Value flows and transaction costs in the potential market for meadow biomass : the alternative use of meadow biomass

Abstract: There is an urgency for agricultural firms to increase profitability in order to keep larger areas of meadows under maintenance. The alternative use of meadow biomass is a business opportunity for agricultural firms to increase revenue streams. However, there is a knowledge gap regarding the potential value flows created by firms, as well as the obstacles impeding firms’ development in the market for meadow biomass. The purpose of this thesis is to create an understanding of how values might be created by agricultural firms through the market for alternative use of meadow biomass. The purpose also includes to create an understanding of the possible obstacles impeding firms’ ability to develop in the market. To achieve the purpose of this thesis the Sustainable Business Model archetype “Create value from waste” and transaction cost theory will act as the theoretical lenses. Based on the aim and research questions, the study was performed with qualitative research methods. With a multiple case study design and semi-structured interviews, four agricultural firms participated in the study. The empirical findings were categorised through open coding and analysed through a within- and cross-case analysis. The results showed how incorporation of economic, environmental, and social aspects in the Sustainable Business model archetype can create value flows in the potential market for meadow biomass. Moreover, the result also displays possible transaction costs impeding firms’ development in the market.