conference proceedings conference “new business models ......conference happen. we are very...

ConferenceproceedingsConference“NewBusinessModels”–ExploringachangingviewonorganizingvaluecreationToulouseBusinessSchoolChaird’ExcellencePierredeFermat16-17June2016

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ConferenceproceedingsConference“NewBusinessModels”–ExploringachangingviewonorganizingvaluecreationToulouseBusinessSchoolChaird’ExcellencePierredeFermat16-17June2016ColophonTheproceedingsoftheFirstInternationalConferenceon“NewBusinessModels”–Exploringa changing view on organizing value creation has been made possible by the followingpersons.Editing: JanJonker&NielsR.FaberLayout: NielsR.FaberProduction: LaurenceDanjouFurthermore,wethankthenumerousauthorsandreviewersofthecontributions,withoutwhom these proceedings would not have been possible. Special thanks to the ToulouseBusiness School and its Dean of Research Denis Lacoste for his support to make thisconference happen. We are very grateful to the region of Languedoc-Roussillon Midi-PyrénéesforthecreationoftheChaird’ExcellencePierredeFermat,whichinturnhascreatedthebasisforthisinternationalconference.Incaseofanyinquiries,pleasecontacttheeditors([email protected];[email protected])DisclaimerNopartofthisproceedingsmaybereproducedbymeansofprint,photocopies,automateddatabasesor inanyotherway,without thepriorwrittenpermissionof thecorrespondingauthors.Thetextsinthispublicationdonotaimtothediscriminatoryinanywayonthebasisofrace,religionorsex.Whereveritsays‘he’inthetext,‘she’maynaturallybereadaswellandviceversa.Theeditorshavetaketheutmostcaretoensurethereliabilityandcompletenessofallthepublished information. However, inaccuracies cannot be precluded. While the greatestpossible carewas takenduring thepreparationof theseproceedings, these is always thepossibilitythatcertaininformationofsourcesreferredtobecome(s)outdatedorinaccurateoverthecourseoftime.Certainreferencesintheseproceedingsleadtoinformationsourcesthataremaintainedbythirdpartiesandoverwhichwehavenocontrol.Theeditorsandauthorsthereforedonotbearresponsibilityfortheaccuracyoranyotheraspectoftheinformationfromthesesources.Innowaydoesthementionoftheseinformationsourcesrepresentarecommendationbytheeditorsortheauthorsoranimplicitorexplicitapprovaloftheinformation.Theeditorsandauthorsarenotresponsiblefortheconsequencesofactivitiesundertakenonthebasisoftheseproceedings.

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Preface

For several years, many emerging organizations propose not only offers that are totallydifferent from those of incumbents, but new ways to produce these offers throughrelationshipsbetweeneconomicandotheractorsthathavedramaticallychanged.Inanumberof industries, theseso-callednewbusinessmodelschallengethecompetitiveequilibria and threaten companies that have taken decades to build strong competitiveadvantages.Forlargehotelchains,forexample,theemergenceofbusinessmodelsliketheoneproposedbyAirbnbisfarmoreunsettlingthantheoneoflow-costhotelsinthe1980s.Inmany cases, traditional analysismodels are no longer appropriate to understand howmarkets work and what are the relative bargaining powers of stakeholders. Researcherscannotignorethecurrentchanges,eveniftheyleadthemtoquestiontheircertaintiesandconvictions,torevisethefundamentalprinciplesoftheirresearchandtodeeplymodifytheirteaching.Indeed,somecornerstonesofourtraditionalanalysesofcompanies'managementhavechanged.Let’stakealookatsomeexample.Propertyisnolongerthecentralconceptin industrialsectors(e.g.,themusic industry),asmanycustomersfavoraccesstoservices.The competitive forces that shape competition change, many customers becomingthemselves supplierswhich leads to a very strong increase in the level of competition inoligopolisticindustriesorinsectorsinwhichcompanieshavebenefitedfromeconomicrents(e.g.,taxis).Thenumberofcollaborationsbetweenactorsalsoincreasesandtheybecomemorecomplex.Besidestheeconomicshort-termconcerns,companiesfocusonsustainabledevelopment:itreinforcestheirsocialrolebutmakesperformanceassessmentmuchmoredifficult.Scholarsmustanalyzethequestionsraisedbytheemergenceofsuchphenomena:whatarethemainfeaturesofNBMs?DodifferenttypesofNBMscanbeidentified?Isitpossibletodistinguishbetweenbreakinginnovationsandmoreincrementalones?Whatarethemainconditions of success of NBMs?What is their social usefulness and what should be theinvolvementofpublicauthorities intheirdevelopment,particularlyatregional level?Howtraditional companies can address these BMs: should they attempt to shape the future,chooseanadapterpostureorreservetherighttoplay?Howcanpartiesrealize‘sharedvaluecreation’forthedifferentstakeholders?Thesearesomeofthetopicstobediscussedduringtheconference.Inthiscontextoftremendouschangesandstronguncertainties,ToulouseBusinessSchool,whichaims todevelop research in connectionwith the currentproblemsofbusiness andsociety,isproudtohostthefirstconferencededicatedtoNewBusinessModelsunderthePierredeFermatChairledbyProfessorJanJonkerandsupportedbytheLanguedocRoussillonMidi-PyreneesRegion. Wehopethatthroughthevariouspresentationsandtheexchangesbetweentheparticipants,thisconferencewillbringanswerstosomeoftheissuesraisedbythisnewenvironmentbutwillalsoopenresearchavenuesforthecomingyears.IwishyoufruitfuldiscussionsandagoodstayatTBS.DenisLacosteDeanofResearchToulouseBusinessSchoolToulouse,May172016

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Content

Preface.....................................................................................................................................5

Wordofwelcome.....................................................................................................................9

Introduction...........................................................................................................................11

Membersofthescientificandorganizationcommittees......................................................15

Abstracts–Session1..............................................................................................................17

AssessingtheenvironmentalimpactofnewCircularbusinessmodels.............................17

TheBackcastingandEco-DesignFrameworkforcirculareconomyintheservicessector19

Howcanvalueshapebusinessmodelsforthecirculareconomy......................................21

Theelephantintheroom...................................................................................................23

Abstracts–session2..............................................................................................................25

Businessmodelinnovationforsustainability.....................................................................25

LocalStrategyforaFunctionalandcooperativeeconomydevelopment..........................29

Theroleofpublic-privatepartnershipsforfunctionaleconomyinurbanmobility...........30

Ecodesign,functionalandcooperationeconomy:complementarities,tensions,surpassing?............................................................................................................................................33


Differentshadesofstrategy:aliteraturereviewonstrategydevelopmentinhubs.........35

Howcross-domaincollaborationofgrassroots leadstoaregionalbusinessmodel: threecases...................................................................................................................................37

Jump-starting theNew Economywith a NewMulti-Capital Social Contract for Context-BasedSustainability...........................................................................................................40

LocalEconomicDevelopmentandNewBusinessModels.................................................42


Designing four ecosystem conservation-oriented business models for ecological valuecreation..............................................................................................................................45

Critiqueofthecanvas.........................................................................................................47

Riversimple’sWayTowardsEco-Mobility..........................................................................49


ABusinessTransformationToolforImplementingNewBusinessModels........................53

FromLinearityTowardsCircularity....................................................................................55

TheCoursetotheDevelopmentofaNewSustainableBusinessModelattheNEBIFA....57

Answeringtothecallforhelpofasmallbusinessgroup...................................................59

Howonecanbecircularinaconservativemarket............................................................61


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HOWDONEWBUSINESSMODELSINBANKINGAPPROACHSTAKEHOLDERS?..................63

GIVINGANACCOUNTTOETHICALANDSOCIALLYRESPONSIBLEINVESTORS:AMULTIPLESTAKEHOLDERAPPROACH.................................................................................................65

GreenNBMsasCognitiveArtefacts...................................................................................67

ValueandvaluesinandaroundBusinessModels:thecaseofrenewableenergyinitiatives............................................................................................................................................68


CostofcapitalandchangeinBusinessModel:alongitudinalanalysisofaEuropeanlistedcompany.............................................................................................................................71

EXPLORINGBUSINESSMODELDISCLOSUREINCORPORATEREPORTING.EVIDENCEFROMINTEGRATEDREPORTING...................................................................................................72

Towardsablockchainenabledsocialcontractforsustainability.......................................77

NewBusinessModelforValueCo-creationinSmarterUniversities.................................79


Policyinstrumentstounleashcircularbusinessmodelsvaluecreationpotential.............81

Howpsychologicalvalueisseenbymanagersandcustomersofsocialorganisations......83

TheNewModelsoftheRecordingMusicIndustry...........................................................85

Epilogue..................................................................................................................................87

AppendixI–CallforContributionsNBM@Toulouse2016....................................................89

AppendixII–CfPJournalofCleanerProductionSpecialIssue..............................................99

AppendixIII–CfPStudiesofOrganizationalManagementandSustainability....................107

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Wordofwelcome

Dearparticipants,welcometothefirstInternationalConferenceon“NewBusinessModels–Exploring a changing viewon organizing value creation” that takes place at the ToulouseBusinessSchool(Toulouse,France)onJune16and172016.Thisconferencemarkstheendof a two-year research period concerning new and regional business models that wasundertaken under the supervision of the Chair d’Excellence Pierre de Fermat. This chairenablesresearchersfromabroadtoexploreanddevelopregionalresearchprojectsbasedonknowledgeandexperience, gainedabroad, inorder toenrich the level of knowledgeandunderstandingofNewBusinessModelsintheregionofLanguedoc-RoussillonMidi-Pyrénées.WeareverygratefultothosethathavedecidedonthechairholdersthisexclusiveresearchfocusonNewBusinessModels.Preparinganinternationalconferenceisachallengingendeavour,certainlywhenitisthefirsttimeonasubjectthat isrelativelynewintheacademicrealm.Duringtheentiretwo-yearperiodoftheChaird’ExcellencePierredeFermat,theaimhasbeentocreateanddisseminateknowledgeamongstudents,researchers,andthewiderpublic. Inadditiontothis,courseshavealsobeenprovidedtopupilsoftheLycéePierredeFermat inToulouse,France.Asaresult,aseriesofactivitiessuchasworkshops,guest lectures,projects,researchseminars,andateliershavebeenundertaken.Thisinternationalconferenceisthethirdeventinarow.The previous two events at the Toulouse Business School, were international researchseminars,layingthefoundationsforthisfinalevent.We are very proud that for this very first conference on New BusinessModels, over 30submissionshavebeenreceivedandover50peoplewillattendtheconferencecoveringmorethan10nationalities,underliningthetrueinternationalcharacter.Wehopethatduringthetwo days, a vivid exchange of insights, ideas, and concepts will take place. After all, anacademicconferenceisaboutdebate,inordertoenrichworkinprogress.Furthermore,wehopetheconferencewillprovideampleinputforthespecialissuesofthe‘JournalofCleanerProduction’,‘StudiesofOrganizationalManagementandSustainability’,andpossiblyabookpublication. It goeswithout saying thatwealsohope that theabstract submitted for thisconferencewillfindtheirwayintootherinternationaljournalsandrelevantpublications.We are very grateful to the Toulouse Business School and the team that has helped toorganizethisevent.Withouttheirpreciousandlong-standingassistance,itwouldbevirtuallyimpossibletomakethishappen.Lastbutnotleast,weareveryproudthatthisconferencewill continueover theyears tocome.Foraperiodof fiveyears,arrangementshavebeenmadetoassureitscontinuity.ThenexteditionofthisinternationalconferencewillbehostedbyRomanaRauterandRupertJ.BaumgartnerattheUniversityofGraz,Austria,onJune21and 22 2017. In 2018, Rumen Gechev and Nikolay Dentchev will host this internationalconferenceinSofia,Bulgaria.WithouttheChaird’ExcellencePierredeFermat,initiatedbytheregionLanguedoc-RoussillonMidi-Pyrénées,suchastartandtheseprospectswouldnothavebeenpossible.JanJonkerandNielsR.Faber

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Introduction

WhyandhowweshouldexploreachangingviewonorganisingvaluecreationbyFlorianLüdeke-Freund

FacultyofBusiness,Economics&SocialSciences,UniversityofHamburg,GermanyCentreforSustainabilityManagement(CSM)ResearchFellow,LeuphanaUniversity

“Untilthe1990s,companiesdidn’thave‘businessmodels’”(Codrea-Rado,2013).Ofcourse,theydid.Butthisfindingfromalinguisticanalysisoftheemergenceofthebusinessmodelnotionpoints toan important landmark inbusinesspracticeandresearch.During the lastfifteen years, thosedealingwith entrepreneurship,management, strategy and innovationbecameincreasinglyawareoftheroleandimportanceofcompanies’businessmodelsaswellasconceptsandtoolsfortheirdevelopmentandmanagement.Weallknowthestorythat,triggeredbythedot-comhypeofthelate1990sandearly2000s,thebusinessmodelnotionevolved into a major management and innovation concept and that it found its mostprominentrepresentationinatoolnamed“BusinessModelCanvas”(Osterwalder&Pigneur,2009).Butmostofusalsoknowthatthisisbyfarnottheendofthestory.Bothpractitionersand researchers are trying toovercome the limitationsof early businessmodel concepts,whicharesomekindofheritage fromtheiremergencewithin themainstreammindsetofbusiness practice and research. A major limitation is their exclusive focus on supportingcompaniestosurviveandprosperinfinancialtermsundercircumstancesofzero-sumgamemarketcompetition.Accordingly,theinitialdefinitionsofvaluecreationwereafarcryawayfrominclusivenotionsofvalueopentoecologicalandsocialbenefits,forexample.ThefirstNewBusinessModelsconferenceisanattempttobringtogetherresearchersandpractitionersworkingonanewfoundation forourunderstandinganduseof thebusinessmodelconcept.Assuch,thisconferencemustnotbeseeninisolation.Itisrelatedtoabroadrangeofactivities suchasanupcoming special issue in the JournalofCleanerProductiondevelopedbyNikolayDentchevandcolleagues,aspecialissueofStudiesofOrganisationalManagement&SustainabilitybyJoãoCarcalhoandcolleagues,abookbasedoncontributionstotheToulouseconferenceaswellasthefirstmassiveopenonlinecourse(MOOC)onNewBusinessModelslaunchedbyJanJonker.TheemergingNewBusinessModelscommunitycanalso build on work already done in related fields such as sustainability innovation andsustainable entrepreneurship, as for example discussed in a recent special issue ofOrganization&Environment.Whateverwecallit,“sustainablebusinessmodel”,“responsiblebusiness model”, “social business model” or “business model for shared value”, theoverarchingmissioncanbedefinedasunderstandinganddevelopingnewbusinessmodelsthatallowformsoforganising,andnotjustbusinessorganisations,tocreatevaluewithandforsocietywhilegoingbeyondnarrowlydefinedformsoffinancialvaluecreation.Thesearchforsuchbusinessmodelshassometraditionespeciallyinthedomainsofsocialand sustainable entrepreneurship. Pioneers in these fields recognised the potential ofbusiness models to support their social and green innovations and to introduce newrationalesoforganisationalvaluecreation.Accordingly,earlyresearchwastryingtoshedlighton how business models can help setting up viable organisations at the “bottom of thepyramid”andhowtheycanbringeco-technologies to themarket.Reviewing thisbodyofliteraturerevealsintriguingcasessuchasIndianeyecareproviderAravind,whocanbeseenasapioneerof“socialfreemiumbusinessmodels”.Startinginthe1970s,Aravinddeveloped

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amodelbasedoncross-subsidisationthatallowsmorethanfiftypercentoftheirpatients–severalhundredsofthousandseveryyear–toobtainhigh-qualityeyecareforfree;decadesbefore companies like Spotify discovered the strength of freemium models. A currentexample of how business model innovation can become a wake-up call for traditionalindustriesisUSAmericane-mobilemanufacturerTesla.Whileincumbentsintheautomobileindustry are bound to one century of technological specialisation, nurture their corecompetencies andevenengage in fraud to “improve” their ecological performance, Tesladevelopedawholenewbusinessenvironmentthatintegratesthedevelopmentofalternativeproducts(cars)andthesocio-technicalsystemthatisnecessarytousetheseproducts(e.g.charginginfrastructure).Bydoingso,heactuallyrevivesatechnologicalpathwaythatcanbetracedbacktothemid-19thcenturywhencombustionandelectricalenginesstartedsidebyside(weknowwhowonthatraceinthe20thcentury).Thesecasesarecompellingastheyshowcaseimportantrolemodelsandcounter-examplestotraditionalwaysofdoingbusiness.Butwealsohavetogobeyondsinglecasesandtrytounderstandtheircommonalitiesinordertosupporttheirgrowth,takeupandreplicationbyothers (Schaltegger et al., 2016a). This in turn requires a re-conceptualisation and re-contextualisation of the business model concept as a means to describe and share theparticularbusinessrationalesthatmaydrivesocial,sharing,de-growthorcircularbusinesses,forexample.Inanattempttoofferageneraldefinitionof“BusinessModelsforSustainability”we formulated the following characteristics (Schaltegger et al., 2016b, p. 6): “A businessmodel for sustainability helps describing, analyzing, managing, and communicating (i) acompany’ssustainablevaluepropositiontoitscustomers,andallotherstakeholders,(ii)howitcreatesanddeliversthisvalue,(iii)andhowitcaptureseconomicvaluewhilemaintainingorregeneratingnatural,social,andeconomiccapitalbeyonditsorganizationalboundaries.”This is, of course, an ambitious vision of a businessmodel. It points to particularmodelfunctions,suchasdescribing;itclaimsthatvaluehastobeproposedtoallbusinessmodelsstakeholders,notonlycustomers;itreferstothegeneralpurposeofcreating,deliveringandcapturing value; and it demands that organisations not only use but also maintain theirinternalandexternalecological,social,andeconomiccapitalbase.Obviously,thereisalottodo for business developers. But such ambitions are needed to leave the era of purelyfinancially-drivenbusinessdevelopment.Whilethesecharacteristicshelpindescribingwhatweshouldaimfor,wealsoneedprinciplesthatguideourtheoreticalandpracticalworktowardsbusinesseswiththesecharacteristics.Thedesignofbusinessmodelsthatarenotonlyfinanciallyviablebutdeliver“truevalue”canthereforefollowthreegeneralprinciples(Jonker,2014):

1. Theprincipleofcollaborativevaluecreation,whichistheideathatconstituentsinvestincreatingvaluetogether.

2. Theprincipleofsharedvaluecreation,whichistheideathatconstituentsshareinthevaluetheyhavecreatedcollaboratively;

3. Theprincipleofmultiplevaluecreation,whichisthesimultaneousprovisionofeco-logical,social,andeconomicvalue.

This approach replaces the mere strategic intention of addressing societal needs andchallengesinordertoimprovebusinesssuccess,asforexampleemphasisedbythe“CreatingShared Value” concept put forward by Porter and Kramer (2011), with the fundamentalprinciplesofcollaboration,truesharing,andmultipleformsofvalue.Theseprinciplesprovide

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thebasisforanewgenerationofinnovativebusinessescreatedbyestablishedandemergingactors,layingthefoundationforanewandhopefullymoresustainableandjusteconomy.“Until 2016, companiesdidn’thave ‘sustainablebusinessmodels’”. I donot think so. Theexamples are out there. We simply have to learn seeing and sharing them to enableresearchers and practitioners to grow, take up and replicate their new, sustainable andsociallyresponsiblebusinessmodels.

References

Codrea-Rado,A.(2013).Untilthe1990s,companiesdidn’thave“businessmodels”,http://qz.com/71489/until-the-nineties-business-models-werent-a-thing/(accessed18May2016).

Jonker,J.(Ed.)(2014).NieuweBusinessModellen.Amsterdam:AcademicService.

Osterwalder,A.&Pigneur,Y.(2009).Businessmodelgeneration.Ahandbookforvisionaries,gamechangers,andchallengers.Amsterdam:self-published.

Schaltegger,S.;Lüdeke-Freund,F.&Hansen,E.(2016a).BusinessModelsforSustainability:ACo-EvolutionaryAnalysisofSustainableEntrepreneurship,Innovation,andTransformation.Organization&Environment,onlinefirstFebruary25,2016.

Schaltegger,S.;Hansen,E.&Lüdeke-Freund,F.(2016b).BusinessModelsforSustainability:Origins,PresentResearch,andFutureAvenues.Organization&Environment,29(1),3-10.

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Membersofthescientificandorganizationcommittees

InternationalConferenceonNewBusinessModelsVenue:ToulouseBusinessSchool(TBS),Toulouse(France)Date:June16and17,2016MEMBERSSCIENTIFICCOMMITTEEMr.VincentAurez(CircularEconomyInstitute,Paris,France)Dr.GeraldBartels(UniversityofMontreal,Canada)Dr.GuyBauwen,(RotterdamUniversityofAppliedSciences,Rotterdam,TheNetherlands)Dr.BeatriceBellini(UniversityofNanterre,Paris,France)Mr.GerardBerendsen(TQC,TwenteQualityCentre,Enschede,TheNetherlands)Mrs.BrigitteBernard(PhDNijmegenSchoolofManagement,RadboudUniversityNijmegen,TheNetherlands)Prof.Dr.MzaliBouchra(UniversitéofQuébecinMontréal,CanadaandToulouseBusinessSchool,Toulouse,France)JoãoManueldaSilvaCarvalho(ISMAI,InstitutoUniversitáriodaMaia,Porto,Portugal)Dr.CorinneDelpuech(TBS,ToulouseBusinessSchool,Toulouse,France)Dr.i.a.RomainDemissy(ParisDiderotUniversityandEuropeanInstituteofFunctionalandCooperativeEconomy,Paris,France)Dr.EgbertDommerholt(HanzeUniversityofAppliedSciences,Groningen,TheNetherlands)Mr.AdrieHeinsbroek(INGBank,Brussels,Belgium)Dr.MarleenJanssen-Groesbeek(AvansUniversityofAppliedSciences,DenBosch,TheNetherlands)Dr.JanJurriens(AvansUniversityofAppliedSciences,DenBosch,TheNetherlands)Mrs.MoniekKamm(PhDNijmegenSchoolofManagement,RadboudUniversityNijmegen,TheNetherlands)Dr.OrtrudKamps(FOM,UniversityofAppliedSciencesforEconomicsandManagement,Essen,Germany)Dr.SheilaKillian(UniversityofLimerick,Limerick,Ireland)Dr.CarolinevanLeenders(NationalAgencyforEntrepreneurship,Utrecht,TheNetherlands)Dr.BasvanderLinden(NSM,NijmegenSchoolofManagement,RadboudUniversity,TheNetherlands)Dr.ElisabettaMagnaghi(CatholicUniversityofLille,Lille,France)Dr.ChristianaMüller(InstituteofGeneralManagementandOrganization,UniversityofGraz,Graz,Austria)Dr.PhilippeNaccache(TBS,ToulouseBusinessSchool,Toulouse,France)Dr.LindaO’Riordan(FOM,UniversityofAppliedSciencesforEconomicsandManagement,Essen,Germany)Dr.RenéSchmidpeter(CBS,CologneBusinessSchool,Köln,Germany)Dr.YuliyaSnihur(ToulouseBusinessSchool,France)Dr.CelioAlbertoAlvesdeSousa(ISMAI,InstitutoUniversitáriodaMaia,Porto,Portugal)Prof.Dr.ZanetaStasiskiene(KaunasUniversityofTechnology,Kaunas,Lithuania)Dr.StéphaneTrébucq(UniversityofBordeaux,Bordeaux,France)Dr.MartineVonk(SaxionUniversityofAppliedSciences,Deventer,TheNetherlands)

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CHAIRMANProf.Dr.JanJonker(Chaird’ExcellencePierredeFermat,ToulouseBusinessSchool,FranceandNijmegenSchoolofManagement,RadboudUniversity,TheNetherlands)ORGANISINGCOMMITTEEDr.Ir.NielsFaber(HanzeUniversityofAppliedSciences,GroningenandRadboudUniversityNijmegen,Nijmegen,TheNetherlands)Prof.Dr.NikolayDentchev(FreeUniversity,Brussels,Belgium)Dr.FlorianLüdeke-Freund(UniversityofHamburg,Hamburg,Germany)Dr.RomanaRauter(ISIS,InstituteofSystemsSciences,InnovationandSustainability,UniversityofGraz,Graz,Austria)ORGANISATIONTBSMrs.LaurenceDanjouMrs.Anne-ClaireSavy-AngeliProf.Dr.DenisLacoste,DeanofResearchTBS

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Abstracts–Session1

ASSESSINGTHEENVIRONMENTALIMPACTOFNEWCIRCULARBUSINESSMODELS

NancyBocken1,2,*,KarenMiller3,SteveEvans1

1UniversityofCambridge,DepartmentofEngineering,InstituteforManufacturing,17CharlesBabbageRoad,CambridgeCB30FS,UnitedKingdom

2DelftUniversityofTechnology,IndustrialDesignEngineering(building32),DelftUniversityofTechnology,Landbergstraat15,2628CEDelft,TheNetherlands

3UniversityofBrighton,MithrasHouse,LewesRoad,Brighton,BN24AT,UnitedKingdom.

*[email protected]

Keywords:Circularity assessment; circular business; sustainability assessment; sustainablebusiness;circulardesign;streamlinedLCA.

Abstract

Circularbusinessmodelsareincreasinglyviewedasakeydriverforbusinesscompetitivenessandsustainability.Yetitisunclearwhatthepositive(ornegative)environmentalimpactofsuchnewbusinessmodelsmightbe.ExistingmethodssuchasLifeCycleAssessmentandMassFlow Analysis, typically more suited for product-level and material-level environmentalassessment respectively, may bemodified to assess the impact of new circular businessmodels. However, these might be too time and resource-intensive to effectively guidedecision-making. Building on earlier work on circular design and business models, theperformanceeconomyandlifecycleandsystemsthinking,thisworkproposesalistofguidingprinciplestostartassessingtheimpactofnewcircularbusinessmodels.Theguidingprinciplesareorganisedaccordingtothefollowinghigh-levelstrategies:Slowingeffects;Closingeffects;Lifecycleeffects,andSystemseffects.Slowingeffectsarelinkedtolonglastingproductsandextending product life as part of the new business model. Closing effects relate to thepotentialforrecycling,orproductlifepost-consumeruse,asaresultofthecircularbusinessmodelinnovation.Lifecycleeffectsaretheeffectsnotyetcapturedwithintheseslowingandclosingeffects,whichariseacrosstheproductlifecyclefromrawmaterialsourcingupuntilproduction, transport,useanddisposalofproducts.Finally,Systemseffectsare thewiderimpacts of circular businessmodel innovation. For each high-level strategy key questionswereformulatedtoassesstheenvironmentalimpactreductionofthenewcircularbusinessmodel.

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It was found that the strategies and guiding principles help stimulate debate on theenvironmentaldirectionofnewcircularbusinessmodels.Thisworkhasprovidedinsightstoguideapotentialdirectionforassessingtheenvironmentalimpactofnewcircularbusinessmodels,andaddedtothesparsebodyofliteratureinthisfield.

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THEBACKCASTINGANDECO-DESIGNFRAMEWORKFORCIRCULARECONOMYINTHESERVICESSECTOR

GraemeHeyes1andMariaSharmina1

1TyndallCentreforClimateChangeResearch,SchoolofMechanical,AerospaceandCivilEngineering,UniversityofManchester,M139PLManchester,UnitedKingdom

[email protected]:07590268288

Abstract

The incumbent economic system has resulted in rates of natural resource depletion andwasteproductionthatareincommensurablewiththelimitationsofafiniteplanet.Thereisthereforearequirement,ifthemodernaspirationalqualityoflifeistobemaintained,fortheglobaleconomytobedecoupledfromresourceconsumption(andthesubsequentdisposalofwastes)(Jackson,2009).The circular economy is one proposed solution to this challenge, based on its ability tomaintain,orgrow,current levelsofeconomicoutput,but inwaysthroughwhichmaterialinputefficiencymaybemaximised.Atthesametimewastemanagementsystemssuchasreuse, recovery and recycling, have the potential tominimisewaste output, often acrossmultiplesupplychains.Different businesses require different approaches to the circular economy, depending ontheirownspecificcharacteristics,andthoseoftheirsector.Accordingly,althougharelativelynascent field, a number of different approaches are emerging in the literature to fostercircular-economyinsuchdifferentenvironments.Suchframeworks(forexample,ArdenteandMathieux2014;Rashidetal.2013;EMF,2015a)typicallyfocusondevelopingcircularsolutionsforparticularproductsandprocessesthatrelyon a throughput of physical materials. Whilst this is understandable considering thatconsumptionofgoods isdirectly linkedtomaterialuseandwasteoutput(EMF,2015b), itdoesnotacknowledgethefactthattheservicessectoraccountsforover70%ofGDPintheEuropeanUnion(CIA,2015),andisthuslikelytobeasignificantconsumerofmaterials.Thepaucityof researchon circulareconomy implementation forbusinesses in this sectorthereforerepresentsasignificantopportunitytoexplorethepotentialforsuchorganisationstocontributetoacirculareconomyand,importantly,howsuchaspirationsmayberealised.Thispaperdescribeshowonesuchframework“BECE”(BackcastingandEco-designfortheCircularEconomy)(Mendozaetal.,2016),wasadaptedforuseinacasesettingwithasmall-mediumenterpriseintheITSupportSector,whosebusinessisprimarilyfocusedonthesaleofknowledgeratherthanphysicalproducts.Bringing in theory from strategy (backcasting) and industrial ecology (eco-design), BECEconsistsof10iterativestepsthattaketheuserfromthedevelopmentofanoverarchingvisionthatiscompliantwiththecirculareconomy,throughspecificobjectives,thedevelopmentofbusinessalternatives, the identificationofpathways toapplication,andultimately to finalimplementationbythefocalbusiness.This same process was applied to the business in the IT support sector through twoworkshops, bringing in new tools such as the Business Model Canvas, as a means of

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understandingthecompany’sincumbentbusinessmodel,andhowthismayrequireBECEtobeadapted.Preliminaryresultssuggest thatwhilst the frameworkwillanalysethe limitednumberofmaintenanceproductsandpartsusedbythebusiness,thenatureofthebusinessasaserviceprovidermeansthattheprimaryfocuswillbeonincreasingequipmentlongevity,communicatingcirculareconomyprinciplestothecustomer,andexpandingthecompany'sreuseandrecyclingservice.Moreradicalinnovationsinthecompany’sbusinessmodelwillalsobeconsidered,forexample,assetsharingbyproviding3Dprintingservicestobusinesses.The authors believe that the adapted framework empowers businesses to approach thecirculareconomyinaholisticway,inwhichthecallforactionisspecifictothebusiness,anditsoverarchingcorporateobjectives.Basedonthiscall,theparticipatingITbusinesswasableto identifyappropriatesolutionsthatarecommensurablewithsuchobjectives,whilstalsobeingcompliantwiththeprinciplesofacirculareconomy.Forexample,suppliersweresoughtwhocouldevidencetheirenvironmentalperformance,butwhowouldwerealsoofenoughquality to ensure that customer satisfaction was not compromised (a key pillar of thecompany’sstrategy).This suggests that the flexibility of the BECE framework makes it a suitable tool forimplementingthecirculareconomyintheservicessector,andimportantlythatthereissomepotentialforthissectortocontributetoEUambitionsforaresourceefficienteconomy.

References

Ardente,F.&Mathieux,F.(2014).Identificationandassessmentofproduct'smeasurestoimproveresourceefficiency:thecase-studyofanEnergyusingProduct.JournalofCleanerProduction,83,126-141.

CentralIntelligenceAgency(2016).TheWorldFactbook.AvailableOn-line:https://www.cia.gov/library/publications/the-world-factbook/fields/2012.html[Accessed:24/03/2016]

EMF(2015a).CircularityIndicators:anapproachtomeasuringcircularity.Methodology.EllenMacArthurFoundation(EMF).

EMF(2015cb).TowardsaCircularEconomy-Businessrationaleforanacceleratedtransition.EllenMacArthurFoundation(EMF)

Mendoza,J.M.F.,Sharmina,A.,Gallego-Schmid,A.,Heyes,G.,&Azapagic,A.(2016).Integratingbackcastingandeco-designforthecirculareconomy:theBECEframework.WorkingPaper.

Rashid,A.,Asif,F.M.A.,Krajnik,P.&Nicolescu,C.M.(2013).ResourceConservativeManufacturing:anessentialchangeinbusinessandtechnologyparadigmforsustainablemanufacturing.JournalofCleanerProduction,57,166-177.

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HOWCANVALUESHAPEBUSINESSMODELSFORTHECIRCULARECONOMY

Insightsfromthefieldofengineeringlinkingusefulnessofmaterialstovaluecreation

IvoKothman

Keywords:businessmodel,circulareconomy,value,engineering

Abstract

On the path towards sustainability, the circular economy is rapidly gaining traction. Thecircular economy is generally described as a circular way of organizing material flowsdeducted from nature via biomimicry. It is seen as a way to transition from the linearparadigm ofmake-use-dispose to a circular reuse-recycle-upcyclemodel, retaining value.When considering the circular economy, I argue that value can be directly related to theusefulness ofmaterials. In this perspective, businessmodels can be regarded asways todescribehowaddingusefulnesstomaterialscanbeorganized.Ipresentacasestudyonthematerials insidemobilephonestoillustratehowthevalueofthematerialscanshapenewbusinessmodelsforthecirculareconomy.Thiscontributionpresentssomeinsightsin(1)howusefulnessofamaterialisconsideredinvariousrelevantfieldsofengineering,(2)howthisislinkedtovaluecreationintheperspectiveofacirculareconomyand(3)howthiscanshaperelatedbusinessmodels.Thelevelofusefulnessofamaterialisdeterminedbyitspositioninthetechnicalvaluechain.Whenaproductisbroken,itmayhavelostitsusefulnesstoitsuser.However,ifthematerialsinsidetheproductcanbefullyrecycled,valuecanbere-addedorincreasedtimeandagain(McDonough&Braungart,2013).IpresentacasestudyontheDutchinitiative‘ClosingtheLoop’ as an example of a businessmodel that revolves around regaining the value frombrokenmobilephones,apracticealsoreferredtoas‘urbanmining’.Thecaseshowshowabusinessmodelcaninspirethetransformationfromalineartoacirculareconomy.Thereareseveralschoolsofengineeringrelatedtothecirculareconomy,e.g.cradletocradle,lifecycleanalysis,materialflowanalysisandbiomimicry.Allthesefieldsprovidecluesregardingtheusefulnessofmaterials, thevalueofmaterialsandways inwhichthesecanbeorganized.Dependingon theposition in the supply chain, usefulnessof amaterial and therefore itsvalue,canforinstancebedescribedashoweasilyamaterialcanbereshaped,transportedwithminimal logisticaleffortor itsdurability inacertainapplication.Design,methods formanufacturingandthesupplychainareinterlinked;atransformationinonedimensionwillaffectallthreedimensions(Fixson,2005).Byexploringthevarioustheoreticalengineeringfields related to the circular economy, I aim to derive various mechanisms in which theusefulnessofmaterialscanbeincreased,andthereforeofferopportunitiesforvaluecreation.The most commonly used definition of the circular economy is of the Ellen Macarthurfoundation (Ellen MacArthur Foundation, 2013). It has two limitations considering theapplicability of this definition. First, this definition considers the entire economic system,whichcannotbecoveredbyasinglebusinessmodel.Inordertocreateanapplicablebusinessmodel,narrowingofthescopeisrequired.Second,thisdefinitionrecognizestheimportanceof the highest possible utility and value of products, components andmaterials, but this

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remains a matter of perspective. I argue that this can be deduced to a business modelcenteredaroundcreatingvalueby increasing theusefulnessofmaterialswithina circularsupplychain.Businessmodelsingeneraldescribewaysinwhichthegenerationofvalueisorganized.Forexample,thewell-knownbusinessmodelcanvasrevolvesaroundthevaluepropositionbutislimited to describing it as creating value for a specific customer segment (Osterwalder,Pigneur,Smith,&Movement,2010).Inthisregard,theusefulnessofmaterialsisconsideredonly from the perspective of the consumer, implying that when a product has lost itsusefulness to the customer, there is nomore value. This is at the essence of the lineareconomy.Whenstrivingforacirculareconomy,usefulnessofmaterialschangesperspective,depending on its position in the value chain. Viewing the supply chain as a value addednetworkisconsideredcommonground(Christopher,2005),makingitasmallsteptowardsvalueaddedcircleswhere,justasinnature,foreverystateofthematerialinthetechnicalcycle,thereisopportunityforaddingvalue.Thiscanshapenewbusinessmodels.Theoriginalityofthispaperliesinrelatingthevariousfieldsofengineeringviaoneprincipletovaluecreationinrelatedbusinessmodels.Thiscanofferawaytobridgethegapbetweenengineeringandeconomics,whilestrivingforacirculareconomy.Thelimitationoftheholisticapproachinthispapermeansthederivedmechanismscanonlybedescribedinabroadsense.Thecasestudyusedto illustratetheprinciplesprovidesonly limitedempiricaldata.Moreresearchisneededtobetterunderstandthemechanismsandtheirpracticallimitations.References

Christopher,M.(2005).LogisticsandSupplyChainManagement:CreatingValue-addedNetworks(ThirdEdit.).EdinburgGate:FinancialTimes.

EllenMacArthurFoundation.(2013).TowardstheCircularEconomy:Opportunitiesfortheconsumergoodssector.EllenMacArthurFoundation,02,1–112.doi:10.1162/108819806775545321

Fixson,S.K.(2005).Productarchitectureassessment:atooltolinkproduct,process,andsupplychaindesigndecisions.JournalofOperationsManagement,23(3-4),345–369.doi:10.1016/j.jom.2004.08.006

McDonough,W.&Braungart,M.(2013).TheUpcycle(FirstEdit.).NewYork:NothPointPress.

Osterwalder,A.,Pigneur,Y.,Smith,A.,&Movement,T.(2010).BusinessModelGeneration.JohnWileyAndSonsLtd.Hoboken,NewJersey.doi:10.1523/JNEUROSCI.0307-10.2010

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THEELEPHANTINTHEROOM

AReviewofTheoryandPracticeregardingtheconceptoftheCircularEconomy

HansStegeman1,JanJonker1

1NijmegenSchoolofManagement,RadboudUniversity,POBOX9108,6500HKNijmegen(TheNetherlands).

Correspondingauthoremail:[email protected]

Abstract

In recent years the concept of the circular economy has gained a lot of attention in theacademicliterature.Mostscholarsconductedempiricalstudiesonthemicro-andmeso-level.Thecirculareconomyisalsoamacroeconomicconcept,whichoriginscanbetracedbackintotheclassicaleconomists.Ourfindingsindicatethat,whiletherearesomecommontheoreticalbases,therelativeusageoftheseconceptsvariesovertime,betweencountriesandbetweensectors.TheaimofthispaperistoreviewtheconceptualandempiricalliteratureontheconceptoftheCircularEconomy(CE)inordertoidentifyitsorigins,keyargumentsandareasforfurtherempiricalresearchandtheoreticalgroundingfromamacroeconomicperspective.Attentionis paid to the similarities and differences between CE and related concepts, includingindustrialecology,environmentaleconomicsandthenotionofsustainabledevelopment.Onamacrolevel,thereseemstobeadisconnectbetweenthecurrentpopularizedversionofmacro circularity, practical concepts of the circular economy and themacro literature onsustainabledevelopment,steadystateeconomics(SSE)anddegrowth.Thisdisconnect istwofold.First,popularizedCE(EMF,2012)mayappearatoddswiththeecological economic discourses of degrowth or SSE. Notions of circularity, or decreasedthroughput combined with increased product durability and regeneration are howeverconveyedthroughboththedegrowthandSSEliterature.Sincethepopularizedmacrocirculardiscourse analysed here belongs to the neoclassical economic approach, its fundamentalaspects and principles can and should be adapted and integrated into the ecologicalapproaches.ThisaltersthemacroeconomicjudgementofthesuccessofCE.Second,intheliteraturethereisampleattentionforfeedback-loops,substitutioneffectsandsecond-orthird-ordereffectsinvaluefeedbackloopsonamicroandmesolevel.Itismostlyassumedthatcircularpracticesatlowerlevelsofactivitywilladduptoamacro-circularity.Most attention is directed towards resource andmaterial feedback loops, but these alsoaffectbehaviorofotheractorsintheeconomy.Thisinducesbehavioraleffectsofotheragentsintheeconomy,andmightchangetheoutcomeofcircularityonamacroeconomiclevel.Itisconcludedthatdescriptiveandnormativeperspectiveswhichdominatetheliteratureofmacro circularitywhich dominate the literature should be supplemented bymore criticalaccountswhichrecognizetherhetoricalanddiscursivesignificanceofCEin(re)constructingthe economic paradigm, mobilizing collective engagement and challenging or reinforcingtraditionalformsoforganization.

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Abstracts–session2

BUSINESSMODELINNOVATIONFORSUSTAINABILITY

BeierleinLaurence1,BelliniBéatrice2

1UniversitéParisEst2UniversitéParisOuestNanterreLadéfense

[email protected],[email protected]

Abstract

In a context where Sustainable development goals (SDG), recently adopted by the UNmembersasapost-agendatotheMilleniumdevelopmentgoals,areviewedbymany“asawayofexpressingthebroaderexpectationsofsocietyasawhole”(ISO26000,2010),manyquestionsariseonthewaysofrespondingtothesegoals.Inthispaper,weproposetolinkvariouskindof innovations,suchastechnical innovation,processinnovation,managerialinnovationandorganizationalinnovation,tofosterthedesignofmoresustainablebusinessmodels.Weusethetermsustainablebusinessmodelsasreferringtothosewhointegratebothsocialandecological issues, includingsocial justice,meetingprimaryneeds,whilerespectingtheenvironment, using less natural resources, in particular scarce resources, striving for theconservation of biodiversity, aiming at reducing pollution of soils and providing access tocleanairandwaterforalllivingbeings;inshortgloballyaddressingissuescausedbymanhoodandwhichconsequencesmaybedireforcurrentandfuturegenerations.According to Teece (2010), “a business model articulates how the company will convertresources and capabilities into economic value”. For Baden-Fuller&Haefliger (2013) oneimportantcharacteristicsisthat“abusinessmodelshouldbeabletolinktwodimensionsoffirmactivity:valuecreationandvaluecapture”.Nevertheless,thewidelyacceptedmeaningofvaluecreationisnarrowlyreducedtothesoleeconomicvaluegeneratedbyagivenventure,insideitsboundaries,ratherthanonaglobalvaluefromprocurementtotheendoftheusefullife.Socialandenvironmentalfactorsaremostof thetimenotvalued,eventhoughatriplebottomlineframework-encompassingeconomic,socialandenvironmentalprofitability(Elkington,1997)-hasbeendeveloped,butimplementationremainssofarverylimited.Furthermoresustainabilityissuesneedtobeaddressedattheoverarchinglevelofthevaluechainoutsidefirmboundaries.Indeed,followingthedefinitionproposedbyMagretta(2002),businessmodelsdescribe“thelogicofthefirm,thewayitoperatesandhowitcreatesvaluefor its stakeholders”. Value capture here is an important aspect, encompassing botheconomic and non-economic return distributed across value chain actors and thecommunitiestheylivein.

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Wethereforebelievethatdesigningbusinessmodelsdifferentlyisawaytocontributetoamore sustainable world.Wewant to build on existing research on businessmodels thatdisplayaconcernforbothsocialandenvironmentalissues,whichisthecaseforalternativebusinessmodels-andalsosocialbusinessmodels-thathaveemergedandwidelybefinancedby development aid, in order to empower people and help alleviate poverty. StudyingbusinessmodelsforBottomofthePyramid(BoP)populationsisallthemoreinterestingtoussincetheyfocusonaddressingprimaryneedsandontheoptimalutilizationofscarceresourcetothebenefitofstakeholders,eveniftheopticisoftennotsomuchtomeetsustainabilitygoals but rather for economic reasons. We do not try to address the issue of povertyalleviation nor dowe consider BoP populations, who live on less than 2 dollars a day indevelopingcountries,asamarketopportunity(Prahalad,2009).Ourobjectiveisrathertotrytowork towards defining a sort of “base” businessmodelwhich integrates sustainabilityissues and may help entrepreneurs to develop efficient and innovative ventures forsustainability.WewillstartbylookingintoexistingtypologiesofbusinessmodelsforBoPpopulationsandto characterize their key components.Wewill focus on two categories: businessmodelsaimedatBoPcustomersandbusinessmodelscenteredonBoPproducers.

Table1DESCRIPTION

BMONBOPCUSTOMERS

PAY-PER-USESIMILARTOPAY-PER-VIEWFORFILMS

NOFRILLSSIMPLIFIEDOFFER,BASICOFFER

PARA-SKILLINGNOFRILLS+REENGINEERINGPROCESS

SHAREDCHANNELSUSINGEXISTINGDISTRIBUTION

BMCENTEREDONBOPPRODUCERSCONTRACTPRODUCTION

FIXEDTERMCONTRACT,INPUTSPROVIDEDDEEPPROCUREMENT

INVOLVEMENTINTHESUPPLIERRELATIONSHIP

DEMAND-LEDPRODUCT/SERVICE(ADAPTEDTOTHESPECIFICNEEDSOFTHEMARKET)

MICRO-FRANCHISINGMODELSREADY-MADEBUSINESSMODELFORLOCAL

ENTREPRENEURSSOURCE:ADAPTEDFROMMONITORGROUP,"EMERGINGMARKETS,EMERGINGMODELS",2009

For each of thesemodels,wewill identifywhatmain innovations have been key successfactorsdrivingtheirinstitutionalisationandtheconditionsinwhichsimilarinnovationscouldhelp to craftmore sustainablemodels.Weaimat linking thebusinessmodeldesignwithtechnicalandprocessinnovationsforaddressingBoPneeds,innovationscanalsobedirectedtomoreinclusivegovernancedesigns,withinputfromthevariousstakeholdersofthevaluechain.WewillthenpresenttwoexploratorycasestudiesofbusinessmodelsrelatedtosolarenergyandaddressingBoPcustomers.Wechose twoprojectswhichwerepresentedataCOP21conferenceonAfricanclimateentrepreneurs1 thatoneof theauthorsattended.Wedrawbothonprimary and secondary sources toexplorewhatwehave identified asbeing twocontrastingbusinessmodeldesigns.

1«Entrepreneursclimatiquesafricains–Quellesnouvellessolidarités?»,COP21,7/12/2015http://www.rse-et-ped.info/espace/rse-et-cop21-en-afriqueenjeux-et-solutions-des-acteurs-economiquesquelles-nouvelles-solidarites-inter-territoriales/

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Project1:StationEnergy,WestAfricansub-regionStationEnergyprovidesaccesstosolar-poweredenergyinsharedmicro-servicestationsforruralpopulationsinWestAfrica.Electricalloadingperunitaresoldinmultiserviceshops,forinstancetoloadmobilephones,ortosustainsolarenergysystemsprovidingessentialservicessuchaspumpingforirrigationandcoldrooms.Project2:Lagazel,BurkinaFaso,WestAfricaLagazeldesignssolarmetallampstailoredfortheneedsoflow-incomepopulations.Exposingthesolarpaneltothesunindaytimewillprovideforafull-nightlightning.Thelampcanbeusedasa reading lampora torch. Soldwitha two-yearwarranty, Lagazel lampshaveanestimated life-time of five years afterwhich they need to be replaced, since the batterycannotbedisassembled.Evenifatfirstsighttheprojectslookedsimilar,veryquicklywecoulddistinguishtwodifferentmodels: onebasedon the sale of the usageof solar energy, similar to the “pay-per-use”model,andonebasedonthesaleofsolarenergylampstocoverbasicneeds,similartothe“no-frills”model.Weintendtoanalysetheinnovationsatworkinourcasestudiestomeetsustainabilitygoals.Oneobjective is to show the social, cultural, andorganizational change thatmay arise inshiftingfromaproduction-orientedeconomytowardafunctionaleconomy(Stahel,1986).FunctionaleconomyisnotanewconceptbutithasbeenmostlyusedbyengineersinproductdesignandverylittleinbusinessmodeldesignalthoughsomeauthorsconsiderthatitwouldbeadaptedforaddressingBoPneedsbecauseofthedecouplingbetweennaturalresourcesconsumption and growth. Business models for sustainability could also benefit from afunctional economy approach that integrates all the issues down the value chain andtechnical, process and organizational innovations. Trustworthy labeling and certificationprocesses will be needed to clarify social and environmental standards for marketingsustainability-orientedproducts(SOP).

References

Baden-Fuller&HaefligerS.(2013).BusinessModelsandTechnologicalInnovation.

BeattieV.&SmithS.J.(2013).ValueCreationandBusinessModels:RefocusingtheIntellectualCapitalDebate.BritishAccountingReview,45(4),pp.243-254.

ElkingtonJ.(1997).Cannibalswithforks:thetriplebottomlineof21stcenturybusiness.Capstone,Oxford.

FromentE.(2012).Lesclésdurenouveaugrâceàlacrise!Economiedefonctionnalité:moded'emploipourlesdirigeantsd'entreprise,EMS.

GarretteB.&AneelK.(2010).ChallengesinMarketingSociallyUsefulGoodstothePoor.CaliforniaManagementReview,52(4).

Karnani,A.(2006).Misfortuneatthebottomofthepyramid.GreenerManagementInternational,51,99-110.

Karnani,A.(2009).Romanticisingthepoor,harmsthepoor.JournalofinternationalDevelopment,21,76-86.

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LondonT.,HartS.E.(2011).NextGenerationBusinessStrategiesfortheBaseOfthePyramid:NewApproachesforBuildingMutualValue.UpperSaddleRiver,NJ,FTPublishing.

MagrettaJ.(2002).Whybusinessmodelsmatter.HarvardBusinessReview,80(5),86-92,133.

Margolis,J.D.,&Walsh,J.P.(2003).Miserylovescompanies:Rethinkingsocialinitiativesbybusiness.AdministrativeScienceQuarterly,48,655-689.

MonitorGroup(2009)."EmergingMarkets,EmergingModels".

Munir,K.,Ansari.S.,&Gregg.T.(2010).BeyondtheHype:TakingBusinessStrategytothe“bottomofthepyramid”,AdvancesinStrategicManagement,27,247-276.

OstromE.(1990).GoverningtheCommons:TheEvolutionofInstitutionsforCollectiveAction.Cambridge:CambridgeUniversityPress.

PrahaladC.K.(2010).TheFortuneatTheBottomofthePyramid:EradicatingPovertyThroughProfit,revisededition,UpperSaddleRiver,NJ,PrenticeHall.

StahelW.R.(1986).Hiddeninnovation.In:Science&PublicPolicy,London,vol.13no.4,August.

StahelW.R.(2003).TheFunctionalSociety:theServiceEconomy.In:Bourg,D.andErkmanS.PerspectivesonIndustrialEcology,GreenleafPublications.

TeeceD.J.(2010).BusinessModels,BusinessStrategy,andInnovation.LongRangePlanning,43,172-194.

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LOCALSTRATEGYFORAFUNCTIONALANDCOOPERATIVEECONOMYDEVELOPMENT

RomainDemissy1,EricKniaz2

1EconomisteAtemis,LADYSSUniversitéParisDiderot2Maîtredeconferenceassocié,IAELille,ChefduServiceEco

Développement,RégionNord-Pas-de-Calais-Picardie

Abstract

Enterprises are particularly involved in new business model or new economic modeldevelopment. But enterprises engaged in model shift face difficulties because theinstitutionalandeconomicenvironmentismainlyinlinewithindustrialwaysofthinking.So,localauthoritieshaveaparticularroleincreatingtheconditionsthathelptheshifttohappenandthefewfirstleaderstopersevereintheirinnovativewayofthinkinganddoing.ThiscontributionstudiedhowaFrenchlocalauthorityhasdealtwiththisquestioninthelast15years.TheformerNord-Pas-de-CalaisRegion1isadmittedtobeattheedgeoftheneweconomic model development and particularly through the functional and cooperativeeconomy’smodel2.Morethan70enterprisesarenowengagedintheirtransitiontowardthisneweconomicmodelbymeansofregionalsupportandotherlocalnetworkintervention.Theregioninterventiondoesnotonlyconsistinfinancialhelp.Theregionhasbuiltastrategythataims the improvement of local immaterial resources, and tries to reveal, develop andcontributedtoanImmaterialCollectiveHeritage3.Thisinstitutionalinnovativestrategyisinthemainpointofthiscontribution.TheauthorswillintroducetheconceptsofImmaterialCollectiveHeritageanditsimportanceinFunctionalandcooperative economy. Then theywill analyze the institutional construction from 2002 tonowadays.

1Since1stJanuarytheregionisnowNord-Pas-de-Calais-Picardie.2TheregionisalsoknownforthethirdindustrialrevolutionmasterplanlaunchedbyJeremyRifkininmay20133 TERTRE Christian (du) (2008) « Investissements immatériels et « Patrimoine collectifimmatériel»», in LAURENTCatherineetTERTREChristian (du) (dir.) (2008)«Secteursetterritoires dans les régulations émergentes », collection économique, L’Harmattan, Paris,pages81à98.

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THEROLEOFPUBLIC-PRIVATEPARTNERSHIPSFORFUNCTIONALECONOMYINURBANMOBILITY

findingsfromfourcasestudiesthroughOsterwalderCanvasanalysis

XuanLIU

[email protected];phone-(0033)760554228

Abstract

Theconceptofthefunctionaleconomywasfirstraisedinthe1980sbytheinfluentialSwissenvironmental scientistWalterStahel,but its realdevelopmentcameafter2000with theProduct-Service System (PSS). As a concept it is studied in different disciplines; existingresearchcanbeclassifiedintofourcategories:

- PSSdevelopmentandengineeringsuchasoffermodelling,processandevaluatingeconomicandenvironmentalpotential;

- PSSmarketing,mainlyconcernedwithpricingandcustomersatisfaction;- Strategy,innovationandorganizationalchangewithissueslikecompetitive

advantage,businessmodelsandorganizationaldesign/transition;− -Publicpolicyinbothmacroeconomicandsustainabilityaspects.

Thelasttwocategoriesofresearcharerelativelylessstudied. FunctionalEconomyneedscasestudiesMonts(2002)foundthatthedrivers,barriersandopportunitiesforcompaniestoshifttoaPSSarehighlycontext-specific.Thismeansthatcasestudiesareapowerfulwaytocontributetoanunderstandingofthefunctionaleconomyconcept.Otherscholars’workconfirmsthis.“In academia, many argue for a quantum jump in academic rigour in the design oftools/methodologies,withmuchbetterlinkstocasestudiestofacilitaterigorouscross-caseanalyses.”(Baines,Lightfoot,Evans,Neely,etal.,2007)“IfPSSeverwantstocreateasciencefield in itsownright, it isparamount”[. . . ]“togreatlyenhancethescientificrigor in, forinstance,casestudyresearch”(Tukker&Tischner,2006).Sogoodcasestudiescanmovethediscussionforward.“Mobilityasaservice”and“cityasacustomer”Inthedevelopingworld,oneofthemegatrendsofourtimeisurbanization.Inthedevelopedworld,thoughurbanizationrateshavestabilized,urbanmobilityactivitiesintensify.Drivingone’sowncarcreatescongestioneverywherefromLondontoRio,andthusisinappropriateforasustainableurbanfutureforboththedevelopinganddevelopedworld.Socitydwellers’mobilityneedshavetobemetwithoutindividualcarownership.Toattractandretaininvestmentandjobsinaglobalizedera,municipality,metropolitanorregionalauthoritiescompetetoprovidebetterurbanlifequalityandbusinessenvironmentinallaspects,including“mobilityasaservice”.Here“mobility”referstotraditionalformslikemasspublictransportationsandtaxis,butalsonewformslikeParisVélib,Autolib,andUber.

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For companies such as the Vélib operator JCDecaux or Autolib operator Bolloré, localauthoritiesaresteppingoutoftheirtraditionalroleasregulatorandadministrator,andtakingupthenewroleof“cityasacustomer”thatpurchases“services”fromprivatecompaniestosatisfysociety’sneeds.Throughthiskindofpublicprivatepartnershiparoundurbanmobility,afunctionaleconomyiscreated.My research analyses four functional economy cases about urban mobility with theOsterwalder Canvas, a simple and powerfulway to explain a businessmodel and its keyenablingfactors.BycomparingtheCanvas-especiallythreecategoriesof“keypartner”,“keyresources”and“keyactivities,myresearchaimstobringabetterunderstandingoftheroleofpublic-privatepartnerships for functionaleconomy inacomparativeperspective.Thesefourcasestudiesare:A – Didi, a Uber-like Chinese car-sharing multi-functional mobile APP offering customertailoredbusservices.B–BYD,a leadingChinesemanufacturerwhich“rents” itselectrictaxisandbusesto localauthoritiesinChina,EuropeandLatinAmerica.C–MichelinSolutions,which“manages”tiresandfuelconsumptionforurbanbussystemsinEuropeandNorthAmerica.D–MichelinFleetSolutions,which“manages”tiresforurbanbussystemsworldwide.Moredetailsaboutthesefourcases,aswellasinformationabouttheauthorareprovidedinannexes.

References

Mont,O.(2002).Driversandbarriersforshiftingtowardsmoreservice-orientedbusinesses:Analysisofthepssfieldandcontributionsfromsweden.TheJournalofSustainableProductDesign,2(3-4),89–103.

Baines,T.,Lightfoot,H.W.,Evans,S.,Neely,A.,Greenough,R.,Peppard,J.,Roy,R.,Shehab,E.,Braganza,A.,&Tiwari,A.(2007).State-of-the-artinproduct-servicesystems.ProceedingsoftheInstitutionofMechanicalEngineers,PartB.JournalofEngineeringManufacture,221(10),1543–1552.

Tukker,A.&Tischner,U.(2006).Product-servicesasaresearchfield:past,presentandfuture.reflectionsfromadecadeofresearch.JournalofCleanerProduction,14(17),1552–1556.

AnnexI-FourcasestudiesCaseA-DidiinChinaDidiisaChinesecarsharingplatformstartedin2012,whichhad7millionridesperdayand1.45billionridesintotalin2015.1Throughthesameplatform,Didioffersdiversemobilityservices,likeprivatecars,taxis,thesocialcarpoolingserviceHitch,Didibusandenterpriseservices.Italsooffersotherservices

1ItwasonlyinChristmasperiodof2015thatUberreachedits1billionthrideworld-widesinceitsinceptionin2010.

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suchas:locatingadoctorofyourchoiceforhomediagnosis,socialmatchingforthesocialcarpoolingservice,anddrivingexperienceofchosenmodelsofnewcars.Didi,withmorethana90percentshareoftheChinesemarket,isbecomingacompetitorforUberintheUS,IndiaandSouthEastAsianCountries.1CaseStudyB-BYDelectrictaxisandbusesinSouthAmericaBYDisaworldleaderinfabricatingelectricvehicles,andintheBrussels’2014electrictaxisbidding,itse6modelbeatitsEuropeanpeersfromNissanandRenault.BYDhaslaunchedthe'ZeroDownPayment,ZeroCosts,ZeroEmissions'Solutiontothetaxiandbusmarkets,toeaseadaptionofthenewtechnologyinthepublictransportsectorandsolvethefinancialpressureforuserstoaccessnewtechnologiesthataremoreenvironmentallyfriendly. CaseStudyC-MichelinFleetSolutions(MFS)inBeijingMFS signed a three to five years contract with their clients to oversee the tire assetmanagement including in emergencies, and charges according to the distance driven byclients. In this model, Michelin’s profitability depends on its capacity to optimize tiremanagement,andclientsturnalltire-relatedcostsintoavariablecostandthusgainflexibilityandproductivity.MFS,launchedin2000,isoperatinginmanycountriesincludingChina.ThiscasestudywillfocusonMFSinBeijing’sbussystem.CaseStudyD-MichelinSolutions(MS)inEuropeMichelin Solutions, launched in 2009, is operating in North America and Europe. It hasdevelopedthreedifferentbrands:EffitireswhichmanagestireassetssimilartoMFS,Effifuelwhichmanagesfuelconsumption,andEffitrailerwhichmanagesproductivityofsemitrailers.ThiscasestudywillfocusonMSinLondon’sbussystem.

AnnexII-AbouttheauthorXuan LIU is in the second year of her PhD research in strategic foresight and sustainabledevelopment intheBusinessStrategyDepartmentdisciplineattheConservatoireNationaldes Arts etMétiers (CNAM). Her advisor is Philippe Durance. In her PhD research, Xuanexamines the evolution of sustainability trends in Chinese urbanmobility in internationalperspective, including potential economic opportunities there for foreign companies.FinancedbyMichelinthroughaCifre(ConventionIndustrielledeFormationparlaRecherche)contract,sheisalsoafull-timeemployeeinMichelinGroup’sStrategicForesightteam.Xuangraduatedfromthemaster’sprograminurbanaffairsatSciencesPoParisin2011.Afterthat,sheworkedasaninternresearcherforoneyearintheParisandBrusselsbasedthink-tankIDDRI,whereshepublishedn<ChineseinfluenceonurbanAfrica>attheendof2012.ShethenworkedforoneyearasprojectassociateintheParisandGenevabasedNewCitiesFoundation.

1TheAmericanrivalofUber,Lyftsoughttoraiseanamountexceeding1billiondollarsinJanuary2016of.TheinvestorsareGeneralMotor(500million),KingdomHoldingCompanyrepresentedbySaodianprinceBenTalal(100million),andthreeonlinecompanies:theJapaneseonlinecommenceRakuten,twoChinesecompaniesAlibabaandDidi.

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ECODESIGN,FUNCTIONALANDCOOPERATIONECONOMY:COMPLEMENTARITIES,TENSIONS,SURPASSING?

QuestioningfromUrbanéO’sbusinesscase.

PatriceVuidel

Associateadviser,ATEMIS

Keywords:ecodesign,functionalandcooperativeeconomy,servicialeconomicmodel.

Abstract

Thecontributionquestionstheeffectiverelationsbetweenecodesignconceptapplicationsandcommitmentstowardfunctionalandcooperativeeconomy.RelyingontheFrenchSMBUrbanéO’s case, the author reveals how ecodesign can be a step toward functional andcooperativeeconomycommitments.ThisSMBdesigns,sells, installsandupkeepsmade inFranceStreetfurnituremainlyformobilityservices.TheR&Ddynamicstartedwithecodesignandemployees’commitmentsintermsofenvironmentalimpactsreductioninproducts’lifecyclelengthenandimprovethemselveswithoffers’servicialaspects.Withtheintroductionofserviciallogic,employeesdonotjustcareaboutthestreetfurnitureitself,butabouthowitimprovesmobilitywithinterritories.Nonetheless,transitionfromanenvironmental improvementmethodfocusedonproductstowardaneweconomicmodelreflectionclaimingtobeawayoutofvolumebasedwealthinheritedfromindustrialproductionthoughtisnotthateasy.Tensionsexistbetweenthetwoconceptualframeworks.Someareattachedtothebusinessmodeltherefersto:infunctionalandcooperativeeconomythereisachangefromsellinggoodstowardtheproductionofa“integratedsolution”containinggoodandservices,builttoofferusefuleffectsandformalizedbyauseperformancecommitment.Otherareattachedwithlaborchanges,tackingaccountofimmaterialresourceswithintheeconomicmodelreflection.The author’s hypothesis is that positive relation between ecodesign and functional andcooperativeeconomyisconditionedbysomeelementswithinwhichthemostimportantistheperformancedefinitionoperatinginlaborandinvalueproposalassociatedtotheoffer.

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DIFFERENTSHADESOFSTRATEGY:ALITERATUREREVIEWONSTRATEGYDEVELOPMENTINHUBS.

MoniekKamm1,NielsR.Faber2,JanJonker3

1RadboudUniversity,Nijmegen,theNetherlands;SaxionUAS,Deventer,theNetherlands.2RadboudUniversity,Nijmegen,theNetherlands;HanzeUAS,Groningen,theNetherlands

3RadboudUniversity,Nijmegen,theNetherlands;ToulouseBusinessSchool,Toulouse,France

[email protected];phone++31629130013

Abstract

ThiscontributiontothedebateonNewBusinessModelsexploresthewaysinwhichstrategytakesshapeinnon-hierarchicalnetworkingformsoforganizingcalledhubs.Thispaperaimstoclarifystrategyformationinsuchcontextthroughaliteraturereviewinwhichweexplorehow two topics meet: (1) developments in collective strategizing and (2) developmentsaround formsofmulti-stakeholder organising.Our research focuses on thequestionhowstrategy formation takes places in loosely coupled multi-party networking forms oforganising.Weobserve theemergenceofnew,pluriform,non-hierarchical formsoforganisingcalledhubs.Hubsarecharacterizedasdedicatednetworksofcollaborativeconstituents thatarebound by common values and shared goals and that operate on a regional level. Theyimplicitlyaimtointegrateabroaderrangeofvaluese.g.ecological,economic,andsocial.Indoingso,hubsenableawidevarietyofconstituentstoengageintoaprocessofcollaborativeandoftencommunity-basedactionwhileexperimentingwithnewformsoforganising.Thisleadstotheshapinganddefiningofgoalsandprojectsandasharedambitiontorealisethosegoals. We assume that, along this, a collective strategizing process emerges. Yet, howconstituents in a hub craft a strategy while simultaneously engaging in a process ofcooperation and value creation is unclear.Assuming that hubsdoengage in a process ofstrategy formation we want to know if and in what way existing insights into strategyformationrelatetothestrategizingprocessesindevelopinghubs.Strategy development is discussed extensively in literature in various, distinct schools ofthought. The main ‘Schools of Strategy’ focus on distinguishing different perspectives ofstrategizing processes in established organisations that operate on the basis of anorganisationalhierarchyandlinearmodelofvaluecreation.Inthisperspectivestrategyisasystematicapproachofsettingtargetsandfuturedirectionstowardsa-oftensingle–predeterminedgoal. Incontrast,hubsevolve to facilitateco-creationandvaluecreationbyavariety of autonomous constituents. Constituents in hubs realize new, cooperative,

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experimental,andinnovativeapproachestoaccumulatehuman,social,natural,physical,andfinancial capital, aiming toaccomplish commongoals and to co-create sharedvalues.Werefertothisprocessas‘strategizingbyconstituentsinhubs’.Thestrategizingprocessinhubsseemsto involvemultiplestrategiesas it is shapedaroundmultiplegoalsandbymultipleorganisations.Wefindthatthesespecificorganisationaldevelopmentsneedtobetakenintoaccountinthedebateon collective strategydevelopment, particularly in relation to thedevelopmentofmulti-partynetworkingformsoforganising.Weinvestigatehowtheprocessofstrategyformationinhubsisshaped.Moreinparticularwearelookingfortheoreticalandempiricalfootholdsthatcanhelptounderstandhowthisprocessevolves.Todoso,wequestionstrategyformation inhubsfromtwoperspectives:organisationalsciencesandstrategicdevelopment.Fromtheperspectiveoforganizationalscienceswelookforstudiesthat linkthedevelopmentofmultipartynetworkingformsoforganising to strategydevelopment.Next to thisweare interested to learnhow strategyliteraturerelatestostrategyformationinmultipartynetworkingformsoforganising.Inthisstudyweperformastructuredliteraturesearch,examiningaselectionofQ1journalsinthefieldsoforganisationalscienceandstrategicmanagement.However,weacknowledgethathubsarenew,stilldevelopingformsoforganisingandtheorganisationalconceptsthatlieunderneathmaywellbestudiedfromotherdisciplines.Thissearchisthereforebroadenedby journals in the field of social networks (actors in a network economy) and (strategic)decision-making.InordertodosowewillexecuteasearchusingMendeleysoftware.Westartbydetermininganinitialsetofsearchkeywordsthatindicatestrategyformationinpluriformorganisationsandstrategy formation innetworking formsoforganising,suchasstrategyinanadhocracy,collectivestrategy,collaborativestrategy,distributedstrategy. Weaimtoprovidealiteratureoverviewofhowstrategydevelopmentunfoldsinnonhierarchicalformsoforganizing,thuscontributingtotheknowledgeonstrategyformationinhubs.Thisliteraturereviewwillserveasabasisforfurtherempiricalresearch.

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HOWCROSS-DOMAINCOLLABORATIONOFGRASSROOTSLEADSTOAREGIONALBUSINESSMODEL:THREECASES

Author:HildeEngels1

NijmegenSchoolofManagement,RadboudUniversityNijmegen,P.O.Box9108,6500HKNijmegen,Netherlands

[email protected]

Keywords:grassrootsinnovation,collaboration,regional,sustainability,transition

Abstract

Atransitioncanbedefinedasafundamentalchangeinthestructures,culturesandpracticesofasocietal(sub)system,thoroughlychangingthewayitfunctions,whilealteringatanon-linearrate(DeHaan&Rotmans,2011).Innovationcommunitiesplayanimportantroleinthisprocessof fundamentalchangeas theyarechangeagents throughenhancingbehaviouralchange(Avelinoetal.,2014).In Europe, citizens are taking a variety of self-driven initiatives to enhance sustainability.Theseinitiativesappearassocialnetworksatalocalandregionalscale,andcoverarangeofinitiatives including those that produce food, organize elderly care, provide collectivetransportoraccesstofibre-optictechnology.Thesecitizeninitiativescanbecategorisedasamong‘grassrootsinnovations’(Seyfang&Smith,2007),whicharedefinedas“networksofcitizens and organizations generating novel bottom-up solutions for sustainabledevelopment;solutionsthatrespondtothelocalsituationandtheinterestsandvaluesofthecommunities involved” (Seyfang & Haxeltine, 2012; Seyfang & Smith, 2007; Smith,Hargreaves,Hielscher,Martiskainen,&Seyfang,2016;Smith&Seyfang,2013).Grassrootsinnovations may be viewed as emerging ‘niches’ that demonstrate how changed social,ecologicalandeconomicvaluesandvisionsareputintopractice,therebycreatingnewsmall-scale appliance domains, eventually leading to the development of community-basedbusinessmodels.Abusinessmodelreflectsthewayabusinessisorganisedandmanagedinordertocreate,deliverandcapturevalue(Osterwalder&Pigneur,2010).Thesegrassrootsinitiativesshowastrainofemergingbusinessmodelsbasedoncollectiveactionthusenablingthetransitiontowardsamoresustainableandcirculareconomy(Jonker,2013,2014).Thetransitionliteratureoffersaframeworktobetterunderstandhowgrassrootsinnovationsexertinfluenceon,andinteractwith,aregimeinthecourseofatransition.Whatisomittingistoelucidatehowthisinteractiveprocessemerges.Heretheassumptionisthatthisemergesvia cross-thematic collaboration of the grassroots. Many of the grassroots sustainability

1HildeEngelsisadoctoralcandidateatthedepartmentofSustainableEntrepreneurshipoftheRadboudUniversity, in theNetherlands.She researches the influenceofcollaborationbetween grassroots communities on mainstreaming new practices, from a transitionalperspective.

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initiativesfocusononedomainonly,eitherenergy,water,transport,housing,food,orothers,thus providing sub-optimal sustainable solutions.What is theuseof an electric car if theelectricityisstillproducedfromfossilfuels,forexample?Sothesmartintegrationofcertaindomainswouldofferbettersustainabilitysolutions.Collaborationbetweenandintegrationofvariousgrassroots initiativeswould fosterabetter solution.Theaimof thispaper is toadvance knowledge of this cross-domain collaboration by elaborating on the inducingconditionalfactors.Thestudytakesaqualitativecase-studyapproach(Yin,2009)byexploringthreecases.Themethodologyconsistsofdeskresearch(literatureandinternetsearch),combinedwithfieldresearchintheformofinterviews.Itusesaninterpretiveapproach(Yanow&Schwartz-Shea,2006),gaininganarrativeofthecriticaleventsandturningpointsintheemergingprocessofcollaboration,thusleadingtotheidentificationofconditionalfactors.ThethreeexaminedEuropeancasesareknownfortheirrootsinthelocalcommunitywhilestimulatingaregionaltransitiontosustainability.Thecasesare:SamsøIslandinDenmark,thePeelandMaasregionintheNetherlands,andNord-PasdeCalaisinFrance.Allthreecasesshowbottom-up cross-domain collaboration. Thepreliminary results show three patternsregarding the conditional factors. First, economic interests seem to be the engine forcapturingecologicalandsocialvalues.Second,asequentialchangepatternemergesacrossthe different domains: first energy reduction, then installation of renewable energy, nextgreeningoftransportandfinallyadoptionofecologicalfood.Third,localparticipationplaysapivotalroleinthesuccessfulimplementationofsustainifyingtechnologiesandcorrespondingways of organising. The cross-domain collaboration that emerges across these patternsreinforcestheregionaleconomy,inwhichcitizensprogressivelyparticipate,enablingthemtogainextrarevenues.Asawholethisaddstothesocialandeconomicviabilityoftheregion,givingwaytoanemergingregionalbusinessmodel.

References

Avelino,F.,Wittmayer,J.,Haxeltine,A.,Kemp,R.,O’Riordan,T.,Weaver,P.,&Rotmans,J.(2014).GameChangersandTransformativeSocialInnovation.TheCaseoftheEconomicCrisisandtheNewEconomy.Rotterdam.

DeHaan,J.,&Rotmans,J.(2011).Patternsintransitions:Understandingcomplexchainsofchange.TechnologicalForecastingandSocialChange,78(1),90–102.doi:10.1016/j.techfore.2010.10.008

Jonker,J.(eds..(2013).WerkenaandeWEconomy.Duurzaamheidcooperatieforganiseren.(J.Jonker,Ed.).Deventer:UitgeverijKluwer.

Jonker,J.(eds..(2014).NieuweBusinessModellen.(J.Jonker,Ed.).Doetinchem,DenHaag:StichtingOCF2.0,AcademicService.

Osterwalder,A.,&Pigneur,Y.(2010).BusinessModelGeneration.(T.Clark,Ed.).Hoboken,NewJersey:JohnWiley&Sons.

Seyfang,G.,&Haxeltine,A.(2012).Growinggrassrootsinnovations:Exploringtheroleofcommunity-basedinitiativesingoverningsustainableenergytransitions.EnvironmentandPlanningC:GovernmentandPolicy,30(3),381–400.doi:10.1068/c10222

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Seyfang,G.,&Longhurst,N.(2015).Whatinfluencesthediffusionofgrassrootsinnovationsforsustainability?Investigatingcommunitycurrencyniches.TechnologyAnalysis&StrategicManagement,7325(July2015),1–23.doi:10.1080/09537325.2015.1063603

Seyfang,G.,&Smith,A.(2007).GrassrootsInnovationsforsustainabledevelopment:Towardsanewresearchandpolicyagenda.EnvironmentalPolitics,4016(4),37–41.doi:10.1080/09644010701419121

Smith,A.,Hargreaves,T.,Hielscher,S.,Martiskainen,M.,&Seyfang,G.(2016).Makingthemostofcommunityenergies:Threeperspectivesongrassrootsinnovation.EnvironmentandPlanningA,48(2),407–432.doi:10.1177/0308518X15597908

Smith,A.,&Seyfang,G.(2013).Constructinggrassrootsinnovationsforsustainability.GlobalEnvironmentalChange,23(5),827–829.doi:10.1016/j.gloenvcha.2013.07.003

Yanow,D.,&Schwartz-Shea,P.(Eds.).(2006).InterpretationandMethod:empiricalresearchmethodsandtheinterpretiveturn.NewYork:M.E.Sharpe.

Yin,R.K.(2009).Howtodobettercasestudies.InL.Bickman&D.Rog(Eds.),TheSAGEHandbookofAppliedSocialResearchMethods(pp.254–282).ThousandOaks:SAGEPublicationsInc.

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JUMP-STARTINGTHENEWECONOMYWITHANEWMULTI-CAPITALSOCIAL

CONTRACTFORCONTEXT-BASEDSUSTAINABILITY

HowregionalconstituentscanchangethegamebyformingandoptingintoNewEconomyNetworks

NielsR.Faber1,HenkHadders2

1RadboudUniversityNijmegen2UniversityofGroningen

Keywords: New Economy Networks, social contract, multi-capitalism, context-basedsustainability

Abstract

Thispaperexploreswaystorevitalizeorrenewthebrokensocialcontractbetweenmarket,stateandthecommons(Faber&Hadders,2015).Weaimtodevelopablueprintofanewsocial contract for multi-capital, context-based sustainability in relation to new businessmodels, reporting, and accounting, fostering a new inclusive, regenerative economy. Thisinvolvesamyriadofconstituents,alllookingforfeasibleelementsofagreenandinclusive‘neweconomy’theycanrefertoandbuildon.Weapplythemainprinciplesandfunctionalityofmeasuringsustainabilityincontext(Faber&Hadders,2015)inourexplorationofthisneweconomy.Still,inspiteofallthetalk,thequestionremainsifNewSocialContractsandneweconomiesareevenbeingtriedyet?Wetheorizeneweconomiese.g.,acirculareconomy,assteady-state(Daly&Cobb,1989),and ground these in a doctrine of multi-capitalism (McElroy, 2015). Multi-capital-basedeconomiesoperatewithinasafeandjustspaceforhumanity;empiricallysustainablerelativetoecological(ceilings),andsocialandeconomic(floors)thresholds.Multi-capitalismdictatesthat all actors in a geographical space, use shared measurement for their performanceoutcome(s)intermsof(a)theimpactsonallvitalcapitals(notjustfinancial-economic)and(b) stakeholder well-being (not just shareholders). It is also a context-based approach toperformance accounting that defines actor-specific sustainability norms, and measuresperformanceagainst them. It adheres to a vision that all social contract-partnersoperatewithinthissafeandjustspace,asablueprintforwhataneweconomycouldbe.Aneconomythatisaboutdistributivejustice,proceduraljustice,andinteractivefairness.NewEconomyNetworks(NENs)intendtoprovideananswertotheevergrowingneedforacollaborative,neutral,safespace,multi-stakeholder,andsystemicenvironmentthatservestherealneedsofanewgreenandinclusiveeconomy.Itisanopen-sourcesocialinnovationmeetingtherequirementsofneweconomies i.e., (1)steady-stateand(2)multi-capitalismbased(McElroy,2016).Italsoisanexecutablemodelforneweconomiesconsistingofself-organizingaffinitynetworksofsocialcontractpartnersusingasocialcharter. Itsmembersagree to follow three simple ‘swarm’-rules. First, members performmore than a certainpercentage of their transactions with other NEN-members (e.g. commerce, government,

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commons).Second,theyapplymulti-capitalmeasurement,managing,andreporting.Third,membersreporteconomicperformanceinnon-GDPterms.Wearguethatopt-innetworkswith built-in interdependencies and shared benefits may be used to jump-start neweconomies (e.g., ‘wisdom of the crowds’) and that the introduction of multiple capitalaccountingtoallconstituentscancatalyzesustainabilityintheregionalnetworkasawhole.Inacomparativeanalysis,the‘EconomyoftheCommonGood’initiative(Felber,2015)seemstobeapromisingapproach.However,incontrasttotheapproachwesuggest,itlacksamulti-capitalandcontext-basedaccountingfoundation.Inspiredbythis initiative,weproposetodevelop, and test the NEN concept in action, in the three northern provinces of TheNetherlandssupportedbytheNoordenDuurzaamSociety.Thetestsareusedtorefineandevaluateourmodelforhowsocialcontractpartiescanmakethetransitionfrom‘growth’to‘steady-state’economies.Othergoalsare(a)tolaunchandtestaprototypical‘newcontract’and ‘neweconomy’ in the realworldusing themodel, (b) touseand test theblockchaintechnology for distributed, smart social contracts, and (c) to design, test and evaluate asupportingplatformforhowtohelpvariousformsoforganizingmakesuchtransitions.Finally,weprovideseveralconclusionsandrecommendationsforfurtheraction.Wedescribethekey steps, timelineanddeliverables inour initiative,andwegivean indicationof theexpectedoutcomesandresourcerequirements.

References

Daly,H.E&Cobbjr.J.B.(1989).FortheCommonGood.Boston:Beaconpress.

Faber,N.R.,&Hadders,H.(2015).Rethinkingthesocialcontract:measuringandreportingsustainabilityincontext.PresentedattheGlobalCleanerProduction&SustainableConsumptionConference,Sitges,Spain:ElsevierScience.

Felber,C.(2015).ChangeEverything:CreatinganEconomyfortheCommonGood.London:ZedBooks.

McElroyM.W.(2015).MulticapitalismandtheTwoFacesofIntegratedReporting.SanFrancisco:SustainableBrands.

McElroy,M.W.(2016).Jump-StartingtheNewEconomy.Thetford:CenterforSustainableOrganizations.

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LOCALECONOMICDEVELOPMENTANDNEWBUSINESSMODELS

Howtocombine(new)actorsand(new)values.

BartjanW.Pennink

UniversityofGroningen

Abstract

IntheprocessofLocalEconomicDevelopment,itwasdiscovered(Pennink,2012,2015)thatnotonlyentrepreneurswereinvolvedandthat,similartothecirculareconomy,theactorsweresearchingforwaystofindouthownewactivitiescanbediscoveredorcreatedandhowtheycanbeworkedoutinsuchawaythatmorepeopleinlocalsituationswouldcontinueparticipating. This process has certain analogieswith the theories on Circular Economicswhereintheinnovativepoweriscomingfromfindingnewcombinationsofactorsandnewforms of value creation. New refers to the concept that innovations in economicdevelopmentwillnotcomefromonlyentrepreneurs.ItalsoreferstomorethantheclassicalvaluecreationofReturnonInvestments(Jonker,2014).Based on comparing the two fields of (1) Local Economic Development and (2) CircularEconomy, we will compose a matrix in which we hope to provide a framework for thefollowingquestions:Whichactorscanbeinvolved?Whichvaluescanbeincluded?Inwhichways can the actors be involved? How can different combinations of these answers besupportiveforLED?Inthefirstfield,wewilldemonstratehowworkinginthefieldofLocalEconomicDevelopmentapplied in developing countries has similarities with the multi-value creation process.Stimulatinglocalcommunitiesbyonlyfocusingonbecominganentrepreneur(onevalue)didnotwork. In theprocess of establishing local economic activities, itwas not just creatingentrepreneurialattitudesbutalsocreatingsharedvaluesoftrust,awillingnesstocooperate,andcreatingasharedideaaboutthefuture.Moreover,wenoticedaswellthat,duringthisprocess,severalactorswereinvolvedwithdifferentrootswithinthelocalsociety(farmers,entrepreneurs,civilservants,membersofNGOs).Welearnedfromthisfieldhowtoinvolveactorsinneweconomicandsocialactivitiesandthatweshouldnotlimitthisprocesstoonlyentrepreneurs.Thisprojectworkoccurredfrom2005to2011andresearchactivitiesrelatedtothatworkfrom2005to2016.Ourwork in thestimulatingLEDappears tobesimilar toseveralaspectsofNewBusinessModels;moreactorsandmorevaluesareinvolved.Basedonthisexperienceandtheresearchresults,webelievethatraisingquestionsonhowtocreatethevaluewillbeinterestingInthesecondfield,werefertoanexampleofanNGOinadevelopedworldwithashrinkingeconomyinthenorthoftheNetherlandsthatwantedtointroducenewactivitiesrelatedtothose already existing. The new activities were closely related to the Circular Economyprinciplesandalsofocusedonhowtoformarelationshipwiththelocalsituation.Duringthis

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process,weobserved(basedonanappliedactionresearchprojectforthisNGOin2015)that,besidesthequestionofhowtocreatethenewactivities/newvalues,thequestionofwhichactors can be involved also became important. In the Circular Economy, we observedsimilarities based on a specific example: a variety of actors, more values involved, andquestionsregardingwhichactorsshouldbeinvolvedandwhichvaluesshouldbeshared.Basedononworkinthesetwofields,wewillcreateastructuredmatrixthatincitesquestionsonthemulti-valuecreationprocessandhowtheseanswersindifferentcombinationscanbesupportive for Local Economic and Social Development. Thismatrixwill encompassmorethan, for example, theMultiCapital Scorecard ofMcElroy & Thomas (2015) or the ideassuggestedbyFaberandHadders(2015)onthesocialcontractbetweenactors.Bycreatingamatrix,weaddtothefieldofNewBusinessModelsbyarguingthatourquestionsaddressnewvaluecreationdirectionsthatcanbeemployedfornewbusinessmodels,ingeneral,butcanalsobeutilizedforLocalEconomicDevelopmentindevelopingcountries,especiallyforregionsindevelopedcountrieswithashrinkingeconomy.

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DESIGNINGFOURECOSYSTEMCONSERVATION-ORIENTEDBUSINESSMODELSFORECOLOGICALVALUECREATION.

Anaction-researchwithaleadingFrenchwatercompany

ClémentFeger1,LaurentMermet1,Jean-BaptisteNarcy2,ChristopheBouni2

1CentreforEcologyandConservationSciences(CESCO-UMR7204),MuseumNationald’HistoireNaturelle.Paris,France.

2AScA,Paris,France

[email protected]

Abstract

Reducing firms’ environmental impact is a question now widely addressed in themanagement and sustainable development literature. Increasingly, new frameworks andtoolsareintroducedtohelpbusinessbettermeasureandreducetheirimpactsonbiodiversityandecologicalsystems.Yet,thespecificissuesfacedbyenvironmentalsectorcompaniesthattrytodevelopcommercialservicesdedicatedtothemanagementofecosystemsaretodaystill largely unexplored. For them, the core issue regarding sustainable business modelinnovationisnotsomuchtheoneof‘greening’theirsupplychains,butratherofimagining,designingandproposingoriginalservicesandbusinessmodelsforthecreationofecologicalvalue.Inthispaper,wedistanceourselvesfromexistingpropositionstouseeconomicvaluationandstandard monetary pricing of biodiversity and ecosystem services (the benefits humansreceivefromgoodecosystemfunctioning)asabasisandpreconditionforthedevelopmentofnewbiodiversitymarketsandbusinessmodels.Instead,wesuggestthat“ecologicalvalue”,definedinmostgeneraltermsastheimprovementofecologicalsystems’quality(i.e.higherbiodiversity richness, better freshwater quality, improved ecosystem functioning, etc.), isalways co-defined and co-created by multiple stakeholders in a given ecological,organizational and political context. Therefore, we call “conservation-oriented businessmodels” negotiationmodels for firmswho engage in the co-definition and co-creation ofecological value in various contexts, by proposing legitimate and valuable commercialcontributionstothecollectivemanagementofecosystems.Thispaperisbasedonathreeyearslongaction-researchconductedattheheartofaleadingFrenchwatercompany.Thefirm’scorebusinessmodelisbasedonlong-termcontractswithmunicipalitiesfortheprovisionofwaterservices.Theprofitabilityofthiscorebusinessmodeliscontinuouslyerodingsincethebeginningofthe2000s,duetohighercompetitiononprices

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andtheriseofecologicalthreatsonthequalityandavailabilityofwaterresourcesthatrequirenewinvestments.Todiversifyitsportfolioofactivities,thecompanyhasadoptedin2009anexplicit strategy of developing new commercial services and innovations to improve thecollectivemanagementoffreshwaterquality(freshwaterqualitymonitoring,voluntaryplanstoreduceagriculturalpollutionsetc.),andmorelargely,tocontributetotherestorationofthe landscape’s ecological quality (ecological restoration, biodiversity offsetting, artificialwetlands,adaptationtoclimatechange,etc.).Thepaperfirstdescribeshowmanagersexperimentdifferentpracticalpathstodevelopnewbusinessmodels supporting the development of such services in various commercial andecological settings inFrance.Weshowthediversityof challengesandobstacles that theyencounter such as: issues of legitimacy and license to operate as they try to establishrelationships with new stakeholders and clients in the domain of environmentalmanagement;issuesofquantificationoftheecologicalvaluegeneratedbytheirnewservices,etc.The paper then describes howwe used theoretical frameworks adapted to the collectivemanagementofecologicalissues,aswellasaction-researchmethodssuchasfocusgroups,scenario building and simulation games to design four original conservation-orientedbusiness models dedicated to ecological value co-creation. We show how each modelresponds toverydifferentpossiblecontextswherepublic fundingandpublic initiative forecologicalrestorationisratherhighorlow.Wedescribehow,ineachofthefourmodels,thecompanycandevelopdifferent“servicesforecosystems”valuepropositionsthatcombineecological engineering services, ecosystem assessments and accounting services, andorganizationalactivities.Thepaperthendiscusseshowineachofthefourmodels,thecompanyneeds:(1)tonegotiateitsvaluepropositionwithdifferenttypesofclients;(2)toorganizevariousrelationshipswithdifferent communitiesof stakeholders/partners inorder to co-create long-termecologicalvalues; (3) to play different roles, on the basis of different moral values, in order to beaccepted as a legitimate player in ecological systems management and justify theremuneration and profitability of its contributions; (4) to develop ecological accountingmodelsandtoolsinordertoquantify,monitorandsupportthenegotiationandmanagementoftheecologicalvalueco-creationprocesses.

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CRITIQUEOFTHECANVAS

Anewhoneycombapproachtobusinessmodelinnovation

KarenMiller1,2*,CuriePark1,SteveEvans1,IanBamford1andNancyBocken1,3

1UniversityofCambridge,DepartmentofEngineering,InstituteforManufacturing,17CharlesBabbageRoad,CambridgeCB30FS,UnitedKingdom

2UniversityofBrighton,MithrasHouse,LewesRoad,Brighton,BN24AT,UnitedKingdom.3DelftUniversityofTechnology,IndustrialDesignEngineering(building32),DelftUniversity

ofTechnology,Landbergstraat15,2628CEDelft,TheNetherlands

*[email protected]

Keywords:BusinessModelInnovation(BMI),CambridgeHoneycombBusinessModelTool™,sustainability,fashionretailing,valueexchange

Abstract

Business model innovation (BMI) tools have become mainstream as entrepreneurs andmanagersseeksystematicapproachestoinitiatebusinessmodels(BM).Howeverthesetools,forexampletheOsterwalderandPigneur(2010)BusinessModelCanvas,whileofferingtidyandstructuredformats,maynotadequatelycapturethecomplexityofvaluepropositionsformultiplestakeholderswithpotentiallycompetingdemands.Inordertoaddressthisissue,theresearchers first critiqued extant BMI tools, before designing the Cambridge HoneycombBusinessModelTool™-eachbuildingblockisahexagonalshapethatcollectivelycomposesa hive-type structure. TheHoneycomb incorporated the capacity of the CambridgeValueMappingTool™toarticulatethevaluepropositionbybreakingitdownintomultiplevalueexchanges.AprototypeHoneycombToolwas tested internallywith the research team inNovember 2015. Subsequently, following refinements the tool was piloted with a largefashionretailer’steamduringacollaborativetwo-dayBMIworkshop.Initialresultsindicatethatthetool’sinfinitelyexpandablehexagonalcellularstructure,wherecellsareintroducedindependentlyallowsgreateranalysisofthe‘Valueproposition’byscrutinisingvariousvalueexchanges between multiple stakeholders, e.g. society and the environment. Value wascomposed of both tangible and intangible benefits. The pilot process revealed that theHoneycombiseffectiveingeneratingnotonlygeneralBMswithanin-depthanalysisofvaluepropositions, but also sustainable BMs. Sustainability in fashion retailing is particularlyfraughtasintensecompetitioncreatestimeandcostpressures-simultaneouslycustomersandNGOs add to the burdenwith social and environmental concerns. Consequently, theCambridgeHoneycombBusinessModelToolcontributestoacademicknowledgebybuildinguponotherBMItoolsandbridgingValueMappingapproaches.Forpractice,theunboundedstructureoftheHoneycombToolcellshelpsteamsundertakedetailedinterrogationofBMs,whichbalancetheneedsofconflictingintereststakeholders.

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RIVERSIMPLE’SWAYTOWARDSECO-MOBILITY

SynergisticInnovationinGovernance,TechnologyandBusinessModel

PeterWells1,FlorianLüdeke-Freund2

1CardiffUniversity,CardiffBusinessSchoolCentreforAutomotiveIndustryResearch

2UniversityofHamburg,FacultyofBusiness,Economics&SocialLeuphanaUniversity,CentreforSustainabilityManagement(CSM)


Abstract

This paper argues that only fundamental innovations in the governance structures,technologies, and business models of companies will enable the full development ofsustainable manufacturing. This argument motivates the development of an analyticalframeworkthatintegratestheconceptsofgovernance,eco-design,andbusinessmodel.Thisframework is used to study the caseofWelsh cardesignerRiversimple. In an attempt toredefinethefoundationsofindividualmobility,Riversimplenotonlyusesnewtechnologiessuchasfuelcellsbutalsointroducesanalternativegovernancesystemandanewbusinessmodelthatdeviatesradicallyfromthetraditionalcarindustry(MaxtonandWormald,2004).Followinganengagedscholarshipapproach(Cummings,2007;HeronandReason,2001;VandeVen,2007),westudyRiversimplethroughpersonalaccesstothecompany’s leadershipteamaswellassystematicqualitativecontentanalysis(Gummesson,2006).Undernormalgovernancestructures,theManagementBoardofabusinesshasanover-ridingdutyand legalobligationtomaximiseshareholdervalue.Allotheractivities, includinge.g.sustainable design or green supply chain management are secondary to this aim. Evenbusiness model innovation for sustainability must, under these conditions, privilegeshareholder value. Such governance structures will alwaysmake theManagement Boardvulnerable to attack from financial interests claiming that shareholder value is not beingmaximised.UsingthecasestudyexampleofRiversimple,anSMEfoundedintheearly2000stocreate low-carbonmobility solutions, thispaper illustrateshowanunusualgovernancestructure in concertwitheco-designandbusinessmodel innovation forms thenexusof apotentiallynewbreedofautomobilecompany.Insteadofassumingthatoneoftheanalysedcomponents(governancestructure,eco-design,orbusinessmodel) determines theothers,weassume rather co-evolutionary andmutualdependencies. That is, Riversimple’s governance structure can only be implementedsuccessfullytogetherwiththetechnologiesandbusinessmodelapplied,andviceversa.Ouranalysis thus faces the challenge of the historic reconstruction of these components atRiversimple; an engaged scholarship approach based on personal access and systematicqualitativecontentanalysisisseenasmostpromisingmethodology.Thissinglecasestudyisadmittedlyamodest foundationuponwhich toconstructaplausibleaccount,particularly

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undertheusualacademicrequirementsofgeneralisabilitybuiltupontheoreticalrigourandmethodological robustness. But preceding studies have proven the strength and value ofcomparableresearchstrategiestodiscoverorganisationaldynamicsthatlieunderthesurfaceof themost visibleday-to-daybusiness activities andofficial communications (cf. Lüdeke-Freund,2014;Wells,2016).Riversimpleisworthstudyingbecauseofitsfundamentallydifferentgovernancestructure,eco-design, and envisioned businessmodel. Its governance structure nominates six equalstakeholdersasshowninDiagram1.

Diagram1:Riversimplegovernancestructure(source:Riversimplewebsite)The underlying principle is that the business is owned and operated on behalf of staff,customers, suppliers, investors, the local community, and the environment. Each group(called‘Custodians’)isineffectgivenashareofthepowertoappointtheBoardanddecideon policy. The Board is also divided into two semi-autonomous functions: the ‘OperatingBoard’andthe‘Stewards’Board’.TheOperatingBoardispartlyelectedbytheCustodians.Itappoints theCEOand the restof theexecutive team to run thebusinessday-to-day.TheOperatingBoardinmanywayswillactlikeatraditionalboard,appointingandmonitoringtheexecutive team and determining strategy (subject to approval by the Custodians). TheStewards’BoardiscompletelyappointedbytheCustodians.Itcanbestbeconsideredasa‘criticalfriend’,workingwiththeOperatingBoardtoadvancethepurposeofthebusiness.TheprimaryresponsibilitiesoftheStewards’BoardareauditingthebusinessandactingasaconflictresolutionbodyifaCustodianisunhappywithanOperatingBoarddecision.Inthismanner amore equitable balance of power is enshrined that, alongwith the checks andbalancesinthedesignofthemanagementsystem,actstoprovideamechanismtoreconciledifferentinterests.ThisgovernancestructureisasmuchaprototypeasthevehicleproducedbyRiversimple.Riversimplehasdevelopedanewtypeofhydrogen-fuelledvehicle–itsprototype‘Rasa’waspresentedinFebruary2016.Thecar'scomponentsarealignedwiththerequirementsoflow-poweredhydrogenfuelcellssinceRiversimple’seco-designbuildsontwomajorprinciples.Thefirst,‘decouplingenergyprovisionforacceleratingandcruising’,allowsusingasmallfuelcellforcruisingwhilefastdis-/chargingsupercapacitatorsprovidetheenergytoaccelerate.Insteadofusingabigandheavyfuelcellforcruising(lowenergydemand)andaccelerating(highenergydemand),separatingbothprocessesallowsforamoreefficientfuelcelldesign.Thesecondprinciple,‘massdecompounding’,opensupavirtuouscirclebasedondecreasing

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amounts of components and overallmass, and accordingly decreasing energy use. Fewercomponentsleadtolessweight,whichleadstolessenergyconsumptionandasmallerfuelcellandengine,whichinturnreducethecar'sweight,andsoforth.TheoverarchingideabehindRiversimple’sbusinessmodelistooffermobilityasahassle-free,fee-basedservice.Customersdonotown,butleasethecar.TheyreturnthecartoRiversimplewhereitisoverhauledandgetanotherneworoverhauledvehicle.Theleasingfeecoversallcostssuchasthecaritself,insurance,andfuel.However,developingthecarandthisbusinessmodelrequiresalotoftimeandmoney.Thecompanytriestoinvolvepatientandpurpose-driven investorswho co-finance the development of the car and itsmarket introduction.Anotherbarrieristhepowerofincumbentsandthelock-insofonecenturyofindustryhistory.Onewayofdealingwiththisbarrieristhecreationofanetworkof‘allies’whocontributetoor even replicate Riversimple’s model without belonging to the original company.Riversimple’s transparency, non-exclusivity, open source philosophy, and its dedicatednetworkapproachmightbecomethedriverofafuturemovementofwhichtheclimaxmightbeaglobalmobilityrevolution.Thecomponentsofgovernancestructure,eco-design,andbusinessmodel–andinparticulartheirco-evolutionarydevelopmentandmutualdependencies–willbefurtherelaboratedintheconferencepresentationandthefollowingfullpaper.

References

Cummings,T.G.(2007).QuestforanengagedAcademy.AcademyofManagementReview,32(2),355-360.

Heron,J.&Reason,P.(2001).ThePracticeofCo-OperativeInquiry:Researchwithratherthanonpeople.In,P.ReasonandH.Bradbury(eds.),HandbookofActionResearch:Participativeinquiryandpractice(179-188),London:SagePublications.

Gummesson,E.(2006).Qualitativeresearchinmanagement:Addressingcomplexity,contextandpersona.ManagementDecision,44(2),167-179.

Lüdeke-Freund,F.(2014).BP’sSolarBusinessModel:ACaseStudyonBP’sSolarBusinessCaseanditsDrivers.Int.JournalofBusinessEnvironment,6(3),300-328.

Maxton,G.&Wormald,J.(2004).TimeforaModelChange:Re-engineeringtheGlobalAutomotiveIndustry.NewYork:AddisonWesley.

VandeVen,A.(2007).EngagedScholarship:AGuideforOrganizationalandSocialResearch.UniversityPress,Oxford.

Wells,P.(2016).EconomiesofScaleVersusSmallIsBeautiful:ABusinessModelApproachBasedonArchitecture,PrinciplesandComponentsintheBeerIndustry.Organization&Environment,29(1),36-52.

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ABUSINESSTRANSFORMATIONTOOLFORIMPLEMENTINGNEWBUSINESSMODELS

DoroteyaVladimirova

CentreforIndustrialSustainability,InstituteforManufacturingUniversityofCambridge,17CharlesBabbageRoad,Cambridge,CB30FS,UnitedKingdom

[email protected]

Abstract

ResearchProblemandObjectivesThisstudyexploresanovelwayofhelpinginnovationleaderstodesignandplanforbusinessmodelinnovationsthatresultinmoresustainablebusinesses,anddevelopsanewtoolforsupporting the design of actions plans that brings companies into a pathway for betterbusinessmodels.Integratingsustainabilityintobusinessmodelsrequiresasystemicviewthatconsiderstheglobalperspectiveanddifferentelementsofthesystemandtheirinterrelations(StubbsandCocklin,2008).Schalteggeretal. (2012)highlightthefocusondevelopingthebusinesscaseforsustainability;however,theyassertthatsustainabilityis‘mostlyseenasanad-hoc measure’. Current approaches to business model innovation and change forsustainabilityaregenerallyad-hoc, incremental,relyingonradicalvisionaryleadershipandrarely seem to follow a prescribed process. As such they are often experimental whichpotentiallyintroducesriskandslowstherateofgeneraladoption.Thereisalackoftoolsthatcanbeusedbycompaniestoevaluateanddesignnovelbusinessmodels,andcarryoutthetransformationtowardssustainablebusinessmodelssuccessfully.The paper introduces the Business Transformation Tool which assists industry users byoutlining a structured approach for managing disruption and innovation of their existingbusinessmodelswhichleadtomoreeconomically,sociallyandenvironmentallysustainableorganisations.

− Thepurposeofthetoolistooutlineamethodofturninganewopportunityintoanewsustainablebusinessmodelwhichincludes:

− Developingavaluepropositionoutofanewbusinessideaornewvalueopportunity.− Turningthevaluepropositionintoanewofferingthroughmultiplescenarios.− Assessingorganisationalreadinessforchangeandtransformationrisks.− Identifyingandassessingbusinesstransformationchallengeswithintheboundaries

andoutsideoftheorganization.

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− Designingandplanningchangeprogrammestoimplementbusinessmodelinnovation.

− Identifyingshort-termandlong-termactions.

ResearchdesignThisstudyadoptedastrategyofengagedscholarship(VandeVenandJohnson,2006;VandeVen, 2007) for this study, as ameans of knowledge production and collaborative inquirybetween industry practitioners and a wider group of academic experts and industrypractitioners.Thisstudyadoptsmultipletheoreticalperspectivesfromthefieldsofbusinessmodel innovation for sustainability, sustainable value creation, servitization, sustainableproduct-servicesystems,andorganisationalchangeandtransformationtounravelcomplexchangeandcontextsthathavethepotentialtodisruptandtransformthecurrentbusinessmodel. It then develops a structured method and a tool to facilitate the adoption ofsustainable business models in practice. The tool has been developed and tested in 7workshops with participants from two global sports apparel manufacturers, a broadcastsystems manufacturer, an energy supplier, a personal transport start-up company, a UKgovernment organisation, an NGO, a higher education provider, and three consultancycompanies.ContributionThis paper contributes to the field of business model innovation for sustainability byincreasingtheunderstandingofhowthetransformationtowardsmoresustainablebusinessmodels occurs in practice. A novel strategic change management tool which facilitatesorganisations in transforming their current businessmodel towards amoreeconomically,socially and environmentally sustainable business model is presented. The tool enablesbusinesstransformationtoenhancecompetitiveadvantagethroughtheeconomic,socialandenvironmentalattributesofsustainablevalue.Itidentifiesanewlensforbusinessinnovationwhichincorporatesabroaderperspectiveonvalue,amulti-stakeholderparticipationinthebusinessmodelinnovationprocess,andanorganisedmethodforimplementingsustainablechange.

References

Schaltegger,S.,Lüdeke-Freund,F.&Hansen,E.G.,(2012).BusinessCasesforSustainability:TheRoleofBusinessModelInnovationforCorporateSustainability.InternationalJournalofInnovationandSustainableDevelopment,6(2),p.95.

StubbsW,CocklinC.(2008).Conceptualizinga‘sustainabilitybusinessmodel’.OrganizationEnvironment,21(2):103-127.

VandeVen,A.H.(2007).EngagedScholarship:AGuideforOrganisationalandSocialResearch,OxfordUniversityPress,NewYork.

VandeVen,A.H.andJohnson,P.E.(2006).Knowledgefortheoryandpractice.AcademyofManagementReview,31(4),p.802-821.

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FROMLINEARITYTOWARDSCIRCULARITY

Aart-JanWitte

UndergraduateStudentLectoraatSustainableStrategyandInnovationAvansUniversityofAppliedSciencesHogeschoollaan1,4818CRBreda

+31(0)637350566–[email protected]

Abstract

Modernsocietyisfacingamultitudeofenvironmental,economicandsocialcriseswhicharethreateningthewellbeingofpresentandfuturegenerations.Thesecrisesaremainlycausedby the strong focus on economic growth (Urhammer& Ropke, 2013). The current lineareconomicsystemrequiresperpetuallyincreasingproductionandconsumptiontoeffectuateeconomicgrowth.However,aneconomythatchasesperpetuallyincreasingproductionandconsumption,alwaysinsearchformore,standsnochanceofachievingalastingprosperity(Dietz&O’Neill,2013).Thefocusinourcurrenteconomicsystemonjustonevalue,createsnegativesideeffectsthatcreatesunsustainablecircumstances.Insteadweshouldendeavormultiplevaluecreationinalltransactions.Therefore,ashiftfromlinearmodelstowardscircularmodelsisnecessary(Jonkers,2014)This macro-economic system crisis applies exactly to the current situation in the Dutchconstructionindustry.ThestructureofthisDutchconstructionindustryishighlytraditionalandalmostentirelylinear.Itisnotexceptionalforthismarketstructurethatplayersseeeachother as customers instead of the actual users of their products (Rotmans, 2010). Thespecificationsofproductsarestipulatedinconstructionspecificationspreparedbyprincipalsandcontractors.Hencemuchspecializedknowledgeandskillsofproducersremainsunused.The predetermined specifications for producers lead to fierce price competition, sinceproducers cannot differentiate on the product itself. Therefore, producers have to applyeconomiesofscaleanddowngradethequalityoftheirproductstoproducemoreefficiently.Twomainreasonsaremakingthiscurrentbusinessmodelunsustainable. Inthefirstplacethereisaproblemwithperpetuallyincreasingproductionandconsumption,sincetheusedmaterials are exhaustible (Yellishetty, 2010). The expiration date of the current businessmodel is therefore already known. Second, there is a problem for producers withdowngrading their ownproducts.Ongoing downgrading of products creates amarket forsubstitutes.Themainobjectiveofthisstudyistodesignanew,circularbusinessmodelforproducersintheconstructionindustry.Anewcircularmodelshouldprovideanewsituationinwhichinitialcostswillbeno longer leading.Qualityofproductsandtheability to re-use them,willbedecisive factors.Circularityobviatesproblemscausedby linearity, suchasconstantuseofexhaustiblecommodities.Italsocreatesawayforproducerstoprovideaddedvaluewhicheliminatesthefiercepricecompetition.Asecondobjectiveof this study is to findaway fora smallgroupofproducers tostartamovementinsuchalargeandtraditionalsectorastheconstructionindustry.Atthismoment

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intimeproducersareengagedinasortofPrisonersDilemma.Higherinitialcostsinsuchashort-termfocused,pricedrivenmarket,canleadtolosingcustomersforproducerswithalinearmodel.Producershavetofindawayconvincingcustomersandend-userstoseetheaddedvalueofhigherinitialcostwiththeresultoflessoverallcosts.Theproblemstatementofthisstudyistherefore:Howshouldacircularbusinessmodelforproducersbedesignedtoachieveasustainableandcircularnon-residentialconstructionindustry?At first the current situation will be outlined. All type of players in the non-residentialconstructionindustrywillbeinvestigatedtolearnaboutpossiblebarriersforimplementinganewbusinessmodel.Inthesecondplace,thedesiredsituationwillbeexploredtoputapointonthehorizon.Basedonthatsituation,anewbusinessmodelwillbedesigned.Finallythenewbusinessmodelwillbetestedwithproducersinseveralcasestudies.Forthisstudyaqualitativeapproachwillbeused.Afterall,itisimportanttogainacomplexunderstandingaboutthecurrentbehaviorofplayersintheconstructionindustry.It isalsoimportant to learn from feedbackduringpanels inwhich thenewbusinessmodelwill bediscussed.

References

Dietz,R.&O'Neill,D.(2013).Enoughisenough:Buildingasustainableeconomyinaworldoffiniteresources.Routledge.

Jonkers,J.(2014).NieuweBusinessmodellen.Amersfoort:StichtingOCF2.0&AcademicService.

Rotmans,J.(2010).TransitieagendavoorNederland.Investerenineenduurzameinnovatie.

Urhammer,E.&Røpke,I.(2013).Macroeconomicnarrativesinaworldofcrises:Ananalysisofstoriesaboutsolvingthesystemcrisis.EcologicalEconomics,96,62-70.

Yellishetty,M.,Ranjith,P.G.,&Tharumarajah,A.(2010).Ironoreandsteelproductiontrendsandmaterialflowsintheworld:Isthisreallysustainable?Resources,conservationandrecycling,54(12),1084-1094.

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THECOURSETOTHEDEVELOPMENTOFANEWSUSTAINABLEBUSINESSMODELATTHENEBIFA

SanderHeerkens

UndergraduateStudent–LectoraatSustainableStrategy&InnovationAvansUniversityofAppliedSciencesBreda,Hogeschoollaan1,4818CRBreda,The

Netherlands

[email protected]

Abstract

TheprimarypurposeofthisstudyistodeterminehowtheNEBIFA,whichisarelativelysmallpartoftheKoninklijkeMetaalunie,shouldgivesubstancetoanewandsustainablebusinessmodel. The KoninklijkeMetaalunie is a Dutch branch organizationwhich operates in theconstructionindustryandfocussesonbuildingwithmetal.In the first part of this thesis, results of literature studies in combinationwithqualitativeresearchmethodsexaminehowthecurrentsituationoftheNEBIFA-memberslookslikeandwhichbusinessmodeltheseNEBIFA-membersareusinginthecurrentsituation.Theseshowthat the products made by the NEBIFA-members consist in primarily of non-renewableresources.Allthesenon-renewableresourcescomealongwithseveraltrendswhichareoflargenegativeinfluenceonthelong-termexistenceoftheNEBIFA-members.Thesetrendsalltouchuponthesameissues:Non-renewableresourcesarebeingdepleted,notallatthesametimebuttheydefinitelyareinthenearfuture(Yellishetty,Ranjith,&Tharumarajah,2010)&(Hafidh,MacNeill,&Birnbach,2015).Inaddition,theextractionandtransportationoftheseresourceshave significant impacton soil erosiondue to illegal loggingandenvironmentalpollutionduetouseofenergyandpollutingfactories(Pearce,2009),(Greenpeace,2013)&(Palmer,2001).Ontheotherhand, literaturestudiesshowthattheDutchconstructionindustryhashadadifficult time during the last few years and therefore, a lack of progress can be noted incomparisonwithsimilarindustries.TheDutchconstructionindustryischaracterizedbybeingverytraditional,conservativeandrigid.Thisresultsinanindustryinwhichinnovationisofteninhibited(Rotmans,2010).Furthermore,theDutchconstructionindustryischaracterizedbyit’slinearstructureinsteadofacircularstructure,inwhichorganizationsonlycompeteonthelowestprice insteadofthehighestquality(Rotmans,2010)&(Bijvoet,etal.,2002).Thesefindingsareconfirmedbyqualitativeresearch.Byaddingallofthesefindingstogether,itcanbeconcludedthattheaffiliatedorganizationsoftheNEBIFAneedstofindanewbusinessmodelwhichcanensurethecontinuityoftheNEBIFA-members.Thisneedforanewbusinessmodelleadstotheresearchquestionofthisresearch:“HowshouldthenewbusinessmodelfortheaffiliatedorganizationsoftheNEBIFAbeformed,inordertoensurethecontinuityoftheorganizationinthefuture”.ThenthesecondpartofthisthesispresentsapictureoftheidealsituationwheretheaffiliatedNEBIFA-members should go to. This ideal situation has been created by conclusions of

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qualitativeresearch.Thisqualitativeresearchconsistsofinterviewswithexpertsinthefieldofnewbusinessmodelsandtheconstructionindustry,butalsobyidentifyingwhatthewishesandneedsoftheend-userandotherstakeholdersare.ThecombinedresultsofthesetwopartsleadtothefinalpartofthisthesisinwhichanewbusinessmodelfortheaffiliatedNEBIFAorganizationsthebottomlineofthisidealsituationcanbecharacterizedasasituationinwhichanaffiliatedNEBIFA-membernolongeronlyfocuson just financial value creation, but also on societal value creation (Jonker, 2012). Thismovingfromalinearstructuretoacircularstructure,inwhichtheorganizationkeepscontactwiththeend-userandabettercollaborationoccursbetweenallthestakeholderswithinthechaintomakeiteasiertoretrieveandre-useorrecycletheproductswithinthechain(Jonkeretal.,2014).

References

Bijvoet,C.,Bunschoten,L.,Felsö,F.,Koopmans,C.,Theeuwes,J.,&deWinter,J.(2002).Deeconomischestructuurkenmerkenvandebouwnijverheid.ParlementaireEnquêtecommissieBouwnijverheid.Amsterdam:SEO.

Greenpeace(2013).Bedrijvenonderzoekillegaalhout.Amsterdam:GreenpeaceNederland.

Hafidh,H.,MacNeill,M.,&Birnbach,A.(2015).AnnualReport2014.OrganizationofthePetroleumExportingCountries.Vienna:OrganizationofthePetroleumExportingCountries.

Jonkeretal.,J.(2014).NieuweBusinessModellen.InJ.Jonker(ed.).,NieuweBusinessModellen(pp.37-42).Amersfoort:DrukkerijWilco.

Jonker,J.(2012,08).Dezevenkenmerkenvannieuwebusinessmodellen.Opgeroepenop127,2015,vanAcademicService:http://www.managementexecutive.nl/downloaden/12979/De-zeven-kenmerkenvan-nieuwe-businessmodellen

Palmer,C.E.(2001).Theextentandcausesofillegallogging:AnanalysisofamajorcauseoftropicaldeforestationinIndonesia.UniversityCollegeLondon,EconomicsDepartment.London:UniversityCollegeLondon.

Pearce,F.(2009,1121).How16shipscreateasmuchpollutionasallthecarsintheworld.DailyMail.

Rotmans,J.(2010).TransitieagendavoorNederland.KennisnetwerkSysteeminnovatiesentransities(KSI).Nieuwkoop:Ecodrukkers.

Yellishetty,M.,Ranjith,P.G.,&Tharumarajah,A.(2010).Resources,ConservationandRecycling.Elsevier.

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ANSWERINGTOTHECALLFORHELPOFASMALLBUSINESSGROUP

BrentHoogerwerf

Bachelorresearcher–KoninklijkeMetaalunieLectoraatSustainableStrategy&Innovation,Hogeschoollaan1,4818CRBreda,

TheNetherlands

+31615867197–[email protected]

AbstractInthecurrentsituationresearchhasalreadyshownthatchangeisneededinthewayofdoingbusiness(Jonker,2015).Butwhatoftenmissesisaproposalforthesmallestparticipantsoftheeconomytochange.TheNEBIFAisasmallpartoftheKoninklijkeMetaalunie,amajorbranch organization active in the Dutch construction sector. But despite it’s size it isacknowledging the wish to change. The Dutch construction sector is an example of atraditionalmarketthathasproblemstochangetowardstheneweconomy.Buthowwillyouchangeinachainthatisstuckinthecurrentwayofdoingbusinessforyears(Rotmans,2010),whenchangeisreallyneededinthecomingyears?‘Howcancompanies,activeintheNEBIFA,cometoanewbusinessmodelthatsecuresthe

futureofthecompaniesinthenewsustainableeconomy?’Withthisresearchquestioninmindthekeyisheretohelpthebusinesseswiththetransitionto the future. The future brings problems in a variety of ways. These problems have anecologicalaspectandarecoveringthewayoffhowweuseenergyandresources(Rotmans,Nederlandopkantelpunt,2012).Combinedwiththeshort-termmentalityofdoingbusiness(Rotmans,TransitieagendavoorNederland,2010)withasmainprioritytheoptimizationoftheprofit(Friedman,1962).Withthisknowledgedifferentsectorsshouldbealreadyadaptingto the new situation. ButchangeissomethingthatisunusualintheDutchconstructionsector(TNO,2005).Thewayofdoingbusinessisconservativeandeventhebiggestcompaniesarenotcapable,viainnovation,tochangethecharacterofthebusiness(SEOEconomischOnderzoek,2002).Theresultisthatlessthen10%ofallconstructioncompaniesiscontributingtoinnovationinthesector(Rotmans,Structuur,cultuurenwerkwijzeindebouw,2012).ForthemembersoftheNEBIFAseveralbarriersstandinthewayofchange.Theonewiththemost impact is the fact that when reusing products, production will drop. For everyproduction company thismeans a drop in turnover. Another barrier is theway of doingbusinesswhenpriceisthekeycriteriaformostcustomers.Sustainablesolutionsaremeetingthemarketdemand,butitspricesarenot.Theanswerliesclosetoahybridmodelthatwillbecreatednexttothecurrentmodel.Inapricesensitivemarketwithahighvolatilityinthecostsofresourcesitiscrucialfortherelativesmallfamily-ownedentrepreneurshipstohaveabackup.Inthiscasethiswillbethecurrentlinear production, where almost no additional value besides production and assembly isadded.Thehybridmodelisonethatfocusesonthreecrucialpointsinsidethecompany.First

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thereisthechangeinbehaviourinwhichresponsibilitywillplayamajorrole.Theorganizationneedstoknowwhatresourcesitisbuyingandwhichbackgroundithas,asaadditionalsmallserviceforitscustomers.Heretheorganizationwilltransformfromaproductionplanttoaproduct ‘expert’ that has the knowledge to advice other parties in the chain regardingsustainable solutions. Secondly internal ways of production should be evolving fromeffectivelytoeffective.Leanproductionisacost-effectivewayofworking.Buttheresultisahigh quality productwith a negative food-print on the ecological side of life. Thismeanscompletecleansolutionswillbeavailableforcustomers.Atlastcompanieswillbefollowingitscreationsbyregisteringitinternally.Theresultshouldbeaincentivefortheusingclientwhenitisreturningtheproducttotheproducingparty.Themostlogicalwouldbeviaresidualvalue.Anotheroptioncouldbediscussedintermsofaservicewhenreusingthesolutionfortheclient.Overallcompanieswillbechangingfromorganizationsthatarelookingformorereasonstoproduce,tocompaniesthatareofferingproduct/servicesolutions.Herethecompanywillbeintegratingforwardtothecustomertohavealong-termrelationbasedonbenefitsforbothpartieswithaslesswastefortheenvironmentaspossible.AfterthisresearchisitabsolutelynecessarythattheNEBIFAkeepsdoingresearch,becausethe hybrid-model is only the second phasewhen developing to a circular company. Thisresearchshouldcomefromawiderangeofexpertswithknowledgeofthedifferentaspectsofacompany.Hereischangemanagementamajorinfluenceonguidingdifferentgenerationsofpeopletotheneweconomy.Inthenewserviceorientatedeconomytherewillbestilldemandforproducts.But inthiseconomyitaretheservicesthataretheonlythingsthatarenottenableanymore.

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HOWONECANBECIRCULARINACONSERVATIVEMARKET

JoepvandeWater

Undergraduatestudent-lectoraatSustainableStrategyandInnovationAvansUniversityofAppliedSciences,Hogeschoollaan1,4818CRBreda

+31624700593–[email protected]

AbstractThecallforanewbusinessmodelisnothingnew.Oursocietyisabouttochangetoanew,more sustainable one. Amongst other things, natural resources are getting drained andmoneywedonothave is spent (Rotmans, 2012). Indicatorsondifferent levelswhichareshowingthatthischangeisneeded,arebecomingmoreandmorevisible.Mostoftoday’sbusinessesareorganizedaimingmerelyatmaximizingprofit,whiletheworldisintransitiontoasocietyinwhichcreationvalueexpressedinanecological,socialandeconomicwaywillbethenewstandard(Jonker,2014).Itcanbeseenthatprofitmaximizationwithouttakingtheinterestsofsocietysufficientlyintoaccountisdestructiveinthelongrun.Consequently,it can be concluded the linearway of conducting business is unsustainable regarding thechangingmoralstandards.Accordingtoliterature,thenecessityfornewbusinessmodelsregardingsustainabilityandmorespecificcircularityisevident.Whilethisisthecase,theDutchconstructionindustryisupuntilnowahighlyconservativeone.Suppliersinthisindustryareengagedinaphasemostdecisions regardingdesignandplanningarealreadydeterminedand thereforespecializedknowledge held by the supplier is not considered to be relevant. Cooperation betweenbusinesses is mostly based on projects (Vossebeld et al., 2013), which emphasizes theimportanceofefficiency,costsandreturnoninvestmentresultinginashortsightedfocusonincreasingprofits.Suppliersarethereforeselectedbasedoncostsandprice(Rotmans,2010)intheshortrun.OneofthebranchorganizationsthatrepresentsfirmsoperatingintheDutchconstructionindustryistheNEBIFA.BusinessesaffiliatedwiththeNEBIFA,suppliersofmoveablein-housewalls,endorsethebottlenecksdescribed in literature,asstatedabove. Interviewspointedoutthat,duetothefactmostproductspecificationsarecapturedincontractspredeterminedbycontractors,alackofabilitytodistinguishintheproductitselfisapparent.Consequently,suppliers of those walls are consciously downgrading on quality and compete with theirprices.BasedontheideasofJonker(2014)andRotmans(2010,2012)itcanbeconcludedthat the strategy that is currently being implemented by businesses in this branch isunstainableinmultiplesmanners.The objective of this study is thus to create a newbusinessmodel for suppliers of thosemoveable in-house walls, wherein circularity will be the main key point. With a circularbusinessmodel,onewillnotonlyescapefromthedownwardspiralofthecurrentpricedrivenmarket, but also create value in other aspects, such as prevention of exhausting naturalresources.Secondly,thisstudyaddressesthequestionhowthemarkupintheconservative,linearorientatedandpricedrivenDutchconstructionindustrycanbeincreasedorotherwise

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toresearchhowtheindustrycanbesetinmotiontoamoresustainableone,inwhichqualitygetsahighpriorityratherthaninitialcosts.Thisleadstothefollowingresearchquestion:“Howshouldabusinessmodelforsuppliersofmoveablein-housewallsbeformedtoattaincircularityandmovetowardsamoresustainablenon-residentialconstructionindustry?”

Atfirst thecurrent fieldsuppliersofmoveable in-housewallsoperates inwillbeexploredthrough interviews, literature and desk research. All parties in the non-residentialconstructionwillbe investigatedto learnaboutbarriers tochange.Secondly, interviewingexpertsonsustainabilityandtransitionmanagement,possibilitiestowardsanoptimalcircularbusiness model will be outlined. Subsequently an optimal new business model can bedesignedwhichwillbefine-tunedthroughpanels.Ultimately,itcanbeconcludedwhatpartsofthebusinessmodelunquestionablyneedstochange,establishedondifferencesbetweenthecurrentanddesiredsituation,andinwhichmannerthishastobedone.

References

Rotmans,J.(2010).TransitieagendavoorNederland.Retrieved18February,2016,fromhttp://www.urgenda.nl/documents/TransitieAgendajuni2010JanRotmans.pdf19-27.

Rotmans,J.(2012).Inhetoogvandeorkaan.(3nded.).Boxtel:Æneas.

Jonker,J.(2014).NieuweBusinessModellen.(3nded.).StichtingOCF20andAcademicServiceRedactie.AbstractConferencePaperConference‘NewBusinessModels’,June2016

Vossebeld,N.,Voordijk,J.T.,&Halman,J.I.M.(2013)Geplandknuffelen!Kennisenkundevantoeleveranciersvroegtijdiginhetbouwprocesbenutten.ConcepTueel,22(3).28-31.

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HOWDONEWBUSINESSMODELSINBANKINGAPPROACHSTAKEHOLDERS?

ElisaBaraibar-Diez·MaríaD.Odriozola·JoséLuisFernándezSánchez

DepartmentofBusinessAdministration(UniversityofCantabria).Avda.LosCastross/n,39005Santander,Cantabria.

[email protected]

Abstract

Thechangeintheprofileofconsumersandsocietyinvolvesachangeinthewaybusinessesdo business. This is observed in the growing demand for ethical alternatives in differentsectorssuchasthefoodindustryorthetextileindustry,materializeinfairtradestandards,andalsothebankingindustry.Inthelastfewyears,infact,moreattentionisbeinggiventoethics in finance (Cowton, 2002; Cowton, 2010) but there is no focus on analyzing thedifferencesbetweenethicalandtraditionalbanks(San-Joseetal.,2011),evenlessfromthepointofviewofcommunicationandespecially,transparency(San-JoseandRetolaza,2008;GutiérrezandSádaba,2010).This is quite impressive, since we believe that the banking sector represents a uniqueopportunityasalmostnoothersectorhassuchacleardichotomybetweenethicalbusinessand traditional business, allowing academics to compare their behavior and theircommunicationstrategiestoengagedemandingstakeholders.Theseethicalconsumersarecharacterizedbymorereflexivevalues likesolidarity,socialresponsibility,multiculturalismand ecology (Goig, 2007) and generally demand more concrete and quality information(SchleenbeckerandHamm,2015).Through a descriptive and comparative analysis, this contribution aims to examine thecommunicationprocess fromthepointof viewof transparency–which isoneof thekeyvaluesinthethinkingofethicalbanking–inasampleoftwoethicaloralternativebanksandtwotraditionalbanksoperatinginSpain.Thestudyisexploratoryinnature,withtheaimofbetter understand the differences between traditional and ethical banking regardingtransparencyinCSRcommunication.The study relies on key elements of CSR communication (issuer, message, channel andreceiver) to identify transparency, whose key is the combination of being conscious(commitmentoftheissuer)aboutknowingwhatitisimportanttosay(materiality)totheonewhoisinterestedtolisten(identificationofstakeholders)andhowtoreachthemproperly(analysisofchannelsofinformation).Thedescriptiveanalysisshowshowbothtypesofbanksdealwitheachtypeofelementofcommunication,andtransparencyseemstohavemoretodowiththevisionofthecompanythanwiththeactionsdevelopedtoachieveagreatertransparencylevel.Inthissense,ethical

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banksarepositionedthemselvesintermsofethics,CSRandtransparency,soeffectivenessincommunicationissupposedtobeenhancedbecausetheaudienceiswelldisposedtosupportthoseinitiatives.Althoughthescopeofthestudyisquitelimitedduetothesampleused,wecan say that traditional banks operate considering principles of transparency and ethicalbanksoperatewithintransparency.

References

Cowton,C.(2002).Integrity,ResponsibilityandAffinity:ThreeaspectsofEthicsinBanking.BusinessEthics:AEuropeanReview,11(4),393-400.

Cowton,C.(2010).Banking,InJ.Boatright(ed.)FinanceEthics:CriticalIssuesinFinancialTheoryandPractice,KolbSeriesinFinance,Wiley,NJ.

Goig,R.L.(2007).Fairtradeandglobalcognitiveorientation:afocusonSpanishfairtradeconsumers,InternationalJournalofConsumerStudies,31(5),468-477.

GutiérrezGarcía,E.&SádabaGarraza,T.(2010).“Makingthingshappen:theroleofcommunicationinstrategicmanagement.Acasestudyonbankingindustry”.ComunicaciónySociedad,Vol.XXIIINo.2,179-201.

San-Jose,L.&Retolaza,J.L.(2008).InformationtransparencyasDifferentiationFactorofEthicalBankinginEurope:RadicalAffinityIndexApproach.TheICFAIJournalofBankManagement,7(3),7-22.

San-Jose,L.,Retolaza,J.L.,&Gutierrez-Goiria,J.(2011).AreEthicalBanksDifferent?AComparativeAnalysisUsingtheRadicalAffinityIndex.JournalofBusinessEthics,100,151-173.

Schleenbecker,R.&Hamm,U.(2015).InformationNeedsforaPurchaseofFairtradeCoffee,Sustainability,7(5),5944-5962.

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GIVINGANACCOUNTTOETHICALANDSOCIALLYRESPONSIBLEINVESTORS:AMULTIPLESTAKEHOLDERAPPROACH

BrigitteBernard-Rau,KristinaLauche,VeraBlazevic

InstituteofManagementResearch,RadboudUniversityNijmegen,TheNetherlands

[email protected],[email protected],[email protected]

Keywords: Stakeholder theory; stakeholder management; corporate social performance(CSP);sociallyresponsibleinvestors(SRIs);sustainabilityratings

Abstract

Businessorganizations communicateonhow theyaddress their stakeholders’ concerns intransparent and informative corporate sustainability reporting and sustainability ratingagenciesuse,inpart,thisinformationtoassesstheirsocial,environmentalandgovernancepractices.Thispaperaddressesthequestionifandhowcorporatesustainabilityreportingandsustainabilityratingswidelyusedbysociallyresponsibleinvestorscantriggerinternalchangeand influence subsequent corporate practices. Despite their increasing importance in thefinancialworld,management literatureoffers little insighton the role socially responsibleinvestors, through the expertise of sustainability rating agencies, play in organizationalpractices,inparticularinthewaytheyholdcompaniesaccountablefortheiractions.Buildingonstakeholdertheorycombinedwiththeaccountability literature,thepaperexploresthecomplexbusinessandsocietyrelationshipswithrespecttocorporatesocialperformance.Overall,wedistinguisha) the responses tomultiple stakeholders’needsandexpectationsfromb)socialperformanceasanevaluationofcompanies’effectiveness inmeetingtheseneeds and expectations. We illustrate the potential of this research strategy with acomparativequalitativeanalysisofthesustainabilityratingsof25globaltelecommunicationsservice providers (telcos), corresponding to a total of 2,500 entry data points. To betterunderstandthesetofdata,wescrutinisedthecorporatesocialresponsibilitystrategyofthetelcos, their related policies, principles and guidelines. We also analyzed their activitiesaccording to their reported stakeholder approachwith a particular focus as to how theyappraise their relationships with their stakeholders. The corporate social performanceanalysis of these companies led to three conclusions: 1) Companies that improved theircorporate social performance addressed and incorporated the expectations of sociallyresponsibleinvestors;2)Companieswhosecorporatesocialperformancedecreasedfailedtorespond to these expectations; and 3) Companies that jumped on the corporate socialresponsibilitybandwagon late tendedtohaveabettercorporatesocialperformance levelcomparedtothosethatstartedearly.

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References

Adelba,E.,(2011).Theroleofmanagementaccountingpracticesasfacilitatorsoftheenvironmentalmanagement:EvidencefromEMASorganisations.SustainabilityAccounting,ManagementandPolicyJournal,2(1),76-10.

AgudoValiente,J.M.,GarcésAyerbe,C.,&SalvadorFigueras,M.(2012).Socialresponsibilitypracticesandevaluationofcorporatesocialperformance.JournalofCleanerProduction,35,25-38.

AguileraR.,Rupp.D.,WilliamsC.,&GanapathiJ.(2007).PuttingTheSBackInCorporateSocialResponsibility:AMultilevelTheoryOfSocialChangeInOrganizations.AcademyofManagementReview,32(3),836–863.

GondJ.P.,Grubnic,S.,Herzig,C.,&MoonJ.(2012).Configuringmanagementcontrolsystems:Theorizingtheintegrationofstrategyandsustainability.ManagementAccounting,Research,23(3),205-223.

Mitchell,R.K.,Agle,B.R.,&Wood,D.J.(1997).TowardaTheoryofStakeholderIdentificationandSalience:DefiningthePrincipleofWhoandWhatReallyCounts.AcademyofManagementReview,22(4),853-886.

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GREENNBMSASCOGNITIVEARTEFACTS

SomeCharacteristics

AlbertLejeune,Ph.D.1,PierrePoirier,Ph.D.2

1Départementdemanagementettechnologie,ÉcoledessciencesdelagestionUniversitéduQuébecàMontréal,Casepostale8888,

succursaleCentre-ville,Montréal(Québec)H3C3P8Canada2Départementdephilosophie,Facultédesscienceshumaines

UniversitéduQuébecàMontréal,Casepostale8888,succursaleCentre-ville,Montréal(Québec)H3C3P8CANADA

[email protected](correspondingauthor),[email protected]

Abstract

Whatcanbesaidaboutthewaytodesignstandardbusinessmodels(BMs)vs.sustainableBMs (SBMs)?Thedesignofanew innovativeBM isstillanopenresearchquestion. Whoshouldproceed?Whataretheavailabletools?Whatwillbethetheoryofbusinessbehindthemodel?Thedesignofagreenor sustainableBM is likeanunchartered territory. If someauthors give some indications to design of a new businessmodel, only a few papers areconsideredasbringingexplicitlysustainability inabusinessmodel.Thespecific innovationmanagement problem this paper is focussing on is the definition of cognitive skills andcapacitiesrequiredtodesignradicallyagreenbusinessmodel.Byradicaldesignofagreenbusiness model, we mean the introduction of strong sustainability in a business model.Through a cognitive science angle, the objective of the paper is to underline the role ofsubjectiveinvariants(i.e.values,attitudes…)vs.externalinvariants(i.e.fixedcategories)intheSBMdesignwherecomputation is tooa limitedviewbut situatedcognition iskey. Itseemsthatcompaniesno longerhavearealchoiceaboutwhetherornottochangetheirlogic, consumersdevelopingecological intelligence that requires total transparency in thecompositionofproductsandmanufacturingprocesses.WeproposethenthatBMsandSBMsare cognitive artefacts that can be manipulated by public/private actors, individuals orgroups, from distinct cognitive stances: design, physical and intentional. Those cognitivestancesarefurtherconnectedwithfourwaystoovercomeSBMinnovationinertia.Itwillbehypothesized that in order to design more radical SBM, design stance and conceptualknowledge are limiting factors. On the contrary, what is badly needed arephysical/intentionalstancesexploitingproceduralandmetaknowledge.

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VALUEANDVALUESINANDAROUNDBUSINESSMODELS:THECASEOFRENEWABLEENERGYINITIATIVES

AntoniaProka,MatthijsHisschemöller,DerkLoorbach,PJBeers

DutchResearchInstituteforTransitions(DRIFT)ErasmusUniversiteitRotterdam

Abstract

Atransitiontosustainabilityimplieschangeinthebusinessmarketcontextandtheoverallvaluethinking.SincethewellknownOsterwalder’sBusinessModelCanvasvariousscholarstried to extend the model in order to accommodate wider societal and environmental“externalities” (Osterwalder & Pigneur, 2010). The idea behind these attempts is thatbusinessiscarriedbyastakeholdernetwork,andasustainability-orientedbusinessneedstogobeyondcustomersandshareholders,andcreatevaluetothewholerangeofstakeholdersandthenaturalenvironment(Schalteggeretal.,2015). Inotherwords,thevalueofthesenew, sustainability-oriented Business Models (BMs) is multiple and may be organisedcollectivelybyandforawidevaluenetwork(Jonker,2012).Despite the increasing interest in BMs and especially in the ones with a sustainabilityorientation(e.g.Doganova,&Eyquem-Renault,2009;Boons&Lüdeke-Freund,2013),ortheongoingdiscussionaroundtheissueofvalue,the“holygrail”ofeverybusinessactivity(e.g.Porter&Kramer,2011;Jonker,2012),thereisstillconfusionasregardstheroleofvalue(s)inand around BMs. From the societal value of climate protection, to personal values ofempowerment,ormarketvalueassessedinReturnonInvestment,amultitudeofvaluesareinvolvedinsustainableBMs.Thispaperaspirestoclarifytheissueofvalue,aswellastherolethatvaluesplayinthelogicandprocessoftransformativevaluecreationinthecontextofsocietaltransitions.Todosowebuildonpreviouswork(Prokaetal.,2015)whereBMsareseenasstoriesthatexplainhoworganisationsworkcapturingpartofthevaluethattheycreate,andinthat,theycompriseoffourbuildingblocks:

− theValuepropositionthatclarifieswhatvalueisembeddedintheofferingsoftheorganisation;

− theProductorService,whichfulfilsthevaluepropositionandgeneratesthepromisedbenefit;

− theArchitectureofvaluethatliststhepartnersandchannelsthroughwhichvalueisproducedanddelivered,and

− theRevenuemodelwhichisthebottomlineofthebusinessmodelthatsustainstheorganisation,translatingtheformerdimensionsincostandrevenueflows.

Wesuggesttodistinguishvalueinvaluepropositionfromvaluesbytreatingtheformerascertain promised benefits carried by a product or service thatmay be aligned to certainbroadersocietalvalues.Inthat,valuesmightbecloselyconnectedtothecornerstoneofeveryBMi.e.the“valueproposition”,asthelatterwishestocontributetoandisbaseduponwidersocietal values, but these values are also implicitly and intrinsically connected to all BMbuildingblocks.Withthewishtoexaminehowtransformativesocialinnovationcanmake

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useofBMthinkingtocontributetowidersystemicchange,thispaperstudiestheinterplaybetweenvaluesandvalueinsustainableBMs:Howbroadersocietalvaluesarearticulatedintheirvaluecreationmechanisms?Andwhat

valuesareimplicittherein?DrawingonrenewableenergyinitiativesintheNetherlandswestudyhowvaluesarealigned(ornot)intheirBM,howvaluesofdifferentstakeholdersarebroughtonboard,andfurtherwediscusshowabroadorientationonvaluecanallowustounderstandhownewsustainableBMmayinfluencetheenergytransition.

References

Boons,F.&Lüdeke-Freund,F.(2013).Businessmodelsforsustainableinnovation:State-of-the-artandstepstowardsaresearchagenda.JournalofCleanerProduction,45(0),9-19.

Doganova,L.&Eyquem-Renault,M.(2009).Whatdobusinessmodelsdo?Innovationdevicesintechnologyentrepreneurship.ResearchPolicy,38(10),1559-1570.

Jonker,J.(2012)NewBusinessModels,Anexploratorystudyofchangingtransactionscreatingmultiplevalue(s).WorkingPaper,NijmegenSchoolofManagement,RadboudUniversity.

Osterwalder,A.&Pigneur,Y.(2010).BusinessModelGeneration:AHandbookforVisionaries,Gamechangers,andchallengers.Hoboken,NJ:Willey.

Porter,M.&KramerM.2011Creatingsharedvalue:Howtoreinventcapitalismandunleashawaveofinnovationandgrowth.HarvardBusinessReview,Jan-Feb,62-77.

Proka,A.,Hisschemöller,M.,&Loorbach,D.(2015).DonichesneedaBusinessmodel?Empoweringsocialinnovationforrenewableenergythroughtheintroductionofnotionsofsocialentrepreneurship.ProceedingsoftheInternationalSustainabilityTransitionsConference.Brighton,UK:SPRU.

Schaltegger,S.,Hansen,E.G.,&Lüdeke-Freund,F.(2015)BusinessModelsforSustainability:Origins,PresentResearch,andFutureAvenues.Organization&Environment,1-8.

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COSTOFCAPITALANDCHANGEINBUSINESSMODEL:ALONGITUDINALANALYSISOFAEUROPEANLISTEDCOMPANY

PascalBarneto

UniversitédeBordeaux

Keywords: cost of capital, CSR, Sustainable Development, BusinessModel, New BusinessModel,Betacoefficient,systematicrisk

Abstract

Inthispaper,weexaminethecorrelationthatmayexistbetweenthecostofcapitalandtheevolution of a listed company’s Business Model (BM) as described in its annual reportdisclosures.Moreprecisely,wetrytoknowifthefundsproviders’perceptionofriskcouldbeaffectedbytheirawarenessandsensitivenesstoCSRconcernsregardedasdeterminantsofanewBMadoptedbyafirm.Ourstudystandsatacompanylevel.Ourresearchquestioncanbeformulatedasfollows:canacorrelationbeestablishedbetweenthecostofcapitalandtheevolution of a firm’s BM? In other words do finance providers (shareholders and banks)includetheCSReffortsofalistedgroupintheirassessmentofthecompany’sriskmeasuredthroughitscostofcapital?

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EXPLORINGBUSINESSMODELDISCLOSUREINCORPORATEREPORTING.EVIDENCEFROMINTEGRATEDREPORTING

LinoCinquini1,FedericaDoni2,ElisaRitaFerrari3,ElisabettaMagnaghi4,AndreaTenucci1

1ScuolaSant’AnnadiPisa2UniversitàdiMilanoBicocca

3UniversitàdegliStudidiEnna“Kore”4UniversitéCatholiquedeLille

[email protected],[email protected],[email protected],[email protected],

[email protected]

Abstract

Purpose – The communication of BusinessModel as well as the disclosure of the firm‟sprocessofvaluecreationincorporatereportingaregainingamomentumwithinacademicsandpractitioners,asintheinternationalarenathereisastrongneedtoimprovenon-financialinformation disclosure through the adoption of more comprehensive and transparentcommunicationprocesses(KPMG,2008;FEE,2008;EurosifandACCA,2013).The lackofauniqueframeworkfornon-financialinformationhighlightsseveraldifficultiestodisclosenon-financialinformationcorrectlywhiletheadoptionoftheEuropeanDirectiveNo.2014/95/UEwill require European large companies to communicate environmental, social andgovernance information with a specific focus on human rights, bribery, corruption anddiversityitemsincorporatereporting.In addition,oneof themost critical issue is the representationofBusinessModel, as theEuropeanDirectiveconsidersabriefdescriptionofthecompany'sBusinessModelasoneofthe first items to be included in Annual Report or in a stand-alone report such as theCorporateSocialResponsibilityreport1.A significant step forward in the development of new models of business reporting isrepresentedbytherecentproposalofIntegratedReporting<IR>(IIRC,2013;EcclesandKrzus,2010; 2015; Busco et al., 2013). <IR> may provide a better and more holistic picture ofcompany’sabilitytocreateandpreservevalueovertheshort,mediumandlongtermthanthe traditional Annual Report. Academic, practitioners, consultants, standard setters andpolicymakersaredebatingaboutthedevelopmentofthe<IR>Frameworkas<IR>isalreadybeenadoptedbyagrowingnumberofcompaniesintheworld(www.corporateregister.com).Oneof thepivotal issueof the<IR>Framework is thecommunicationofBusinessModel,whichisdefinedat“thehearthoftheorganization”(IIRC,2013).TheaimofthispaperistoinvestigatethecorrectpositioningofBMwithinthesystemsofnon-financial information incorporatereporting.Theanalysis is focusedon<IR>modelto

1EuropeanDirective2014/95/UE,p.4.

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verify the correspondencebetween thebestbusinesspracticesofBMdisclosure and thisbenchmark.Moreover,ourresearchaimistoanalyzethedegreeofheterogeneityinfirms‟practicestodefinegeneralguidelinesthatcanensureanacceptablelevelofastandardizedapproachonBMdisclosuretoimproveeffectivenessandcomparabilityofthisinformation.Research design/Methodology –. The analysiswas performed on the Integrated reportsdrawnupbyasampleof17companiesbelongingtodifferentindustriesovertheperiod2012-2013.MostofthesecompanieshavejoinedthePilotProgrammeBusinessNetworkmembersand investors promoted by IIRC (www.integratedreporting.org). For each company weperformed a synthesis of business information disclosures focused on Business Model,highlightingthepresenceortheabsenceoftheessentialsaccordingtotheBusinessModelBackgroundPaperfor<IR>(IIRC,2013)Inthefinalstepofourresearch,foreachreportithasbeenproposedabriefcommentarywhichhashighlightedthemostimportantissuesabouttherepresentationandexplanationofBusinessModelwithin<IR>.Findings–ThisresearchaimedtoanalyzeBMdisclosuresonthreedifferentareas,accordingtotheguidelinesonBMcommunicationissuedbyBusinessModelBackgroundPaperfor<IR>thatarethefollowingones:

1. keyconcepts(contentelements)ofBM;2. communicationofBM,3. descriptiveanalysisof<IR>ofthesampleanalyzed.

TheresultsofthefirstarealedtothedevelopmentofagridofanalysisinordertoidentifythekeyelementsofBMthatshouldbedisclosedinaneffective<IR>.ThisresultmayprovideavalidchecklistforBMdisclosurein<IR>.ThefindingsofthesecondtopicshowedthedifferentwaystodiscloseBMwithin<IR>andfinally the descriptive analysis returned a summary of all practices led by the sample ofcompaniesaccordingtofourselectedissues:

1. placementofBMin<IR>;2. keyelementsofBMdisclosureandtheirlinks;3. representationandexplanationofBMin<IR>;4. relationshipsandkeylinks(inputs,activities,outputs,outcomes).

ReferringtotheplacementofBMthemostofcompanieshasaspecificparagraphoftheirAnnualReportdevotedtoBMbutthereisalowassociationbetweenthekeyelementsandBM. The presence of key elements of BM is fragmented and uneven confirmed by aninadequate description of these elements in <IR>. Finally the representation of BM isrelativelyhomogeneousbutthelinkbetweenthesixcapitalsandotherelementsofBMisverylowandthelinkamongthesixcapitalsismainlymissingin<IR>.Insummary,thisresearchhighlightedarelevantpropensitytodisclosetheBMkeyelementswithin<IR>andthecrucialrelationshipsandlinksoftheseelementswithBM.Specifically,thereisalowassociationbetweentheBMelementsandastrongneedofanadequateandclear interpretation and interaction with other corporate issues (eg. mission, vision,governance model, strategic plan, etc.), which significantly support the users inunderstandingthecrucialpivotofvaluecreationprocessofcompany.Originality/Value–ThispapermaycontributetothepriorstudiesonthecommunicationofBM(BeattieandSmith,2013;Page,2014)astheBMrolewithincorporatereportinghasyettobefullyexplored,sincemoreattentionhasbeendevotedtothetopicsofbusinessstrategy,innovation and change management. It is a still underdeveloped research topic on atheoretical level, and it is highly significant, empirically (Zott, Amit &Massa, 2011). The

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growing interest about the position of BM within Financial Reporting is confirmed bydocuments issued by several international organizations (ICAEW 2009; IFRS 2010; EFRAG2013;CGMA2013,2014;IIRC2013;IFAC2015),butthisresearchareaislessinvestigatednotonlywithinthetraditionalfinancialreportingbutalsowithin<IR>(Buscoetal.,2013;Laietal.,2015).Practical implications –This researchmaycontribute to startand supportanon-financialqualitativeinformationstandardizationprocess,inadditionitmayprovideausefuldrafttodevelopasetofguidelinestodiscloseBMaccordingtotheIIRCrequirements.Researchlimitations–Furtherdevelopmentsofthisresearch:1)Extensionoftheanalyzedsample of companies, 2) realization of targeted interviews on the most interesting casestudies.

References

ACCA&Eurosif(2013).Whatdoinvestorsexpectfromnon-financialreporting?www.accaglobal.com.Afuah,A.,(2004).Businessmodels:Astrategicmanagementapproach.NewYork:Irwin/McGraw-Hill.

Afuah,A.&Tucci,C.L.(2001).Internetbusinessmodelsandstrategies:Textandcases.NewYork:McGraw-Hill.

Amit,R.&Zott,C.(2001).ValuecreationinE-Business,StrategicManagementJournal,22(6),493-520.

Beattie,V.&Smith,S.J.(2013).Valuecreationandbusinessmodels:Refocusingtheintellectualdebate,TheBritishAccountingReview,45,243-254.

Brougham,A.(2012).Discussionof„Business-model(intent)-basedaccounting,JimLeisenring,ThomasLinsmeier,KatherineSchipperandEdwardTrott.AccountingandBusinessResearch,42(3),345-347.

BuscoC.,FrigoM.L.,RiccaboniA.,&QuattroneP.(eds.),IntegratedReporting.ConceptsandCasesthatRedefineCorporateAccountability.Springer,NewYork.

Casadesus-Masanell,R.&Ricart,J.E.(2010).FromStrategytoBusinessModelsandontoTatics,LongRangePlanning,43,195-215.

Chesbrough,H.(2007).Whycompaniesshouldhaveopenbusinessmodels,MITSloanManagementReview,48(2),22-28.

CIMA,IFAC,&PWC(2013)BusinessModel,BackgroundpaperforI<IR>,March,IIRC,London.

Cinquini,L.&TenucciA.(2011).Businessmodelinmanagementcommentaryandthelinkswithmanagementaccounting,FinancialReporting,SpecialIssue,41-59.

CorporateRegister.com.(2013).CRPerspectives2013.GlobalCRReportingTrendsandStakeholdersView.

Dubosson-Torbay,M.,Osterwalder,A.,&Pigneur,Y.(2002).E-businessmodeldesign,classification,andmeasurements.ThunderbirdInternationalBusinessReview,44(1),5-23.

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EcclesR.G.&KrzusM.P.(2015).TheIntegratedReportingMovement:Meaning,Momentum,MotivesandMateriality.Wiley,NewYork.

EFRAG,ANC,&FRC(2013).Theroleofthebusinessmodelinthefinancialstatements.Researchpaper,December,Brussels,EFRAG,ANC,FRC.

GasperiniA.&DoniF.,(2014).Lariformaeuropeainambitodiinformativadisostenibilitàedidiversità,Amministrazione&Finanza,9,19-28.

GiuntaF.,BanbagiottiAlbertiL.,&VerrucchiF.(2009).BusinessModelDisclosure:muchadoaboutnothingevidencefromannualreportsofItalianListedCompanies,Proceedingsofthe9thGlobalConferenceonBusiness&Economics(GCBE),MurrayEdwardsCollege,CambridgeUniversity,UK,October.

ICAEW–InstituteofCharteredAccountantsofEnglandandWales(2010).Businessmodelsinaccounting:thetheoryofthefirmandfinancialreporting.http://www.icaew.com/en/technical/financial-reporting/information-for-better-markets/ifbm-reports/business-models-in-accounting-the-theory-of-the-firm-and-financialreporting.

IASB(2010).ManagementCommentary,practicestatement.London,InternationalAccountingStandardBoard,http://www.ifrs.org/.

InternationalIntegratedReportingCouncil(2013).BusinessModelBackgroundPaperfor<IR>,availableatwww.integratedreporting.org.

IoannouI.,andSerafeimG.,(2011).Theconsequencesofmandatorycorporatesustainabilityreporting,HarvardBusinessSchool,WP,11-100.

Johnson,M.W.,Christensen,C.C.,&Kagermann,H.(2008).Reinventingyourbusinessmodel.HarvardBusinessReview,86,50-59.

LaiA.,MelloniG.,&StacchezziniR.(2015).TheQualityofBusinessModelDisclosureinthe«IntegratedReport»ofEuropeanAdopters.InDiCagnoN.InvernizziG.,MechelliA.eUgoliniM.(eds.)Ilruolodell‟aziendanell‟economia.Esisteunmodelloaziendaleorientatoallacrescita?,IlMulino,Bologna.

Lambert,S.C.&Davidson,R.A.(2013).ApplicationoftheBusinessModelinStudiesofEnterpriseSuccess,InnovationandClassification:Ananalysisofempiricalresearchfrom1996to2010,EuropeanManagementJournal,31,668-681.

Leisenring,J.,Linsmeier,T.,Schipper,C.,&Trott,E.(2012).Business-model(intent)-basedaccounting,AccountingandBusinessResearch,42(3),329–344.

Magretta,J.,(2002).Whybusinessmodelsmatter,HarvardBusinessReview,80(5),86-92.

Mansfield,G.M.&Fourie,L.C.H.(2004).Strategyandbusinessmodels-strangebedfellows?Acaseforconvergenceanditsevolutionintostrategicarchitecture.SouthAfricanJournalofBusinessManagement,35(1),35-44.

Mitchell,D.&Coles,C.(2003).Theultimatecompetitiveadvantageofcontinuingbusinessmodelinnovation.JournalofBusinessStrategy,24,15-21.

Morris,M.,Schindehutte,M.,&Allen,J.(2005).Theentrepreneur’sbusinessmodel:towardsaunifiedperspective.JournalofBusinessResearch,58,726-735.

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Osterwalder,A.(2004).Thebusinessmodelontology:Apropositioninadesignscienceapproach.SwitzerlandDissertation173.UniversityofLausanne.

Osterwalder,A.,Pigneur,Y.&Tucci,C.(2005).Clarifyingbusinessmodels:origins,presentandfutureoftheconcept.CommunicationsoftheAssociationforInformationSystems,15,1-38.

OwenD.(2006).Emergingissuesinsustainabilityreporting.BusinessStrategyandtheEnvironment,15,217–21.

PageM.(2014).Businessmodelsasabasisforregulationoffinancialreporting,JournalofManagementandGovernance,18,683-695.

Penman,S.H.(2007).Financialreportingquality:isfairvalueaplusoraminus?AccountingandBusinessResearch.SpecialIssue:InternationalAccountingPolicyForum,37(1),33–44.

Richardson,J.(2008).Thebusinessmodel:Anintegrativeframeworkforstrategyexecution,StrategicChange,17(5/6),133-144.

Seddon,P.B.,Lewis,G.P.,Freeman,P.,&Shanks,G.(2004).Thecaseforviewingbusinessmodelsasabstractionsofstrategy.CommunicationsoftheAssociationforInformationSystems,13,427-442.

Seelos,C.,&Mair,J.(2007).Profitablebusinessmodelsandmarketcreationinthecontextofdeeppoverty:Astrategicview.AcademyofManagementPerspectives,21,49-63.

Shafer,S.M.,Smith,H.J.,&Linderß,J.(2005).Thepowerofbusinessmodels.BusinessHorizons,48,199-207.

Singleton-Green,B.(2012).Shouldfinancialreportingreflectfirms’businessmodels?Whataccountingcanlearnfromtheeconomictheoryofthefirm.JournalofManagement&Governance,1-10.

Teece,D.J.(2010).BusinessModels,BusinessStrategyandInnovation,LongRangePlanning,43,172-194.

Weill,P.&Vitale,M.R.(2001).Placetospace:Migratingtoe-businessmodels.Boston:HarvardBusinessSchoolPress.

Zott,C.,Amit,R.,&Massa,L.(2011).TheBusinessModel:RecentDevelopmentsandFutureResearch,JournalofManagement,37(4),1019-1042.

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TOWARDSABLOCKCHAINENABLEDSOCIALCONTRACTFORSUSTAINABILITY

creatingafairandjustoperatingsystemforhumanity

NielsR.Faber1,HenkHadders2

1RadboudUniversity,Nijmegen,TheNetherlands2UniversityofGroningen,Groningen,TheNetherlands

1correspondingauthor:[email protected]

Abstract

The blockchain has the potential to reshape the organizational landscape, renderingtraditional,hierarchicalwaysoforganizingobsolete.Originallydevelopedtosupportcrypto-currenciessuchasthebitcoin(blockchain1.0),theversatilityoftheblockchainhasextendedtowards various types of contracts (blockchain 2.0), and to justice and coordinationapplications(blockchain3.0)(Swan,2015).Fundamentaltotheblockchainisdecentralizationofinformation;allpartiesconnectedtoablockchainareinpossessionandhaveaccesstothesame information. The implications for ways of organization of such decentralization ofinformationandconsequentlyoffunctionsareyettobeexploredtoitsdepths.Weforeseeeffectsrelatingto(1)businessarchitectures,(2)informationarchitectures,and(3)theroleandpropertiesofleadershipandgovernance.Inthispaperweexplorethepossibilitiesoftheblockchaininrelationtosocialcontractsandsustainability.We start from the premises that the original social contract between civilsociety,thestate,andthemarketisbroken(Faber&Hadders,2015).Weexpectthatanewsocialcontractbetweentheseparties,andthescientificcommunityasafourth,isneededinordertobeabletoaddressproblemsofsustainability.Theseproblemsaremoreandmoreidentifiedaswickedproblems,forwhichexistingwaysofworkingappearinsufficient.Newforms of organizing emerge to tackle such wicked problems. For instance, hubs ascollaborative,heterogeneous formsoforganizing thataddresssustainability relatedtopics(e.g.,energysupply,orwastehandling;Faber&Jonker,2015).Hubsconsistofamyriadofconstituents, originating from civil society, business, governmental institutions, or thescientific community, have no clear power base, and are non-hierarchically structured.Parallel to the emergence of hubs, the strive for abandoning the classical hierarchicalstructureforcommand-and-controlpurposesisnoticedonabroaderscale.Thissearchformoredecentralizedformsoforganizing,withcompoundingpartsoperatingautonomously,requiresanorganizationaloperatingsystemthatisabletoaccommodatethis.Theblockchain,whichprovidesapublic,distributedledgeroftransactions,seemstoprovidetheingredientsforsuchanoperatingsystem.Ourmainresearchquestionistowhatextendtheprinciplesonwhichblockchaintechnologyisbased,aresuitabletoenablenew,decentralizedandcollaborativeformsoforganizing.Thisisaconceptualpaperinwhichweexplorethepossibilitiesoftheblockchaininrelationtoitsapplication in social contracts for new forms of organizing aiming at sustainability and asustainabledevelopment.Wediscussthreecomponentsthatcomprisetheapplicationofthe

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blockchaininsuchnewformsoforganizing.Thefirstcomponentistheblockchainitself.Whileemergingfromatechnologicalfield,our interest liesattheorganizationalpossibilitiesandimplications.Particularlythedistributednatureoftheblockchainisinvestigated.Second,weaddressthepossibilitiesoftheblockchainrelatedtotheneedsofsocialcontractsthataresuitabletodealwiththewickedproblemsfoundinthedomainofsustainability.FaberandHadders(2015)provideseveralinsightsintothespecificationsofsuchnewsocialcontracts.Third,requirementsnewformsoforganizingbringaboutarepresented.Here,webuildonearlierworkonhubsandotheremergingformsoforganizing.Ourexplorationwillparticularlyaimat thebuildingblocks that areused to structure (orun-structure) suchnew formsoforganizing as well as those that guide their behaviour towards certain goals. In ourexploration,weconsiderthepossibilitythattheuseofblockchaintechnologymayalleviatetransactioncoststhatfavourtraditional,hierarchicallystructuredorganizations(e.g.Coase,1937).

References

Coase,R.H.(1937).TheNatureoftheFirm.Economica,4(16),386–405.

Faber,N.R.&Hadders,H.(2015).Rethinkingthesocialcontract:measuringandreportingsustainabilityincontext.PresentedattheGlobalCleanerProduction&SustainableConsumptionConference,Sitges,Spain:ElsevierScience.

Faber,N.R.&Jonker,J.(2016).Ahubisahub,notanetwork:towardsatypologyofhubsframedasatransferorforsustainabledevelopment.PresentedattheGlobalCleanerProduction&SustainableConsumptionConference,Sitges,Spain:ElsevierScience.

Swan,M.(2015).Blockchain:blueprintforaneweconomy(Firstedition).Beijing:Sebastopol,CA:O’Reilly.

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NEWBUSINESSMODELFORVALUECO-CREATIONINSMARTERUNIVERSITIES

LambogliaRita,ManciniDaniela,PalmiraPiedepalumbo

DepartmentofAccounting,ManagementandEconomics,ParthenopeUniversity

Correspondingauthor:[email protected]

Abstract

In the last decades a variety of smart ICT solutions enhances the quality of universities’servicesand improvestheperformancesofbothteachersandstudents.Theavailabilityofnewtechnologieshaspermittedtodevelopthemodelof“smartuniversity”asaplatformthatacquiresdata,sharesinformation,creatingacollaborativenetworktodrivetheanalysisandtheenhancementof the teachingand learningenvironmentand improvedecisionmaking(Coccolietal.,2013;Roth-Berghofer,2014).Howeverthisrepresentsasimplytechnologicalapproachtosmartuniversitymodelbecauseitdoesn’ttakeintoaccountothervariables(Lombardietal.,2012,Gontaretal.,2013).Recentmodifications in lawsandpolicy (Europe2020, Italian law240/2010and ItalianLegislativeDecree 10/2012), social issues and more recent ICT innovations have stimulated thedevelopmentofanewparadigmfortheuniversityorganization,whichisaskedtosupplyhighqualityservicesinordertostaycompetitiveinaglobalscenario.These lead to the need for many modifications, and the necessity to transform smartuniversityin“smarteruniversity”.Theconceptofsmarteruniversitiescharacterizestheabilityof universities to contribute to the economic and social development and the design oforganizational systems that uses technology to provide sustainable, personalized andinteractive services. The main feature of the smarter universities is the combination oftechnology with other variables summarized in the following six areas: learning,management,governance,social,healthandgreen(Coccolietal.2013).Consideringtheemergingandalsocomplexnatureofsmarteruniversityseemsthatthistypeofnetworkcouldsupportthedevelopmentofanopenandinteractivenewbusinessmodel(NBM),thatpromotes:

− theco-creationoflearningandresearchcontentsbetweenuniversitiesandotherorganizations(nationalinstitutions,companiesandlocalcommunity);

− theuseofwebanddigitaltechnologiestomanagestrategicandoperationalprocessesinacollaborativeenvironment;

− thedevelopmentofnewperformancemeasurementsystemsabletocapturethesocial,culturalandeconomicdimensionsofthevaluecreation.

Whiletheliteraturehasdevelopedtheconceptofsmarteruniversity,verylimitedstudiesaredevoted to identify its managerial implication and to design tools to measure andcommunicatesmartperformance.

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Thus,thefirstpurposeoftheworkistodescribeapracticalNMBthatcanbeappliedtothesmarteruniversitiesinordertohighlightthedifferencesbetweenthetraditionaluniversitiesbusiness model and to identify the critical factors driving the success of the smarteruniversities.Moreover,thispaperaimstoidentifythewayinwhichsmarteruniversityshouldcommunicateabouttheirbusinessmodel.Theresearchiscarriedoutconsideringtheliteratureonsmartuniversities,businessmodelsandintegratedreporting.The model provides a foundation and insight to scholars and practitioners in planning,implementing and assessing business practices in terms of context (who, why, where),process(howandwhat)andresults(outcome).

References

Coccoli,M.,Guercio,A.,Maresca,P.,&Stanganelli,L.(2014).Smarteruniversities:Avisionforthefastchangingdigitalera.JournalofVisualLanguages&Computing,25(6),1003-1011.

Roth-BerghoferT.(2014).Smartuniversity,theuniversityasaplatform,availableathttps://smartuniversity.uwl.ac.uk/blog/?p=100lastaccessedApril,2014.

Lombardi,P.,Giordano,S.,Farouh,H.,&Yousef,W.(2012).Modellingthesmartcityperformance.Innovation.TheEuropeanJournalofSocialScienceResearch,25(2),137-149.

Gontar,B.,Gontar,Z.,&Pamuła,A.(2015).DeploymentofsmartcityconceptinPoland.Selectedaspects.ManagementofOrganizations:SystematicResearch,(67),39-51.

Baden-Fuller,C.&Morgan,M.S.(2010).Businessmodelsasmodels.Longrangeplanning,43(2),156-171.

Gambardella,A.&McGahan,A.M.(2010).Business-modelinnovation:Generalpurposetechnologiesandtheirimplicationsforindustrystructure.Longrangeplanning,43(2),262-271.

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POLICYINSTRUMENTSTOUNLEASHCIRCULARBUSINESSMODELSVALUECREATIONPOTENTIAL

Asurvey

RémiBeulque,HelenMicheaux

CentredeGestionScientifiqueMinesParisTech,60boulevardSaint-Michel,75006Paris,FrenchInstituteforCircularEconomy


Abstract

Transitiontowardsamorecirculareconomyisincreasinglybecomingaworldwidepriorityforgovernments. Indeed, many States adopted national strategies to foster this process(Ghisellinietal.,2015)bothinEurope,NorthAmericaandAsia.Asamatteroffact,thisnewrestorativemodelenablestounbundleeconomicgrowthandenvironmentalimpacts(EMF,2012).Moreimportantly,assustainabilitycanhardlybeachievedwithoutwealth,circularityprovedtohaveasignificantvaluecreationpotentialbothatmacroeconomicandfirmlevels(Espositoetal.,2016).However,thisrecentmovement,whichledGovernmentstoimplementcircularpolicies,alsohighlights a less optimistic acknowledgement: current legal frameworks were created topromote linear economy, or to control some of its environmental externalities, aswasteproduction.Therefore,a significant shift is required tounleash“circularbusinessmodels”(BeulqueandAggeri,2015)andrelatedindustries’valuecreation,andtocapturepotential(EMF,2015).Inthisarticle,weproposetomapanddescribethediversepolicyinstruments,whichhavebeen implemented in leading countries in terms of going circular, and can foster such atransition.Weadoptacomprehensiveandglobalapproach.Infact,weanalyzeinstrumentsthatimpactlinearbusinessmodelsandindustries,butalsobusinessmodelsthatarecenteredin the loopsofcirculareconomy, fromrecyclingto inner loopsasreuse, remanufacturing,repairorperformanceeconomy.Indeed,contrarytolegalprinciples,declaredobjectivesorframework laws that may prove to be ineffective, instruments have direct and concreteeffectsonactors(Hall,1993;LascoumesandLeGales,2007).Weshowthat ifsomeofthese instrumentscanbeconsideredasnewintheirphilosophy,materialityorimplementation,othersweresetupseveraldecadesago.Wealsoshedlightonacurrenttrend.Indeed,publicactorsincreasinglyunderstandthenewparadigmofcirculareconomy.Defacto,theydonotseewastessolelyasasourceofpollutionthatneedtoberegulated anymore.Wastes are increasingly pictured as potentialmarkets, inwhich firms

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havetodevelopbusinessmodelsandtoprovidegoodsandservicestoconsumers.Therefore,somemarket-orientedinstrumentsrecentlyappeared,withtheexplicitaimtoboostthesenewindustriescompetitivenessandvaluecreation,andtocapturepotential.However,wealso show that circularity-driven policies are only at their beginnings. Indeed, even incountries thatproved tobepioneersofacirculareconomy, thisnewmodelcouldstillbesignificantlyenhancedintheforthcomingyears.Morespecificallyinnerloopswillrequireaspecificattention,astheyremainunder-instrumented.Throughthiscomparativeapproach,thissurveyaimsatgivinginsightstopolicymakerswhowould be willing to identify innovative instruments that have already been effectivelyimplementedsomewhereelseintheworld.Fromamanagementperspective,thisstudycanalso be useful to senior managers who seek to boost their circular business modelsustainabilityandprofitability,andcouldthereforebeeagertoadvocate in favorof theseinstrumentsimplementation.Atlast,fromanacademicstandpoint,thisarticlealsofillsagap.Ineffect,globalandcomprehensiveapproachesofcircularity-enablingpublicpoliciesremainunderstudied,inparticularthecombinedeffectsofdiversecircularpolicyinstruments.

References

Beulque,R.&Aggeri,F.(2015).Circulareconomyattheglanceofbusinessmodels-learningsfromautomotiveend-of-life-XXIVthAIMSConference.

EllenMacArthurFoundation(2012).Towardsthecirculareconomy(1):Aneconomicandbusinessrationaleforanacceleratedtransition.

EllenMacArthurFoundation(2015).Deliveringthecirculareconomy;Atoolkitforpolicymakers.

Esposito,M.,Tse,T.,&Soufani,K.(2016).Isthecirculareconomyanewfast-expandingmarket?ThunderbirdInternationalBusinessReview.

Ghisellini,P.,Cialani,C.,&Ulgiati,S.(2015).Areviewoncirculareconomy:Theexpectedtransitiontoabalancedinterplayofenvironmentalandeconomicsystems.JournalofCleanerProduction,1-22.

Hall,P.A.(1993).Policyparadigms,sociallearning,andthestate:ThecaseofeconomicpolicymakinginBritain.Comparativepolitics,275-296.

Lascoumes,P.&LeGales,P.(2007).Introduction:understandingpublicpolicythroughitsinstruments—fromthenatureofinstrumentstothesociologyofpublicpolicyinstrumentation.Governance,20(1),1-21.

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HOWPSYCHOLOGICALVALUEISSEENBYMANAGERSANDCUSTOMERSOFSOCIALORGANISATIONS

JoãoM.S.Carvalho1,CélioA.A.Sousa2

1UniversityInstituteofMaia,Portugal–CICS.NOVA.UMinho/UNICES2UniversityInstituteofMaia,Portugal–NECE/UNICES

Abstract

Basedontheconceptsofsocialentrepreneurshipandsustainability,andtheirmaterializationthrough new businessmodels (NBM), this paper presents the outcomes of a pilot studyinvolving fourNBMcases in the social sector in Portugal. The cases,which arediverse innature, scope, structure and size, may well suggest an upsurge of importance of socialorganizationsineconomy(c.f.Gismondiet.al.,2015;Amin,2009).Thecasesare:(1)‘Socialis’,whichdealswithteenagemothers;(2)‘CrescerSer’thathelpschildrenandyoungpeopleatrisk; (3) ‘SAOM’, which provides training in hospitality domains to homeless and othervulnerablepeople;and(4)‘MundosdeVida’thatisdevelopingabetterwaytoimprovefostercare.ThemaincharacteristicsoftheseNBMwereassessed,namelyinrelationtotheconceptsofcreationofsocialandsharedvalue(Austin&Seitanidi,2012;Porter&Kramer,2011),co-creative networks (Chatterjee, 2013; Zott, Amit, &Massa, 2011), multiple value creation(Elkington,1997),aswellastheirconnectionstoabalancedvalueproposition(Carvalho&Jonker, 2015).We adopted a qualitativemethodology basedon interviews bothwith themanagersandthecustomersof theseprojectsor institutions.Theresultsshowthat,bothamongprovidersandusers,aperceptionofpsychologicalvaluerelatedtotheproductoffered(good,service,idea)appearstobeprevalent.Thisconceptofpsychologycalvalueresonateswith,yetisdifferentthansocialvalue.Weproposeadisctinctionbetweenfourinterrelatedkeydimensionsofvalue:economic,toenable theoffer, the transaction, and the satisfactionof theneeds; social, related to theimpacton thecommunity;environmental, related toecological issues;andpsychological,relatedtotheemergenceofanalternativestateofmindand/orworldview(viz. increasedself-awareness,attitudinalchange,knowledgecreation,learningnewskills,andself-efficacy),neededtodealwithadversepersonalconditionssuchasllnessorpoverty.Wesuggestthatthesedimensionsmayconstitutethebuildingblocksofanewapproachtosustainabilitythatwehavecoinedas“Tetrad-valuetheory”(Carvalho&Sousa,2015).Inshort,weproposethatanyproduct(good,service,idea),inthebasisofthetetra-valuetheory,shouldhaveeconomicviability, and if possible contribute to social equity, environmental stewardship, andpsychologicalbalance.Whileweinferredtheexistenceofpsychologicalvalueviainterviewswithmanagers,wealsorealized that thesocialproblemsthathave inspiredsuchsocialproducts remainrelativelystableinmodernsocieties.Inotherwords,whilesocialproductsaredesignedtohaveasocialimpact,thetransformational(psychological)oneoccursattheindividuallevelmostly.Despitethefactthatvaluesarelikelytointeractwith,thusimpactoneanother,ourdatashowthatthetransformationofcustomers’lifeissignificant,butthatthedeterminantsofthesesocial

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problemsremain,suggestingthatthesocialimpactisjustmarginal(e.g.addictiveproblemsandpoverty).Theanalysisoftheseexamplesofsocialentrepreneurshipsuggeststhatallcasesappeartoinvolvethecreationofmultiple,collective,andsharedvalue,reinforcingthetheoryofJonker(2012)abouttheorganizationofNBM.This new approach to a complex value proposition (tetrad-value theory) and to neworganizationalbehaviourpatternsisconceptuallyrelatedtoawiderconceptofsustainability.Alltheleadersoftheorganizationsinterviewedsuggestedtheimportanceofbeingeconomic(financially)sustainable,andalsotohaveapositiveimpactonwhatwelabelaspsychologicalsustainability,whichresonatesacrosscustomers’interviews.Whilesomemanagersmayhaveecologicalsustainabilityconcernsinmind,theiraimatcontributingtosocialsustainabilityisprevalentacrossaccounts.ThisinvestigationenabledustodevelopnewinsightsasregardsNBM,namelytheatomisticand life transformational impactofseveralproducts, resulting in the ideaofpsychologicalvalue. In addition, it allowedus tounderstand that the intertwined connectionsbetweenentrepreneurship, values, and sustainability deserve a more careful attention in socialorganizations.

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THENEWMODELSOFTHERECORDINGMUSICINDUSTRY.

AlexisKoster

CollegeofBusinessAdministrationSanDiegoStateUniversity

[email protected]

Abstract

Traditionally, the music industry has consisted of two main components, namely therecordingmusic industryand the concert industry. From the1980’s throughout theyear2000, the recording music industry was dominant: in 2000, in the USA, revenues fromconcertswereabout1.9billiondollarswhereasrevenuesfromrecordedmusicreached14billiondollars.ThesalesofCDscountedfor92%oftherecordedmusicrevenues.In2001,therecordingmusicindustrywashitfullforcebytheadventofthebroadbandInternet.Asaconsequence,thesimplebusinessmodelbasedontheCDsaleshasbeenreplacedbyamorecomplexmodel,whichincludestheoldCDmodel,infulldecline,andadigitalmusicmodel,itself subdivided into a music downloading model and a music streaming model. Incomparison,theoldconcertindustrymodelcontinuestothisdaypracticallyunscathed.Thispaperaddressesthetransformationsoftherecordingmusicindustry.ItgivesfiguresfortheUnitedStates,butthesametrendsareseeninEurope.TheCDmodel.AstheCDhasbeendominantinthephysicallyrecordedmusicarea,weusethephraseCDmodel.Notethatotherphysicalmediaexistsuchasvinyl.Between2000and2014,salesofphysicalmusicdecreasedfrom14billiondollarsto2.3billiondollars,adecreaseof83%.Figuresfor2015arenotyetavailable,butmid-yearsalesindicatecontinuingdecline.Theinitialdeclineofphysicalmusicsaleswasattributedbytherecordingmusicindustrytoillegal downloading although several researchers disagreed. Anyway, the numerous legalvictoriesofthemusicindustryagainsttheprovidersofpeer-to-peersoftwaredidnotstopthisdecline.Manyobserversactuallythinkthatlegaldigitalmusicsalesareinpartresponsibleforthisdecline.Theshareofphysicalmusicsalesin2014was32%ofthetotalsalesfortherecordingmusic industry. Withthecurrent trendcontinuing, theCDmayceasetobeaneconomicfactorintherecordingmusicindustry,tobeusedonlywhenthequalityofthemusicmattersmuch,asforclassicalmusic.IndustriesconnectedtotheCDhavealsowithered.Forexample,theretailersofCDssuchasTowerRecords,Blockbuster,andtheWherehousehavedeclaredbankruptcyandclosedtheirstores. CDsarenowsoldbydepartment stores suchasWalmartandBestBuy,aswell asonline.Therecordedmusicindustryhasgonethroughacompleterestructuring,fromfivemajorlabelsin2000tothreemajorlabelstoday:Sony(whichacquiredBMG),UniversalMusic(which acquired EMI), and Warner Music. Obviously, proceeds from CD sales paid tocomposersandperformingartistshavedroppedconsiderably.Thedownloadmodel. LegalmusicdownloadingtookofffollowinganagreementbetweenAppleandthemajorlabelsin2003.ThemainbeneficiaryofthisagreementwasApple,whichmadeahugeprofitfromthesalesofitsiPoddevicestogetherwithitsiTunesservice.Itisnot

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clearwhetherthelabels,composers,andartistsbenefittedfromthisagreement.Itisbelievedthatlegaldownloadingcausedfurtherdeclineofthesaleofphysicalmusic.Startingin2011,thegrowthinrevenuesfromdigitalmusic(thenmostlydownloads)compensatedforthelossofrevenuesfromphysicalsales.However,afterreaching2.9billiondollarsintheUSAin2012,revenuesfromdownloadsstarteddeclining,totaling2.6billiondollarsin2014.Thisdeclineisattributedtothecompetitionofstreaming.For thecustomers,musicdownloading is fairly simple: thechoice isbetweensubscription(oftenatabout$10amonth)andpay-per-download(dependingontheserviceprovider,thecostofadownloadmayvarybetween50centsandonedollar).Mostofthelimitationsthatinitiallyexistedondownloadshavebeenremoved.ThemainproviderofmusicdownloadsisApplewith its iTunesservice. Italsooffers the largestcatalog. Royaltypayments to theperforming artists by the download service providers are based on negotiated licenseagreements.Typically,alabelistheprimarybeneficiaryoftheroyalties,inturnpayingtheperforming artists a small part of them according to existing contracts. The copyrightpaymentstothesongcomposersarefixedbyanagencyofthefederalgovernment.In2014revenuesfromdownloadmusicrepresented37%ofallrecordedmusicrevenues,butweredeclining.Thestreamingmodel.Streamingrevenueshavegrownfromashareof5%oftherecordingmusic industry revenues in2009 to27% in2014. Basedonmidyear figures for2015, thegrowthofstreamingrevenuesshouldhavecompensatedfor thedeclineofphysicalmusicrevenuesandofdownloadrevenues.Thegrowthofstreamingislinkedtoitsuseonmobiledevices,suchasiPhonesandAndroidsmartphones,aswellasprovisionsforlisteningonsocialnetworks. Therearetwotypesofserviceproviders:theonesthatoffermusicon-demandandthewebcasters,whichproposesongslikelytopleasetheircustomers.On-demandmusicprovidersinclude,amongothers,AppleMusicandSpotify,stronglyestablishedintheUSA,andDeezer,aFrenchcompanytryingtoexpandintheUSA.PandoratypifieswebcastersintheUSA.Bothkindsofstreamingmusicprovidersoffertwotypesofplantotheircustomers.Customerschoosingthe“freeplan”mustlistentoadvertisingandaresubjectstolimitations,inparticularregardingthenumberofsongstheycanlistento. Customersmaychoosetosubscribetoapayplan,whichisfreeofadvertisingandofrestrictions.Astheirrevenuesfromtheirfreeplans(paidbyadvertising)aremuchlessthantheirrevenuesfromtheirpayplans,streamingmusicproviderstrytoenticetheirfreecustomerstomovetotheirpayplans,withlimitedsuccesssofar.AppleMusicexemplifiestheirdilemma.Thoughthefirstpartof2015,Apple Music had 6.5 million paying customers and 8.3 million “free” customers. Afterterminatingitsfreeplan,AppleMusicgained1.7millionmorepayingcustomers,thereforelosingatotalof4.8millioncustomers.Spotify,thecurrentleaderofmusicstreaming,boasted55million freecustomersand20millionpayingcustomers inSummer2015. It isunclearwhetheritwillfollowtheexampleofAppleMusic.Inconclusion,streaminghasbeentheengineofgrowthoftherecordingmusicindustryforthelastfewyears.Yet,allstreamingprovidersarecurrentlylosingmoneyontheirstreamingservices.Moststreamingmusiccustomersareonafreeplanandareunwillingtosubscribeto a pay plan. Moreover, performing artists and composers are unhappywith streamingservices,whichpaythemmuchlessroyaltiesthandownloadservices;inparticularroyaltiesforfreestreamsareextremelylow.Someofthebestknownsingershaverefusedtolettheirsongsbestreamedunderthefreeplans.Underthosecircumstances,itisunclearwhetherthecurrentgrowthofstreamingwillbesustained.

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Epilogue

NewBusinessModels–ExploringachangingviewonorganizingvaluecreationforsustainabledevelopmentThisfirsteditionofaconferenceparticularlydedicatedtoNewBusinessModels(NBM)wasmeantasastartingpointforaseriesofconferencesinthecontextofNewBusinessModels.Businessmodels determine an organization’s logic of how to create, deliver and capturevalues in cooperationwith and for customers, suppliers, and (additional) other partners.Hence,thisprocessofvaluecreating,deliveringandcapturingdeterminesthewaybusinessesgeneratetheireconomicprofit,e.g.intermsofmoney,butalsohowadditionalother(non-monetary-based)valuesarecreated.Inthecontextofsustainabledevelopmentthosevaluesare of specific interest since theydepict sustainability principles, e.g.minimizing negativeenvironmentalimpactorincreasingshareofknowledgeorproductswithinaregionalcontext.Thismeansthatbusinessmodelsactasanunderlyingmodelwhichdefineshowvaluesarecreated,leadingthentotheintegrationofvariousconstituents.Hence,thebusinessmodeldesignanditsimplementationareofgreatimportancesincetheydeterminevaluecreationin the long term.Again, talking about newbusinessmodels in the context of sustainabledevelopment means that needs of future generations are taken into account in today’sdecisions and that e.g. the following principles – People, Planet, Prosperity, Peace andPartnership(seeThe2030AgendaforSustainableDevelopment1)–aretakenasguidelinesforcreatinganddesigningnewbusinessmodels.During this two-day-conference New Business Models and their functions in our today’s(changing)economyhavebeeninvestigatedfromvariousperspectives.Theseperspectivesarereflectedinthedifferentsessionsoftheconference,namely:

− BusinessModelsforaCircularEconomy(Session1)− BusinessModelsforaFunctionalEconomy(Session2)− BusinessModelsforRegionalDevelopment(Session3)− NewCasesofSustainability-OrientedBusinessModelInnovation(Session4)− TransitionstowardsNewBusinessModels(Session5)− Financial,EcologicalandSocialValue:TheChangingRoleofStakeholdersin

Organizations(Session6)− BusinessModelsandCorporateReporting(Session7)− OriginsofBusinessModels:Theroleofpublicpolicies,institutions,andindividual

actors(Session8)

In detail, the variety of contributions andpresentations givenduring this conferencewasmuchbroader leading fromstrategydevelopment toassessing the impactofnewcircularbusiness models, from discussing tools for business model innovation to theorizing newbusinessmodelsinthecontextofcorporatereporting,tonamebutafew.However,inthefieldofbusinessmodelresearch,therearestillmanytopicswhichhavenotbeenfullyexploredandexaminedsofar.Someexamplesforfutureresearchavenuesare:

1https://sustainabledevelopment.un.org/post2015/

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− GainingadeeperunderstandingaboutbarriersinintroducingandimplementingNewBusinessModels,bothinalreadyestablishedfirmsaswellasinexistingbusinesses.

− Betterunderstandingthemotivationsandincentivesofvariousconstituentsinordertoincreaseawarenessandwillingness“tobepart”ofNewBusinessModels

− Notonlyfocusingonfirmsbutalsoembracingvariousothertypesoforganizationsandtheirbusinessmodelsinthebusinessmodelresearch.

− Learningfromexistinggoodpracticesinordertosupportdecisionmakersincreatingnewbusinessmodels.

− Providingsupportforscalingupprocessesofnewbusinessmodelsinordertogeneratelonglastingeffectsandimpacts.

− Furtherstimulatingthetheoreticaldevelopmentofnewbusinessmodelsbycombiningdifferentpointsofviewsinaninterdisciplinarysetting,suchasorganizationandsustainabilityscience,businessethics,philosophy.

− Providingempiricalproofsofassumptionswhicharecirculatinginthecontextofnewbusinessmodels.

− Exploringnewgovernanceformsandstrategiesforbusinessmodelsreflecting“alternativevalues”alsowithinaninter-organizational,regionalorevennationalorinternationalcontext.

Alongthoselinesofthinkingandbasedonthealreadyexistingandexcellentresearchinthecontextofnewbusinessmodels,wearealreadyplanningand lookingforwardtothenextyear’sconferenceonNewBusinessModels:[email protected],2017attheUniversityofGraz(Austria)andwillbethenthesecondeditionofthisannualconference.Moredetailedinformationwillbedisseminatedassoonaspossiblethroughoutthenextyear!Ifthereareanyquestionspleasefeelfreetocontactromana.rauter@uni-graz.at.WearelookingforwardseeingyounextyearinGraz!Onbehalfofthescientificandorganisingcommittees,RomanaRauterandRupertJ.BaumgartnerInstituteofSystemsSciences,InnovationandSustainabilityResearch(ISIS)UniversityofGrazGraz,Austria

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AppendixI–CallforContributionsNBM@Toulouse2016

Internationaltwo-dayConference:NBM@Toulouse2016NewBusinessModelsExploringachangingviewonorganizingvaluecreationforsustainabledevelopmentThiscallforContributionswaswrittenandeditedbyJanJonker(chairman)andsomeofthemembersoftheScientificCommitteeoftheconferencenamelyNielsFaber,FlorianLüdeke-FreundandRomanaRauter1.Venue:ToulouseBusinessSchool(TBS),Toulouse(France)Date:June16and17,2016IntroductionThe'tissue'ofourWesternsocietyiscreatedbyamyriadoftransactionsrealizingcommonandindividualfunctionsforalmostallaspectsofprofessionalandprivatelivessuchastheprovisionoftheworkforceandgoodsorservices.Thesetransactionsarerealizedinavarietyofwaysoforganizingandenablingthedeliveryofoutcomesthatareperceivedasvaluable(andwhicharenotonly‘profitable’inaneconomiccontext).Deliveringcomplexoutcomes(includingproductsandservices)suchascreatingnewbusinesspropositionswhileimprovinglivingconditionsis,therefore,thefundamentforvaluecreation.Businessmodels(BMs)are,in particular, constructs with conceptual and practical dimensions providing a logic andpathway for organizing including delivering value creation. In the contemporary debateregardingBMs,severalissuesfocusedonthenatureofvaluecreationarebeingdiscussed.Issuesthataddressmovingfromcreatingsingletomultipleformsofvaluessimultaneously,e.g. creating financial, ecological, and social value. What also becomes important is an(inter)organizational and constituents’ discussion on the changing nature of how value isbeingcreated–asasingle-organizationorasacommunityeffort.Thesetypesofchangesstimulate the shaping of new roles, such as the prosumer, and the renewed role of thecommons. What is evidently then also discussed is the balance between tangible andintangibleformsofvalue.Consideringthesedebates,agenerationofbusinessmodelsisemergingthatcanbereferredtoas'new'businessmodels(NBMs).NBMsprovidealogicforvaluecreationthatisbasedonanarrayofprinciplesencompassingcooperation,dematerialization, sharing,orperceivingservicesasaproduct.DevelopinganNBM–ortransforminganexistingBMintotheschemeofanNBM–isleadingtooutcomesbasedonguidingprinciplesofwhichthemostprominentaremultiple, collective,and sharedvaluecreation. It isnotpurely companyor individual-

1ThisCallforContributionswasalsoinspiredbytheCallforPapersfortheSpecialIssueoftheJournalofCleanerProduction„Embracingthevarietyofsustainablebusinessmodels“,coordinatingGuestEditorNikolayDentchev,FreeUniversityBrussels(Belgium).

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basedbutmorecommunityorinter-party-based.Italsofacilitatesworkingwithhybridformsofvalue-inadditiontomoney,transactionmeanscanalsoincludecredits,energy,ortime.We assume that this logic of new business models provides a cornerstone of realizingsustainable development in and through themethods thatwe organize value creation insociety.Aroundtheglobe,researchersdiscussthoseNBMsofteninthecontextofgreenorsustainablebusinessmodels.NBMsdemonstrateaconsiderablyrelevantfieldofinvestigationwheretheemergenceofanewtypeofcomplementaryeconomycanbeobserved.Thisisaneconomybasedonideasaboutorganizingclosed(circular)loopsbasedoncommoditiesandmaterials,aboutawayoforganizingthatpreserveseco-systemservices,andaboutenablingparticipationinasocial-economic lifebasedonamore comprehensive rangeof transaction-means that stimulatesocialparticipation(inclusivity).Broadlabelssuchasthe'blue','sharing',and'collaborative'economyprovideaglobalsenseofdirectionforthisdevelopment.Organizingtowardssuchan economy can subsequently lead to an increasing variety ofmore or less fundamentalchanges – including transformations and transitions. In turn, this fosters sustainabledevelopment given the fact that it emerges in a societal 'landscape' already filled withorganizationsactinguponconventionalBMs.GenericQuestionsThisinternationaltwo-dayconferenceregardingNewBusinessmodelsisbeingorganizedforthe first time after two preparatory workshops that took place in 2014 and 2015 at theToulouse Business School. Considering the emerging, yet complex, nature of NBMs, anextensiverangeofgenericquestionscanberaised.Here,weonlystipulatethree.(1)Whatarethetheoretical foundationsofBMsandparticularlyofNBMs?If the logic forvaluecreationistheessenceofaBMandofanNBM,whattheoreticalfoundationsdotheyhaveincommon,andwhatarethedifferencesifthetwoarecompared?Despitethefactthatvaluecreationappearstobethe'holygrail'ofanybusinessactivity,whatdowegenuinelyknowaboutthefundamentsofvaluecreation,andwhatroledovalue(s)playinthelogicandprocessofvaluecreation?(2)Ifthenatureofhowvaluecreationisbeingorganizedchanges,thisimplieslookingfornewmethodsoforganizing.Asaconsequence,conventionalwaysoforganizingmustbecriticallyassessedwiththeintentiontodiscoverand/ordesignwaysthataremoreappropriateinordertorealizedifferentformsofvalue.Whatarealternativeorganizationalapproachestocreatevalue,andhowcanmultipleformsofvaluebecreatedconjunctively?(3) This new economy is emerging amidst a society of already existing organizations. Anumber of these organizations will become obsolete, others will attempt to transformthemselvesfromwithin,butsomemightevenattempttoopposethisneweconomy.This raises an additional extensive range of issues regarding change, transformation, andtransition.Thesetypesofquestionscanbeaddressedatvarious levelsand fromdifferenttheoreticalperspectives.Whichbodiesofexistingliterature–derivedfromvariousscientificdisciplines - help to understand the different concepts of change? Is the existing bodyof

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knowledge on change sufficient to address these issues? Which sort of newconcepts/models/frameworks/theories are necessary to further examine and betterunderstandthesedevelopments?TypesofcontributionssolicitedInourendeavourtosolicitcontributions,wewouldfirstliketoacknowledgetherecentspecialissuesdedicatedtothetopicofbusinessmodelsandsustainability.1Withthisconference,wewouldliketostimulatefurtherknowledgedevelopmenton‘new’businessmodelsasavehicleforsustainabledevelopment.Therefore,wehavedesignedasmall-scaleconferencewithalimitednumberofsessionsintwoparallelstreams.FortheupcomingconferenceonNewBusinessModels,wewelcometheoretical,conceptual,and empirical papers. We also would like to encourage scholarly studies from acomprehensive variety of methodologies (e.g., qualitative and quantitative), from anextensive variety of scholarly disciplines (e.g., management, entrepreneurship,environmentalstudies,organizationtheory,tomentionafew),andfromabroadvarietyofdomains thathavebeenstudied (e.g.,energy,health,agriculture, finance, industry, retail,etc.). This call for papers asks scholars to elaborate on, but not limit themselves to, thefollowingresearchquestions:

− Whatarethesimilaritiesanddifferencesbetween“conventional“businessmodelswiththeprimaryobjectiveofprofitgenerationandsocalled“new“businessmodelswiththemainobjectiveofvaluecreationbasedondifferentprinciples?

− Whatarethemechanismsdrivingsuccessful‘new’businessmodels?Arethereanyidentifiablesuccessfactorsofalreadyestablished,scaled-upnewbusinessmodelswhichcouldalsobetransferredtoothercontexts?

− Howcanpartiesrealize’sharedvaluecreation’forthedifferentstakeholderssuchascustomers,communities,andcitizensinvolvedintheirbusinessmodels?

− Whatis(orshouldbe)thebalancebetweenfinancialandnon-financialbottomlinesinthebusinessmodelsofsocialentrepreneurs?

− Assumingakeenattentiontothevaluegenerationprocessofallthepartiesinvolved,howcanconstituentscoordinatevaluesharing?

− Howcanthosethathavealreadydevelopeda‘new’businessmodelscaleitupinordertoprovidegreaterimpact?

− Whatarefundamentalprinciplesandpremisesunderpinningtheideaofacirculareconomy,andhowdoesthisshaperelatedbusinessmodels?

− Towhatextentare‘new’businessmodelssolving,butatthesametimemaybealsocreating,newissues?Aretheynotathreattoexistingsocialandeconomicarrangementsleadingtoquestioningtheirvalueandevenleadingtotheirobsolesce?

1Arevaloetal.,2011‘Integratingsustainabilityinbusinessmodels’inJournalofManagementDevelopment;Svensson&Wagner,2011‘SustainableBusinessModels’inEuropeanBusinessReview;Boonsetal.,2013‘SustainableInnovationandBusinessModels’inJournalofCleanerProduction,andSchalteggeretal.,2016‘BusinessModelsforSustainability:Entrepreneurship,InnovationandTransformation’inOrganization&Environment.

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− Whatistheroleofgovernmentsinstimulatingand/orcontrolling‘new’businessmodels?

− What are revealing cases of the transformation of existing businessmodels to so-callednewbusinessmodelsforsustainability?

− Are there specific typesofnetworks that could support thedevelopmentof ‘new’businessmodels? Are there some (European?) countries or regions which can beperceivedasrolemodelsinsuccessfullydevelopingsuchnetworks?

− Whatistheroleandimpactofsustainablebusinessmodelsonsocietaltransitions?− Whatarepertinentethicalaspectsof‘new’businessmodels?

Thistwo-dayinternationalconferenceonNewBusinessModelssetsouttoaddressanumberofthesequestions.Itintendstostimulateatheoreticalandpracticaldiscussionregardingthenature of ‘new’ business models. This enables a deeper understanding of emerging andexistingpracticesspecificallyaddressingthedevelopmentofNBMacrossEuropeandevenbeyond.Wehopethisisthe1steditionofaneventthatwilltakeplaceeveryyear,intheyearstocome.ConferencedesignandsessionthemesThe design of the conference is based upon twelve sessions, each providing four to fivepresentationswithaclearthematicfocus.Thiswillenablecoveringacomprehensiverangeofissues.Intotalthisleadsto60presentationsovertwodaysintwoparallelstreams.Theconferenceoffersopportunityforacademicworksaswellasworks-in-progressbyPhDsormorepracticalapproaches.AcademicsaswellasPhDs,studentsandbusinesspractitionersarewelcome.Below is a preliminary (at random) overview of sessions. Our aim is to have a completeprogramreadybyEaster2016.Session1BusinessmodelsforacirculareconomyChairs:JanJonkerandVincentAurezBusinessmodelsbasedonlinearthinkingcreateapattern(take,make,dispose)wheretheextractionofresources,productionandusecreatessideeffectsseenasnegativeexternalitiessuchaswaste,pollutionor socialexclusion.Thiswayof thinking is inadequate toaddressnowadays-pressinggoalsofsustainability.Thinking intermsofacirculareconomyaimstointegratetheseexternalities intoanewgenerationofbusinessmodels,bycreatingclosedloopsandmakingorganizationsmoresociallyinclusive.Thetransitiontoacirculareconomyrequires rethinking of the supply chain, the design and use of products use as well asreorganizingofthesocialorganizationwithincompaniesandpublicauthorities.Thisimpliesachangefromthinkingintermsofavaluechaintoasociallyinclusivevaluecycle.Thisraisesmanyquestions.Whatwouldbetheidealtypesofbusinessmodelsforacirculareconomy?In which ways does the circular economy transform the way of thinking about businessmodelsthemselves?Howdoesareversesupplychainenablecompaniestoparticipateinacirculareconomy?Inwhatwayandtowhatextendarebusinessmodelsforcirculareconomyinclusive?

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Session2BusinessModelsforaFunctionalEconomyChairs:BeatriceBelliniandRomainDemissyThissession’sobjectiveistointroduceandanalyzeaconceptualframeworkforthefunctionaleconomywithfeedback,experimentreportsand/oracademicresearchcontributions.Themainissueisabouthowthisneweconomicmodelallowsanenvironmentalandsocialimpactsreduction simultaneously with value production and economic development. The shiftinduced for the organizations engaged in this model generates opportunities but alsodifficultiesandlabourchanges.Soanotherissueishowdotheorganizationsinvolvedinsuchnewpathsdealwiththosechanges.Thissessionshouldbeanoccasiontointroduceresearchquestionsaboutongoingexperiments.Thefunctionaleconomyproposesaglobalapproach,which implies all typeof organizationsover theproduct value chain. Becauseof this, thefunctional economymodel opens new research fields on regional development and localdevelopmentpolicies.Session3BusinessModelsforRegionalDevelopmentChairs:MoniekKammandNielsFaberEnroutetowardsanetworkingeconomy,newviewsoncooperationandvaluecreationgiveway to new inter-organisational partnerships and networks, being described as e.g.,collaborativenetworkingorganisations,uncharteredinter-organisationalnetworks,orcross-sectorialcollaboration.Theemergenceofnewformsoforganisingcooperationisobservedthatintendtorealizemultiplevaluecreationinregions.Inthesenovelformsoforganizing,we observe companies, public institutions, not-for-profit organisations, social enterprises,citizens- and social initiatives collaborating, establishing common goals, products, andservices.Atleastthreeresearchchallengessurfaceconcerningsuchnovelformsoforganizing.First,whatstimulatestheemergenceoftheseformsoforganizingandhowcanthefirstcontoursof such initiatives be recognized? Second, how do constituents of these collaborativenetworkingorganizationsdevelopastrategythatguidestheircollectiveactions?Third,howdo theirmulti-valueobjectives, forwhich somemulti-value logic seemsunavoidable, takeshape?We look for contributions presenting research regarding multi stakeholder collaborativeorganisingformsforregionaldevelopment,inrelationtobutnotlimitedtothethreeresearchquestions posed. Topics are amongst others: multi-stakeholder / multi-constituentcollaborativenetworks,regionalmulti-valuecreation,multi-valuecreationlogic,organizingcollaboration,andregionalcooperation

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Session4NewCasesofSustainability-OrientedBusinessModelInnovationChairs:FlorianLüdeke-FreundandRenéSchmidpeterSustainableentrepreneurshipandcorporatesustainabilityscholarsareincreasinglydealingwith issuesof sustainablebusinessmodel innovation, i.e. approaches touse thebusinessmodelasameanstoimprovethesustainabilityperformanceofcompanies.ThepurposeofthissessionistoidentifyNEWandSTRONGcasesofsustainablebusinessmodelinnovationinpractice.Weinvitecasestudiesfromthewiderfieldsofsustainableentrepreneurshipandcorporate sustainability research. This includes, inter alia, forms of social and/orenvironmental entrepreneurship, start-ups, corporate spin-offs, or organisationaltransformationstowardstrulysustainablevaluecreationsystems.Potentialcontributionswillbeselectedbasedonthefollowingcriteria:Newness–hasthecasealreadybeenstudiedintheacademicliterature?

Relevance–isthecasereallyaboutbusinessmodelinnovation?

Strength–isitaboutsmallstepsor“netpositive”sustainabilityinnovations?

Theory–isthecasediscussedagainstthebackgroundofrelevanttheories

All types of case studies are accepted, such as single or multiple case studies, in-depth,comparative,cross-sectional, longitudinaletc.Asafifthcriterion,aclearandjustifiedcasemethodologyisrequired.Session5HoworganizationsmanagetransitiontowardsnewbusinessmodelsChairs:GuyBauwenandJanJurriënsA business model for sustainable development aims to deliver economic, social andenvironmentalbenefits; it isnotonlywithinacompanybutalsowithin thewholemarketchain.However, it is not easy to realize this situation. The decisions should bemade byinvolvingresearch&developmentstaff,purchasingstaffandmarketeers.Itisimportantthattheframeworkconsistofthefollowingvalueconfigurations;valuechain(transformationofinput in products or services), the value shop (solving customers needs) and the valuenetwork(linkingcustomersandotherstake-andshareholders).Forthissessionwewelcomecontributionsthataddressanyofthefollowingquestions;“Howorganizationsmanagetransitiontowardsnewbusinessmodelsandengagethemselvesinthecirculareconomy?”.Howdotheyinvolvestakeholders?Howdotheyengagetheirownstaff?Howdotheyorganizepublicandprivate?

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Session6Financial,Ecological,andSocialValue;TheChangingRoleofStakeholdersinOrganizationsChairs:BrigitteBernard-RauandGeraldBartelsConsideringthedifferentinterdisciplinaryapproachescontemplatedbysustainablebusinessmodels in theory and inpractice, thisworkshopaddressesearly andmoreadvancedPhDresearch on 1) green business models and business innovation for sustainability and 2)businessmodeltransformationinthecontextoforganizationalmanagementforcorporatesustainability.Aparticularfocuswillbegiventoresearchlookingattheroleandimpactofstakeholdersasdriversofchangeinorganizations.Weencouragescholarstoaddressvariousavenuesofresearchonorganizationsandspeciallyprovidenewinsightsonfinancial,socialand environmental value creation and transformative value creation. Submissions from avarietyoftheoreticalandmethodologicalapproachesthatcontributetoacademicdebatesinthisnewareaofresearchaswellasrelevancetoentrepreneurs,managers,andpractitionersarewelcome.Session7WhenbusinessmodelshavetobeexplainedincorporatereportingChairs:StéphaneTrébucqandElisabettaMagnaghiFinancial analysts read carefully corporate reports, and try tounderstandhowcompaniescreate value. Unfortunately, financial statements do not tell the whole story. SocialResponsibility Investment funds have also raised some new questions about stakeholdervaluecreation,andtheoutcomesofcompanies'activitiesforsociety.TheIIRC(InternationalIntegratedReportingCouncil)hasalsorecentlyproposed,sincetheendofyear2013,anewreportingframework, inordertopresentwithinonereportthebusinessmodel inashort,clearandconciseway.Thissessionwillprovideauthorstheopportunitytodiscussaboutthequality of accounting information about businessmodels, and theway companies shouldcommunicateabouttheirbusinessmodel.Somekeyquestionsmightbe:Howaccountinginformationandinformationsystemscanorcouldbemodified inorder tobetter inform investorsor stakeholders about thebusinessmodel?Why such companies are interested in implementing new reporting standards ofcommunication like integrated reporting? Are business models from these companies intransition for a sustainable economy, and how such companies can demonstrate theirtransition?Session8Where do New BusinessModels come from? The role of public policies, institutions, andindividualactorsChairs:PhilippeNaccacheandYuliyaSnihurNewbusinessmodelscontributetotheeconomicdevelopmentandvaluecreationforvariousstakeholders.Yet,wedonotknowenoughabouthowtheemergenceofnewbusinessmodelsisinfluencedbythenationalinnovationsystemortheinstitutionalcontextsandlogics,whichmighthaveagenerativerolewhencombinedbythecognitionof individualentrepreneursandmanagerswhiledesigningnewbusinessmodes.Hence,thiscallisanattempttolinkmicro

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andmacroperspectivesonhownewbusinessmodelsemergeandflourishwithinaspecificnationalandinstitutionalsetting.Duringoursessionwewouldliketodiscusswhattheimpactofregulations,institutionalarrangements,andinstitutionallogicsisontheemergenceofnewbusinessmodels?Howarethesecombinedandinterpretedbytheindividualentrepreneursdesigningnewbusinessmodels?Butalso,canbusinessmodelinnovationtriggerchangeintheexistinginstitutionalarrangements?Relatedtothis,wewelcomepapersexamininghowsomenewbusinessmodelsperformbetterthanothersaccordingtotheirfitwithnationalorinstitutionalcontexts.SubmissionprocedureAuthorswhowouldliketocontributearerequestedtosubmitanabstractof500-700words(withtheconcisenumberofreferencesandcontactdetails)foradedicatedsessiontothechairman of the conference, Jan Jonker ([email protected]), beforeMarch 28, 2016.Acceptanceof theabstractwillbecommunicatedultimatelyApril18,2016. Ifauthorsareinvitedtosubmita(full)conferencepaper,theyshouldfollowtheauthorguidelinesoftheJournal of Cleaner Production (cf. http://www.journals.elsevier.com/journal-of-cleaner-production)andsubmitthepaperbeforeMay16,2016.Moreinformationaboutsubmittingthe conference paper will follow after acceptance of the abstract. Participation in theconferencewithout submitting a paper is possible; however, submitting a paper but notpresentingit,isnotpermitted.ImportantdatesMarch28,2016 Deadlinesubmissionofabstractsviaemail: [email protected]@gmail.comApril18,2016 NotificationtoauthorsMay16,2016 Deadline submission revised abstract and/or (short)

conferencepaperJune6,2016 Deadlineconferenceregistration(invoicefollowslater)June10,2016-05-04 DeadlinesubmissionofoptionalshortconferencepaperJune16and17,2016 ConferenceSeptember4,2016 Deadlinesubmissionoffullpaperforpeer-reviewPublicationpossibilitiesAcceptedpaperswillbepublishedintheConferenceProceedingsofthisconference.Besidesthe conference proceedings offered by the Toulouse Business School, therewill be threepublicationpossibilitiesattachedtotheconference:1. SpecialIssueoftheJournalofCleanerProductionchairedbyNikolayDentchevfrom

Belgium.2. SpecialIssueoftheInternationalJournalStudiesofOrganisationalManagementand

Sustainability (SOMS) chaired Joao M. S. Carvalho from Portugal (zee website:http://soms.ismai.pt).

3. Edited book with Springer Verlag (Heidelberg) depending on the outcomes(volume/quality)ofthisconference,chairedbyJanJonkerfromTheNetherlands.

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ConferencefeeParticipationneedstoberegisteredattheTBSwebsite;alinkwillfollowshortly.Theconferencefeeforthetwo-dayconference(includingthefullprogram,lunchtwiceandconferenceproceedings)is€130,--.Giventhislowfeespecialrates(students,earlybirdsetcetera)arenotpossible.TheconferencedinnerwilltakeplaceontheeveningofJunethe16thattheRestaurantLePôvreYvesinToulouse.Participationisnotobligatory.Costsoftheconferencedinnerare€40,-- (wine included). Please indicate your choice whenmaking your registration for theconference.PleasenotethattheinvoicewillbesendafterregistrationContactdetailsPleasesendallcorrespondenceregardingthecontentoftheprogramtoJanJonker,chairman,LauréatChairePierredeFermat,ToulouseBusinessSchool,[email protected]. Laurence Danjou, logistics, organisation, registration, contact: [email protected],organisationalsupport,contact:[email protected]

NBM@Graz2017ThenextNewBusinessModelsConferenceisscheduledatJune21en222017attheUniversityofGraz(Austria).YouwillbeinformedinduetimeaboutthissecondeditionoftheannualconferenceonNewBusinessModels.HopetoseeyouagaininJune2017

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AppendixII–CfPJournalofCleanerProductionSpecialIssue

Embracing the varietyof sustainablebusinessmodels: Social Entrepreneurship,CorporateIntrapreneurship,Creativity,Innovation,andotherapproachestosustainabilitychallengesSpecialVolumeoftheJournalofCleanerProductionCallforpapersEmbracingthevarietyofsustainablebusinessmodels:SocialEntrepreneurship,CorporateIntrapreneurship,Creativity,Innovation,andotherapproachestosustainabilitychallengesCoordinatingGuestEditor:NikolayDentchev,VrijeUniversiteitBrusselandKULeuvenE-Mail:[email protected];M:+32.(0)477.91.71.21GuestEditorialTeaminAlphabeticOrder:RupertBaumgartner,UniversityofGrazHansDieleman,AutonomousUniversityofMexicoCityLáraJóhannsdóttir,UniversityofIcelandJanJonker,RadboudUniversityNijmegenandToulouseBusinessSchoolTimoNyberg,AaltoUniversityRomanaRauter,UniversityofGrazMicheleRosano,CurtinUniversityYuliaSnihur,ToulouseBusinessSchoolXingfuTang,FudanUniversityBartvanHoof,UniversidaddelosAndesVersiondd29October2015BackgroundSustainable business models are in the first place oriented to resolving social andenvironmentalissues.Inthisvein,profitgenerationisnottheirpredominantconcern.Inotherwords,sustainablebusinessmodelsfunctionincontrasttowhatMagretta(2002:87),wouldargueisoneofthe“fundamentalquestionseverymanagermustask:Howdowemakemoneyinthisbusiness?”Inordertobetterunderstandthiscontrast,wefirstwouldliketorefertothemainstreammanagementknowledgeonbusinessmodeling.Academicshavestartedtostudybusinessmodelsmorescrupulouslyinthelast15years.Severaldefinitionsofbusinessmodelshavebeenproposedintheliterature.AmitandZott(2012:42)definedthebusinessmodelas“asystemofinterconnectedandinterdependentactivitiesthatdeterminethewaythecompanydoesbusinesswithitscustomers,partners,andvendors.”Casadesus-MasanellandZhu(2013:464)definednewbusinessmodelsasthe“searchfornewlogicsofthefirm,newwaystocreateandcapturevalueforitsstakeholders,andfocusing,primarily,onfinding

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newwaystogeneraterevenuesandtodefinevaluepropositionsforcustomers,suppliers,andpartners”.Markides (2006: 20)wrote about thediscovery of fundamentally differentbusinessmodelsinexistingbusinesses:“Toqualifyasaninnovation,thenewbusinessmodelmustenlargetheexistingeconomicpie,eitherbyattractingnewcustomersintothemarketorbyencouragingexistingcustomerstoconsumemore.”Teece(2010:172)statedthat“theessenceofabusinessmodelisindefiningthemannerbywhichtheenterprisedeliversvaluetocustomers,enticescustomerstopayforvalue,andconvertsthosepaymentstoprofit.”Overall, most scholars agree that the businessmodel emphasizes a system-level, holisticapproachtoexplaininghowfirmsdobusiness,thatishowvalueiscreatedandcaptured(Zott,Amit,andMassa,2011).Themissingcentralityofprofitgenerationinsustainablebusinessmodelsposessomeseveralintriguingquestionsforresearchers,inaninquirythatrequiresfurtherexploration.Eventhewell-knownstrategicmanagementperspectiveofPorterandKramer(2011)onsharedvaluecreation,withasimultaneousattentiontoeconomicandsocialprogress,acknowledgesthat“ourrecognitionofthetransformativepowerofsharedvalueisstillinitsgenesis.”Inotherwords, it isnotyetwellresearchedorunderstoodhowalternative,oftennew,creativeorinnovativesustainablebusinessmodelsfunctionandhowtheirapplicationintherealworldevolve to create valuewithout predominantly generating only profit in their ventures. Inaddition,certainformsoforganizations–e.g.B-Corporations,WorkerOwnedCorporations,Crowd-Funded Corporations, and Cooperative Corporations – deserve attention in thiscontext.Whilebothvaluecreationandvaluecapturingremainimportant,theprioritiesforsustainablebusinessesmightbeorganized inadifferentorder (duetodifferentpriorities)comparedtoclassicfor-profitentrepreneurs.Moreover,sustainablebusinessmodelsmightoriginate from entrepreneurs, non-profit organizations, business development ofmultinationals or their intrapreneurial activities, but also from the initiative of a specificeconomic sector, groups of citizens or government agency. The various approaches ofresolvingimportantsocialorenvironmentalissuesmightbeorganizedthusbybothprofitandnon-profitorientedorganizations.ThisSVisdesignedtocontributetoabetterunderstandingof themechanismsbehind sustainablebusinessmodels,whichhelp toensure sustainablesolutionstosocialandenvironmentalissues.ThisSVteamsolicitsawidevarietyofsustainablebusiness models, originated by (social) entrepreneurs, (non) profit organizations, sectorrelated or governmental initiatives and other types of creative approaches to help toacceleratethetransitionto“Equitable,Sustainable,Post-FossilCarbonSocieties.”TypesofcontributionssolicitedWe welcome theoretical, conceptual and empirical papers for this SV. In addition, wewelcome scholarly studies from a broad variety of methodologies (e.g. qualitative andquantitative),andfromabroadvarietyofdisciplines(e.g.management,entrepreneurship,environmental studies, organization theory, to mention a few). This CFPs is designed tochallenge scholars to elaborate on, but not limit themselves to, the following researchthemes:Theme1:SuccessfulSustainableBusinessModelsFirst,wewouldlikeauthorstoelaborateonthemeaningof‘success’insustainablebusinessmodels.

− Whatarethemechanismsdrivingsuccessfulsustainablebusinessmodels?− Whatarethemeasuresforsuccesswithrespecttosustainablebusinessmodels?

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− Howcansustainablebusinessmodelsbescaledtoprovidehigherimpact?− Aretherelimitationstoscalingsustainablebusinessmodels?

Theme2:ValueCreationChallengesofSustainableBusinessModelsSecond,wesolicitpapersonthevaluecreationchallengesofsustainablebusinessmodels.

− Assumingakeenstakeholderattentiontothevaluegenerationprocessinvolved,howareactivitieswithsustainabilityfocuscoordinatedamongstakeholderswithdivergingfocusinindividualbottomlines(financialandnon-financial)?

− Withinthecategoryofnon-financialvaluecreation,whatisthevarietyofperceivedvaluesbydifferentstakeholdersandhowareallvaluestrulyvaluedindecision-making?

− Whataretheprioritizationmechanismsforvaluecreation,takingintoaccountthevarietyofvaluesrelatedtoavarietyofstakeholders?

− Howcansustainablebusinessmodelsbeusedtoachieve“sharedvaluecreation”fordifferentcustomersandpartnersinvolvedintheirbusinessmodels?

Theme3:VarietyofOriginsofSustainableBusinessModelsThird, we solicit inputs on the variety of organisational settings, which supportimplementationofsustainablebusinessmodels.

− Doorganisationalandlegalstructuresmatterforthedevelopmentofsustainablebusinessmodels?Ifso,howandhowdoesthathelporhinderutilizationofthenewmodels?

− Whatarethedriversforprofit-dominatedorganizationstoengageinimplementingsustainablebusinessmodels?

− Howdoesintrapreneurship,impacttheimplementationofsustainablebusinessmodelsinmultinationals?

− Whatistheroleoftheservicesectorinimplementingsustainablebusinessmodels,inadditiontomanufacturingorothertypesofindustries?

− Arethereconflictsofco-existenceamongmultinationalcompanies,whichareusingsustainableandconventionalbusinessmodels?

− Whatarethedynamicsofsustainablebusinessmodelsimplementationinnon-profitorganizationsandgovernmentcontrolledorganizations?

Theme4:SocialEntrepreneurshipFourth,wesolicit inputson the long-term impactsof social transformationsasa resultofsocialentrepreneurship(PeredoandMcLean,2006;Alvord,BrownandLetts,2004;MairandMarti,2006;Austin,Stevenson,&Wei-Skillern,2006).

− Whatarethesimilaritiesanddifferencesamongbusinessmodelswiththemainobjectiveprofitgenerationandbusinessmodelswiththemainobjectiverevolvingaroundmulti-generationalsocialandenvironmentalissues?

− Althoughprofitgenerationisnottheonlyfocusofsocialentrepreneurs,noinitiativecanbedevelopedwithoutafinancialbudget.Whatis(orshouldbe)thebalancebetweenfinancialandnon-financialbottomlinesinthebusinessmodelsofsocialentrepreneurs?

− Arebusinessmodelsofsocialentrepreneursdifferentfromclassicfor-profitbusinessmodels?Ifso,how?Basedonwhichcriteriacanwe(orshouldwe)describea

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businessmodelofsocialentrepreneursassuccessful?Whataretheindicatorsofsuccess?

− Dosocialentrepreneursgenerateandimplementnewbusinessmodels?Howcanwedefineandevaluatethesenewbusinessmodels?Whatistheimpactofthesenewbusinessmodelsonsociety?

Theme5:BusinessModelsforacircularEconomyFifth,we solicit inputs on the theoretical foundations and on the practical organisationalchallengeswhenitcomestobusinessmodelsforthecirculareconomy.

− Whatarefundamentalprinciplesandpremisesunderpinningtheideaofacirculareconomyandhowdoesitshapeorinfluenceimplementationofotherbusinessmodels?

− Whatarethetheoreticalfoundationsforthistypeofcircularbusinessmodels?− Whataretheinter-connectedchallengestomakecircularbusinessmodelsworkin

practice?− Whatisthepossibleimpactofimplementationofcircularbusinessmodelsupon

societalprogresstowardtrulysustainablesocieties,withinthecontextofrapidclimaticchanges?

Theme6:CreativityinapplyingsustainablebusinessmodelsSixth,wesolicitinputsontheroleofcreativityindevelopingandapplyingnewsustainablebusinessmodels.

− Inwhatwayscancreativityhelptofacilitateimplementationofsustainablebusinessmodels?Asanindividualtalenttobedeveloped,asanorganizationalculturetobestimulated,asatooltobeapplied,asanemergentpropertyofaparticularwayofworkingorasacombinationofallofthemandmore?

− Dothecreativeandculturalindustriesusedifferentbusinessmodelsandifso,whatarethecharacteristicfeaturesoftheirbusinessmodels?Cantheybeappliedassustainablebusinessmodelsforothersectorsoftheeconomyaswell?Ifsobywhichsectorsandhowcantheybebeneficiallyutilizedwithinthem?

− Manyartistsworkasentrepreneurs,quitefrequentlyinartcollectives,whicharefocussedonissuesofsustainability.Canthepracticeofart-makingbeabaseforamoregenerallyappliedarts-basedsustainablebusinessmodeltostimulateinnovation?

− Knowingthatcreativityisbasedonlateralthinkingandincorporatedintelligence(intuition,usingthesenses),whatarethemethodsandwaysofeducatingtostimulateandexpandcreativityinbusinessschools,andinallotherschools?

Theme7:SustainabilityandtheRolesofGovernmentSeventh, we solicit inputs on the roles of governments with respect to stimulating thedevelopmentandexperimentationwithalternativesustainablebusinessmodels.

− Towhatextentaresustainablebusinessmodelssolvingbutalsoatthesametimecreatingsustainabilityissues?

− Whatareorshouldbetherolesofgovernmentsinstimulatingand/orcontrollingsustainablebusinessmodels?

− Isthereaspecificstakeholdernetworkthatcouldsupportsustainablebusinessmodelsdevelopment,testingandexperimentingwithnewforms?Aresome

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countriesbetteratdevelopingsuchanetworkthanothers?Why?Howcanothercountrieslearnfromthepolicies,strategies,procedures,legalframeworksetc.ofsuchcountries?

− Whatareeffectivepracticesforcreatingincubatorsandsocialsystems,whichsupportexperimentationwithawide-arrayofnewbusinessmodels,whichmayormaynotproved,whenappliedtobefosteringsustainablesocietaltransitionsfortheshortandforthelong-termfuture?

This list of themes and research questions is not exhaustive. Additionally, we welcomecontributionson:

− Businessmodelsinemergingmarketsthatadvancesustainability,− Businessmodelsofsocialmanufacturing,− Theideagenerationprocessofsustainablebusinessmodels,− Theimpactofeducationforthesuccessofgenerating,testingandimprovingupon

evolvingbusinessmodels,whichtrulyfosterandsustainthetransitionprocessesthatareneededtoachievesustainablesocieties,

− Whataretherolesandimpactsofsustainablebusinessmodelsonsocietaltransitions?

Assuch,thisSVisopenforsubmissionsfromvariousworkshopsorganizedduringtheGlobalCleanerProduction&SustainableConsumptionConference“AcceleratingtheTransitiontoEquitablePostFossil-CarbonSocieties”(1-4November2015,Sitges,Barcelona,Spain.Theteamalsowelcomescontributionsfromauthorsofotherworkshopsthatmayleadtochangesintheguesteditorialteam,whilecontinuityandguidanceoftheprocesswillbeguaranteedbythefirstguesteditorofthisCFPs.Inourendeavortosolicitcontributions,wewouldfirst liketoacknowledgetherecentSVsdedicated to the topic of business models1 and sustainability. With this SV we wish tostimulatefurtherknowledgedevelopmentonthevarietyofsustainablebusinessmodels,i.e.on social entrepreneurship, corporate intrapreneurship, creativity, innovation, and otherpositivistapproachestosustainabilitychallenges.SpecialVolumeTimelineandPromotion:Inadditiontothevariousworkshopsofthe2015GlobalCleanerProductionandSustainableConsumptionConference,wewillhostaone-dayseminaronthetopicoftheSpecialVolumeat the Vrije Universiteit Brussel, Belgium on 13May 2016. Keynote speakers from bothacademiaandpracticewillbeinvitedtosubmittheirpapers.Wewillassignarefereeamong

1Arevaloetal.,2011‘Integratingsustainabilityinbusinessmodels’inJournalofManagementDevelopment;Svensson&Wagner,2011‘SustainableBusinessModels’inEuropeanBusinessReview;Boonsetal.2013,‘SustainableInnovationandBusinessModels’inJournalofCleanerProduction,Robinsetal.,2013,‘ManagingBusinessModelsforInnovation,StrategicChangeandValueCreation’inLongRangePlanning,Demiletal.,2015,‘BusinessModelswithintheDomainofStrategicEntrepreneurship’inStrategicEntrepreneurshipJournal,Haighetal.,2015,‘HybridOrganizations:Origins,Strategies,ImpactsandImplications’inCaliforniaManagementReview,andinSchalteggeretal.2015‘BusinessModelsforSustainability:Entrepreneurship,InnovationandTransformation’inOrganization&Environment.

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theguesteditorsforeachpaperpresented,withtheintentionofstrengtheningthepaperspriortoofficialsubmissionforpeerreviewforpotentialinclusionintheSV.Thedeadlinetosubmit a paper for the seminar in Brussels is 31March 2016 to the corresponding guesteditor,NikolayDentchev([email protected]).Allauthorsareinvitedtosubmitextendedabstractsof1000-1500wordsoftheirproposedpaperstoNikolayDentchev([email protected]).Theeditorialteamwillreviewallsubmissionsandwillprovidepromptfeedbacktotheauthorssothattheyarebestguidedforpreparation of top-quality papers. After the extended abstracts have been reviewed, allauthors will be notified whether their abstracts have been accepted as submitted oramendmentsshouldbemadeastheauthorsdeveloptheirfull,peer-reviewreadypapers.Theauthorsinvitedtodeveloptheirfullpapersarekindlyrequestedtoaccessandtofollowthe “Instructions for authors” presented in the JCLP website (http://www.journals.elsevier.com/journal-of-cleaner-production).Then,inordertomoveontopapersubmission,authorsareinvitedtogotohttp://ees.elsevier.com/jcleproandselectthisSV,andthenfollowthestandardsubmissionproceduresofElsevier’sEditorialSystem(EES).SV-developmentphasesDeadlinesSubmissionofextendedabstractsJune1,2016FeedbackofextendedabstractsJuly1,2016ManuscriptsubmissiondeadlineOctober1,2016Peerreview,paperrevisionandfinaldecisionnotificationMay1,2017SVonlinepublicationAugust1,2017Allpaperswillbesubjecttoanintensivepeerreviewprocess.Authorsarerequestedtofollowthe Journal of Cleaner Production guidelines for authors (cf. http://www.journals.elsevier.com/journal-of-cleaner-production)andtosubmitafullpaperviatheonlinesystem.

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Appendix III – CfP Studies of Organizational Management and

Sustainability

SOMS Studies of Organisational Management & Sustainability http://publicacoes.ismai.pt/index.php/SOMS

The Editorial Board of Studies of Organisational Management & Sustainability invites you to submit a paper to a special issue to be published this year.

FOCUS AND SCOPE SOMS is an international, double-blind-peer-reviewed, open access, on-line academic journal. It does not charge any publication/processing fee. Being a multidisciplinary publication, SOMS publishes research papers, literature and book reviews, short communications and letters to editors, covered by the three main sections of the journal: a) Economics, Management and Entrepreneurship; b) Marketing, Innovation and Services; c) Human Capital and Organisational Behaviour. This Special Issue is intended to bring out research of empirical, methodological or conceptual nature in the following topics:

x Entrepreneurial and intrapreneurial business models for sustainable development;

x Making the financial paradox work;

x Business models for a circular economy;

x How organizations manage transition towards new business models;

x Business Models for Regional Development;

x Business Models for a Functional Economy;

x When business models have to be explained in corporate reporting;

x New Cases of Sustainability-Oriented Business Model Innovation;

x Financial, Ecological, and Social Value; The Changing Role of Stakeholders in Organizations

x How to persevere after a successful start?.

SUBMISSIONS Submissions to this journal are made via the SOMS’s website. Before submitting your work to this journal, please read the Journal’s Section Policies and the Author Guidelines at http://soms.ismai.pt/index.php/SOMS (click on "ABOUT" in the upper banner). Prior to submission, authors must register with the journal. Please go to the journal’s website and then use the register link at the top of the homepage for the journal.

LANGUAGES Given the international nature of SOMS, publications might be submitted and published in English, French, Portuguese and Spanish.

EDITOR INDEXATION

Prof. Sandra Marnoto

[email protected] GAUDEAMUS RCAAP LATINDEX,

EDITORIAL BOARD Alain Martinet, Jean-Moulin University, Lyon, France Alexandre Faria, Brazilian School of Public and Business Administration, Getúlio Vargas Foundation, Brazil Alfonso Vargas Sánchez, Huelva University, Spain Anton Florijan Barišić, Croatia Åsa Hagberg-Andersson, Novia University of Applied Sciences, Finland Célio Sousa, Maia University Institute, Portugal Eleni Patra, The American College of Greece, Greece Eric Jolivet, Toulouse University School of Management, France Flávio Bressan, Pontifical Catholic University of Campinas, Brazil Helena Santos-Rodrigues, Polytechnic Institute of Viana de Castelo, Portugal Hortênsia Barandas Karl, University of Porto, Portugal Jan Jonker, Radboud University Nijmegen, Netherlands Jean-Philippe Denis, University of Paris Ouest Nanterre La Défense (Paris X), France João Carvalho, Maia University Institute, Portugal João Mota, Technical University of Lisbon, Portugal Marjana Merkač Skok, Faculty of Commercial and Business Sciences, Slovenia Nicole Torka, Helmut Schmidt University, Germany Nikolay Dentchev, Free University of Brussels, Belgium Pedro Guedes de Carvalho, University of Beira Interior, Portugal Rafael Hernandez Barros, Complutense University of Madrid, Spain Reinhard Paulesich, WU Vienna University of Economics and Business, Austria Sandra Marnoto, Maia University Institute, Portugal Sebastian Bruque, University of Jaén, Spain Ulke Veersma, University of Greenwich, United Kingdom Vitorino Martins, University of Porto, Portugal For any technical difficulty: [email protected]

CALL FOR PAPERS

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conference proceedings conference “new business models ......conference happen. we are very...

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