How can the Sustainable Value Exchange Matrix (SVEM) contribute to sustainable business models innovation? A multiple case study

Abstract

INTRODUCTION: Consumers' search for sustainable products and services is already a reality. Therefore, sustainability in business models becomes a necessity in the midst of competitiveness between companies, since the adoption of sustainability strategies in business models can provide a concrete and measurable competitive advantage (BOCKEN, N. M. P. et al., 2014) and it is also essential to achieve the Sustainable Development Goals (SDGs) proposed by the United Nations (ROSATI; FARIA, 2019). However, adding value to customers by adopting socio-environmental activities and creating economic value for themselves is still a major challenge for business models. (SCHALTEGGER; FREUND; HANSEN, 2012). For this, the literature suggests several frameworks and tools that help make business models sustainable. Among them, the Sustainable Exchange Value Matrix (SVEM), proposed by Morioka, Bolis, & Carvalho, 2018, emerges as a framework that allows directed reflection to create sustainable business models. Following the authors' invitation, the present work aims to explore the theoretical basis for business model innovation tool frameworks; analyze business models using SVEM; Identify the limitations of the SVEM application; propose good practices for future applications of the framework. MATERIALS AND METHODS: This study follows the recommendations of Eisenhardt (1989) for a multiple case study. First, a literature review was carried out on essential topics, such as the business model, sustainable business model and frameworks that support the integration of sustainability. After that, the selection of cases was made. For this, the application took place in workshops, filling the tool with post-it's and following the steps suggested by the authors. Step 1, the value proposition, aims to provoke a reflection on the existence of the business, at this point, there is a reflection on the sustainable challenge, purpose, offer and competitive advantage of the business model. Step 2, value creation and delivery system, aims to create a reflection on the practices, capabilities and resources needed to achieve the proposed business model. Finally, step 3 is aimed at thinking about direct and cascading value for each stakeholder. RESULTS: As a result, in case A, SVEM enabled a holistic view of business models and economic viability), however, for the participants, there were difficulties in some concepts to create the value proposition. Thus, step 2 proved to be more effective than the other steps. In case B, the SVEM enabled the discovery of new Stakeholders and weaknesses and strengths of the business model based on this. Step 2 showed little effectiveness due to the maturity of the business model while step 1 had a subtle contribution to the value proposition of the business models. In case 3 SVEM was positively evaluated at the end of its application, with a greater benefit being observed in step 3. Due to the purpose of the application (explore new ideas and strategies to make the business model more sustainable), the concepts of value proposition and the creation system were already consolidated by the company, so this step was more just to fill in than to actually think and brainstorm. However, in step 3, referring to value capture, combined with the waterfall value concept, provided a targeted brainstorming process, resulting in three possible opportunities for sustainable business model innovation. Based on the results, this study identifies the effectiveness of SVEM based on the maturity of the business and proposes suggestions for the next applications: (1) Explain the concept linked to sustainability before this application (2) Identify the maturity level of the business and focus on the most effective step; (3) Provoke a reflection in the value proposition on the market challenges that the business model encounters; (3) Provoke a reflection on the competing business. FINAL CONSIDERATIONS: The present work fulfills its objective by creating a theoretical basis for business model innovation tool frameworks; analyze business models using SVEM and identify the limitations of the application of SVEM, performing a multiple study based on three cases. As a practical result, this research explores the contributions and limitations of SVEM. As demonstrated, SVEM has a positive impact on driving business models towards sustainability and application can be more beneficial for understanding the maturity of the business model. As limitations, the rapid growth of the literature and the large number of publications, in addition to the sample used by the study, can be highlighted. Finally, future studies are invited to carry out the application of the SVEM considering the suggestions proposed by this study and to explore the application of other frameworks.