Early phases of the business model innovation process for sustainability: Addressing the status quo of a Swedish biogas-producing farm cooperative

In recent years in Sweden, interest has grown concerning the possibilities of biogas production from organic waste. This interest reflects a general concern over environmental sustainability in society. However, given the lack of financial backing and the competition of other energy producers, few Swedish biogas plants have been profitable. This is particularly the situation with farm-based biogas producers. One response to this problem in the farm-based biogas industry is to engage in business model innovation that can lead to new ways of organizing business structures and activities. This qualitative study, which takes an action research approach, explores the early phases (initiation and ideation) of the business model innovation process for sustainability at a biogas-producing farm cooperative in southern Sweden. The main activities and the actors who are central to the execution of these activities are identified in six sub-phases. The paper describes two Flourishing Business Canvas workshops in which the participants were the researchers, members of the farm cooperative, external consultants, and university students. This study contributes theoretically to the literature with its detailed examination of the early phases of the business model innovation process for sustainability. It also contributes to practice with its conceptual model that demonstrates how biogas producers and farm managers can innovate and transform their current business models towards sustainability in order to improve competitiveness and long-term profitability. (C) 2017 Elsevier Ltd. All rights reserved.