The Business Model for Sustainability from a System Dynamics Perspective

Abstract: Title: System Dynamics Perspective on the Business Model for Sustainability: A Multiple Case Study in the Architecture Industry Purpose: The primary purpose of the study is to explain how the system dynamics between the Value Configuration, Partner Network, and Capabilities work in a Business Model for Sustainability of small and large architecture firms. Methodology: We followed an abductive, qualitative research strategy with a multiple case study of ten participating firms. In two steps we analysed the firms. First, we categorised them alongside two dimensions, the degree of sustainability and the firm size, resulting in four quadrants. Second, we performed an in-depth analysis, using Causal Loop Diagrams for each firm of every quadrant. Theoretical Perspectives: The Business Model for Sustainability provides the foundation of the research. It explains the logic behind a firm that achieves economic value through environmental and social measures. Empirical Foundation: We base our findings on ten architecture firms from Germany and Denmark and complement the findings with voices of experts from industry and academia. Conclusion: The findings show that the Value Configuration, Partner Network, and Capabilities are working interdependently, whereas the Value Configuration acts as a connector between the other two. There are little differences in small and large firms in terms of their underlying dynamics. In order to design sustainably, architecture firms need to integrate their partner closely, build their brand rapidly, invest in their internal competences, and learn from partners. Because of the interdependency between the elements, each measure that the firm takes acts as a catalyst for the other.