and the internal environment as fundamental elements for its success. Business Strategy and the Environment, 29(2), 665681. Water stewardship and corporate sustainability: A case study of reputation management in the food and drinks industry. Lozano, R. (2018). Moreover, future research might develop a system of metrics for each element of the framework to measure value delivery and value captured by the firm. To exemplify this qualitative measurement, we mention the permanence of waste from production flows, the nonexploited co-production and the sub-utilized resources about overworking capacity or insufficient use of skills and knowledge. Regarding theoretical implications, this study contributes to developing a theory of both BMI and sustainable innovation. It is divided into three sectors: value proposition, value capture delivery and value capture according to the main studies about the business model. The full terms of this licence maybe seen at http://creativecommons.org/licences/by/4.0/legalcode. circular economy, collaborative consumption, inclusive growth and targeting low-income consumers). In particular, SBMI is a change in how a firm operates to reduce adverse external effects and create new positive external effects for the environment and society (Presenza etal., 2019). Fontainebleau, France: INSEAD. Corporate Governance, 13(5), 482497. International Journal of Innovation Management, Business model innovation strategy: Transformational concepts and tools for entrepreneurial leaders, Business model innovation: A review of the process-based literature, Bridging sustainable business model innovation and user-driven innovation: A process for sustainable value proposition design, Business model innovation from an open systems perspective: structural challenges and managerial solutions, International Journal of Product Development, A value mapping tool for sustainable business modelling, A literature and practice review to develop sustainable business model archetypes, Business models for sustainable innovation: State-of-the-art and steps towards a research agenda, Sustainability-oriented business model development: Principles, criteria and tools, International Journal of Entrepreneurial Venturing, Balancing competing logics in for-profit social enterprises: A need for hybrid governance, Towards systematic business model innovation: lessons from product innovation management, Business model innovation and competitive imitation: The case of sponsorbased business models, Business model dynamics and innovation:(re) establishing the missing linkages, Business model innovation: its not just about technology anymore, Understanding sustainable innovation: A systematic literature review, Corporate Social Responsibility and Environmental Management, Small business challenges and the triple bottom line, TBL: Needs assessment in a Midwest State, USA, Technological Forecasting and Social Change, Business model innovation for sustainability: Towards a unified perspective for creation of sustainable business models. R&D Management, 44(3), 322340. Social Responsibility Journal, 16(8), 13771402. Boons, F., & Ldeke-Freund, F. (2013). Gambardella, A., & McGahan, A. M. (2010). Boons and Ldeke-Freund, 2013; Bocken, Short, Rana, & Evans, 2014; Geissdoerfer, Bocken, & Hultink, 2016, 2018) or analysis of a specific type of SBM (i.e. Moreover, the study provides an essential feature of the sustainable innovation process, which is helpful for practitioners: they can initially analyze the identified elements in a sequence and then follow an iterative process that assumes continuous questioning of the business model until it achieves complete coherence between all parties. We carefully read papers with case studies. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The ambiguity of the situation also can bring uncertainty. Even if the framework applies to all firms that want to change their business model toward sustainability, since the governmental organizations until the private businesses, experts have designed this framework for small and medium-sized enterprises (SMEs) that are less used to dealing with sustainable indicators and metrics. Indeed, the framework proposed should seek to identify the current assumptions about the phenomenon and improve them. (2010). The ten types of stakeholders identified by Bocken etal. Organization & Environment, 29(1), 310. We have adopted the SCOPUS academic database to retrieve helpful literature for creating a new theoretical framework. Visit emeraldpublishing.com/platformupdate to discover the latest news and updates, Answers to the most commonly asked questions here, 2022, Rosaria Ferlito and Rosario Faraci. We have detailed the research process of these phases: (1) the selection of scientific papers, (2) the establishment of the framework's design and (3) the analysis of papers. Considering this scenario, we introduce, in the next section, a new helpful framework as a guideline for scholars and academics to theorize the correct business innovation process toward sustainability. Does the firm have quality certifications? (2018), which identifies four types of BMI startup, transformation, diversification and acquisition and by Cavalcante, Kesting and Ulhi (2011) which talks about creation, extension, revision and termination. Depken, D., & Zeman, C. (2018). Business model renewal and ambidexterity: structural alteration and strategy formation process during transition to a Cloud business model. Other authors, instead, introduce taxonomies. We considered the value mapping tool Bocken etal. Further activities concern the updating of risk expectations connected with revenue flows. Finally, the discussion and the conclusion summarize the results and show the study implications and its limitations and directions for future research. Towards systematic business model innovation: lessons from product innovation management. Consequently, the research questions based on this study are how to understand how the value proposition, value creation, and value capture within business model are changed to include economic, environmental, and social issues? Highlights from the tourism and hospitality industry. How much and what information is released to the public in an open and honest way? We define sustainable business model innovation (SBMI) as a change in how a firm operates to create positive impacts or reduce negative consequences for the environment and society. Then we provided a helpful checklist to interpret the framework. To analyze every aspect of the business model according to a comprehensive approach. Business Strategy and the Environment, 27(8), 11591166. (2017). Does the firm have attracted new investors? Highlights from the tourism and hospitality industry, The business model: An integrative framework for strategy execution, Journeying toward business models for sustainability: A conceptual model found inside the black box of organisational transformation, Toward a theory of business model innovation within incumbent firms, Business models for sustainability: Origins, present research, and future avenues, Systemic thinking in environmental management: Support for sustainable development, Searching for innovation: Product, process, and business model innovations and search behavior in established firms, Conceptualizing a sustainability business model, Business models, business strategy and innovation, Report SDG ambition scaling business impact for the decade of action, Sustainability in the automotive industry, importance of and impact on automobile interiorinsights from an empirical survey, International Journal of Corporate Social Responsibility, Building social business models: Lessons from the Grameen experience, https://doi.org/10.1108/INMR-07-2021-0125, http://creativecommons.org/licences/by/4.0/legalcode, Lemus-Aguilar, Morales-Alonso, Ramirez-Portilla, & Hidalgo, 2019, Presenza, Messeni Petruzzelli, & Natalicchio, 2019, Santos, Spector and Van der Heyden (2009), Yunus, Moingeon and Lehmann-Ortega (2010), Cillo, Messeni Petruzzelli, Ardito, & Del Giudice, 2019, Baldassarre, Calabretta, Bocken, & Jaskiewicz, 2017, Schaltegger, Hansen, & Ldeke-Freund, 2016, Wellbrock, Ludin, Rhrle, & Gerstlberger, 2020, Breuer, Fichter, Ldeke-Freund, & Tiemann, 2018, https://www.unglobalcompact.org/library/5732, By business model innovation, we mean business model replacements that provide product or service offerings to customers and end users that were not previously available. According to Osterwalder et al. We also refer to the process of developing these novel replacements as business model innovation, Specifying a set of business model elements and building blocks, as well as their relationships to one another [] a business model designer can experiment with these blocks and create completely new business models, limited only by imagination and the pieces supplied, A business model innovation changes one or more dimensions of a business model (which are perceived by the authors as product-market combination, the architecture of the value creation, and the revenue model) so that a novel configuration of the elements is created and implemented, Business model innovation is the discovery of a fundamentally different business model in an existing business, Business model innovation is to advance [the] business model [] from very basic (and not very valuable) models to far more advanced (and more valuable) models, Business model innovation is a reconfiguration of activities in the existing business model of a firm that is new to the product service market in which the firm competes, Business-model innovation occurs when a firm adopts a novel approach to commercializing its underlying assets, Business model innovation is about generating new sources of profit by finding novel value proposition/value constellation combinations, The ability to innovate something more core than the core, to innovate the very theory of the business itself. Journal of Cleaner Production, 13(12), 11971202. This vision implies the existence of various phases which can lead firms to achieve a competitive advantage. Does the firm have implemented energy efficiency improvement programs, water efficiency improvement projects, or waste reduction programs (including recycling)? The aim of this paper is to explain what pathways a firm can take when it implements a sustainable business innovation process in line with Sustainable Development Goals (SDGs). Amit, R., & Zott, C. (2020). Business model innovations for electric mobilitywhat can be learned from existing business model patterns? There are several definitionsfor BMI (Table1). Markides, C. (2006). Business model innovation breakthrough moves. [] A business model design of an incumbent firm to be innovative when the firm changes its activity system so that the new system is novel for the firm and possibly also in the product-market space in which it competes, BMI is a set of deliberate acts that managers and entrepreneurs perform over time to change the BM components and architecture in a consistent and innovative way, BMI is widely recognized as a crucial activity that incumbents have to perform in order to successfully face the threat coming from new and innovative entrants. These external relationships help grow the core business and extend companies social licenses to operate (Bruneel, Moray, Stevens, & Fassin, 2016). Then the framework requires an in-depth study of the leading resources, the key activities and the partnerships. Bridging sustainable business model innovation and user-driven innovation: A process for sustainable value proposition design. For example, we can mention Illycaff, an Italian company operating in the coffee industry, which bases its customer relationship on maximizing the sustainable value created by reducing the environmental impact of products and packaging. Sustainable business models through the lens of organizational design: A systematic literature review. Therefore, such a framework reduces resistance to modification of the business model within firms and promotes the commitment of individuals to the BMI implementation. Balancing competing logics in for-profit social enterprises: A need for hybrid governance. The main action refers to renewing their mission, statements and core values. Yunus, M., Moingeon, B., & Lehmann-Ortega, L. (2010). It implements many corporate welfare initiatives to favor balancing each employee's professional and private life (https://sustainability.ferragamo.com/it). Andreini, D., Bettinelli, C., Foss, N. J., & Mismetti, M. (2021). (2019). Although there is a broad consensus about the importance of sustainability for firms, the academic studies on how to transform the firm into a sustainable organization remain blurred (i.e. Osterwalder, A., Pigneur, Y., & Tucci, C. L. (2005). The framework suggests starting the analysis from the value proposition section made up not only by describing new sustainable value, like existing tools, but also by explaining the governance. Moreover, we included only papers belonging to the subject area Business, Management and Accounting. The database returned 520 results. Geissdoerfer, M., Vladimirova, D., & Evans, S. (2018). (2018). Indeed it helps in the understanding of the dynamic vision about how the business model changes in order to incorporate triple sustainability. The elements of Sustainable Development Goal (SDG) implementation framework, created by the United Nations to guide companies to deepen integration of SDGs into business operations and stakeholder engagement: strategy and governance, operations and stakeholder engagement (United Nations Global Compact, 2020). Business model innovation from an open systems perspective: structural challenges and managerial solutions. (2005), Labb and Mazet (2005), Santos, Spector and Van der Heyden (2009), Amit and Zott (2020) and Yunus, Moingeon and Lehmann-Ortega (2010), BMI is a reconfiguration of the business models elements, of the firms activities or of the value proposition. Adopting a dynamic perspective for the business model and introducing a valuable tool to understand how the business model changes to incorporate triple sustainability are contributing factors in the theory development of the BMI and sustainable innovation. United Nations Global Compact (2020). Are the company's products or processes structured to restore or preserve the environment? Osterwalder, A., & Pigneur, Y. Nevertheless, the dynamic vision on how the business model changes to incorporate triple sustainability has received insufficient attention. Building social business models: Lessons from the Grameen experience. Subject-matter experts consider the SBMI a complex process that changes the core elements of the firms logic to create new value for all their stakeholders. In the end, we have selected 51 papers after reading them in full. The main initiatives implemented last year have focused on three macro-objectives: redistribution of food surpluses, promotion of culture and education, and support for scientific research. Based on the process discussed above, we proposed a multidimensional vision of sustainable BMI, which a specific framework, i.e Figure1 has illustrated. Geissdoerfer, M., Bocken, N. M. P., & Hultink, E. J. (2014). (2019). To structure the new framework, we must combine elements and characteristics of various tools of both academic and practical matrices. How much are the investments to follow the principles of social sustainability? Tod's group, FCA or ENEL, like most listed companies, use the Global Reporting Initiative for Sustainability Reporting Standards indicators defined by the Global Reporting Initiative (GRI) to measure the results of its activities. How does the firm care about the virtual office environment for remote workers? The new framework differs from some recent academic efforts first of all for its theoretical characteristics: BMI construct and not business model concept is the core of the framework. International Journal of Product Development, 18(34), 274285. What methods of conserving water resources have been implemented in the firm's offices or factories? Therefore, it is relevant to analyze some elements concerning workers, such as their benefits or wages, training, work environment, job flexibility and others. So, the business model is the vehicle of innovation. The salesforce guarantees constant contact with B2B customers and updates on all the leading news regarding products, services, promotions and events.