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Companies face increasing pressure to enhance the environmental impact of their value proposition, value creation, delivery, and value capture mechanisms. Sustainable business model innovation remains challenging due to conflicting economic and environmental objectives and uncertainties linked to novel offerings. While organizational frames can guide actions, their role in decision-making for sustainable business model innovation remains underexplored. This study examines how companies across various industries employ organizational frames for sustainable business model innovation. Using an inductive approach, we analyzed 99 semi-structured interviews with business leaders through a two-step data collection process. Our empirical model reveals two organizational frames in sustainable business model innovation, shaping decisions toward architectural transformation or modular adaptation. The findings enhance the business model innovation and frame literature by uncovering the role of organizational frames in navigating the complexities of sustainable innovation. This research offers practical insights for managers seeking sustainable growth through sustainable business model innovation.
Antonio et al. (Fri,) studied this question.