Organizational structure significantly impacts sustainable business model innovation.
The way an organization is designed, from its strategic goals to its operational processes, directly influences its ability to develop and implement innovative business models focused on sustainability.
Long Range Planning · 2019
Key Findings
- 01Organization design plays a critical role in enabling or hindering the dynamic capabilities necessary for sustainable business model innovation.
- 02Barriers and drivers to sustainable business model innovation exist at multiple organizational levels: institutional, strategic, and operational.
- 03Interconnectedness of these barriers and drivers creates a complex system that affects the success of sustainable business model innovation.
Application
Design takeaway
To foster sustainable business model innovation, organizations must intentionally design their structures, processes, and strategies to cultivate the necessary dynamic capabilities.
How to apply
When designing new business models or organizational structures, explicitly map out how the design choices will enable or hinder the development of capabilities needed for sustainability.
Project actions
- 01Consider how your project's organizational context might influence its success.
- 02Analyze the different levels (e.g., strategy, operations) where your design might face challenges or find support.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Provides a multi-level framework for understanding SBMI.
- +Addresses a gap in the literature regarding organization design's role in SBMI.
Limitations
The findings are based on a qualitative study, so they might not apply to every single company.
Reliability & validity
The qualitative methodology, while rich in detail, may present challenges in establishing high inter-rater reliability for coding. Validity is supported by the in-depth exploration of organizational dynamics.
Think critically
To what extent can a company overcome inherent organizational barriers to sustainable business model innovation through strong leadership and external partnerships?
Design Principles
"Organizational design must actively support the development of dynamic capabilities for sustainable innovation."
Understanding these organizational influences is crucial for leaders and design teams aiming to embed sustainability into their core business strategies. It highlights that successful sustainable innovation isn't just about new ideas, but also about creating an organizational environment that fosters and supports them.
What This Means for Your Design
How a company is set up inside affects its ability to create new business ideas that are good for the planet and the company's future.
How to use in your project
- 1.Reference this study when discussing how organizational factors (like structure or strategy) influenced the success or failure of your design proposal or prototype.
Add to My Project
Quick Cite
(2019). Barriers and drivers to sustainable business model innovation: Organization design and dynamic capabilities. Long Range Planning. https://doi.org/10.1016/j.lrp.2019.101950 Retrieved from https://designdex.org/study/5b8c79a0-291e-4fd9-9730-ecab2e5db9fc/organizational-structure-significantly-impacts-sustainable-business-model-innovation
Paragraph starter
The organizational design of a company, encompassing its institutional, strategic, and operational levels, significantly influences its capacity for sustainable business model innovation by shaping its dynamic capabilities. This research highlights that successful implementation requires a deliberate alignment of organizational architecture with sustainability objectives.
Source
Long Range Planning
Barriers and drivers to sustainable business model innovation: Organization design and dynamic capabilities
journal · 2019
View sourceQuestions about this research
- What does the research say about organizational structure significantly impacts sustainable business model innovation?
- To foster sustainable business model innovation, organizations must intentionally design their structures, processes, and strategies to cultivate the necessary dynamic capabilities. Evidence: Long Range Planning (2019).
- Why does "Organizational structure significantly impacts sustainable business model innovation." matter for design?
- Understanding these organizational influences is crucial for leaders and design teams aiming to embed sustainability into their core business strategies. It highlights that successful sustainable innovation isn't just about new ideas, but also about creating an organizational environment that fosters and supports them.
- How can designers apply this research?
- To foster sustainable business model innovation, organizations must intentionally design their structures, processes, and strategies to cultivate the necessary dynamic capabilities.
- What were the main findings?
- Organization design plays a critical role in enabling or hindering the dynamic capabilities necessary for sustainable business model innovation.. Barriers and drivers to sustainable business model innovation exist at multiple organizational levels: institutional, strategic, and operational.. Interconnectedness of these barriers and drivers creates a complex system that affects the success of sustainable business model innovation.
- What research method was used?
- Qualitative research approach.
- How strong is the evidence?
- Evidence strength is rated Strong effect, based on a 2019 journal from Long Range Planning.
- What should I do differently in my next project?
- When designing new business models or organizational structures, explicitly map out how the design choices will enable or hinder the development of capabilities needed for sustainability.
- What are the limitations?
- The qualitative nature of the study may limit generalizability to all types of organizations or industries.
- Is there evidence that sustainable business affects design outcomes?
- The research found that the internal structure and processes of large companies can either help or prevent them from developing new business models that are good for both the company and the environment. These challenges and opportunities exist at different levels within the organization, from high-level strategy to da Source: Long Range Planning (2019).
- Where does this business model research apply?
- Multinational corporations seeking to innovate their business models for sustainability. It sits within innovation & design research on designdex.org.
Related research topics
sustainable business design research · evidence on sustainable business · does sustainable business improve design outcomes · business model studies for designers · sustainable business and business model findings · innovation & design research evidence