This article aims to uncover the processes of developing sustainable business models in innovation ecosystems. Innovation ecosystems with sustainability goals often consist of cross-sector partners and need to manage three tensions: the tension of value creation versus value capture, the tension of mutual value versus individual value, and the tension of gaining value versus losing value. The fact that these tensions affect all actors differently makes the process of developing a sustainable business model challenging. Based on a study of four sustainably innovative cross-sector collaborations, we propose that innovation ecosystems that develop a sustainable business model engage in a process of valuing value in which they search for a result that satisfies all actors. We find two different patterns of valuing value: collective orchestration and continuous search. We describe these patterns and the conditions that give rise to them. The identification of the two patterns opens up a research agenda that can shed further light on the conditions that need to be in place in order for an innovation ecosystem to develop effective sustainable business models. For practice, our findings show how cross-sector actors in innovation ecosystems may collaborate when developing a business model around emerging sustainability-oriented innovations.
The role of conveners in initiating and/or leading the formation of cross-sector partnerships (CSPs) has received ample attention in the literature on partnership formation. However, what happens when two organizations jointly take up this role? This question is important in many complex partnerships, such as those on sustainable supply chains. We present a qualitative, longitudinal case study explaining how two organizations together convened the formation of a complex cross-sector partnership, and emphasize the changing roles of each organization individually and their shared relationship over time. We analyze how this process of ‘collective convening’ unfolded, how it impacted the collaboration, and how the conveners coped with the tensions brought about by the constellation of collective convening. These tensions manifested at the interorganizational level in the relationship between the two conveners, but were also fed by each convener’s organizational level dynamics, as these dynamics influenced the collective convening process. A paradox perspective is appropriate to analyze the tensions emerging from the collective convening process and the ensuing organizational response strategies. We contribute to the literature on CSPs by introducing and elaborating on the notion of ‘collective convening’, which reflects a reality in complex CSP formation but has remained largely unstudied in the existing literature on convening. Further, we show how conveners bring their organizational level dynamics to the interorganizational level and how these dynamics influence the CSP formation process in positive and negative ways.
The growing sophistication, frequency and severity of cyberattacks targeting all sectors highlight their inevitability and the impossibility of completely protecting the integrity of critical computer systems. In this context, cyber-resilience offers an attractive alternative to the existing cybersecurity paradigm. We define cyber-resilience as the capacity to withstand, recover from and adapt to the external shocks caused by cyber-risks. This article seeks to provide a broader organizational understanding of cyber-resilience and the tensions associated with its implementation. We apply Weick's (1995) sensemaking framework to examine four foundational tensions of cyber-resilience: a definitional tension, an environmental tension, an internal tension, and a regulatory tension. We then document how these tensions are embedded in cyber-resilience practices at the preparatory, response and adaptive stages. We rely on qualitative data from a sample of 58 cybersecurity professionals to uncover these tensions and how they reverberate across cyber-resilience practices.
The denim industry faces many complex sustainability challenges and has been especially criticized for its polluting and hazardous production practices. Reducing resource use of water, chemicals and energy and changing denim production practices calls for collaboration between various stakeholders, including competing denim brands. There is great benefit in combining denim brands’ resources and knowledge so that commonly defined standards and benchmarks are developed and realized on a scale that matters. Collaboration however, and especially between competitors, is highly complex and prone to fail. This project brings leading denim brands together to collectively take initial steps towards improving the ecological sustainability impact of denim production, particularly by establishing measurements, benchmarks and standards for resource use (e.g. chemicals, water, energy) and creating best practices for effective collaboration. The central research question of our project is: How do denim brands effectively collaborate together to create common, industry standards on resource use and benchmarks for improved ecological sustainability in denim production? To answer this question, we will use a mixed-method, action research approach. The project’s research setting is the Amsterdam Metropolitan Area (MRA), which has a strong denim cluster and is home to many international denim brands and start-ups.
Collaborative networks for sustainability are emerging rapidly to address urgent societal challenges. By bringing together organizations with different knowledge bases, resources and capabilities, collaborative networks enhance information exchange, knowledge sharing and learning opportunities to address these complex problems that cannot be solved by organizations individually. Nowhere is this more apparent than in the apparel sector, where examples of collaborative networks for sustainability are plenty, for example Sustainable Apparel Coalition, Zero Discharge Hazardous Chemicals, and the Fair Wear Foundation. Companies like C&A and H&M but also smaller players join these networks to take their social responsibility. Collaborative networks are unlike traditional forms of organizations; they are loosely structured collectives of different, often competing organizations, with dynamic membership and usually lack legal status. However, they do not emerge or organize on their own; they need network orchestrators who manage the network in terms of activities and participants. But network orchestrators face many challenges. They have to balance the interests of diverse companies and deal with tensions that often arise between them, like sharing their innovative knowledge. Orchestrators also have to “sell” the value of the network to potential new participants, who make decisions about which networks to join based on the benefits they expect to get from participating. Network orchestrators often do not know the best way to maintain engagement, commitment and enthusiasm or how to ensure knowledge and resource sharing, especially when competitors are involved. Furthermore, collaborative networks receive funding from grants or subsidies, creating financial uncertainty about its continuity. Raising financing from the private sector is difficult and network orchestrators compete more and more for resources. When networks dissolve or dysfunction (due to a lack of value creation and capture for participants, a lack of financing or a non-functioning business model), the collective value that has been created and accrued over time may be lost. This is problematic given that industrial transformations towards sustainability take many years and durable organizational forms are required to ensure ongoing support for this change. Network orchestration is a new profession. There are no guidelines, handbooks or good practices for how to perform this role, nor is there professional education or a professional association that represents network orchestrators. This is urgently needed as network orchestrators struggle with their role in governing networks so that they create and capture value for participants and ultimately ensure better network performance and survival. This project aims to foster the professionalization of the network orchestrator role by: (a) generating knowledge, developing and testing collaborative network governance models, facilitation tools and collaborative business modeling tools to enable network orchestrators to improve the performance of collaborative networks in terms of collective value creation (network level) and private value capture (network participant level) (b) organizing platform activities for network orchestrators to exchange ideas, best practices and learn from each other, thereby facilitating the formation of a professional identity, standards and community of network orchestrators.
Social enterprises (SEs) can play an important role in addressing societal problems. SEs are businesses whose primary objective is to generate social impact (e.g. well-being, social wealth and cohesion, and ecology) through a market-based model. SEs achieve this through a hybrid business model, trading-off financial and social value creation objectives. SEs typically face higher costs, for example because of ethical sourcing principles and/or production processes centering around the needs of workers who are vulnerable or hard-to-employ. This results in SEs’ struggling to scale-up due to their relatively costly operating model. Traditional management techniques are not always appropriate, as they do not take into account the tensions between financial and social value creation objectives of SEs. Our project examines how continuous improvement, and in particular the philosophy and tools of Lean can be harnessed to improve SEs competitiveness. Lean organizations share many values with SEs, such as respect for people, suggesting a good fit between the values and principles of Lean and those of SEs. The consortium for this project is a cooperation between the research groups Improving Business and New Marketing of the Center of Expertise Well-Being Economy and New Entrepreneurship and the minor Continuous Improvement of AVANS Hogeschool, and the SME companies Elliz in Company and Ons Label. The project consists of two phases, an exploratory phase during which the question “in what ways can the philosophy and tools of Lean be used by Social Enterprises?” will be addressed. Interviews and focus groups will be conducted with multiple SEs (not only partners). Participant observation will be conducted by the students of the minor Continuous Improvement at the partner SEs. During the second phase, the implementation of the identified principles and tools will be operationalized through a roadmap. Action research will be conducted in cooperation with the partner SEs.
