Opening the black box of transition towards a sustainable business model

Abstract

Transition towards sustainable business models (SBMs) has become an imperative practice for businesses. To ensure this change is systematic, firms need to transform all BM components - value creation, delivery, and capture - in a consistent manner. However, extant research lacks an understanding of the integrative mechanisms of value logic transition when modelling a business through the lens of sustainability. This study explores mechanisms for such transition towards SBMs. We follow companies operating in three traditional industries in Finland: mining, paper production, and shipbuilding. To tackle transition towards SBMs, we focus on context, intervention points, mechanisms, and outcomes of this change. We derive an integrative model that depicts how value components are transformed as a whole, thereby contributing to the literature on sustainability transitions and dynamic views of BMs.