ANALYSING BARRIERS TO SUSTAINABLE BUSINESS MODEL INNOVATIONS: INNOVATION SYSTEMS APPROACH

Business model innovations are recognised as a key to the creation of sustainable business, but their adoption by firms has been slow. Organisations can only be sustainable when the whole societal system is sustainable. Both structural and cultural changes are required to facilitate firm-and system-level sustainability. The central idea of this paper is to examine how societal transition towards sustainable business models (SBMs) can be achieved. Through a qualitative Delphi study, we assess and categorise the key structural and cultural barriers to sustainable business model innovation (SBMI). By applying the innovation system approach, we explain how to overcome existing barriers by strengthening the functions of the innovation system. We analyse how these barriers can be overcome through the activities of governments, firms, and consumers, and discuss the wider implications of our research for practitioners, policy-makers, and researchers.