Diffusing Business Model Innovations for Sustainability: The Role of Organizational CapabilitiesWilhelm Bohlender

10 December 2019

This thesis explores the strategies by which sustainable entrepreneurs seek to actively diffuse their business model innovations for sustainability to potentially enable sustainable market transformations while considering the role of organizational capabilities as theorized drivers for diffusion success. Building on a lack of a holistic understanding of what such a spreading toward sustainable impact in a market environment may entail, this thesis draws on related literature to derive a theoretical framework. The included theories revolve around the interplay between business model innovations for sustainability, as introduced in a niche environment, and organizational capabilities that may assist with specific diffusion strategies. The theoretical framework is then empirically tested by three qualitative in-depth case studies situated in the zero-waste food retailer niche as part of the food retail industry in Germany. First, it is found that the development of organizational capabilities is highly dependent on the state of the niche where sustainable entrepreneurs should initially focus on effective communication and alliance-building for success. Second, during the early state of the niche, it is found that the only reasonable option appears to be the diffusion strategy of dissemination whereas affiliation and branching seem to be useful later. Sustainable entrepreneurs should be aware of the state of their niche as to not waste their resources pursuing inadequate options. Third, the composition of the organizational capabilities differs as well as their prioritization. It is suggested that sustainable entrepreneurs should focus on those capabilities that may assist best with the chosen diffusion strategy. Finally, it is discussed how the involved diffusion strategies relate to the sustainable market impact and which limitations may be encountered.