Bocken, Short, Rana and Evans (2014) –
A literature review to develop sustainable business model archetypes
1. Background
With prospects of a rising global population, accelerating global development and associated increasing resource
use and environmental impacts, it seems increasingly apparent that business as usual is not an option for a
sustainable future.
It is not yet common practice in business to value the – often ‘free’ – natural assets. A holistic approach
(approach the whole thing, as opposed to things in part) is required to tackle the challenges of a sustainable
future: responses to environmental changes will necessarily need to be in parallel with economic social change.
Features of a route to sustainable economy might be:
A system that encourages minimising of consumption, or imposes personal and institutional caps or
quotas on energy, goods, water etc.
A system designed to maximise societal and environmental benefit, rather than prioritising economic
growth
A close-loop system where nothing is allowed to be wasted or discarded into the environment, which
reuses, repairs, and remakes in preference to recycling
An system that emphasises delivery of functionality and experience, rather than product ownership
A system designed to provide fulfilling, rewarding work experiences for all that enhances creativity/skills
A system built on collaboration and sharing, rather than aggressive competition
These types of changes require a fundamental shift in the purpose of business and almost every aspect of how it
is conducted. Business model innovation offers a potential approach to deliver the required change through re-
conceptualising the purpose of the firm and the value creating logic, and rethinking perceptions of value.
Business model innovation is increasingly recognised as a key to delivering greater social and environmental
sustainability in the industrial system. However, understanding of sustainable business models and the options
available for innovation for sustainability seems limited at present.
1.1. What is a business model?
A business model is a conceptual tool to help understand how a firm does business and can be used for analysis,
comparison and performance assessment, management, communication, and innovation (Osterwalder and
Pigneur, 2005).
Business models and business model innovation have received substantial attention in the literature and
industry and it is increasingly suggested that business model innovation is a key to business success.
1.2. Why are business models important for sustainability?
Eco-design and eco-efficiency improvements have assisted in
reducing energy, resource intensity, and emissions and waste
per unit of production
Sustainable business models can serve as a vehicle to coordinate
technological and social innovations with system-level
sustainability.
1.3. What is a business model innovation for sustainability?
Business model innovations for sustainability are defined as: innovations that create significant positive and/or
significantly reduced negative impacts for the environment and/or society, through changes in the way the
organisation and its value-network create, deliver and capture value.
, Böcken, Short, Rana & Evans (2010) | Article 1
2. Methods for categorising the mechanisms for delivering sustainability
1. Identification of themes and relevant categorisations
from the literature
1.1. Consideration of alternative categorisations and
frameworks suited to define sustainable business
model archetypes
2. Identification of business model sustainability
innovations from practice
Firstly, the main aims of the categorisation of sustainable business
model archetypes are to:
1. Provide a means for categorising and explaining business
model innovations for sustainability
2. Define generic mechanisms for actively assisting the
business model innovation process for sustainability
3. Define a clearer research agenda for business models for sustainability
4. Provide exemplars which explain and communicate busines model innovations to businesses to de-risk
the business model innovation process
3. Results: The sustainable business model archetypes
This section explains the sustainable business model archetypes developed in this paper. The archetypes are
classified in higher order groupings, which describe the main type of business model innovation: technological,
social, and organisational oriented innovations.
The technical grouping includes archetypes with a dominant technical innovation component (e.g. manufacturing
process and product redesign); the social grouping includes archetypes with a dominant social innovation
component while archetypes in the organisational grouping have a dominant organisational innovation change
component
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