Business cases for sustainability: The role of business model innovation for corporate sustainability

International Journal of Innovation and Sustainable Development

Volumn 6, Issue 2, 2012, Pages 95-119

  Schaltegger, Stefan ^a   Lüdeke Freund, Florian ^a   Hansen, Erik G ^a  

^a LEUPHANA UNIVERSITY OF LÜNEBURG   (Germany)

Author keywords

Business case drivers; Business case for sustainability; Business model for sustainability; Conceptual model; Corporate social responsibility; Corporate sustainability; CSR; Framework; Proactive environmental strategies; Radical innovation; Strategic management; Sustainability innovation; Sustainability strategies

Indexed keywords

EID: 84861647808     PISSN: 17408822     EISSN: 17408830     Source Type: Journal    
DOI: 10.1504/IJISD.2012.046944     Document Type: Article

References (126)

1. Afuah, A. (2004) Business Models. A Strategic Management Approach, McGraw-Hill/Irwin, Boston.
2. Amit, R. and Zott, C. (2010) 'Business model innovation: creating value in times of change', IESE Working Paper No. WP-870, IESE Business School/University of Navarra, Barcelona.
3. Aragón-Correa, J. and Rubio-López, E. (2007) 'Proactive corporate environmental strategies: myths and misunderstandings', Long Range Planning, Vol. 40, No. 3, pp.357-381. (Pubitemid 47233363)
4. Argyris, C. (1999) On Organizational Learning, 2nd ed., Blackwell Business, Malden.
5. Azzone, G. and Bertelè, U. (1994) 'Exploiting green strategies for competitive advantage', Long Range Planning, Vol. 27, No. 6, pp.66-81.
6. Backer, L. (2009) 'When oil and wind turbine companies make green sense together', Business Strategy and the Environment, Vol. 18, No. 1, pp.43-52.
7. Baden-Fuller, C. and Morgan, M. (2010) 'Business models as models', Long Range Planning, Vol. 43, Nos. 2/3, pp.156-171.
8. Ballon, P. (2007) 'Business modelling revisited: the configuration of control and value', The Journal of Policy, Regulation and Strategy for Telecommunications, Information and Media, Vol. 9, No. 5, pp.6-19. (Pubitemid 47261478)
9. Bhimani, A. and Soonwalla, K. (2005) 'From conformance to performance: the corporate responsibilities continuum', Journal of Accounting and Public Policy, Vol. 24, No. 3, pp.165-174. (Pubitemid 40757816)
10. Birkin, F., Cashman, A., Koh, S. and Liu, Z. (2009a) 'New sustainable business models in China', Business Strategy and the Environment, Vol. 18, No. 1, pp.64-77.
11. Birkin, F., Polesie, T. and Lewis, L. (2009b) 'A new business model for sustainable development: an exploratory study using the theory of constraints in Nordic organizations', Business Strategy and the Environment, Vol. 18, No. 5, pp.277-290.
12. Burke, L. and Logsdon, J.M. (1996) 'How corporate social responsibility pays off', Long Range Planning, Vol. 29, No. 4, pp.495-502. (Pubitemid 126401121)
13. Buysse, K. and Verbeke, A. (2003) 'Proactive environmental strategies: a stakeholder management perspective', Strategic Management Journal, Vol. 24, No. 5, pp.453-470.
14. Carroll, A.B. (1979) 'A three-dimensional conceptual model of corporate performance', Academy of Management Review, Vol. 4, No. 4, pp.497-505.
15. Carroll, A.B. (1991) 'The pyramid of corporate social responsibility: towards the moral management of organizational stakeholders', Business Horizons, Vol. 34, No. 4, pp.39-48.
16. Casadesus-Masanell, R. and Ricart, J. (2010) 'From strategy to business models and onto tactics', Long Range Planning, Vol. 43, Nos. 2/3, pp.195-215.
17. Chesbrough, H. (2007) 'Business model innovation it's not just about technology anymore', Strategy & Leadership, Vol. 35, No. 6, pp.12-17.
18. Chesbrough, H. (2010) 'Business model innovation: opportunities and barriers', Long Range Planning, Vol. 43, Nos. 2/3, pp.354-363.
19. Chesbrough, H. and Rosenbloom, R. (2002) 'The role of the business model in capturing value from innovation: evidence from Xerox Corporation's technology spin-off companies', Industrial & Corporate Change, Vol. 11, No. 3, pp.529-555. (Pubitemid 34703901)
20. Christmann, P. (2000) 'Effects of 'best practices' of environmental management on cost advantage: the role of complementary assets', Academy of Management Journal, Vol. 43, No. 4, pp.663-680.
21. Cohen, B. and Winn, M.I. (2007) 'Market imperfections, opportunity and sustainable entrepreneurship', Journal of Business Venturing, Vol. 22, No. 1, pp.29-49. (Pubitemid 44550755)
22. Collins, E., Roper, J. and Lawrence, S. (2010) 'Sustainability practices: trends in New Zealand businesses', Business Strategy and the Environment, Vol. 19, No. 8, pp.479-494.
23. Davis, K. and Blomstrom, R. (1975) Business and Society Environment and Responsibility, 3rd ed., McGraw-Hill/Irwin, New York.
24. Demil, B. and Lecocq, X. (2010) 'Business model evolution: in search of dynamic consistency', Long Range Planning, Vol. 43, Nos. 2/3, pp.227-246.
25. Devisscher, T. and Mont, O. (2008) 'An analysis of a product service system in Bolivia: coffee in Yungas', International Journal of Innovation and Sustainable Development, Vol. 3, Nos. 3/4, pp.262-284.
26. Doz, Y. and Kosonen, M. (2010) 'Embedding strategic agility: a leadership agenda for accelerating business model renewal', Long Range Planning, Vol. 43, Nos. 2/3, pp.370-382.
27. Dyllick, T. and Hockerts, K. (2002) 'Beyond the business case for corporate sustainability', Business Strategy and the Environment, Vol. 11, No. 2, pp.130-141. (Pubitemid 34268282)
28. Eden, S. (1994) 'Using sustainable development: the business case', Global Environmental Change, Vol. 4, No. 2, pp.160-167. (Pubitemid 2092436)
29. Edwards, D. (1998) The Link between Company Environmental and Financial Performance, Earthscan Publications, London.
30. Ehnert, I. (2009) Sustainable Human Resource Management. A Conceptual and Exploratory Analysis from a Paradox Perspective, Physica, Heidelberg.
31. Elkington, J. (1998) 'Partnerships from cannibals with forks: the triple bottom line of 21st-century business', Environmental Quality Management, Vol. 8, No. 1, pp.37-51.
32. Elkington, J. (2004) 'Enter the triple bottom line', in Henriques, A. and Richardson, J. (Eds.): The Triple Bottom Line, Does it All Add Up?, pp.1-16, Earthscan Publications, London.
33. Epstein, M.J. (2003) 'Making the business case for sustainability: linking social and environmental actions to financial performance', Journal of Corporate Citizenship, Vol. 9, No. 1, pp.79-96.
34. Epstein, M.J. and Roy, M. (1996) Measuring Corporate Environmental Performance Best Practices for Costing and Managing an Effective Environmental Strategy, Irwin Professional Publ., Chicago.
35. Esty, D. and Porter, M.E. (1998) 'Industrial ecology and competitiveness. Strategic implications for the firm', Journal of Industrial Ecology, Vol. 2, No. 1, pp.35-43. (Pubitemid 128474303)
36. Eyring, M.J., Johnson, M.W. and Nair, H. (2011) 'New business models in emerging markets', Harvard Business Review, Vol. 89, Nos. 1/2, pp.88-95.
37. Frederick, W. (1978, 1994) 'From CSR1 to CSR2. The maturing of business-and-society thought', Business & Society, Vol. 33, No. 2, pp.150-164.
38. Garriga, E. and Melé, D. (2004) 'Corporate social responsibility theories: mapping the territory', Journal of Business Ethics, Vol. 53, Nos. 1-2, pp.51-71. (Pubitemid 39187353)
39. Griffin, J. (2000) 'Corporate social performance: research directions for the 21st century', Business & Society, Vol. 39, No. 4, pp.479-491.
40. Griffin, J. and Mahon, J. (1997) 'The corporate social performance and corporate financial performance debate: twenty five years of incomparable research', Business & Society, Vol. 36, No. 1, pp.5-31. (Pubitemid 127037641)
41. Hamel, G. (2000) Leading the Revolution, Harvard Business School Press, Boston.
42. Hamilton, J.T. (1995) 'Pollution as news media and stock market reactions to the toxic release inventory data', Journal of Environmental Economics and Management, Vol. 28, No. 1, pp.98-113.
43. Hansen, E.G. (2010) Responsible Leadership Systems: An Empirical Analysis of Integrating Corporate Responsibility into Leadership Systems, Galber, Wiesbaden, Germany.
44. Hansen, E.G., Gomm, M.L., Bullinger, A.C. and Möslein, K.M. (2010) 'A community-based toolkit for designing ride-sharing services: the case of a virtual network of ride access points in Germany', International Journal of Innovation and Sustainable Development, Vol. 5, No. 1, pp.80-99.
45. Hansen, E.G., Große-Dunker, F. and Reichwald, R. (2009) 'Sustainability innovation cube - a framework to evaluate sustainability- oriented innovations', International Journal of Innovation Management, Vol. 13, No. 4, pp.683-713.
46. Hart, S.L. and Ahuja, G. (1996) 'Does it pay to be green? An empirical examination of the relationship between emission reduction and firm performance', Business Strategy and the Environment, Vol. 5, No. 1, pp.30-37. (Pubitemid 27046719)
47. Heinze, D., Sibary, S. and Sikula, A. (1999) 'Relation among corporate social responsibility, financial soundness, and investment value in 22 manufacturing industry groups', Ethics & Behavior, Vol. 9, No. 4, pp.331-347.
48. Hemphill, T.A. (1997) 'Legislating corporate social responsibility', Business Horizons, Vol. 40, No. 2, pp.53-58.
49. Henriques, I. and Sadorsky, P. (1999) 'The relationship between environmental commitment and managerial perceptions of stakeholder importance', The Academy of Management Journal, Vol. 42, No. 1, pp.87-99.
50. Holliday, C., Schmidheiny, S. and Watts, P. (2002) Walking the Talk: The Business Case for Sustainable Development, Greenleaf, Sheffield.
51. Holme, R. and Watts, O. (2000) Corporate Social Responsibility. Making Good Business Sense, World Business Council for Sustainable Development, Geneva.
52. Jasch, C. (2008) Material Flow Cost Accounting, Springer, Dordrecht.
53. Johnson, M. (2010) Seizing the White Space. Business Model Innovation for Growth and Renewal, Harvard Business Press, Boston.
54. Johnson, M. and Suskewicz, J. (2009) 'How to jump-start the clean tech economy', Harvard Business Review, Vol. 87, No. 11, pp.52-60.
55. Johnson, M., Christensen, C. and Kagermann, H. (2008) 'Reinventing your business model', Harvard Business Review, Vol. 86, No. 12, pp.50-59.
56. Jones, K. and Rubin, P.H. (1999) Effects of Harmful Environmental Events on Reputations of Companies, Department of Economics/Emory University, Atlanta.
57. Kim, D.H. (1993) 'The link between individual and organizational learning', Sloan Management Review, Vol. 35, No. 1, pp.37-50.
58. Lankoski, L. (2000) Determinants of Environmental Profit, Helsinki University of Technology, Helsinki.
59. Lankoski, L. (2006) 'Environmental and economic performance. The basic links', in Schaltegger, S. and Wagner, M. (Eds.): Managing the Business Case for Sustainability, pp.46-60, Greenleaf, Sheffield.
60. Levitt, B. and March, J.G. (1988) 'Organizational learning', Annual Review of Sociology, Vol. 14, pp.319-338.
61. Lüdeke-Freund, F. (2009) Business Model Concepts in Corporate Sustainability Contexts. From Rhetoric to a Generic Template for Business Models for Sustainability, CSM, Lüneburg.
62. Magretta, J. (2002) 'Why business models matter', Harvard Business Review, Vol. 80, No. 5, pp.86-92.
63. Mäkinen, S. and Seppänen, M. (2007) 'Assessing business model concepts with taxonomical research criteria. A preliminary study', Management Research News, Vol. 30, No. 10, pp.735-748.
64. Margolis, J.D. and Walsh, J.P. (2003) 'Misery loves companies. Rethinking social initiatives by business', Administrative Science Quarterly, Vol. 48, No. 2, pp.268-305.
65. Martin, R. (2002) 'The virtue matrix: calculating the return on corporate responsibility', Harvard Business Review, Vol. 80, No. 3, pp.68-75.
66. McAdam, T. (1973) 'How to put corporate responsibility into practice', Business and Society Review/Innovation, No. 6, pp.8-16.
67. Meyer, J.W. and Rowan, B. (1977) 'Institutionalized organizations: formal structure as myth and ceremony', The American Journal of Sociology, Vol. 83, No. 2, pp.340-363.
68. Miles, R.E. and Snow, C.C. (1978) Organizational Strategy, Structure, and Process, McGraw-Hill, New York.
69. Mintzberg, H. (1983) 'The case for corporate social responsibility', Journal of Business Strategy, Vol. 4, No. 2, pp.3-14.
70. Mitchell, D. and Coles, C. (2003) 'The ultimate competitive advantage of continuing business model innovation', Journal of Business Strategy, Vol. 24, No. 5, pp.15-21.
71. Mitchell, D. and Coles, C. (2004a) 'Business model innovation breakthrough moves', Journal of Business Strategy, Vol. 25, No. 1, pp.16-26.
72. Mitchell, D. and Coles, C. (2004b) 'Establishing a continuing business model innovation process', Journal of Business Strategy, Vol. 25, No. 3, pp.39-49.
73. Montalvo, C. (2008) 'General wisdom concerning the factors affecting the adoption of cleaner technologies: A survey 1990-2007', Journal of Cleaner Production, Vol. 16, No. 1, Supplement 1, pp.7-13. (Pubitemid 350236836)
74. Montalvo, C. and Kemp, R. (2008) 'Cleaner technology diffusion: case studies, modeling and policy', Journal of Cleaner Production, Vol. 16, No. 1, Supplement 1, pp.1-6. (Pubitemid 350245753)
75. Norman, W. and MacDonald, C. (2004) 'Getting to the bottom of triple bottom line', Business Ethics Quarterly, Vol. 14, No. 2, pp.243-262.
76. Olve, N.-G., Roy, J. and Wetter, M. (1999) Performance Drivers, Chichester: Wiley.
77. Osterwalder, A. (2004) 'The business model ontology. A proposition in a design science approach', PhD thesis, Universite de Lausanne, Switzerland.
78. Palmer, K., Oates, W. and Portney, P. (1995) 'Tightening environmental standards: the benefit-cost or the no-cost paradigm?', The Journal of Economic Perspectives, Vol. 9, No. 4, pp.119-132.
79. Parnell, J. (2008) 'Sustainable strategic management: construct, parameters, research directions', International Journal of Sustainable Strategic Management, Vol. 1, No. 1, pp.35-45.
80. Pava, M. and Krausz, J. (1996) 'The association between corporate social-responsibility and financial performance: the paradox of social cost', Journal of Business Ethics, Vol. 15, No. 3, pp.321-357. (Pubitemid 126173473)
81. Pearce, B. (2003) Sustainability and Business Competitiveness. Measuring the Benefit for Business Competitive Advantage from Social Responsibility and Sustainability, Forum for the Future, London.
82. Perceva, C. (2003) 'Towards a process view of the business case for sustainable development: lessons from the experience at BP and Shell', Journal of Corporate Citizenship, Vol. 9, pp.117-132.
83. Porter, M.E. (1996) 'What is strategy?', Harvard Business Review, Vol. 74, No. 6, pp.61-78.
84. Porter, M.E. and Kramer, M.R. (2011) 'Creating shared value', Harvard Business Review, Vol. 89, Nos. 1/2, pp.62-77.
85. Porter, M.E. and van der Linde, C. (1995a) 'Toward a new conception of the environment-competitiveness relationship', Journal of Economic Perspectives, Vol. 9, No. 4, pp.97-118.
86. Porter, M.E. and van der Linde, C. (1995b) 'Green and competitive: ending the stalemate', Harvard Business Review, Vol. 73, No. 5, pp.120-133.
87. Prahalad, C.K. and Bettis, R. (1995) 'The dominant logic: retrospective and extension', Strategic Management Journal, Vol. 16, No. 1, pp.5-14.
88. Pujari, D. (2006) 'Eco-innovation and new product development understanding the influences on market performance', Technovation, Vol. 26, No. 1, pp.76-85. (Pubitemid 41689843)
89. Reinhardt, F.L. (1999) 'Bringing the environment down to earth', Harvard Business Review, Vol. 77, No. 4, pp.149-157.
90. Reinhardt, F.L. (2000) Down to Earth: Applying Business Principles to Environmental Management, Harvard Business School Press, Boston.
91. Revell, A. and Blackburn, R. (2007) 'The business case for sustainability? An examination of small firms in the UK's construction and restaurant sectors', Business Strategy and the Environment, Vol. 16, No. 6, pp.404-420. (Pubitemid 47408463)
92. Revell, A., Stokes, D. and Chen, H. (2010) 'Small businesses and the environment: turning over a new leaf?', Business Strategy and the Environment, Vol. 19, No. 5, pp.273-288.
93. Roome, N. (1992) 'Developing environmental management strategies', Business Strategy and the Environment, Vol. 1, No. 1, pp.11-24.
94. Russo, M.V. and Fouts, P.A. (1997) 'A resource-based perspective on corporate environmental performance and profitability', Academy of Management Journal, Vol. 40, No. 3, pp.534-559.
95. Salzmann, O., Ionescu-Somers, A. and Steger, U. (2005) 'The business case for corporate sustainability: literature review and research options', European Management Journal, Vol. 23, No. 1, pp.27-36. (Pubitemid 40251073)
96. Schaltegger, S. (2011) 'Sustainability as a driver for corporate economic success. Consequences for the development of sustainability management control', Society and Economy, Vol. 33, No. 1, pp.15-28.
97. Schaltegger, S. and Burritt, R. (2000) Contemporary Environmental Accounting: Issues, Concept and Practice, Greenleaf, Sheffield.
98. Schaltegger, S. and Burritt, R.L. (2005) 'Corporate sustainability', in Folmer, H. and Tietenberg, T. (Eds.): The International Yearbook of Environmental and Resource Economics 2005/2006, pp.185-222, Edward Elgar, Cheltenham.
99. Schaltegger, S. and Synnestvedt, T. (2002) 'The link between green and economic success', Journal of Environmental Management, Vol. 65, No. 4, pp.339-346.
100. Schaltegger, S. and Wagner, M. (2011) 'Sustainable entrepreneurship and sustainability innovation: categories and interactions', Business Strategy and the Environment, Vol. 20, No. 4, pp.222-237.
101. Schaltegger, S. and Wagner, M. (Eds.) (2006) Managing the Business Case of Sustainability, Greenleaf, Sheffield.
102. Schweizer, L. (2005) 'Concept and evolution of business models', Journal of General Management, Vol. 31, No. 2, pp.37-56. (Pubitemid 43342535)
103. Simpson, R.D. and Bradford, R.L. (1996) 'Taxing variable cost: environmental regulation as industrial policy', Journal of Environmental Economics and Management, Vol. 30, No. 3, pp.282-300. (Pubitemid 26310565)
104. Smith, W., Binns, A. and Tushman, M. (2010) 'complex business models: managing strategic paradoxes simultaneously', Long Range Planning, Vol. 43, Nos. 2/3, pp.448-461.
105. Stead, J. and Stead, W. (2008) 'Sustainable strategic management: an evolutionary perspective', International Journal of Sustainable Strategic Management, Vol. 1, No. 1, pp.62-81.
106. Steger, U. (Ed.) (2004) The Business of Sustainability. Building Industry Cases for Corporate Sustainability, Palgrave Macmillan, Houndmills.
107. Stubbs, W. and Cocklin, C. (2008) 'Conceptualizing a 'sustainability business model'', Organization & Environment, Vol. 21, No. 2, pp.103-127.
108. SustainAbility (2001) Buried Treasure. Uncovering the Business Case for Corporate Sustainability, SustainAbility, London.
109. Teece, D. (2010) 'Business models, business strategy and innovation', Long Range Planning, Vol. 43, Nos. 2/3, pp.172-194.
110. Tracey, P., Phillips, N. and Haugh, H. (2005) 'Beyond philanthropy: community enterprise as a basis for corporate citizenship', Journal of Business Ethics, Vol. 58, No. 4, pp.327-344. (Pubitemid 40937039)
111. Unerman, J., Bebbington, J. and O'Dwyer, B. (Eds.) (2007) Sustainability Accounting and Accountability, Routledge, London.
112. van Marrewijk, M. (2003) 'Concepts and definitions of CSR and corporate sustainability, between agency and communion', Journal of Business Ethics, Vol. 44, Nos. 2/3, pp.95-105. (Pubitemid 38097351)
113. Voelpel, S., Leibold, M. and Tekie, E. (2004) 'The wheel of business model reinvention: how to reshape your business model to leapfrog competitors', Journal of Change Management, Vol. 4, No. 3, pp.259-276. (Pubitemid 39305957)
114. Wagner, M. (2007) 'Integration of environmental management with other managerial functions of the firm: empirical effects on drivers of economic performance', Long Range Planning, Vol. 40, No. 6, pp.611-628. (Pubitemid 350148973)
115. Wagner, M. and Schaltegger, S. (2003) 'How does sustainability performance relate to business competitiveness?', Greener Management International, No. 44, pp.5-16. (Pubitemid 39622527)
116. Wagner, M. and Schaltegger, S. (2004) 'The effect of corporate environmental strategy choice and environmental performance on competitiveness and economic performance. an empirical analysis in EU manufacturing', European Management Journal, Vol. 22, No. 5, pp.557-572. (Pubitemid 39483222)
117. Wagner, M., Schaltegger, S. and Wehrmeyer, W. (2002) 'The relationship between the environmental and economic performance of firms. What does theory propose and what does empirical evidence tell us?', Greener Management International, No. 34, pp.95-108.
118. Walley, N. and Whitehead, B. (1994) 'It's not easy being green', Harvard Business Review, Vol. 72, No. 3, pp.46-51.
119. Wallmann, S.M.H. (1995) 'The future of accounting and disclosure in an evolving world: the need for dramatic change', Accounting Horizons, Vol. 9, No. 3, pp.81-91.
120. Wartick, S. and Cochran, P. (1985) 'The evolution of the corporate social performance model', The Academy of Management Review, Vol. 10, No. 4, pp.758-769.
121. Wilson, I. (1975) 'What one company is doing about today's demands on business', in Steiner, G.A. (Ed.): Changing Business-society Interrelationships, Los Angeles Graduate School of Management, UCLA.
122. Wirtz, B. (2011) Business Model Management Design, Instruments, Success Factors, Gabler, Wiesbaden.
123. Xepapadeas, A. and de Zeeuw, A. (1999) 'Environmental policy and competitiveness: the Porter hypothesis and the composition of capital', Journal of Environmental Economics and Management, Vol. 37, No. 2, pp.165-182. (Pubitemid 29432621)
124. Yip, G. (2004) 'Using strategy to change your business model', Business Strategy Review, Vol. 15, No. 2, pp.17-24. (Pubitemid 38671772)
125. Yunus, M., Moingeon, B. and Lehmann-Ortega, L. (2010) 'Building social business models: lessons from the Grameen experience', Long Range Planning, Vol. 43, Nos. 2/3, pp.308-325.
126. Zott, C., Amit, R. and Massa, L. (2011) 'The business model: recent developments and future research', Journal of Management, Vol. 37, No. 4, pp.1019-1042.