“New food source”companies pursuing sustainable expansion : Capabilities for success

Abstract: Purpose: Due to the current climate crisis and the fact that the food industry accounts for a third of all greenhouse gas emissions, it is more important than ever that green initiatives in the food industry flourish. In recent years new food sources (NFS) have emerged as a consequence of trying to shift the world's consumption behaviours and making the food industry more sustainable. However, NFS companies are generally small companies with scarce resources and difficulties in expanding. Thus, the purpose of this report is to investigate which capabilities are necessary in order to succeed with a sustainable expansion within the New Food Sources industry, and to develop a framework that puts the capabilities in relation to different stages of sustainable expansion.  Method: In order to investigate these main areas, a multiple case study in the NFS sector has been conducted where several companies have been interviewed to enable the identification of success factors that enable a sustainable expansion. A total of 21 interviews were held with the case companies, people from the traditional source companies (e.g., traditional dairy corporations), and people with expertise within the field of NFS were interviewed. The interviews were later on analyzed through a thematic method.  Findings: The study resulted in identifying five stages of sustainability work that acts as drivers for sustainable expansion. Further, eight categories of capabilities were identified in order to reach the driver for sustainable expansion. The capabilities were then ranked in a gradual manner, from fundamental to gaining competitive advantage. Lastly, the five stages of sustainable expansion were linked to the capabilities, providing a roadmap for what capabilities that are necessary in each stage in order to proceed with a sustainable expansion.  Theoretical and managerial contributions: This study provides a sustainable perspective on expansions within NFS companies, meaning that the focus is not only economic growth but also how the company contributes to the society as a whole and how it affects the world. Furthermore, these insights have resulted in a roadmap that can be applied by managers in NFS- producing companies to get a better understanding of what capabilities that are essential in each stage of sustainability work. This will help managers in NFS companies to navigate through expansions and will help them understand what to focus on.