4.3 Article

Economies of Scale Versus Small Is Beautiful: A Business Model Approach Based on Architecture, Principles and Components in the Beer Industry

Journal

ORGANIZATION & ENVIRONMENT
Volume 29, Issue 1, Pages 36-52

Publisher

SAGE PUBLICATIONS INC
DOI: 10.1177/1086026615590882

Keywords

brewing; beer; microbreweries; sustainability; localisation; scale; multinational brewers; life cycle analysis; business models

Funding

  1. Economic and Social Research Council [not_applicable] Funding Source: researchfish
  2. ESRC [not_applicable] Funding Source: UKRI

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This article defines business models for sustainability as contested and contextual, and provides a novel framework in terms of the architecture of the business, its principles and components for the analysis of such models. With this framework, a preliminary comparison using the engaged scholarship methodology is made between microbreweries and large multinational brewers. It is concluded that defining and determining comparative sustainability performance based on different business models results in ambiguities and contradictions that are not readily resolved, but a key determinant in the broad definition of business sustainability in the brewing sector is the degree of localism that the business model exhibits.

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