Adopting sustainability business models for value creation and delivery: an empirical investigation of manufacturing firms

Abstract

Purpose

This paper examines the role of a sustainability business model in clarifying a firm's sustainability value articulation (SVA) to achieve sustainability outcomes and examining the moderating role of supplier involvement practices SIP and technology systems integration (TSI) in attaining sustainability outcomes.

Design/methodology/approach

Drawing upon the foundational principles of business model innovation, specifically articulation and implementation, the authors formulated a theoretical construct and empirically validate it through analysis of data collected from 692 manufacturing firms dispersed across 23 countries.

Findings

The research shows that focusing on SVA significantly improves how a company implements sustainability efforts internally (ISI) and externally (ESI), leading to better social and environmental outcomes. It also highlights that SIP improve the relationship between SVA, ESI and ISI. Similarly, TSI boosts the effect of internal and external sustainability efforts on both social (SOP) and environmental performance (EnP).

Research limitations/implications

While acknowledging the inherent constraints of survey-based research methodologies, this study offers a theoretical and verified approach for manufacturers to achieve comprehensive sustainability. It emphasizes the need for clear, actionable sustainability goals that can be met through both internal operations and external partnerships.

Practical implications

This study clarifies how manufacturers can implement sustainable business models, emphasizing the importance of clear sustainability goals and initiatives both within and outside the company. It highlights the dual aspects of supplier engagement through operational tactics (ESI) and strategic collaborations (SIP).

Social implications

This study reveals a thrilling truth: when companies champion clear sustainability goals, they unlock powerful strategies that revolutionize practices within their walls and in their external dealings. It is not just about going green; it is about weaving financial prosperity, social responsibility and environmental stewardship into the very fabric of their business models. But there is more – by cleverly engaging suppliers and harnessing cutting-edge technology, companies are not just participants in the green revolution; they are leading it, crafting a world where business thrives alongside the planet and its people.

Originality/value

This research stands out for its empirical analysis of how manufacturing firms implement sustainability innovations at the plant level, an area previously underexplored despite extensive theoretical work on sustainability-centric business models.

Citation

Jagani, S., Deng, X., Hong, P.C. and Mashhadi Nejad, N. (2024), "Adopting sustainability business models for value creation and delivery: an empirical investigation of manufacturing firms", Journal of Manufacturing Technology Management, Vol. 35 No. 2, pp. 360-382. https://doi.org/10.1108/JMTM-03-2023-0099