External drivers for business model innovation for sustainability: An institutional theory perspective

Abstract

Business model innovation has increasingly gained attention in both research and practice in recent years. A business model is defined as the outline of the value creation, value delivery and value capture activities of an organisation. With current pressures on our planet resources and the environment business model innovation give organisations a way to ensure that their operations create positive impact on the environment and society. Ideally a sustainable business model is one that contributes to sustainable development while ensuring competitive advantage by delivering greater forms of value to customers. This paper aims to provide an understanding of factors external to firms that drive sustainable forms of innovation. A literature review on drivers of sustainable value creation from an institutional theory perspective was conducted. Finding were further analysed within the context of business model innovation and a list of eight drivers that influences business model innovation for sustainability were identified and discussed.