Sustainability-Oriented Business Model Innovation: Context and Drivers

Abstract

This study outlines a systemic review of the social and economic transformations that have been inducing the business to reconsider its traditional strategies and innovate to become sustainable. In doing so, the study adopts an original approach, focusing on the evolution in the socio-economic context, imposed by globalisation first and by the Great Recession afterwards. Hence, the review covers a wide range of literature and subjects, including political science, sociology, economics, finance and strategic management. Departing from the contextual picture, the study identifies the main drivers of the innovation of the business models, from the adoption of voluntary standards to the acknowledgement of the need to lengthen strategic time horizons. What emerges from the review is that, if business’ primary concern was initially to safeguard its declining reputation under competitive pressure, it perceives sustainability today as a necessary condition to survive the deep transformation of the economy.

Keywords: Societal Changes, Business Model Innovation, Voluntary Regulation, International Standards, Globalisation, Financial Crisis

JEL Classification: M14, M48, Q56, F53