Business Model Innovation for Eco-Efficiency: An Empirical Study

Abstract

Business model has the potential to create value and capture value for companies, which is critical for their sustainable development [1]. The concept of eco-efficiency can be a useful concept to link an enterprise’s business with sustainable development as well as achieving long-term profits [2, 3]. Extant literature reveals that there is a need to study business model innovation and eco-efficiency under one text to achieve a win-win rationale to increase profits while reducing environmental impact [4, 5]. This empirical study conducted 8-in-depth case studies with manufacturing companies across UK and China. The author synthesized the cases and concluded the measures of business model innovation for eco-efficiency in five categories, namely (1) Selling of service model, (2) Direct selling model, (3) Collaboration strategy, (4) Whole system design strategy, and (5) Technology renovation strategy. The empirical finding suggests the adaptation of strategy and exploitation of the technologies are essential to business model innovation when manufacturing companies seeking to implement eco-efficiency.