Abstract
Digital transformation helps organisations become more efficient while increasing their outreach and targeting new markets. However, it also makes the organisational design more malleable and can blur or even disrupt a firm’s boundaries. For sustainable entrepreneurs who develop business models for sustainability (BMfS), this is a Faustian bargain, as they trade independence for more potential. In this in-depth case based on action and design science research, we accompanied and evaluated the design of a BMfS with digital technologies. To evaluate for rising tensions, we looked at the relevant dynamics within the entrepreneurial firm and the digital business ecosystem. Besides a proposed solution model and its evaluation, we present design principles of contingency, re-configuration, and alliancing. This nascent design knowledge explains dynamics that occur when developing business models with digital technologies.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
References
Nambisan, S.: Digital entrepreneurship: toward a digital technology perspective of entrepreneurship. Entrep. Theory Pract. 41, 1029–1055 (2017). https://doi.org/10.1111/etap.12254
von Briel, F., Davidsson, P., Recker, J.: Digital technologies as external enablers of new venture creation in the IT hardware sector. Entrep. Theory Pract. 42, 47–69 (2018). https://doi.org/10.1177/1042258717732779
Deguchi, A., et al.: What is society 5.0? In: Society 5.0, pp. 1–23. Springer, Singapore (2020). https://doi.org/10.1007/978-981-15-2989-4_1
Hanelt, A., Bohnsack, R., Marz, D., Antunes Marante, C.: A systematic review of the literature on digital transformation: insights and implications for strategy and organizational change. J. Manage. Stud. 59 (2020). https://doi.org/10.1111/joms.12639
Burgelman, R.A., Grove, A.S.: Cross-boundary disruptors: powerful interindustry entrepreneurial change agents. Strateg. Entrep. J. 1, 315–327 (2007). https://doi.org/10.1002/sej.27
El Sawy, O.A., Malhotra, A., Park, Y., Pavlou, P.A.: Research commentary—seeking the configurations of digital ecodynamics: it takes three to tango. Inf. Syst. Res. 21, 835–848 (2010). https://doi.org/10.1287/isre.1100.0326
Lüdeke-Freund, F.: Sustainable entrepreneurship, innovation, and business models: integrative framework and propositions for future research. Bus Strat Env 29, 665–681 (2020). https://doi.org/10.1002/bse.2396
Schaltegger, S., Lüdeke-Freund, F., Hansen, E.G.: Business models for sustainability. Organ. Environ. 29, 264–289 (2016). https://doi.org/10.1177/1086026616633272
Patzelt, H., Shepherd, D.A.: Recognising opportunities for sustainable development. Entrep. Theory Pract. 35, 631–652 (2011). https://doi.org/10.1111/j.1540-6520.2010.00386.x
Hockerts, K., Wüstenhagen, R.: Greening goliaths versus emerging davids—theorising about the role of incumbents and new entrants in sustainable entrepreneurship. J. Bus. Ventur. 25, 481–492 (2010). https://doi.org/10.1016/j.jbusvent.2009.07.005
Gregori, P., Holzmann, P.: Digital sustainable entrepreneurship: a business model perspective on embedding digital technologies for social and environmental value creation. J. Clean. Prod. 272, 122817 (2020). https://doi.org/10.1016/j.jclepro.2020.122817
Trittin-Ulbrich, H., Scherer, A.G., Munro, I., Whelan, G.: Exploring the dark and unexpected sides of digitalisation: toward a critical Agenda. Organization 28, 8–25 (2021). https://doi.org/10.1177/1350508420968184
vom Brocke, J., Winter, R., Hevner, A., Maedche, A.: Special issue editorial – accumulation and evolution of design knowledge in design science research: a journey through time and space. JAIS 21, 520–544 (2020). https://doi.org/10.17705/1jais.00611
Reason, P.: Choice and quality in action research practice. J. Manag. Inq. 15, 187–203 (2006). https://doi.org/10.1177/1056492606288074
Berglund, H.: Entrepreneurship as design and design science. J. Bus. Venturing Des. 1, 100012 (2021). https://doi.org/10.1016/j.jbvd.2022.100012
Gregor, S.: The nature of theory in information systems. MIS Q. 30, 611–642 (2006)
Dyllick, T., Muff, K.: Clarifying the meaning of sustainable business. Organ. Environ. 29, 156–174 (2016). https://doi.org/10.1177/1086026615575176
Fichter, K., Clausen, J.: Diffusion of environmental innovations: sector differences and explanation range of factors. Environ. Innov. Soc. Trans. 38, 34–51 (2021). https://doi.org/10.1016/j.eist.2020.10.005
Long, T.B., Blok, V., Coninx, I.: The diffusion of climate-smart agricultural innovations: systems level factors that inhibit sustainable entrepreneurial action. J. Clean. Prod. 232, 993–1004 (2019). https://doi.org/10.1016/j.jclepro.2019.05.212
Pinkse, J., Groot, K.: Sustainable entrepreneurship and corporate political activity: overcoming market barriers in the clean energy sector. Entrep. Theory Pract. 39, 633–654 (2015). https://doi.org/10.1111/etap.12055
Senyo, P.K., Liu, K., Effah, J.: Digital business ecosystem: literature review and a framework for future research. Int. J. Inf. Manage. 47, 52–64 (2019). https://doi.org/10.1016/j.ijinfomgt.2019.01.002
Kapoor, R., Teece, D.J.: Three faces of technology’s value creation: emerging, enabling, embedding. Strat. Sci. 6, 1–4 (2021). https://doi.org/10.1287/stsc.2021.0124
Kim, S., Schifeling, T.: Good corp, bad corp, and the rise of b corps: how market incumbents’ diverse responses reinvigorate challengers. Adm. Sci. Q. 67, 674–720 (2022). https://doi.org/10.1177/00018392221091734
Seckler, C., Mauer, R., vom Brocke, J.: Design science in entrepreneurship: conceptual foundations and guiding principles. J. Bus. Ventur. Des. 1, 100004 (2021). https://doi.org/10.1016/j.jbvd.2022.100004
Berglund, H., Bousfiha, M., Mansoori, Y.: Opportunities as artifacts and entrepreneurship as design. AMR 45, 825–846 (2020). https://doi.org/10.5465/amr.2018.0285
Becker, J., vom Brocke, J., Heddier, M., Seidel, S.: In search of information systems (grand) challenges. Bus. Inf. Syst. Eng. 57(6), 377–390 (2015). https://doi.org/10.1007/s12599-015-0394-0
vom Brocke, J., Hevner, A., Maedche, A.: Design Science Research. Cases. Springer International Publishing, Cham (2020). https://doi.org/10.1007/978-3-030-46781-4
van Aken, J.E.: Management research as a design science: articulating the research products of mode 2 knowledge production in management. Br. J. Manage. 16, 19–36 (2005). https://doi.org/10.1111/j.1467-8551.2005.00437.x
vom Brocke, J., Maedche, A.: The DSR grid: six core dimensions for effectively planning and communicating design science research projects. Electron. Mark. 29(3), 379–385 (2019). https://doi.org/10.1007/s12525-019-00358-7
Winter, R., Aier, S.: Design science research in business innovation. In: Hoffmann, C.P., Lennerts, S., Schmitz, C., Stölzle, W., Uebernickel, F. (eds.) Business Innovation: Das St. Galler Modell. BIUSG, pp. 475–498. Springer, Wiesbaden (2016). https://doi.org/10.1007/978-3-658-07167-7_25
Gregor, S., Kruse, L., Seidel, S.: Research perspectives: the anatomy of a design principle. JAIS 21, 1622–1652 (2020). https://doi.org/10.17705/1jais.00649
Sein, M.K., Henfridsson, O., Purao, S., Rossi, M., Lindgren, R.: Action design research. MIS Q. 35, 37–56 (2011). https://doi.org/10.2307/23043488
Peffers, K., Tuunanen, T., Niehaves, B.: Design science research genres: introduction to the special issue on exemplars and criteria for applicable design science research. Eur. J. Inform. Syst. 27, 129–139 (2018). https://doi.org/10.1080/0960085X.2018.1458066
Ebel, P., Bretschneider, U., Leimeister, J.M.: Leveraging virtual business model innovation: a framework for designing business model development tools. Info. Syst. J. 26, 519–550 (2016). https://doi.org/10.1111/isj.12103
van Burg, E., Cornelissen, J., Stam, W., Jack, S.: Advancing qualitative entrepreneurship research: leveraging methodological plurality for achieving scholarly impact. Entrep. Theory Pract. 46, 104225872094305 (2020). https://doi.org/10.1177/1042258720943051
Heron, J., Reason, P.: The practice of co-operative inquiry: research ‘with’rather than ‘on’ people. Handbook Action Res. 2, 144–154 (2006)
Osterwalder, A., Pigneur, Y.: Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. Wiley (2010)
Corley, K.G., Gioia, D.A.: Identity ambiguity and change in the wake of a corporate spin-off. Adm. Sci. Q. 49, 173–208 (2004). https://doi.org/10.2307/4131471
Futonge Nzembayie, K., Buckley, A.P.: entrepreneurial process studies using insider action research: opportunities & challenges for entrepreneurship scholarship. Eur. Manage. Rev. 17 (2020). https://doi.org/10.1111/emre.12422
Laasch, O.: Beyond the purely commercial business model: organisational value logics and the hetero-geneity of sustainability business models. Long Range Plan. 51, 158–183 (2018). https://doi.org/10.1016/j.lrp.2017.09.002
Bocken, N.M.P., Short, S.W., Rana, P., Evans, S.: A literature and practice review to develop sustainable business model archetypes. J. Clean. Prod. 65, 42–56 (2014). https://doi.org/10.1016/j.jclepro.2013.11.039
Smith, W.K., Gonin, M., Besharov, M.L.: Managing social-business tensions: a review and research agenda for social enterprise. Bus. Ethics Q. 23, 407–442 (2013). https://doi.org/10.5840/beq201323327
Opara-Martins, J., Sahandi, R., Tian, F.: Critical analysis of vendor lock-in and its impact on cloud computing migration: a business perspective. J. Cloud Comput. 5(1), 1–18 (2016). https://doi.org/10.1186/s13677-016-0054-z
Russo-Spena, T., Mele, C.: “Five Co-S” in innovating: a practice-based view. JOSM 23, 527–553 (2012). https://doi.org/10.1108/09564231211260404
Boons, F., Lüdeke-Freund, F.: Business models for sustainable innovation: state-of-the-art and steps towards a research Agenda. J. Clean. Prod. 45, 9–19 (2013). https://doi.org/10.1016/j.jclepro.2012.07.007
von Goethe, J.W.: Faust, A Tragedy. Part one. Yale University Press, New Haven, CT (1992)
Fauchart, E., Gruber, M.: Darwinians, communitarians, and missionaries: the role of founder identity in entrepreneurship. Acad. Manag. J. 54, 935–957 (2011). https://doi.org/10.5465/amj.2009.0211
Hahn, R., Spieth, P., Ince, I.: Business model design in sustainable entrepreneurship: illuminating the commercial logic of hybrid businesses. J. Clean. Prod. 176, 439–451 (2018). https://doi.org/10.1016/j.jclepro.2017.12.167
Acebo, E., Miguel‐Dávila, J.-Á., Nieto, M.: External stakeholder engagement: complementary and substitutive effects on firms’ eco‐innovation. Bus. Strat. Env. 30 (2021). https://doi.org/10.1002/bse.2770
Milanov, H., Fernhaber, S.A.: The impact of early imprinting on the evolution of new venture networks. J. Bus. Ventur. 24, 46–61 (2009). https://doi.org/10.1016/j.jbusvent.2007.11.001
Acknowledgement
Our work received funding from the Senate Department for Economics, Energy and Public Enterprises Berlin (DIGITAL+, Masterplan Industriestadt Berlin 2018–2021) and the Commission for Research and Young Scientists (FNK), HTW Berlin. We thank Holger Lütters and Katharina Erdle for insightful collaboration in the workshops conducted to identify the business models’ needs and potential digital solutions, as well as Tim Leipelt for his help with the data-analysing process.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2023 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this paper
Cite this paper
Gebhardt, L., Hölzle, K. (2023). Scaling Sustainable Entrepreneurship for Impact: Design Knowledge for the Use of Digital Technologies. In: Gerber, A., Baskerville, R. (eds) Design Science Research for a New Society: Society 5.0. DESRIST 2023. Lecture Notes in Computer Science, vol 13873. Springer, Cham. https://doi.org/10.1007/978-3-031-32808-4_11
Download citation
DOI: https://doi.org/10.1007/978-3-031-32808-4_11
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-031-32807-7
Online ISBN: 978-3-031-32808-4
eBook Packages: Computer ScienceComputer Science (R0)