Business model transformation towards sustainability : the drivers, barriers, and outcomes

Abstract

There is a call for businesses to act sustainably by becoming purpose-led and contributing to a sustainable future. This action requires business leaders to transform business models (BM) into sustainable businesses that create environmental, social, and corporate governance value. This study focused on how businesses transform their existing BMs towards sustainability, with the aim to assist managers and other stakeholders with the implementation of sustainable business model innovation (SBMI). The theoretical relevance of this study was to explore the emergent topic on SBMI that related to a standard BM that transforms into a sustainable BM, then into BM innovation, with the goal of SBMI. In addition, the literature on the theoretical constructs on the drivers, barriers, and outcomes of BM transformation towards sustainability were also explored. This was an exploratory and qualitative study that addressed the research questions which explored the theoretical constructs of the drivers, barriers, and outcomes of sustainability. 15 Participants were interviewed from the South African emerging market's franchising, retail, and supplier industry sectors. The qualitative data was systematically analysed through a thematic analysis approach. A conceptual framework was developed which reflected the new insights on the theoretical constructs of BM transformation towards sustainability. This study confirmed and added to the existing body of knowledge by making a small contribution to the SBMI literature. The research also added new insights by claiming potential refinements to the literature, which related to the external barriers of sustainability. These potential refinements to the SBMI literature included energy security, socio-political unrest, and COVID-19.