The versatile role of sustainable market entrepreneurs in market transformation: An intervention framework for institutional change

This article investigates in which way sustainable entrepreneurship can generate institutional change that transforms markets towards sustainability. A transformation of models of economic organization and market structures through sustainable entrepreneurship fosters the path towards sustainability. Institutional change involves sustainable market entrepreneurs as institutional entrepreneurs that operate in an effectual manner in different market transformation phases. Sustainable market entrepreneurs while seeking entrepreneurial opportunities simultaneously shape existing market structures and market conditions in different sustainable market transformation phases thereby creating new opportunities. Accordingly, a framework that explains institutional change prompted by sustainable market entrepreneurs in market transformation phases is developed. In this framework, various interventions which encourage sustainable market entrepreneurs to co-create with the stakeholders of their choice are strategized. The provided framework enhances the understanding of the versatile role of sustainable market entrepreneurs and potentially the leverage of their actions towards institutional impact over time.     

Linking sustainable business models and supply chains — Toward an integrated value creation framework

Extant literature on sustainable business models highlights that value creation stems from resources exchanged in relationships between a focal firm and its stakeholders. In this context, the literature has, so far, focused on direct relationships. However, despite the acknowledged relevance of sustainability issues in supply chains, this relational view of the focal company and its direct stakeholders has not been extended toward value creation for and with indirect stakeholders, such as stakeholders of suppliers. Addressing this gap, this conceptual article integrates a relational view of sustainable supply chain management into the management of sustainable business models. It extends the scope of sustainable business models from relationships between the focal firm and its direct stakeholders to indirect relationships with stakeholders of suppliers. A framework is developed that supports analysis and management of value-creating relationships between the focal firm, suppliers, and stakeholders of suppliers. By extending the conceptualization of sustainable business models to consider relationship chains beyond direct relationships, this article proposes that a focal firm has to actively manage interactions both with suppliers and with suppliers' stakeholders.     

Business Model Innovation for Sustainability: Towards a Unified Perspective for Creation of Sustainable Business Models

Business model innovation has seen a recent surge in academic research and business practice. Changes to business models are recognized as a fundamental approach to realize innovations for sustainability. However, little is known about the successful adoption of sustainable business models (SBMs). The purpose of this paper is to develop a unified theoretical perspective for understanding business model innovations that lead to better organizational economic, environmental and social performance. The paper examines bodies of literature on business model innovation, sustainability innovation, networks theory, stakeholder theory and product–service systems. We develop five propositions that support the creation of SBMs in a unified perspective, which lays a foundation to support organizations in investigating and experimenting with alternative new business models. This article contributes to the emerging field of SBMs, which embed economic, environmental and social flows of value that are created, delivered and captured in a value network. It highlights gaps for addressing the challenges of business model innovation for sustainability and suggests avenues for future research. © 2017 The Authors. Business Strategy and the Environment published by ERP Environment and John Wiley & Sons Ltd     

Corporate sustainability and innovation in SMEs: Evidence of themes and activities in practice

Recently, innovation processes towards sustainable development have received increasing attention in academic literature. This research introduces the combination of insights from innovation theory, sustainable development practice and small business characteristics to unlock new knowledge on factors that influence the translation of sustainable innovation within small and medium‐sized enterprises (SMEs) into practice. The sustainability themes and activities as described for large companies (i.e. in the sustainability reporting and management literature) were used as starting point in this study. It presents empiric results of the PRIMA Project conducted within the rubber and plastics industry (RPI) on sustainable innovation activities. It will show that many sustainable innovations are directed at the improvement of technological processes (eco‐efficiency) and to lower costs of production. These innovations can be seen as incremental. Companies with sustainability integrated in their orientation and innovation processes show value creation: the development of products new to the market (radical innovations) and cooperation with stakeholders. The PRIMA project shows that more insight in SME innovative characteristics and (e)valuation of sustainable innovation efforts provides opportunities to improve the sustainability performance of SMEs. Copyright © 2009 John Wiley & Sons, Ltd and ERP Environment.     

Does adoption of ISO 56002-2019 and green innovation reporting enhance the firm sustainable development goal performance? An emerging paradigm

Reporting is a means of communication for companies to their respective stakeholders. The literature on non-financial reporting has mostly focused on operational, Carbon Discloser Project (CDP), and environmental disclosure to firm performance. This reporting and disclosure approach adopted by companies in their sustainability practices appears to be a normative approach. However, there has been a growing demand by stakeholders to incorporate proactive approach in business activities. To meet that, green innovation practices (GIPs) has been integrated as a new element in environmental reporting, thereby reflecting the proactiveness of companies in their adoption of green innovation reporting (GIR). The objective of this study is to advocate for greater disclosure on sustainability reporting by incorporating the GIPs of companies and substantial, sustainable development goal contribution, along with the moderation of the newly upgraded ISO 56002-2019 innovation management system. Adoption of green innovation reporting and ISO 56002-2019 will enhance the level of transparency of business activities and create greater stakeholder confidence along with enhancing the firm's sustainable development of goal performance. Furthermore, an extensive literature review was undertaken to create a GIR framework (i.e., product, process, service and technology) for firms to integrate GIPs into sustainability reporting. The conceptual model proposed the adoption of green innovation reporting and ISO 56002-2019 innovation management system to firm sustainable development goal. This needs to be injected into the sustainable reporting of companies to reflect their innovativeness, actual sustainable business practices and sustainable development goal performance for the firm.     

Sustainable product innovation and changing consumer behavior: Sustainability affordances as triggers of adoption and usage

This conceptual paper argues that for sustainable product innovation to make a contribution to addressing sustainability issues, we need to understand not only why consumers adopt sustainable products but also what makes them use these in sustainable way. To explain how specific product features can change the ways in which consumers engage with sustainable products in the adoption and usage phase, we draw on affordance theory. Affordances refer to the potential for agentic action of users in relation to a technological object. We develop a conceptual framework that explains how sustainable product innovation can lead to the design of sustainability affordances that stimulate adoption and sustainable usage. The framework shows how three forms of agency—material, firm, and user agency—interact and together influence a product's sustainability affordances that drive adoption and a change in consumer behavior. The framework explains how trade-offs between a product's environmental features and consumer expectations regarding desired functionalities and user experience can be overcome.     

Influences on Sustainable Innovation Adoption: Evidence from Leadership in Energy and Environmental Design

The adoption of innovations associated with environmental sustainability has been a topic of growing interest among scholars. The research presented in this paper draws on Abrahamson's theoretical framework of fads and fashions to argue that dimensions of uncertainty and degree of external versus internal influence provide significant insights into firms' decisions to adopt sustainable building innovations. We develop three hypotheses, reflecting three views of adoption influence: fad, fashion, and efficient‐choice. We find that adoption of Leadership in Energy and Environmental Design (LEED) green building certification in the United States was more likely among firms similarly oriented toward end‐consumers and among firms strategically positioned as environmental leaders. These results provide support for the fad and efficient‐choice views of adoption, respectively. Contrary to expectations suggested by the fashion perspective, adoption was not more likely among firms located in states whose political leaders are more committed to environmental protection. Our findings offer important implications for practitioners and policy makers seeking to encourage sustainable building design. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment.     

Connecting business with the agricultural landscape: business strategies for sustainable rural development

Agribusiness enterprises link rural landscapes to global and regional markets. The nature of these business–landscape relationships is vital to the sustainability transition. Decisions by farmers and agriculture policymakers aggregate to changes in the ecology of landscapes, but the influence of food supply system businesses on rural landscape sustainability also requires scrutiny. This article uses four international cases to present a conceptual framework for investigating how different business strategies can support agricultural landscape sustainability. Insights from North America, New Zealand, The Netherlands, and Denmark inform the framework dimensions of horizontal/territorial and vertical/systemic business–landscape relationships. Three types of business model that promote rural sustainability are highlighted: provenance, cogovernance, and placemaking. These models engage strategies such as environmental management systems, certification, ecosystem and landscape services, and spatial planning. Research directions that will improve understanding about how business can engage with rural stakeholders for more sustainable rural landscapes are identified, including the need for cross disciplinary perspectives incorporating social, ecological, and business knowledge.     

Measures for Sustainable Investment Decisions and Business Strategy – A Triple Bottom Line Approach

Traditionally, most investors have only taken economic variables (profitability and risk) into account when making investment decisions. In this paper we propose two measures, the Relative Sustainable Performance Measure (RSPM) and the Measure of Commitment‐failure (MC), that permit sustainable decision making, which takes environmental and social variables into consideration in addition to the economic variables, for both investors and companies themselves. This makes a triple bottom line (TBL) approach to investment decision making possible. We apply our measures to the worldwide chemical sector and validate them. Moreover, we propose a 2D graphical sustainability analysis, which is simple and easy for investors to understand when making investment decisions and can be used if they are concerned about environmental and social matters. It also enables companies to analyse their sustainability performance and adapt their business plans accordingly. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment     

Radical innovation in scaling up: Boeing’s Dreamliner and the challenge of socio-technical transitions

Radical technological innovations are needed to achieve sustainability, but such innovations confront unusually high barriers, as they often require sociotechnical transitions. Here we use the theoretical perspectives and methods of Science and Technology Studies (STS) to demonstrate ways that existing theories of innovation and sociotechnical transitions, such as the Multi-Level Perspective (MLP), can be expanded. We test the MLP by applying STS methods and concepts to analyze the history of aircraft composites (lightweight materials that can reduce fuel consumption and greenhouse gas emissions), and use this case to develop a better understanding of barriers to radical innovation. In the MLP, "radical innovation" occurs in local niches—protected spaces for experimentation—and is then selected by a sociotechnical regime. The history of composite materials demonstrates that radical innovation could not be confined to "niches," but that the process of scaling up to a wholly new product itself required radical innovation in composites. Scaling up a process innovation to make a new product itself required radical innovation. These findings suggest a need to refine sociotechnical transitions theories to account for technologies that require radical innovation in the process of scaling up from the level of sociotechnical niche to regime.     

Stakeholder theory and actor-network theory: The stakeholder engagement in energy transitions

The idea of sustainable development highlights the need to address economic, social, and environmental aspects to preserve the rights and needs of future generations. This paper proposes an association between stakeholder theory (ST) and Actor-Network Theory (ANT) that can better explain the dynamics of actors in the energy sector, in the context of sociotechnical transitions to sustainability. By selectively examining the way in which different researchers perceive this subject, we intend to address how the engagement of the stakeholders can promote sociotechnical transitions in the energy sector trough the connection between ST and ANT. We aim to characterize the dynamics of stakeholder's engagement in sociotechnical transitions in the context of sustainability in the energy sector, trough the connection of the two theories. A narrative literature review was performed on scientific databases. The results showed that sociotechnical transitions in the energy sector require the involvement of multiple actors with different interests and that ST associated with ANT provides a good basis for research on this theme. The association of both theories highlights the importance of ST to enhance cooperation in the areas of clean energy research and technology, providing a theoretical tool for understanding the dynamics of transitions and its different pathways. For future studies, it is recommended to deepen the relationship between human and non-human actors and their role as stakeholders.     

Responsible Innovation Toward Sustainable Development in Small and Medium‐Sized Enterprises: a Resource Perspective

What resources do small enterprises need to develop responsible innovations that enhance sustainable development? Does lack of resources prevent innovation toward sustainability in small and medium‐sized enterprises (SMEs) or can innovations be created with scarce resources? This study investigates environmentally and socially responsible innovations of SMEs from a resource perspective, based on empirical data from 13 Nordic SMEs. The findings indicate that SMEs can create responsible innovations with very different resource combinations. The most common resource combination comprises equity, research and development cooperation, networks, industry knowledge and reputation. Except for financial capital in the form of equity, which appears a necessary condition for responsible innovation from SMEs, resource needs vary between technological and business model innovations. Creating business model innovations appears to be possible with scarce resources, at the very least with equity and social capital. Environmental technology innovations call for more abundant resource combinations. In particular industry knowledge appears to be a key resource for such innovations. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment     

Sustainable Development and Business Models of Entrepreneurs in the Organic Food Industry

The business case for a sustainable firm, in particular the business case for new entrepreneurial initiatives responding to environmental demands, is increasingly receiving attention from practitioners and scholars. This article contributes to existing literature on business models, sustainable development and entrepreneurship, by applying components of business models to the practices of entrepreneurs that have a goal of environmental sustainability and a focus on the mass market (i.e. ecopreneurs). We define the ecopreneurial business model and specify four varieties of this business model, which consist of different combinations of environmental scope and a focus on the mass market and profitability. The distinguishing factor of the ecopreneurial business model is that it transforms disvalue into value, thereby creating greater customer value for environmentally concerned consumers. The results are based on a substantial set of interviews among ecopreneurs in the organic food and beverage industry in the Netherlands. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment     

Stakeholder management and sustainability strategies in the French nuclear industry

This paper describes how a nuclear power corporation integrates sustainability into corporate strategies and practices. The case study focuses on one of the world's largest nuclear power generators and describes the corporate capture of sustainable development in its strategic efforts to promote a growth strategy. The paper shows how corporate strategies to address sustainability concerns involve managing different stakeholders, enabling the corporation to sustain its economic growth strategy. Three types of stakeholder management strategy are identified: reinforcement strategies for supportive stakeholders, containment strategies for obstructive stakeholders and stabilization strategies for passive stakeholders. The paper argues that, despite claims of sustainable development in the nuclear industry, there is no significant shift in the ‘business as usual’ approach and that sustainable development is merely reframed as sustainable growth. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.     

Sustainable entrepreneurship and sustainability innovation: categories and interactions

The purpose of this paper is to propose a framework to position sustainable entrepreneurship in relation to sustainability innovation. The framework builds on a typology of sustainable entrepreneurship, develops it by including social and institutional entrepreneurship, i.e. the application of the entrepreneurial approach towards meeting societal goals and towards changing market contexts, and relates it to sustainability innovation. The framework provides a reference for managers to introduce sustainability innovation and to pursue sustainable entrepreneurship. Methodologically, the paper develops an approach of qualitative measurement of sustainable entrepreneurship and how to assess the position of a company in a classification matrix. The degree of environmental or social responsibility orientation in the company is assessed on the basis of environmental and social goals and policies, the organization of environmental and social management in the company and the communication of environmental and social issues. The market impact of the company is measured on the basis of market share, sales growth and reactions of competitors. The paper finds conditions under which sustainable entrepreneurship and sustainability innovation emerge spontaneously. The research has implications for theory and practitioners in that it clarifies which firms are most likely under specific conditions to make moves towards sustainability innovation. The paper makes a contribution in showing that extant research needs to be expanded with regard to motivations for innovation and that earlier models of sustainable entrepreneurship need to be refined. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.     

Sustainability concerns in luxury supply chains: European brand strategies and French consumer expectations

Sustainability in supply chain management has become a concern in both research and practice. Although consumption and purchasing have been significantly explored in the luxury sector, a gap in supply chain studies is still evident. Therefore, the aim of this article is to examine how industry bodies and supply chain partners address sustainability concerns in the European luxury sector and how they respond to consumer expectations. In an explanatory study, we have collected data about sustainable supply chain practices in 11 European luxury good companies, by interviewing and surveying 13 managers. In a first consumer study, we held interviews with French luxury consumers in Bordeaux about their sustainability expectations (N = 170). The results show that while the distribution of attention is dependent on the respective supply chain activities, luxury goods companies address sustainability concerns and aim to take responsibility for their activities. However, the emphasis is on the dimension of economic sustainability. A comparison with sustainability expectations of French luxury goods consumers suggests that business practices are not perfectly well aligned with these expectations. Consumers put more emphasis on social and environmental sustainability dimensions. On the other hand, business activities concerning waste reduction and raw material management rather well match consumer expectations.     

Integrating Sustainability into Firms' Processes: Performance Effects and the Moderating Role of Business Models and Innovation

Innovation has been widely regarded as a panacea for sustainable development, but there remains considerable uncertainty about how it will lead to a more sustainable society. We analyze the role of innovation and business models for the link between the integration of sustainable management with other corporate functions and the economic and environmental performance of companies. Drawing on survey data in the manufacturing sector, we apply structural equation modeling to compare differences between business models and the role of different stakeholder groups in a moderation analysis. We find a positive association of the integration of strategic issues and environmental management with the economic and environmental performance of firms. The results also suggest differences in the link between integration and economic and environmental performance, respectively, depending on the type of business model or innovation pursued, and that secondary stakeholders influence sustainability integration. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment.     

Our Collaborative Future: Activities and Roles of Stakeholders in Sustainability‐Oriented Innovation

While stakeholders have long been at the forefront of sustainable development debates, the emphases have tended to be on different stakeholder pressures, or managing stakeholder expectations about controversial issues. In this paper we bring a fresh direction to these debates and ask in what ways different stakeholders can contribute to sustainable innovation in firms. Based on 80 semi‐structured interviews, we conduct a fine‐grained qualitative analysis of stakeholder activities in sustainability‐oriented innovation (SOI) processes in 13 different companies across Europe. Our analysis identifies eight roles that stakeholders play in SOI processes: stimulator, initiator, broker/mediator, concept refiner, legitimator, educator, context enabler and impact extender. More traditional roles such as legitimator and educator are less common in our cases. However, emerging roles such as stimulator, concept refiner, context enabler and impact extender are clearly identifiable and could be particularly valuable for SOI. We enhance a collaborative perspective of stakeholder theory, finding that stakeholders can play highly collaborative and proactive roles, and argue that secondary stakeholders may actually be more relevant for SOI than primary stakeholders. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment     

Insider perspectives on growth: Implications for a nondichotomous understanding of ‘sustainable’ and conventional entrepreneurship

The aim of this paper is to offer an alternative to a priori theorising in research on firm-level growth and environmental sustainability. We outline an approach that combines John Shotter's phenomenology with post-hoc application of the Bourdieusian concepts of habitus, practices and social capital. This is illustrated empirically through a study conducted with a small group of Finnish entrepreneurs, which examines their lived experience of growth alongside its practical application in their ventures. The entrepreneurs' responses reveal holistic perspectives on growth that extend beyond the economic to incorporate personal commitments to norms of collectivity and well-being for themselves and others. The paper offers an exploratory but empirically grounded approach, arguing that a combination of insiders' perspectives and attention to the social embedding of economic activity challenge the dichotomous distinctions between sustainable and conventional entrepreneurship and reveal a degree of commonality that would not be evident via conventional categorisations on the basis of features such as business model type.     

Family and Lone Founder Ownership and Strategic Behaviour: Social Context,Identity, and Institutional Logics

There is controversy in the literature about the effects of ownership on strategy and performance. Some scholars have taken agency explanations as definitive, arguing that closely held firms outperform. Empirical studies, however, show conflicting findings for firms with concentrated ownership: lone founder firms outperform, family firms do not. Such conflicts may be due to the failure of agency theory to distinguish between the social contexts of these different types of owners. We argue that explanations of performance must take into account not simply ownership, but who are the owners or executives and how their social contexts may influence their strategic priorities. Family owners and CEOs, influenced by family stakeholders in the business, are argued to assume the role identities and logics of family nurturers and thus strategies of conservation. By contrast, lone founders, influenced by a wider set of market‐oriented stakeholders, are argued to embrace the identities and logics of entrepreneurs and strategies of growth. Family founders and founder‐executives are held to blend both orientations. These notions are supported in a study of Fortune 1000 companies.