SHAPING SUSTAINABLE BUSINESS MODELS:Stakeholder collaboration for sustainable value creation

Recent economic crises, environmental problems and social challenges have urged us to drastically change our consumption and production patterns and transform organisations to contribute to socio-technical transitions that positively impact these challenges. Therefore, sustainable development and the transition towards a circular economy are gaining increased attention from academics and are being widely adopted by national and local governments, companies and other organisations and institutions. Since the implementation of more sustainable solutions lags behind expectations and technological possibilities, scholars and practitioners are increasingly seeing sustainable business model innovation as the key pathway to show the value potential of new sustainable technology and stress the importance of integrating the interests of multiple stakeholders and their economic, environmental and social value goals in the business model’s development. However, there is limited research that elucidates which stakeholders are actively involved, how they interact and what the effect is on the collaborative business modelling process for sustainability. This thesis addresses this research gap by building on the notion of business models as boundary-spanning activity-systems and studies stakeholder interaction from the level of a focal firm, as well as from the level of cross-sector actors collaborating in innovation ecosystems. Through four independent studies, three empirical studies and a design science study, this thesis aims to provide a better understanding of how stakeholder interaction affects collaborative business modelling for sustainability. The first study (Chapter 2) took a process perspective on interaction with network ties from the perspective of a focal firm. Based on two case studies of SMEs successfully introducing sustainable technology in the market, value shaping was identified as the operative mechanism describing the relation between networking and business modelling, from ideation to growth of the business. A stage model with five successive forms of value shaping describes how, in each stage, interaction with network ties help firms to clarify the types of economic, environmental and social value that a sustainable technology can deliver and who possible beneficiaries are. In return, changes in the business model clarify what other network ties are needed, demonstrating how the boundary-spanning function of business models spurs firms to expand and strengthen the value network. The second study (Chapter 3) focused on the commercialisation stage, in which a cognitive change in the manager’s mind was found during the development of a sustainable business model. Based on three empirical cases of business model innovations for sustainability, the study explored how stakeholder interaction may trigger and support managerial cognitive change and hence business model innovation. The findings suggest that the influence of stakeholders on the manager’s understanding of the business runs via three interrelated shaping processes: market approach shaping, product and/or service offering shaping and credibility shaping. In these shaping processes, new or latent stakeholders are found to have a bigger impact than existing ones. A research agenda is presented to further unravel the role of stakeholders affecting managerial cognition around business model innovation for sustainability. The third study (Chapter 4) examined innovation ecosystems’ processes of developing a collaborative business model for sustainability. Based on a study of four sustainably innovative cross-sector collaborations, this chapter studied how innovation ecosystems resolve the tensions that emerge from the collaborating actors’ divergent goals and interests. This study finds that innovation ecosystems engage in a process of valuing value that helps the actors to manage the tensions and find a balance of environmental, social and economic value creation and capture that satisfies all involved actors. The findings reveal that valuing value occurs in two different patterns – collective orchestration and continuous search – that open up a research agenda that can shed further light on the conditions that need to be in place in order for an innovation ecosystem to develop effective sustainable business models. The final study (Chapter 5) used a design science approach, developing a tool for innovation ecosystems’ actors to manage the degree to which stakeholders are involved throughout the process of collaborative business modelling for sustainability. The resulting ‘degree of engagement diagram’ and accompanying stepwise approach makes it possible to identify stakeholders from six cross-sector stakeholder groups that represent economic, social and environmental aspects of sustainable value and visualise their roles. By discriminating between four concentric and permeable circles of engagement, the tool integrates different degrees of involvement of stakeholders and enables users of the DoE diagram to accommodate changes that may occur in the evolving business model and its context. The tool enables innovation ecosystems’ actors to keep the collaboration manageable during the development of a joint and viable sustainable business model. Overall, this thesis extends the understanding of the dynamics of collaborative business modelling for sustainability and the role of stakeholder interaction therein. The research makes three key contributions to the sustainable business model innovation literature. First, it extends the literature by exploring the interplay between stakeholder interaction and business modelling over time. It establishes that stakeholder interaction and business modelling have a reciprocal relationship and contributes with two frameworks – value shaping and valuing value – that explain this reciprocal relationship for firms and innovation ecosystems. Second, the thesis unravels the micro-processes and mechanisms that elucidate how stakeholder interaction actually influences the direction into which the sustainable business model develops. Third, this thesis enriches the scholarly understanding of stakeholder interaction by identifying the main contributors to business model innovation for sustainability, by differentiating between stakeholders and their roles and by providing a tool that accommodates this. The research contributes to practice by offering practitioners useful insights on how they can increase, improve and effectuate stakeholder interaction in order to develop viable business models for sustainability and hence contribute to the desired socio-technical transitions

Impact in networks and ecosystems: building case studies that make a difference

open accessThis toolkit aims to support the building up of case studies that show the impact of project activities aiming to promote innovation and entrepreneurship. The case studies respond to the challenge of understanding what kinds of interventions work in the Southern African region, where, and why. The toolkit has a specific focus on entrepreneurial ecosystems and proposes a method of mapping out the actors and their relationships over time. The aim is to understand the changes that take place in the ecosystems. These changes are seen to be indicators of impact as increased connectivity and activity in ecosystems are key enablers of innovation. Innovations usually happen together with matching social and institutional adjustments, facilitating the translation of inventions into new or improved products and services. Similarly, the processes supporting entrepreneurship are guided by policies implemented in the common framework provided by innovation systems. Overall, policies related to systems of innovation are by nature networking policies applied throughout the socioeconomic framework of society to pool scarce resources and make various sectors work in coordination with each other. Most participating SAIS countries already have some kinds of identifiable systems of innovation in place both on national and regional levels, but the lack of appropriate institutions, policies, financial instruments, human resources, and support systems, together with underdeveloped markets, create inefficiencies and gaps in systemic cooperation and collaboration. In other words, we do not always know what works and what does not. On another level, engaging users and intermediaries at the local level and driving the development of local innovation ecosystems within which local culture, especially in urban settings, has evident impact on how collaboration and competition is both seen and done. In this complex environment, organisations supporting entrepreneurship and innovation often find it difficult to create or apply relevant knowledge and appropriate networking tools, approaches, and methods needed to put their processes to work for broader developmental goals. To further enable these organisations’ work, it is necessary to understand what works and why in a given environment. Enhanced local and regional cooperation promoted by SAIS Innovation Fund projects can generate new data on this little-explored area in Southern Africa. Data-driven knowledge on entrepreneurship and innovation support best practices as well as effective and efficient management of entrepreneurial ecosystems can support replication and inform policymaking, leading thus to a wider impact than just that of the immediate reported projects and initiatives

Value proposition as a framework for value co-creation in crowd-funding ecosystem

The present paper suggests that crowd-funding in the arts and cultural sector occurs within a complex service ecosystem, where six categories of value propositions frame eight value co-creation processes, namely through ideation, evaluation, design, testing, launch, financing and authorship. Managerial contributions include the development of a crowd-funding service ecosystem model for arts managers, which offers not only a method of financing or economic value, but which also offers opportunities for strengthening bonds with customers and other stakeholders. Our paper is innovative in that we integrate value propositions categories with the micro – meso and macro contexts and analyse the different kind of co-creation are framed in the crowdfunding contextUniversidad de Málaga. Campus de Excelencia Internacional Andalucía Tech

The Dynamics of Transformation in the Development of Digital Services

Service providers are increasingly depending and using digital infrastructure and tools provided by digital platforms to transform their services and develop digital ones that meet the needs of heterogeneous end users. However, while there is an emerging literature of developing digital services, little is known about the dynamics of transformation. Using multiple cases of firms that develop digital services, the digital service taxonomy was synthesized to understand the dynamics of transformation in developing digital services. This study identifies five main dynamics: the services experience, the service process, the service capabilities, the service environment and the service delivery.  Each of those dynamics and their associated factors is explored under the objectives of business, interaction and technology. This enables us to extend the existing literature on digital service development in particular and contributes to the research of digital innovation in general

New horizons shaping science, technology and innovation diplomacy: the case of Latin America and the Caribbean and the European Union. EL-CSID Working Paper Issue 2018/20 • August 2018

Europe and the world face a moment of transformation. The global financial crisis wiped out years of economic and social progress, exposed structural weaknesses in world economies and emphasised the importance of the real economies and strong industries. Modernisation and digitalisation of the industrial base together with the promotion of a competitive framework for industry through research, technology and innovation are drivers for recovery. Innovation, and particularly open innovation, is a key factor of global competitiveness. The European Commission (EC) addresses international cooperation policy in a wider framework and adapts to the evolving needs of partner countries at different stages of development (EC, 2018a). Latin America and the Caribbean countries’ (LAC) and the European Union’s (EU) cooperation on science, technology and innovation has a long history based on cultural roots and common concerns. They share a strategic bi-regional partnership, which was launched in 1999 and stepped up significantly in recent years. The two regions co-operate closely at international level across a broad range of issues and maintain an intensive political dialogue at all levels. EU-LAC relationships are moving from a traditional cooperation model towards a learning model, where sharing experiences and learning from innovations appear to be decisive (OECD, 2014). This paper focuses on the challenges that innovation nowadays poses to international relations and diplomacy. It is based on the evidence gained by the research team from participation in several EULAC projects, especially the ELAN Network project coordinated by TECNALIA, the INNOVACT project as well as other projects and activities

Complex regional innovation networks and HEI engagement the case of Chicago

This article considers how HEIs engage within local complex development networks in order to develop the urban metropolis, using the case of Chicago as a specific example. It focuses on three main issues: how collaboration occurs amongst regional stakeholders; how goals are set and how shared goals have been created; and the extent to which there exist conflicting views amongst stakeholders, and their capability to create solutions where there are disagreements and clashing purposes. Chicago is in the middle of making a paradigm shift, with at its core an open system approach that includes a variety of ways to engage citizen-users as co-creators, including through user-driven innovation and digitalised services. In the metropolitan area there is a widely shared goal amongst stakeholders to develop and improve novel approaches for regional engagement to enhance innovativeness and competitiveness. The paradigm shift in regional engagement from building co-operation clusters to one of organisational betweenness and open systemic thinking requires new skills in management and leadership centred on interaction, co-creation and sharing of knowledge