Sustainable Business Models (eBook)

Lars Moratis is Professor of Corporate Social Responsibility at Antwerp Management School and Professor of Sustainable Business at NHTV Breda University of Applied Sciences. He has published several books and various articles in both academic and practitioner-oriented journals on topics such as CSR strategy development and implementation, CSR standards and standardization processes (including ISO 26000), the credibility of corporate CSR claims. sustainable business models, and responsible management education. He is a member of the editorial board of the International Journal of Corporate Social Responsibility. Frans Melissen is Professor of Sustainable Business Models at NHTV Breda University of Applied Sciences, the Netherlands. In his research he focuses on the link between sustainability and human behavior, with special emphasis on mitigating the social dilemma by means of sustainable business models. Frans has authored and co-authored a number of papers in refereed journals, presented at various conferences, contributed chapters to several (text)books, co-authored the management book "Workin' Wonderland and co-edited and co-authored the textbook Hospitality Experience: an introduction to hospitality management. He is the Scientific Director of the JPI Urban Europe project Smart City Hospitality.Samuel O Idowu is a Senior Lecturer in Accounting and Corporate Social Responsibility at London Guildhall School of Business & Law, London Metropolitan University, UK. He researches in the fields of Corporate Social Responsibility (CSR), Corporate Governance, Business Ethics and Accounting and has published in both professional and academic journals since 1989. He is a freeman of the City of London and a Liveryman of the Worshipful Company of Chartered Secretaries and Administrators. Samuel is the Deputy CEO and First Vice President of the Global Corporate Governance Institute. He has led several edited books in CSR, is the Editor-in-Chief of two Springer’s reference books – the Encyclopedia of Corporate Social Responsibility and the Dictionary of Corporate Social Responsibility and an Editor-in-Chief of the International Journal of Corporate Social Responsibility. He is also a Series Editor for Springer’s books on CSR, Sustainability, Ethics and Governance. One of his edited books won the most Outstanding Business Reference book Award of the American Library Association (ALA) in 2016 and another was ranked 18th in the 2010 Top 40 Sustainability Books by, Cambridge University, Sustainability Leadership Programme. Samuel is a member of the Committee of the Corporate Governance Special Interest Group of the British Academy of Management (BAM). He is on the Editorial Boards of the International Journal of Business Administration, Canada and Amfiteatru Economic Journal, Romania. Samuel has delivered a number of Keynote Speeches at national and international conferences and workshops on CSR and has on two occasions 2008 and 2014 won Emerald’s Highly Commended Literati Network Awards for Excellence. To date, Samuel has edited several books in the field of CSR, Sustainability and Governance and has written four forewords to books. Samuel has served as an external examiner to the following UK Universities – Sunderland, Ulster, Anglia Ruskin and Plymouth. He is currently an external examiner at Robert Gordon University, Aberdeen, Teesside University, Middlesbrough and Sheffield Hallam University, UK. 

Foreword 7
Preface 9
Contents 11
List of Contributors and Editors 13
Chapter 1: Introduction: From Corporate Social Responsibility to Sustainable Business Models 23
1.1 The Controversiality of Corporate Social Responsibility 23
1.2 Business Models: The Sustainable Way 26
1.2.1 Defining a Business Model 26
1.2.2 Defining a Sustainable Business Model 27
1.3 Chapters in This Book 29
References 35
Part I: Sustainable Business Model Forms and Types 38
Chapter 2: Transformative Business Models for Sustainability Transitions 39
2.1 Introduction 40
2.2 Theoretical Framework and Methodology 41
2.2.1 Business Model 41
2.2.2 Sustainability Transitions and the Concept of Niche 43
2.2.3 Reflexivity: Dynamic Relations Between Business Model and Niche 45
2.3 Methods 45
2.3.1 Case Description 46
2.3.2 Data Sources and Collection 46
2.3.3 Data Analysis 47
2.3.4 Limitations 47
2.4 Transformative Business Models in the Context of the Energy Transition: The Case of Deltawind 48
2.4.1 Business Model Level 48
2.4.1.1 Value Proposition 48
2.4.1.2 Product or Service 48
2.4.1.3 Value Architecture 48
Members 48
Governance 49
Value Chain 49
2.4.1.4 Valuation Method 51
2.4.2 System Level 51
2.4.2.1 Technology and Infrastructures 51
2.4.2.2 User Practices 52
2.4.2.3 Cultural Symbolic Meanings 52
2.4.2.4 Knowledge Base 52
2.4.2.5 Organisational Logic and Structure 53
2.4.2.6 Sector Structure 53
2.4.2.7 Policies and Political Power 54
2.5 Discussion 54
2.6 Conclusion 56
References 58
Chapter 3: Sustainable Business Models: The Case of the Collaborative Economy 60
3.1 Introduction 61
3.2 The Concept of Sustainable Business Models 62
3.3 Principles Under Sustainable Business Models 63
3.4 Sustainable Business Models and Collaborative Economy 65
3.5 Analysis 67
3.5.1 Case Selection 67
3.5.2 Shared Mobility 68
3.5.2.1 InOneCar: Carpooling in the City 68
3.5.2.2 Jadezabiore.pl: Transporting Parcels as On-Demand Ride Service 69
3.5.3 Foodsharing 69
3.5.3.1 Eataway: Shared Meals Globally 69
3.5.3.2 MyYummie: Socializing the Meals 70
3.5.3.3 RanoZebrano: Local Food Delivery Platform 70
3.5.3.4 LokalnyRolnik: Local Support for the Healthy Lifestyle Promotion 71
3.5.4 Crowdfunding 72
3.5.4.1 Beesfund: An Effective Tool for Crowdinvestment 72
3.5.4.2 mintu.me: Crowdfunding Platform for Sustainability 73
3.5.5 Microtasking 73
3.5.5.1 TakeTask: Online Collaborative Labor Marketplace 73
3.6 Discussion 74
3.6.1 Shared Mobility 74
3.6.2 Foodsharing 76
3.6.3 Crowdfunding 77
3.6.4 Microtasking 78
3.7 Conclusion 78
References 79
Chapter 4: Examining the Interplay of Social and Market Logics in Hybrid Business Models: A Case Study of Australian B Corps 82
4.1 Introduction 82
4.2 Literature Review 84
4.2.1 B Corps 84
4.2.2 Institutional Logics 85
4.3 Research Methods 87
4.3.1 Data Selection and Collection 87
4.3.1.1 Phase 1 87
4.3.1.2 Phase 2 88
4.3.2 Data Analysis 89
4.4 Research Findings 89
4.4.1 Mission and Purpose 90
4.4.2 Structure 92
4.4.3 Business Practices 93
4.4.3.1 Marketing and Sales 94
4.4.3.2 Performance Measurement and Management 95
4.4.3.3 Distribution of Profits 96
4.4.3.4 Employee Management Practices 97
4.4.3.5 Procurement 98
4.4.3.6 Product Development 99
4.4.3.7 Institutional Work 99
4.5 Conclusion 100
References 101
Chapter 5: Public Sector and Circular Business Models: From Public Support Towards Implementation Through Design 104
5.1 Introduction 104
5.2 Circular Business Models 105
5.2.1 Circular Economy 105
5.2.2 Business Models Within Circular Economy 106
5.3 Public Sector and Circular Economy 110
5.3.1 Policymakers´ Reasons to Support Circular Economy 110
5.3.2 Public Support for Circular Business Models 110
5.4 New Approach to Public Sector Involvement in Circular Economy 112
5.4.1 A Public Sector Circular Business Model: Conceptualizing a Framework 112
5.4.2 Applying Design to Support Circularity of Public Sector Business Model 114
5.5 Conclusion 115
References 116
Part II: Theoretical and Conceptual Approaches Towards Sustainable Business Models 121
Chapter 6: Sustainable System Value Creation: Development of Preliminary Frameworks for a Business Model Change Within a Syste... 122
6.1 Introduction 123
6.2 Theoretical and Methodological Background 124
6.2.1 Concept 1: Sustainability 125
6.2.1.1 Planetary Boundaries 125
6.2.1.2 Sustainability 126
6.2.1.3 Sustainable Development Related to Corporate Sustainability 126
6.2.2 Concept 2: Business Model 127
6.2.2.1 Business Model Innovation 127
6.2.2.2 Business Model for Sustainability 127
6.2.2.3 Business Model Change Towards Sustainability 128
6.2.3 Concept 3: System Transition 129
6.2.3.1 System Transition and Multi-Level Perspective (MLP) 129
6.2.3.2 Agency and MLP 130
6.2.3.3 Agency Shaping the System 130
6.2.3.4 From Multi-Level Perspective (MLP) to Triple Embeddedness Framework (TEF) 131
6.3 Building an Integration Between Different Disciplines 132
6.3.1 Integrative Concept: Value 132
6.3.1.1 Different Forms of Value 132
6.3.1.2 Sustainable Value 132
6.3.1.3 Business Models as Tools for Creating and Capturing Sustainable Value 133
6.3.2 Preliminary Frameworks for Integrated Sustainability Through Different Disciplines 135
6.3.2.1 Synergy Between Corporate Sustainability, Business Model and System Transition Literature 135
6.3.2.2 Integration of Business Model Change Towards Sustainability and System Transition 137
6.4 Conclusion 139
References 140
Chapter 7: Creating Integrated Value Through Sustainable Innovation: A Conceptual Framework 145
7.1 Introduction 145
7.2 Redefining Value Creation 146
7.3 Introducing Integrated Value 147
7.4 Five Forces of Fragmentation 149
7.4.1 Disruption 149
7.4.2 Disconnection 149
7.4.3 Disparity 150
7.4.4 Destruction 150
7.4.5 Discontent 151
7.5 Five Forces of Integration 151
7.5.1 The Resilience Economy 151
7.5.2 The Exponential Economy 152
7.5.3 The Access Economy 152
7.5.4 The Circular Economy 153
7.5.5 The Wellbeing Economy 153
7.6 Five Pathways for Innovation 153
7.6.1 A Secure Pathway 154
7.6.2 A Smart Pathway 155
7.6.3 A Shared Pathway 155
7.6.4 A Sustainable Pathway 155
7.6.5 A Satisfying Pathway 156
7.7 Differentiating Integrated Value 156
7.7.1 Singular Value 157
7.7.2 Diffuse Value 157
7.7.3 Focused Value 157
7.7.4 Integrated Value 157
7.8 Illustrating Integrated Value 158
7.8.1 Novamont 158
7.8.2 Dutch Awearness 159
7.8.3 Caterpillar 159
7.8.4 Tesla 159
7.9 Implementing Integrated Value 160
7.9.1 Context Analysis 160
7.9.2 Stakeholder Assessment 160
7.9.3 Leadership Review 160
7.9.4 Risk Assessment 162
7.9.5 Opportunity Analysis 162
7.9.6 Process Redesign 162
7.9.7 Systems Integration 163
7.10 Conclusion 163
References 164
Chapter 8: Creating Value Via Sustainable Business Models and Reverse Innovation 167
8.1 Introduction 167
8.2 Review of Key Concepts 168
8.2.1 Establishing the Components of Sustainable Value Creation 168
8.2.2 Business Models, Business Model Innovation and `New´ Business Models 169
8.3 Organising Sustainable Change via NBMs 172
8.4 Managing RI Within the NBM Construct in a BoP Setting 172
8.4.1 Reverse Innovation: Raised in the Developing World, Spread in Developed Countries 172
8.4.2 Framework, Enabling Mechanisms, and the Generic NBM for RI Strategies 174
8.5 Discussion 176
8.5.1 The Relevance of RI Within a NBM Context 176
8.5.2 The SVC Potential of RI Strategies Within a NBM Context 177
8.5.3 The Implications of RI Strategies Within a NBM Context for Business Practice 178
8.6 Conclusion 179
References 180
Chapter 9: Towards Understanding Collaboration Within Circular Business Models 184
9.1 Introduction 185
9.2 Methodology 186
9.3 Literature Review 187
9.3.1 Circular Business Models 187
9.3.2 Nature of Collaboration Across the Value Network 189
9.3.3 Conceptual Framework for Collaborative Partner Assessment 192
9.4 Results 193
9.4.1 Case Overviews and Snap-Shots 193
9.4.1.1 Royal Auping 193
9.4.1.2 Desso 194
9.4.1.3 Fairphone 195
9.4.1.4 Gispen 197
9.4.1.5 G-Star Raw 198
9.4.1.6 Mud Jeans 199
9.4.1.7 Philips Healthcare 201
9.4.1.8 Philips Lighting 202
9.5 Cross-Case Synthesis and Analysis 203
9.6 Discussion 206
9.6.1 Vision 206
9.6.2 Characteristics of Collaborative Activities 206
9.6.3 Company Dynamics 209
9.7 Limitations and Future Research 209
9.8 Conclusion 210
References 211
Chapter 10: Information Asymmetries and the Paradox of Sustainable Business Models: Towards an Integrated Theory of Sustainabl... 217
10.1 Introduction 217
10.2 The Role of Information in Collective Actions for Sustainable Development 219
10.3 The Role of Information in the Entrepreneurial Process 224
10.4 Information Asymmetry as Epistemic Insufficiency 226
10.5 Consequences of Entrepreneurs´ Epistemic Insufficiency for an Integrated Concept of Sustainable Entrepreneurship 229
10.6 Conclusions 232
References 235
Chapter 11: Sustainable Business Models Through Servant Leadership: Theory and Praxis 240
11.1 Introduction 240
11.2 Literature Framework 242
11.2.1 Sustainable Business Models 242
11.2.2 Sustainable and Servant Leadership 244
11.3 Methodology 249
11.4 Servant Leadership for a Sustainable Business 250
11.4.1 Brunello Cucinelli 250
11.4.1.1 Company Profile 250
11.4.1.2 The Leader´s Philosophy and the Business Model 251
11.4.2 GeicoTaikisha 255
11.4.2.1 Company Profile 255
11.4.2.2 The Fundamentals of the Business Model 256
11.4.2.3 The Leadership Model 258
11.5 Discussion and Concluding Remarks 260
References 266
Part III: Applications of Sustainable Business Models: Sectoral and Country Examples 272
Chapter 12: Are Sharing Platforms Sustainable (Business Models)? A Consumer Survey on the Drivers of Using Sharing Platforms i... 273
12.1 Introduction 274
12.2 Background 275
12.2.1 The Development of Business Models to Sustainable Business Models 275
12.2.2 The Rise of Sharing Platforms 276
12.2.3 Sharing Platform as a New Sustainable Business Model 277
12.2.4 The Impact of Sharing Platforms on Existing Players in the Hotel Market 279
12.2.5 Research Model of Consumer Behavior Regarding Sustainable Alternative Business Models 280
12.3 Method 281
12.3.1 Measures 282
12.4 Results 283
12.4.1 The Users of the Sharing Economy for Accommodation 283
12.4.2 The Perceived Benefits, Attitudes and Future Intentions for Using Sharing Platforms 285
12.4.3 The Drivers of Future Consumer Use of Sharing Platforms 285
12.4.4 Prognoses for the Near Future 288
12.5 Conclusions 290
12.5.1 Sustainability of the Business Models 290
12.5.2 Further Research 293
References 293
Chapter 13: A Southern-Based Code of Conduct in the Global Tea Supply Chain: Implications for Sustainable Business Models 296
13.1 Introduction 296
13.2 Theoretical Perspectives 297
13.2.1 Defining Sustainable Business Models 297
13.2.2 Codes of Conduct as an Antecedent of Sustainable Value Co-creation in the Global Supply Chain 299
13.3 Methodology 302
13.3.1 Case Selection 302
13.3.2 Data Collection 302
13.4 The Case Study 304
13.4.1 An Overview of Eastern Produce Malawi 304
13.4.2 Motivations for Developing the Code: Value Proposition 305
13.4.3 Code Development 306
13.4.4 Code Implementation: Structures and Systems 307
13.4.4.1 Communication and Training 307
13.4.4.2 Mainstreaming the Code into Corporate Functions (Structures) 309
13.4.4.3 Transparency and Accountability 309
13.5 Implications for Sustainable Business Models 310
References 312
Chapter 14: Social Capital as Value Creation and Delivery of a Sustainable Business Model: A Case Study from Indonesia 315
14.1 Introduction 316
14.2 Integrating Social Capital into Sustainable Business Model: A Theoretical Framework 316
14.2.1 Sustainable Business Models 317
14.2.2 Social Capital 317
14.2.3 Value Proposition: Sustainability Goals 318
14.2.4 Value Creation and Delivery: Institutionalizing Sustainability and Social Capital 318
14.2.5 Value Capture: Sustainability Performance 319
14.3 Research Approach 320
14.4 Research Findings 321
14.4.1 Within-Case Analysis 321
14.4.2 Cross-Case Analysis 322
14.4.2.1 Value Proposition: Socially and Environmentally Responsible Company 322
14.4.2.2 Value Creation and Delivery: Institutionalizing Value Proposition and Developing Social Capital 326
Institutionalizing Value Proposition: Establishing Corporate Foundations 326
Developing Social Capital 329
14.4.2.3 Value Capture: Simultaneous Achievement of Economic, Social and Environmental Performances 332
14.5 Conclusions and Implications 334
References 335
Chapter 15: Sustainable Business Practices of Turkish Companies Listed on the Borsa Istanbul Sustainability Index 338
15.1 Introduction 339
15.2 Literature Review 342
15.3 Data and Methodology 345
15.4 Findings 346
15.5 Conclusion 349
References 351
Chapter 16: Case Studies of Pioneer Sustainable Business Models in Poland 354
16.1 Introduction 354
16.2 Research Method 356
16.3 Sustainable Business Model Interpretation 357
16.4 Conceptual Framework 358
16.5 Case Studies 361
16.5.1 Asante Bamboo Bikes 361
16.5.1.1 Basic Assumptions of the Model (Business and Social) and Mission 361
16.5.1.2 Business Proposition 361
16.5.1.3 Social/Ecological Issues 362
16.5.1.4 Business and Social/Ecological Aspects: Overview 362
16.5.1.5 Market Relations 362
16.5.1.6 Finance 363
16.5.1.7 Perspectives for Future 363
16.5.1.8 The Company History and the Leadership 363
16.5.2 Migam 364
16.5.2.1 Basic Assumptions of the Model (Business and Social) and Mission 364
16.5.2.2 Business Proposition 364
16.5.2.3 Social Issues 365
16.5.2.4 Business and Social Aspects: Overview 365
16.5.2.5 Market Relations 365
16.5.2.6 Finance 366
16.5.2.7 Perspectives for Future 366
16.5.2.8 The Company History and the Leadership 367
16.5.3 NotJustShop 367
16.5.3.1 Basic Assumptions of the Model (Business and Social) and Mission 367
16.5.3.2 Business Proposition 367
16.5.3.3 Social Issues 368
16.5.3.4 Business and Social Aspects: Overview 368
16.5.3.5 Market Relations 369
16.5.3.6 Finance 369
16.5.3.7 Perspectives for Future 370
16.5.3.8 The Company History and the Leadership 370
16.5.4 Plan Planeta 371
16.5.4.1 Basic Assumptions of the Model (Business and Social) and Mission Statement 371
16.5.4.2 Business Proposition 371
16.5.4.3 Social/Ecological Issues 371
16.5.4.4 Business and Social/Ecological Aspects: Overview 372
16.5.4.5 Market Relations 372
16.5.4.6 Finance 373
16.5.4.7 Perspectives for Future 373
16.5.4.8 The Company History and the Leadership 374
16.5.5 Wis?aki 374
16.5.5.1 Basic Assumptions of the Model (Business and Social) and Mission 374
16.5.5.2 Business Proposition 374
16.5.5.3 Social/Ecological Issues 375
16.5.5.4 Business and Social/Ecological Aspects: Overview 375
16.5.5.5 Market Relations 376
16.5.5.6 Finance 377
16.5.5.7 Perspectives for Future 377
16.5.5.8 The Company History and the Leadership 377
16.6 Discussion and Conclusions 378
References 381
Part IV: Frameworks and Toolkits for Sustainable Business Models 383
Chapter 17: Sustainable Business Model Design: A Review of Tools for Developing Responsible Business Models 384
17.1 Introduction 384
17.2 Tools for Sustainable and Responsible Business Model Innovation 387
17.2.1 The Business Model Canvas 388
17.2.1.1 Triple Layered Business Model Canvas 389
17.2.1.2 Business Innovation Kit and Sustainability Innovation Pack 391
17.2.1.3 Flourishing Enterprise Innovation Toolkit and Flourishing Business Canvas 391
17.2.1.4 Sustainable Value Analysis Tool 392
17.2.1.5 The Cambridge Value Mapping Tool 393
17.2.2 Business Model Roadmapping for Sustainable Business Model Development 393
17.2.3 Framework for Strategic Sustainable Development (FSSD) 396
17.2.3.1 FSSD for Sustainable Business Model Development 397
17.3 Conclusion 398
References 399
Chapter 18: Values-Based Business Model Innovation: A Toolkit 402
18.1 Introduction 403
18.2 Purpose of Modelling and Existing Methods 404
18.2.1 Two Scenarios 404
18.2.2 The Purpose of the Modelling 405
18.2.3 Reconciliation of Interests and Understanding of Values 407
18.3 The Business Innovation Kit: A Toolbox for Values-Based Business Modelling 408
18.3.1 Didactics, Gamification and Orientation Towards Values-Based Statements 409
18.3.2 Iterative Development and Validation 411
18.3.3 Maturity of Sustainability Orientation 412
18.3.4 Business Case Drivers for Sustainability 413
18.4 Main Fields of Application 417
18.4.1 Developing Business Models for New Business Ideas or New Technologies 418
18.4.2 Optimisation of Existing Business Models and Consolidation of Diversified Business Models 418
18.4.3 Selection of Promising Applications 418
18.4.4 Win-Win Modelling 419
18.4.5 Sustainability-Oriented Development of New Business 419
18.4.6 Addressing Wicked Problems 419
18.4.7 Studying the Management and Marketing of Innovation and Sustainability 420
18.5 Implications and Outlook 420
References 421
Index 424