The Business Models for Sustainability Innovation Framework

Abstract

This paper develops the business models for sustainability innovation (BMfSI) framework. It defines innovation-based business cases as the major goal of sustainable entrepreneurs and identifies their most important barriers, i.e. barriers to profiting from sustainability innovations. A common business model concept is linked to these issues, and its artificial and socially constructed nature, which makes it a multi-functional device, is discussed. Based on these theoretical foundations, the BMfSI framework integrates the main results from the underlying doctoral research project. The framework defines four basic interfaces at the intersections of the most important concepts and issues related to the idea of business models for sustainability innovation: the sustainability innovation, business case, public policy, and financing interfaces. These are connected to the literature in the respective fields and illustrated with findings from different empirical studies on the solar photovoltaic industry. On a general level, the BMfSI framework helps in structuring the emerging sustainable entrepreneurship research with a particular focus on innovation and business models.

Keywords: business model, sustainability innovation, business case for sustainability, business model for sustainability, framework, solar power, public policy, financing

JEL Classification: M13, L21