TY - CHAP

T1 - Exploring the implications of the value concept for performance assessment of sustainable business models

AU - Norris, Simon

N1 - Conference code: 7

PY - 2022

Y1 - 2022

N2 - It is commonly accepted that the performance of sustainable business models is determined by their value creation for stakeholders, primarily understood in aggregated macro-level social, ecological and economic terms. However, very few studies attempt to measure this value creation beyond qualitative evaluations of firms, and the ones that do, focus on measuring the output of the firm. Because these output-based and firm-based metrics do not measure the fulfilment of stakeholder needs, they can only approximate actual stakeholder value creation. This implies that the conceptualisation and operationalisation of value created with sustainable business models require further clarification. In response, this paper analyses the characteristics of value itself based on insights from marketing and stakeholder research and how this affects the understanding of a business model’s sustainability performance. Conceptual propositions for value-based performance assessment of sustainable business models are derived from the characteristics of subjectivity and heterogeneity, relationality and experientiality, idiosyncrasy, incommensurability, one-sidedness and non-linearity, situation-specificity and transience, and interdependence. The analysis suggest that the trinity of ecological, social and economic value needs to be reformed with a value concept based on stakeholder-specific need-fulfilment that allows actual assessment of stakeholder value creation. This assessment can only be conducted in collaboration with the stakeholders whose needs are being addressed.

AB - It is commonly accepted that the performance of sustainable business models is determined by their value creation for stakeholders, primarily understood in aggregated macro-level social, ecological and economic terms. However, very few studies attempt to measure this value creation beyond qualitative evaluations of firms, and the ones that do, focus on measuring the output of the firm. Because these output-based and firm-based metrics do not measure the fulfilment of stakeholder needs, they can only approximate actual stakeholder value creation. This implies that the conceptualisation and operationalisation of value created with sustainable business models require further clarification. In response, this paper analyses the characteristics of value itself based on insights from marketing and stakeholder research and how this affects the understanding of a business model’s sustainability performance. Conceptual propositions for value-based performance assessment of sustainable business models are derived from the characteristics of subjectivity and heterogeneity, relationality and experientiality, idiosyncrasy, incommensurability, one-sidedness and non-linearity, situation-specificity and transience, and interdependence. The analysis suggest that the trinity of ecological, social and economic value needs to be reformed with a value concept based on stakeholder-specific need-fulfilment that allows actual assessment of stakeholder value creation. This assessment can only be conducted in collaboration with the stakeholders whose needs are being addressed.

KW - Sustainability sciences, Management & Economics

KW - Sustainable business model

KW - Stakeholders

KW - value

KW - performance

KW - assessment

KW - measurement

UR - https://static1.squarespace.com/static/5e8f3c880e1d607ebd5469b6/t/62d96de907049668c80444c8/1658416668381/NBM2022_BOP_FINAL.pdf

M3 - Article in conference proceedings

SP - 743

EP - 755

BT - 7th International Conference on New Business Models

A2 - Laura, Michelini

A2 - Minà, Anna

A2 - Alaimo Di Loro, ‪Pierfrancesco

PB - LUMSA University

CY - Rom

T2 - 7th International Conference on New Business Models

Y2 - 22 June 2022 through 24 June 2022

ER -