Challenging the existing approach to business model innovation for sustainability. How might a co-emergent approach to change move us beyond the “(Business) Model” paradigm

Abstract

The Circular Economy concept has gained interest in recent times but has also received criticism for their lack of holistic and radical approaches in addressing the root of sustainability issues. Experimentation is rightly considered necessary in business model innovation for sustainability (BMIfS). However, current approaches to experimentation have limitations and biases that lead to incremental changes rather than the necessary transformative change. We contend that existing approaches to experimentation must be rooted in something other than incremental change. The focus on short-term results and existing problematic models hinders achieving greater sufficiency and regeneration. A more radical, world-making business model innovation is needed to overcome these limitations. This calls for aspirational approaches that involve an experimental, co-emergent process that embraces open-ended experimentation and co-creation with stakeholders. The concept of emergence is critical in this regard, as it requires a deliberate open-ended process to co-emerge with experiments. The concept of exaptation, borrowed from evolutionary biology, can be combined with co-emergent processes to bring about qualitative novelty and foster a more exploratory co-evolutionary approach to innovation. This radical, world-making approach to BMIfS offers a promising approach to lead to transformative change. By embracing exaptation and co-emergence, organizations can co-evolve dynamically with new possibilities and are thus better equipped to navigate the complex and ever-changing landscape of sustainability. Our research aims to develop further this co-emergent alternative for BMIfS with a context-sensitive approach based on heuristics, not rules.