Paradoxical Tensions in Business Models for Sustainability

Abstract

Business Models for Sustainability (BMfS) are ripe with paradoxical tensions resulting from ecological, social and economic demands (Hahn et al., 2015; Carmine & De Marchi, 2023; Van der Byl & Slawinski, 2015), e.g. striving for profit and for purpose, providing for investor interests and for stakeholder interests, short-term and long-term perspectives. This research seeks to better understand the inner workings of paradoxical tensions in BMfS as well as strategies to navigate these and resulting sustainability implications by applying a paradox lens (Lewis & Smith, 2022; Hahn et al., 2015). It is work in progress, which focuses on sustainable startups. The empirical research project started in April 2024 and runs (at least) until September 2024 in collaboration with Circular Valley, a German accelerator for circular BMfS operating worldwide. The research contributes to the field of BMfS (Bocken et al., 2014; Reuter & Krauspe, 2022) respectively to the field of sustainable business model (SBM)-patterns (Lüdeke-Freund et al., 2019a; Lüdeke-Freund et al., 2019b; Lüdeke-Freund et al., 2022; Remane et al., 2017) as well as to the field of paradox theory (Smith & Lewis, 2022; Smith & Lewis, 2011; Hahn et al., 2018) and paradoxical tensions (van Bommel, 2018; Van der Byl & Slawinski, 2015; Johnson, 2011; 2020; 2021). It does so by: a) identifying types of paradoxical tensions in specific BMfS (detective), b) analyzing the adoption of a paradox lens for addressing the tensions (i.e. paradoxical thinking/sensemaking) and c) exploring paradoxical strategies that actors use to navigate the tensions (response).