Sustainability practices characteristic of most contemporary business organizations foster incremental change by product, process and management innovation. While this is very important, incremental improvements neglect a number of larger opportunities associated with new forms of doing business and ‘the underserved markets at the bottom of the economic pyramid’ (Hart and Milstein, 2003, p. 65). A growing number of experts recognise this and emphasize the role of more radical change to be brought about by innovative business models. According to Schaltegger et al. ‘the business model perspective is particularly interesting in the context of sustainability because it highlights the value creation logic of an organization and its effects and potentially allows (and calls) for new governance forms such as cooperatives, public private partnerships, or social businesses, thus helping transcend narrow for-profit and profit-maximizing models’ (Schaltegger et al., 2015).
However, research on business models and their various impacts on sustainable development is still in its infancy and the majority of existing documents dealing with business models takes a pragmatic approach describing the basic characteristics of product-service systems, the sharing economy, the collaborative enterprise, innovative financing solutions, etc. from a practitioner’s point of view. Apart from a lack of deeper understanding of these innovative business models their environmental and social impacts have not been uncovered yet. For this reason, research efforts at the Budapest University of Technology and Economics concentrate on the collection of empirical evidence relating to the fast spread of the sharing economy. Which social groups are affected by sharing economy businesses and how? How do lifestyles change as a result of their fast growth? What are their negative and positive environmental impacts and what is their net effect on natural ecosystems?
The aim of the empirical research to be introduced at the 23rd ISDRS Conference is to provide answers to these questions through the practical experiences of a regional sharing economy business, which has been operating in the transportation sector for several years. Data gathered as a result of the operations of the net based company reveal tendencies during its growth and its actual and potential effects on society and the environment.
Early findings of the research suggest that the fast growth of the sector require the attention of policy makers who do not have the necessary data and understanding yet to make informed decisions (Zilahy, 2016). Research findings may also contribute to the development of an assessment framework of new business solutions and as a result, to policy recommendations with regard to their development and support.
References
Hart, S. L., & Milstein, M. B., 2003. Creating sustainable value. Academy of Management Executive. 17, 56-67. Schaltegger, S., Hansen, E.G. & Ludeke-Freund, F., 2015. Business Models for Sustainability: Origins, Present Research, and Future Avenues. Organization & Environment, September
Zilahy, G., 2016. Sustainable Business Models – What Do Management Theories Say? Budapest Management Journal
5a Corporate sustainability strategies (and sustainable entrepreneurship)
