Business Models for Sustainability: Choices and Consequences

Business models for sustainability (BMFS) explicitly consider, jointly, economic with social and/or ecological value contributions. Thus, managing BMFS requires that one should combine multiple institutional logics, consider different stakeholders, and integrate distinct value dimensions. While research into BMFS has proposed frameworks and tools to capture this complexity, the mechanisms that underlie the interaction of the economic with social and/or ecological value creation cycles in BMFS remain unknown. We use a longitudinal, multiple-case study approach to identify a framework of fundamental choices and consequences that lead to economic and social/ecological value creation. Our findings highlight the interdependence of a set of three fundamental choices (an ambition to cater for multiple purposes, behavioral consistency, and collaboration) that lead to a virtuous circle of reinforcing consequences and cascaded value creation. Furthermore, we show how acceptance of limitations and restrictions functions as a powerful coping mechanism to deal with paradox tensions.