Sustainability-Related Strategic Evaluation of Business Models

Abstract

Recent developments, such as climate change, demographic change and resource scarcity, have forced companies to turn towards more sustainable resources, processes and products. Thus, their business models should be developed in a way that meets social, ecological and economic challenges. A vital part of this development process is the evaluation of business models against the background of sustainability targets during different phases of this process. This paper addresses the, thus far, largely neglected sustainability-related strategic evaluation in the earlier phases of business model development. Based on a sustainability-related canvas approach and concepts from strategic management theory, it suggests a method for sustainability-related strategic evaluation of business models as well as business model ideas and options. Therefore, a procedure for evaluation is presented and five main criteria are developed that should be taken into account: eligibility to create stakeholder’s benefit, market attractiveness, heterogeneity/singularity, permanence and eligibility to generate sustainability-oriented value.