Abstract:
Globally, corporate executives are under increasing pressure to act on sustainability. Firms that were founded in the 20th century had simply not been designed for sustainability. This requires that corporate executives refine their business models (BMs) for sustainability as the future of business, the environment, and society are all dependent on these refined models. One of the avenues for addressing the sustainability challenge is through the implementation of sustainable business models (SBMs). The purpose of this research study was to understand how firms can innovate their BMs toward sustainability. This research study in particular aimed to understand what the innovative practices are that firms can adopt in transitioning to an SBM. Also, to gain insights into the drivers that assist firms to transition to an SBM as well as understanding the challenges that firms face in transitioning to an SBM. Furthermore, the study aimed to gather insight into the strategies that can be employed by firms in transitioning to an SBM. This study was a qualitative study. For the data collection, 14 semi-structured interviews were conducted with participants who were experienced and knowledgeable about sustainability. South Africa (SA) was selected as the country of study and the private equity (PE) industry was selected as the industry of study. A thematic analysis approach, inclusive of an inductive and deductive coding process, was undertaken in assessing and evaluating the data. The research study yielded a conceptual framework for aiding firms on how to innovate their BMs toward sustainability. Similarities were identified from the research study to the literature contributing to the existing body of knowledge. Also, nuances of differences were identified resulting in three potential refinements to the literature, concerning innovative practices, challenges, and strategies.
