| Title | Business Modeling for Sustainability: Identifying Five Modeling Principles and Demonstrating Their Role and Function in an Explorative Case Study |
|---|---|
| ID_Doc | 34626 |
| Authors | Jonker, J; Dentchev, N |
| Title | Business Modeling for Sustainability: Identifying Five Modeling Principles and Demonstrating Their Role and Function in an Explorative Case Study |
| Year | 2013 |
| Published | |
| Abstract | The mainstream literature describes business as tools for earning money (e. g. Osterwalder, 2004, Magretta, 2002). Although profit generation is an important business outcome, it tends to overlook the business opportunity of embracing issues of sustainability. Conventional business models theories do not capture the value of social and environmental assets, nor do they stimulate the development of business models focused on the solution of sustainability issues (i.e. not on earning money). We approach this void in the literature from the literature on on sustainability and corporate social responsibility. This literature was used a top-down theorizing approach (Shepherd and Sutcliffe, 2011) that allowed us to propose 5 additional principles of business modeling next to the principle of profitability: (1) multiple value creation; (2) basic logic; (3) strategic choice; (4) value network and (5) cooperative organizing. We have provided further corroborative evidence of these principles from an explorative case study of Close the Gap. This paper contributes to extend the profit generation focus in the literature of business planning toward principles of sustainability. Attention to social and environmental issues makes a perfect sense to business, and can lead to new opportunities. |
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