What do established companies do to factor in sustainability into their business models?

Abstract

Abstract This study examines the motivations for businesses to integrate sustainability into their business models (BMs) and how they can innovate those models to become more sustainable. The concept of business model innovation for sustainability (BMIfS) has emerged as a viable means to help companies innovate sustainable business models (SBMs). However, it remains a “black box” for many companies, and a design‐implementation gap has been identified. Utilizing an embedded case study approach, we conducted 49 interviews, observed three meetings, and collected over 1000 pages of archival data. The findings offer practical strategies for BMIfS, clarify the integration between business model innovation and SBM concepts, and provide a framework for adding new SBMs to an existing business portfolio. This research is of interest to scholars and business practitioners involved in integrating sustainability into their business strategies for building a sustainable future.