This paper presents a framework to enable case study analysis of sustainable development from business models innovation. Increasing economic development can give rise to trade-offs between economic growth and environmental degradation. Business model innovation can help address such trade-offs by refocusing value creation and capture towards less environmentally damaging activities. Business models therefore provide a critical tool in the move towards sustainable development. In this paper a literature review of existing business model frameworks is conducted and gaps found in the definition and conceptualisation of value, alignment with sustainable development, and assessment of social and environmental impacts and goals. More generally, there is a lack of in depth case studies in the sustainable business model literature. A framework is developed to address these gaps and to allow in depth analysis and understanding of the functioning of business models for sustainable development. Development and piloting of the framework made use of literature and co-operative enquiry. The framework of the paper is applied in depth with a unique energy company case study. Application shows economies of scope to be critical to the delivery of sustainable development. The business model framework addresses equity and distributional issues that are key to sustainable development, but missed by current frameworks.

Introduction

The scale of resource use to supply consumer goods and services is the main reason that society stands so close to breaching many boundaries set out for key global environmental pressures (Allwood et al., 2011; Rockström et al., 2009). Many managers are aware of the increasing importance of being socially and environmentally sustainable in their operations. More sustainable goods and services provision requires a combination of new technologies, changes in practice/behaviours, in combination with new business models. To make such a change it is helpful for organisations to be able to observe past case studies. Evans et al. (2017) however identify a scarce number of case studies and empirical analysis of sustainable business models in the literature and that the lack of case studies makes it difficult for firms to learn how they might develop their business models. From literature they also find that existing business modelling methods and tools are few and rarely sustainability driven. The current papers objective is to develop a framework for in depth case study analysis of business models for sustainability. The framework builds on Osterwalder and Pigneur (2010) as well as Evans et al. (2017) among others. An in depth case study analysis is then presented to demonstrate the framework and provide new case study empirical analysis that is much required.