Navigating the process of sustainable business model innovation : a multiple case study of three large German firms

2020

Purpose – The main purpose of this study is to increase the understanding of the sustainable

business model innovation (SBMI) process in large firms by holistically examining the process

from “idea to launch.”

Design/methodology/approach – To provide an answer to how large firms navigate the

process of SBMI, an initial conceptual process framework based on insights from innovation

management literature and a synthesis of 16 process models from sustainable and conventional

business model innovation (BMI) literature was abductively developed into a final process

model that integrates the empirical findings of a multiple case study of SBMI processes in

three large German firms. Both in-case analysis and cross-case analysis were applied.

Findings – This study proposes a process model for SBMI in large corporations. It comprises

four process phases (diagnosis, discovery, design, and delivery) and provides insights into the

process activities performed and actors involved in the aforesaid four phases as well as the

overarching characteristics of the SBMI process as a whole. The study identifies ten process

activities. The results indicate that both analytical and experimental activities are present in

the SBMI process and while they show resemblance to conventional BMI, sustainability is

strongly embedded in most process activities. In terms of process actors, the findings indicate

that the process of SBMI is initiated either by the CEO or a small group of employees within

a department that request cross-functional support inside the organization and integrate

external stakeholders to a varying extent, depending on the process phase they are in.

However, a uniform organizational anchoring of SBMI responsibilities tends to be missing. In

terms of process characteristics, the findings suggest that the way that process actors navigate

the process of SBMI can be guided by systematic schemes, yet its nature is characterized by

non-linear iterations, in particular between the delivery and design phase as well as the

discovery and diagnosis phase. Finally, the findings reveal the relevance of timing and

intention in the process of SBMI, which emerged as additional patterns from the data.

Research implications – The study addresses the dearth of knowledge on the process of SBMI

and paucity of empirical research in the specific context of large firms. The study contributes

to the relatively nascent state of the process-oriented, holistic stream of SBMI literature.

Practical implications – The practical utility of the process model proposed lies in the

provision of guidance to managers and cross-functional teams that wish to navigate the process

of SBMI in the attempt to create a novel SBM or revise their current BM towards

sustainability. As such, it gives practitioners a clearer understanding of how to approach the

processual black box of SBMI, which constitutes a highly challenging and uncertain endeavor.

Keywords – Business model, sustainable business model, business model innovation,

sustainable business model innovation, process model, multiple case study, large firms.