The lack of case studies makes it challenging for firms to understand how to innovate their business models, identify and design alternatives, then assess and select the most adequate ones. When considering business model innovations sustainability, this leads to higher complexity related to how preliminary assesses the impact of sustainability innovations and how to understand their effects on the whole Business Network.

 

However, there is no general agreement on the concept of business models with one author highlighting the difference between American and European scholars approaches to business model research. The former, focusing on classification and the relation with open innovation while the latter concentrates on casual modelling and design approaches.

 Another author suggests that the business model concept goes far beyond the simple storytelling of a firm and how it does business, and has the potential to provide a holistic perspective of the firm's activities. This is supported. The report suggests that the design of business models enables reconfiguration of business capabilities to adapt the firm to the changing business environment.

 

Business models are seen as a vehicle for innovation. A necessary means for commercial rising, technological innovations as well as a subject of innovation.

 

The concept of a business model is widely underpinned by the concept of value within the literature. It has been specifically related to the realisation of economic value to the delivery of customer value to the interlocking elements that create and deliver value.

This is demonstrated in the image below:

The term network refers generally to a group of three or more organisations, either self-initiated or contracted, connected in ways that facilitate the achievement of not only their own goals but also a common goal. 

The overall focus of the network has been a source of differentiation between disciplines. Given the general concept, several names depending on the motivation of the network. For example, innovation, network supply networks and Manufacturing networks.

Network governance is needed for goal-orientated networks if they are to be effective. Stable networks reinforce relational ties among members and ensure equitable distribution of value.  A new governance model is needed to realise a system in which sustainability issues are integrated in a way that ensures value creation for the firm and beneficial results for all stakeholders in the long term.

 

Faber (2010) conceptualised sustainability and affirms equilibrium between a business and its supporting environment. Where they interact with each other without mutual detrimental effects, sustainability explicitly refers to this equilibrium.

 

In order to realise an integrated and balanced system, deliberate interaction partnering network unlearning from multiple and diverse stakeholders is crucial. It is no longer a choice for firms whether to engage with stakeholders or not, the challenge is rather how to engage successfully.

 

Greater stakeholder engagement, alongside greater trust and innovation is important to the long term success of SBM's.

 
These models, however, require significant resources. For example, financial capital and carry substantial risk.

 

A business model will ultimately be the mediator between various actors in the real-world value network. The simulation environment for business model innovation must reflect human behaviour and decision making.

Increasingly, researchers and practitioners are adopting and validating the use of behavioural models such as system dynamics. And Agent-based models to simulate business model innovation and other business-related activities.

 

At the time this paper was written, almost 80,000 sustainability reports were listed on corporateregister.com at the same time Triple bottom line perspective is exponentially increasing along with the scope of measurement options with emerging competing frameworks that are complex with no indication of reaching an agreement on a common reporting standard.

 

These multiple financial, social and environmental measures are often presented under the umbrella of environmental, social, and governance ESG metrics. The Study of sustainable business models is evolving rapidly, but little effort has been spent exploring their successful adoption.

1.       Sustainable value incorporates economic, social, and environmental benefits conceptualised as value forms.

2.       SBM's require a system of sustainable value flows among multiple stakeholders, including the natural environment and society as primary stakeholders.

3.       SBM's require a value network with a new purpose, design and governance.

4.       SBM's require systemic consideration of stakeholder interests and responsibilities for mutual value creation.

5.       Internalising externalities through PSS enables innovation towards SBM's