Business model innovation for reducing uncertainty in sustainability transitions: A case study of the wood construction industry

Sustainability transitions are a significant challenge that requires established industries to adopt innovative ways of doing business. Research suggests that while this is possible through business model innovation (BMI), risk avoidance by regime actors and high levels of future uncertainty act as...

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Bibliographic Details
Published in:Creativity and innovation management 2024-12, Vol.33 (4), p.818-838
Main Authors: Abadzhiev, Andrey, Sukhov, Alexandre, Johnson, Mikael
Format: Article
Language:English
Subjects:
Business Administration
Business ecosystems
business model innovation
Business models
Case studies
Construction industry
Företagsekonomi
Innovations
Manufacturing
Organizational behavior
Sustainability
sustainability transitions
Uncertainty
unknown
value configurations
Wood construction
Wood products
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Summary:Sustainability transitions are a significant challenge that requires established industries to adopt innovative ways of doing business. Research suggests that while this is possible through business model innovation (BMI), risk avoidance by regime actors and high levels of future uncertainty act as barriers to successful transitions. Specifically, we lack knowledge about how established companies innovate their business model (BM) to reduce uncertainty related to sustainability transitions. We explore the case of a large forest‐based manufacturing company in the construction industry, Stora Enso. We find that, by pursuing transformative BMI and combining multiple value creation logics, a company can reduce different types of uncertainty while shaping its business ecosystem towards more sustainable opportunities. We show that the BM can serve as an organizational tool for collectively exploring new knowledge, reducing uncertainty and driving change in a business ecosystem.
ISSN:0963-1690
1467-8691
1467-8691
DOI:10.1111/caim.12622