| dc.description.abstract | Title: Sustainable Business Model Innovation Within The Automotive Manufacturing
Industry – A Comparative Case Study of Volvo Cars and Lynk & Co
Authors: Isak Gunnarsson & Simon Johansson
Tutors: Hani Elzoumor & Rick Middle
Background: Traditional business models centred on a neoclassical economic focus are being
called into question, as demands for sustainable practises that incorporate social
and environmental values escalate. This call for sustainability is pushing
organisations towards sustainable innovation efforts, aimed at transforming
components of their business models and the network in which they operate. The
automotive manufacturing industry provides a perfect exemplification of this, as
its environmental impact has as given rise to sterner sustainability requirements,
technological innovations, and new market entrants. However, the way in which
automotive manufacturers manages to create sustainable business models,
sustainable practises throughout their value chain and its relationship with
innovation remains vague.
Purpose: The purpose of this paper is to present a comparative case study that explores to
what extent automotive manufacturers are innovating towards a more sustainable
business model.
Methodology: A qualitative comparative case study was conducted with two Swedish automotive
manufacturers; Volvo Cars and Lynk & Co. Wherein 6 semi-structured interviews
were performed, and secondary data gathered. The combined data was utilised
within a thematic analysis to identify the themes correlating to sustainable business
model innovation for each respective case.
Results: Automotive manufacturers have either transformed their pre-existing business
models through organisational, product and process innovations that incorporate
sustainability, or have integrated such innovations in the creation of new business
models. Value propositions now include innovative offerings within mobility, car
sharing, and electric vehicles, creating direct and indirect social and environmental
values. Incremental innovations within the value creation and delivery reduce the
environmental effects and increase employee well-being. The value capture
measures all sustainability efforts to underlie future decision making. Automotive
manufacturer’s role within and control over their value chain and network
determine the amount of sustainable value they can foster.
Implications: Sustainable values can be included in all components of the business models,
through various organisational, product and process innovations. However, social
values are dubious due to varied application and unspecific delimitations.
Circular economy and retained car ownership may have massive ramifications on
the sustainable evolution of business models within the automotive industry.
An organisation that seeks to foster additional sustainability within its value chain
and network will be restricted by its role and control. Wherein a strong actor can
pull others towards sustainability, while a weaker actor is forced to push through
other means, such as demand setting and direct partnerships. | en_US |
