Advancing the understanding of sustainable business models through organizational learning

Abstract Increased regulations and shifting consumer priorities are driving businesses to become more sustainable and to develop more sustainable business models. To achieve this, businesses must have a solid understanding of sustainability. Organizational learning (OL) is a key capability that helps firms understand and adapt to new phenomena such as sustainability. We explore the nexus between OL and sustainability by examining how organizations learn about the latter. We employ an embedded case study approach, conducting 49 interviews and collecting over 1,000 pages of archival data. Our findings reveal concrete learning mechanisms that enhance understanding of sustainability and sustainable business models, including knowledge creation/acquisition, retention, and transfer, in business practices. Our study provides scholars and business practitioners with a detailed framework to guide the operationalization of OL to gain sustainability knowledge.