scholarly journals The Role of Social Enterprise Hybrid Business Models in Inclusive Value Chain Development

2021 ◽  
Vol 13 (2) ◽  
pp. 499
Author(s):  
Bob Doherty ◽  
Pichawadee Kittipanya-Ngam
Keyword(s):  
Business Model ◽  
Value Chain ◽  
Social Impact ◽  
Business Models ◽  
Rural Poverty ◽  
Sustainable Business ◽  
Middle Income ◽  
Low Middle Income Countries ◽  
Development Literature ◽  
Hybrid Organisations

This study contributes to the growing interest in hybrid organisations, sustainable business models and inclusive value chain development (IVCD). Recent work has identified that of some 570 million farmers in the world, more than 475 million farmers are smallholders in low-middle-income countries experiencing increasing food insecurity and rural poverty. Research argues that there is a lack of research that provides work on appropriate solutions for smallholders. This paper answers this call by a qualitative study of ten case studies, which draws on hybrid organising, sustainable business model and IVCD research to identify the novel business model characteristics that hybrid organisations use to create and manage more inclusive value chains for smallholders. These hybrid organisations are designed to create a value proposition that delivers sustainability upgrading for smallholders via both product, process and governance upgrades, empowers smallholders to achieve development goals and creates multiple value for social impact. We therefore identify the important characteristics of the hybrid business model to provide appropriate solutions for smallholders and overcome the challenges identified in the inclusive value chain development literature.

scholarly journals Applying a Sustainable Business Model Lens to Mutual Value Creation With Base of the Pyramid Suppliers

2020 ◽  
pp. 000765032097345
Author(s):  
Krzysztof Dembek ◽  
Jodi York
Keyword(s):  
Business Model ◽  
Value Chain ◽  
Business Models ◽  
Single Case ◽  
Base Of The Pyramid ◽  
Sustainable Business ◽  
Value Capture ◽  
Promising Alternative ◽  
Sustainable Business Models ◽  
Multi Stakeholder

Base of the pyramid (BoP) ventures seek to create “mutual value” for themselves and poor communities, but often use business models unadapted for the BoP context, and have been less successful than hoped. Sustainable business models’ (SBMs) multi-stakeholder lens offers a promising alternative path to mutual value, but BoP-based SBM studies are scarce. This single case study explores whether and how SBM characteristics manifest in the business model and value outcomes of Habi, a Manila footwear company successfully creating mutual value with BoP suppliers. We find SBM characteristics underpin Habi’s dual-structure business model (value chain/shop) and success in four ways: viewing profits as a tool for community development resulted in designing both product and business model around community strengths; understanding communities as systems helped Habi address the complexities of poverty; balancing short-term business needs with a long-term, slow-growth approach led to their choice of investors; and implementing community value capture mechanisms ensured enduring community benefit.

scholarly journals Sustainable Business Models for Informal Charcoal Producers in Kenya

2021 ◽  
Vol 13 (6) ◽  
pp. 3475
Author(s):  
Doris Mutta ◽  
Larwanou Mahamane ◽  
Chemuku Wekesa ◽  
Godwin Kowero ◽  
Anders Roos
Keyword(s):  
Sustainable Development ◽  
Business Model ◽  
Business Models ◽  
Economic Value ◽  
Forest Degradation ◽  
Sustainable Business ◽  
Value Capture ◽  
Middle Income ◽  
Individual Interviews ◽  
Negative Impacts

The sustainable business model (SBM) concept requires enterprises to integrate sustainability aspects in their planning and operations. Although 60% of the global working population make their living in the informal sector mostly in low-and middle income countries, the potential for SBMs has rarely been analyzed for this category. This study explores the SBMs of informal charcoal-producing enterprises in coastal Kenya. It describes key business-model components: value proposition, value creation and delivery, and economic value capture. Impact and dependency on sustainability-related indicators were also studied. Data were obtained through individual interviews, focus-group discussions, and workshops for charcoal producers and other relevant stakeholders. Findings demonstrated that charcoal enterprises, despite their informal status, adopt elaborate business models. The incomes positively affect several Sustainable Development Goals (SDGs) by reducing, if not eradicating, poverty and supporting basic livelihood needs. Examples of negative impacts on some SDG include the activity’s contribution to forest degradation. Feedback impacts, where SDG status influence the informal enterprises’ opportunities were also identified. The SBM model contributes to the development of a balanced sustainability transition of the charcoal sector. We suggest further analyses of the role of informal enterprises in the bioenergy sector for sustainable development and how their SBMs could be improved.

scholarly journals Can digitalization favour the emergence of innovative and sustainable business models? A qualitative exploration in the automotive sector

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chiara Acciarini ◽  
Fernando Borelli ◽  
Francesca Capo ◽  
Francesco Cappa ◽  
Chiara Sarrocco
Keyword(s):  
Business Model ◽  
Social Impact ◽  
Business Models ◽  
New Technologies ◽  
Two Dimensions ◽  
Automotive Sector ◽  
Sustainable Business ◽  
Content Type ◽  
Sustainable Business Models

PurposeThe purpose of this paper is to explore the role of the digitalization phenomenon in the development of innovative business models that are sustainability oriented. Thus, the authors aim to understand whether the presence of digitalization forces companies to create, capture and deliver value in new ways, focusing on their social impact.Design/methodology/approachThrough the analysis of a case study in the automotive sector, the authors provide evidence that both digitalization and sustainability need to be considered to adequately innovate business models. Moreover, these two dimensions are interrelated, and therefore digitalization sustains sustainability and vice versa.FindingsBy inductively investigating the evolutionary path along which companies tend to adapt their business models to digitalization and sustainability trends, the authors found that this innovative transformation needs to be as sustainable as possible in order to offer benefits to organizations, customers and society at large. Furthermore, the authors revealed that, at least in the automotive sector, companies and customers are aware of the remarkable consequences of digitalization; however, they are still uncertain regarding the actual adoption of new technologies.Originality/valueThe literature on business model innovation is quite extensive. However, the role of digitalization in developing sustainable business models to achieve a competitive advantage has been overlooked. This study suggests that, within a specific context, forging a value network of stakeholders is helpful when innovating a business model with a sustainability orientation.

scholarly journals Developing Evaluation Frameworks for Business Models in China’s Rural Markets

2018 ◽  
Vol 11 (1) ◽  
pp. 118
Author(s):  
Xinxiang Zhang ◽  
Lijun Hu ◽  
Manjula Salimath ◽  
Ching-Chung Kuo
Keyword(s):  
Business Model ◽  
Business Models ◽  
Rural China ◽  
Rural Poverty ◽  
Model Design ◽  
Sustainable Business ◽  
Rural Markets ◽  
Business Model Design ◽  
Axial Coding ◽  
Main Components

In rural China, successful and sustainable business model design has been viewed as an important strategy to achieve a win–win scenario in which rural poverty can be alleviated and enterprise profit can be improved. Although business model related literature is strong, it lacks a comprehensive framework for appraising business models in rural markets. As a result, entrepreneurs are facing significant challenges in implementing their market development centered business models or resource development centered business models. This study draws on case analysis to present two frameworks for evaluating the two types of business models, respectively. Through open coding and axial coding on eight Chinese cases, we identify the main components for the evaluation frameworks and critical factors within each component. Using the coding results as a lens, we apply a cross-case comparative data analysis to establish the multi-level evaluation systems. Finally, we provide suggestions for entrepreneurs and other stakeholders to better their business model design in China’s rural markets.

scholarly journals Designing a business model to reduce CO2emissions from construction machinery: Aligning business and environmental objectives

2019 ◽  
Vol 9 (1) ◽  
pp. 1-19
Author(s):  
Jahan Sanne ◽  
◽  
Anders Bjork ◽  
Bo Sahlberg ◽  
Hakan Stripple ◽  
...  
Keyword(s):  
Business Model ◽  
Value Chain ◽  
Business Models ◽  
Environmental Benefits ◽  
Value Chains ◽  
Sustainable Business ◽  
Construction Machinery ◽  
Carbon Reduction ◽  
Environmental Objectives ◽  
Sustainable Business Models

The literature on sustainable business models suggests a large potential for radical environmental benefits in many industries based upon current technological opportunities. However, there is a lack of empirical knowledge on how to design, implement and spread such business models in complex value chains. Based on a qualitative exploratory study, a concept for sustainable business models to reduce carbon emission when using construction machinery has been developed and measures needed to implement and design such a model within the construction industry is identified. The study is based upon interviews, study visits and a workshop, with participants representing all important actors in the value-chain. In conclusion, business and environmental objectives can be aligned through a result-oriented business model, supported by life-cycle data, contractual incentives, standardised emission measures and driver visualization. The concept is generalisable to the greening of value chains beyond carbon reduction and also to other complex business to business value-chains.

scholarly journals Entrepreneurship, Sport, Sustainability and Integration: A Business Model in the Low-Season Tourism Sector

2021 ◽  
Vol 10 (4) ◽  
pp. 117
Author(s):  
Ricardo Reier Forradellas ◽  
Sergio Náñez Alonso ◽  
Javier Jorge Vázquez ◽  
Miguel Ángel Echarte Fernández ◽  
Nicolas Vidal Miró
Keyword(s):  
Business Model ◽  
Business Models ◽  
Generation Model ◽  
Sustainable Business ◽  
Women's Sport ◽  
Participation Of Women ◽  
Tourism Sector ◽  
New Business ◽  
Global Tourism ◽  
Wealth Generation

The global tourism reality is changing, and not only because of the COVID-19 pandemic. This reality is especially representative in countries such as Spain, which are highly dependent on the income generated by the tourism sector. In these destinations, it is necessary to seek innovation and specialization in the sector in order to achieve new business models. This need is even more pressing in destinations overcrowded by the sun and beach effect, as is the case of Mallorca. The proposed work combines the concepts of sports tourism with the development of a wealth-generating business model that will contribute to promoting a tourism that is sustainable, environmentally friendly and deseasonalized. On the other hand, the proposed work will contribute to promoting integration and equality in the participation of women in sports through the development of a model based on the promotion of women’s football. Using the methodology of case analysis, the results of all the approaches outlined are provided, and we obtained a wealth-generation model that is easily replicable and sustainable over time. This work provides a solution to the combination of a sustainable business model that links responsible tourism, the promotion of women’s sport and the generation of wealth.

scholarly journals Entrepreneurial lean thinking for sustainable business modeling: a workshop design for incumbent firms

2021 ◽  
Author(s):  
E. J. Schwarz ◽  
P. Gregori ◽  
I. Krajger ◽  
M. A. Wdowiak
Keyword(s):  
Business Model ◽  
Business Models ◽  
Business Model Innovation ◽  
Opportunity Identification ◽  
Sustainable Business ◽  
Lean Thinking ◽  
Business Modeling ◽  
Innovation Research ◽  
Political Debates ◽  
Negative Environmental Impact

AbstractIn times of increasing concerns and extensive political debates about social and environmental problems, incumbent firms are obliged to reduce their negative environmental impact by implementing sustainable business model innovation. Yet, realizing more sustainable business model variants entails several complexities and associated challenges that need to be overcome. To support this task, this article takes an entrepreneurship perspective on sustainable business model innovation and combines literature of business models and entrepreneurial lean thinking (ELT). In doing so, it derives a workshop design grounded in contemporary theory with state-of-the-art tools and methods. The workshop is framed as a stage-gate process facilitating the notions of ELT with iterative cycles of ‘create, test, and improve’ and spans the phases of opportunity identification, opportunity evaluation, opportunity development through sustainable business model design, and decision of opportunity exploitation. The article shows that ELT is an appropriate yet underutilized approach for sustainable business modeling. Further, it discusses how the workshop supports opportunities and mitigate pitfalls of ELT for sustainable business modeling. As such, the findings have theoretical implications for the intersection of sustainability and lean approaches in innovation research as well as implications for practitioners by providing a comprehensive framework to support sustainable business model innovation.

scholarly journals Net-zero emission vehicles shift and equitable ownership in low-income households and communities: why responsible and circularity business models are essential

2021 ◽  
Vol 2 (1) ◽  
Author(s):  
Nana O. Bonsu
Keyword(s):  
Air Pollution ◽  
Low Income ◽  
Value Chain ◽  
Business Models ◽  
Industrial Revolution ◽  
Technological Development ◽  
Middle Income ◽  
Net Zero ◽  
Zero Emission ◽  
The Uk

AbstractThe UK Plan for a Green Industrial Revolution aims to ban petrol and diesel cars by 2030 and transition to electric vehicles (EVs). Current business models for EV ownership and the transition to net-net zero emissions are not working for households in the lowest income brackets. However, low-income communities bear the brunt of environmental and health illnesses from transport air pollution caused by those living in relatively more affluent areas. Importantly, achieving equitable EV ownership amongst low-and middle-income households and driving policy goals towards environmental injustice of air pollution and net-zero emissions would require responsible and circular business models. Such consumer-focused business models address an EV subscription via low-income household tax rebates, an EV battery value-chain circularity, locally-driven new battery technological development, including EV manufacturing tax rebates and socially innovative mechanisms. This brief communication emphasises that consumer-led business models following net-zero emission vehicles shift and decisions must ensure positive-sum outcomes. And must focus not only on profits and competitiveness but also on people, planet, prosperity and partnership co-benefits.

The future of the Internet of Things: toward heterarchical ecosystems and service business models

2018 ◽  
Vol 33 (6) ◽  
pp. 749-767 ◽  
Author(s):  
Seppo Leminen ◽  
Mervi Rajahonka ◽  
Mika Westerlund ◽  
Robert Wendelin
Keyword(s):  
Internet Of Things ◽  
Business Model ◽  
Value Chain ◽  
Large Scale ◽  
Business Models ◽  
The Internet ◽  
Content Type ◽  
Industry Collaboration ◽  
New Business ◽  
The Internet Of Things

Purpose This study aims to understand their emergence and types of business models in the Internet of Things (IoT) ecosystems. Design/methodology/approach The paper builds upon a systematic literature review of IoT ecosystems and business models to construct a conceptual framework on IoT business models, and uses qualitative research methods to analyze seven industry cases. Findings The study identifies four types of IoT business models: value chain efficiency, industry collaboration, horizontal market and platform. Moreover, it discusses three evolutionary paths of new business model emergence: opening up the ecosystem for industry collaboration, replicating the solution in multiple services and return to closed ecosystem as technology matures. Research limitations/implications Identifying business models in rapidly evolving fields such as the IoT based on a small number of case studies may result in biased findings compared to large-scale surveys and globally distributed samples. However, it provides more thorough interpretations. Practical implications The study provides a framework for analyzing the types and emergence of IoT business models, and forwards the concept of “value design” as an ecosystem business model. Originality/value This paper identifies four archetypical IoT business models based on a novel framework that is independent of any specific industry, and argues that IoT business models follow an evolutionary path from closed to open, and reversely to closed ecosystems, and the value created in the networks of organizations and things will be shareable value rather than exchange value.

scholarly journals Sustainable Business Models of SMEs: Challenges in Yacht Tourism Sector

2018 ◽  
Vol 10 (10) ◽  
pp. 3437 ◽  
Author(s):  
Cinzia Battistella ◽  
Maria Cagnina ◽  
Lucia Cicero ◽  
Nadia Preghenella
Keyword(s):  
Business Model ◽  
Business Models ◽  
Service Industry ◽  
Small And Medium Enterprises ◽  
Case Study Research ◽  
Tourism Industry ◽  
Sustainable Business ◽  
Bottom Line ◽  
Sustainable Business Models ◽  
Sustainability Challenges

Despite the high number of active small and medium enterprises (SMEs) in all sectors, current studies have barely developed investigations on the sustainability of their business models so far. The aim of this study was thus to bridge the gap between sustainable business models of SMEs in the service industry, to uncover the challenges that SMEs face when seeking business model reconfiguration toward sustainability. More specifically, the empirical investigation adopted a case study research design in the context of yacht tourism, as one business form among many within the tourism industry and thus within the broader category of the service industry. Interviews were conducted with seven European SMEs, whose business models were analyzed through the lens of the triple bottom line and sustainability challenges in their business models. The results display a varied typology of case studies, where business model components reveal diverse expressions of facing sustainability challenges. The work discusses reported findings with a cross-case comparison among detected business models and outlines a list of propositions for sustainable business models of SMEs. The paper contributes in continuing the discourse on sustainable business models, adopting the perspective of the challenges for SMEs and offers food for thought for managers of SMEs in comparing their own business with the identified business model types.

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