Sustainable Value Creation: A Case Study Approach To Mutualistic-local Ownership Business Models

Research Background

The prime determination of this paper will be to focus on sustainable value creation as it provides economic growth, social growth and also considers the environmental benefits. As the name suggests the sustainable value creation is defined as the process which is followed by the industries to maintain an alteration in a stable manner. The investments, manipulation of all the available resources, technological development are the essential aspects of sustainable value creation. The needs and the aspirations of the stakeholders associated with the enterprises are also considered as an important factor in a sustainable enterprise. The ability of the future generations is not compromised in sustainable enterprises (Upward and Jones 2016). It is a much secured practice compared to the other business models. However, there are different issues and complexities associated with the role of the stakeholders in a sustainable environment which is the main concern of this research paper.

The growth of the sustainable business model was initiated right after the fall of communism, the results produced by Capitalism was not entirely positive as there was a huge difference between the rich and the poor, at the same time the environmental degradation started rapidly. The imbalance in society and the environmental aspect is the prime reason behind the rise of global sustainability. The concept of the sustainable enterprise was not clear in its initial stages among the corporations who have already implemented it (Geissdoerfer et al. 2017). There will be different complexities associated with the implementation of the sustainable environment. The values for the shareholders will be increasing every day in the sustainable world. Strategic logics are needed to be designed and implemented in those business organizations.

The increasing value of the shareholders of the business organization during the implementation of the sustainable value such as the skills and capabilities of the employees working on the business organizations and the floor managers of each department of the business corporation who works on the growth path and legitimacy of the rules and regulations of the corporations are the prime source of concern for the sustainable enterprises.

The chief objective of this research document is to evaluate the effectiveness and usability of the sustainable value creation business model (Louche and Idowu, 2017). There are different aspects considering the value of the shareholder in a sustainable business environment which is proposed in this paper so that the existing challenges related to the application of sustainable practices can be effectively minimized.

• What are the present and future aspects of sustainable value creation?
• What are the issue and challenges faced by sustainable business organizations?
• Who are the global drivers of sustainability?

Research Problems

As discussed by Laszlo and Zhexembayeva (2017), embedded sustainability is a very important aspect of a sustainable business. The authors of this resource focused on the future of sustainability and also the value creation. The writers stated about the increasing demand of the shareholder value in his resource. The resource focused on both stakeholders of the business as well as the shareholders of the business as they are solely responsible for the growth and development of the sustainable business environment. The author of this resource also stated about the complexities associated with the application of sustainable value creation such as the tradeoffs and the added costs. The authors of this resource also help in understanding the social and the environmental aspect of the sustainable business and also recommended plans for the effective utilization of the available resources. The resource helps in understanding the increasing demand of the shareholders of a sustainable business, the impact of the increasing value can be realized with the help of this resource. The other complexities associated with a sustainable business such as the additional costs involved are also stated in this resource

As discussed by Fussler, Cramer and Van der Vegt (2017), there are different competencies in a sustainable enterprise which are needed to be focused in order to avoid the business losses and the role of the strategists during the adverse business conditions is also described in this resource which be helpful to the corporations who are planning to implement sustainable value creation on their working environment. The effectiveness of the change management plan is also discussed vividly in this resource which directs the readers of this document to understand the importance of the impact of the internal stakeholders in sustainable value creation.

According to Dyllick and Muff (2016), the clarification of the meaning of sustainable value creation is one of the main risk mitigation steps of the sustainable enterprise. The authors of this resource proposed a typology which is evaluated in a detailed way in the resource. The resource can be effectively used to know the exact role and responsibilities of the stakeholders of sustainable enterprise. This resource is helpful in understanding the risk mitigation strategies of the sustainable enterprises. The resource can direct the readers about the impact of the risk mitigation strategies as the business conditions keeps on changing with time. The resource directs the readers of this document about the difference between the enterprises who have not yet implemented a sustainable business environment with an enterprise which have successfully implemented a sustainable environment. The impact of sustainable value creation is well understood with the help of this resource. The other exciting feature of this resource is the typology which is proposed, it ranges from stakeholder value management to the management of the triple bottom line. The disadvantage of this paper is that it do not focus on any specific business organization while describing the typology, the entire paper is written in generalized format.

Research Objectives

                                                          Table 1: Business sustainability typology

                                                                      (Created by the author)

There are plenty of issues which are not discussed in the literature review unit of the paper such as the challenges faced by the employees of the business organization when they shifted to the sustainable business environment (Lampikoski et al. 2014). The mitigation strategies of sustainable value creation are also not included in the literature review which could have guided the readers about the applied enactment of sustainable value creation. The other gap in literature is that the limitations of the proposed typology are not mentioned in the paper as the specifications may change according to different business conditions.

The efficiency of this research proposal will be maintained with the help of two types of research methodology techniques such as the qualitative type and the quantitative type. Both the two types of research methodologies will be selected so that the gap in the findings can be minimized to a significant extent (Kagermann 2015). The two research methodologies will be conducted in a professional approach; the interview will be conducted on two individuals of different organization which have successfully implemented by the sustainable value creation. The group assignment will be including a group of ten employees of various organizations which have already implemented this business model as well as the organizations which are planning to implement this business model in their working environment.

The research methodology techniques will be implemented in such a way that each type has its own uniqueness considering the point of view of the social aspects as well as the environmental aspects (Galpin, Whitttington and Bell 2015). The two experienced individuals will be sharing their knowledge about the sustainability value changes as well as the working principals of the business corporation for which they work for. The phenomenon of sustainability will be very much clear during the evaluation of the findings for the research methodology.

The data collection processes that will be used in this research paper is both primary data collection method with the help of questionnaires and secondary data collection method from the peer reviewed journals and articles (Visser and Kymal 2015). The two kinds of data collection techniques chosen for this research proposal will help in understanding the importance of this business model in a descriptive way.

Research Questions

The collected data from the two types such as primary type and the secondary type data collection shall be helpful in understanding the role of sustainable value creation in the mutualistic local ownership business model (Reverte 2015). The collected data will be helpful in realizing that there are plenty of complexities associated with the successful implementation of this business model. The data collected from the participants will help in understanding the value creation process in a better way.

The ethical consideration of this research paper will be revolving around both the primary and secondary type of data collection techniques. Strict guidelines will be followed during the distribution of the questionnaires (Adams et al. 2016). No participants will be forced to take part in the group discussion or the interview. The data collection method chosen will be strictly based for academic purpose only. Violation of the norms provided to the participants will be subjected to legal proceedings. The secondary research will be conducted on the peer reviewed articles was done in such a way so that plagiarism is avoided to a significant extent.

                                                        Table 2: Created by the writer

Conclusion:

The above paper helps in concluding the opportunity to create a sustainable value shareholder will drive our society to a sustainable environment which will be more developed in a balanced way considering social development, economic development as well as maintaining the environmental aspects. The global challenges associated with sustainability can be mitigated with the application of effective strategic planning.

Reference:

Adams, R., Jeanrenaud, S., Bessant, J., Denyer, D. and Overy, P., 2016. Sustainability?oriented innovation: a systematic review. International Journal of Management Reviews, 18(2), pp.180-205.

Dyllick, T. and Muff, K., 2016. Clarifying the meaning of sustainable business: Introducing a typology from business-as-usual to true business sustainability. Organization & Environment, 29(2), pp.156-174..

Fussler, C., Cramer, A. and Van der Vegt, S., 2017. Raising the bar: creating value with the UN Global Compact. Routledge.

Galpin, T., Whitttington, J.L. and Bell, G., 2015. Is your sustainability strategy sustainable? Creating a culture of sustainability. Corporate Governance, 15(1), pp.1-17.

Geissdoerfer, M., Savaget, P., Bocken, N.M. and Hultink, E.J., 2017. The Circular Economy–A new sustainability paradigm?. Journal of Cleaner Production, 143, pp.757-768.

Kagermann, H., 2015. Change through digitization—Value creation in the age of Industry 4.0. In Management of permanent change (pp. 23-45). Springer Gabler, Wiesbaden.

Lampikoski, T., Westerlund, M., Rajala, R. and Möller, K., 2014. Green innovation games: Value-creation strategies for corporate sustainability. California Management Review, 57(1), pp.88-116.

Laszlo, C. and Zhexembayeva, N., 2017. Embedded sustainability. In Embedded Sustainability (pp. 116-140). Routledge

Louche, C. and Idowu, S., 2017. Innovative CSR: From risk management to value creation. Routledge.

Reverte, C., 2015. The new Spanish corporate social responsibility strategy 2014–2020: a crucial step forward with new challenges ahead. Journal of Cleaner Production, 91, pp.327-336.

Upward, A. and Jones, P., 2016. An ontology for strongly sustainable business models: Defining an enterprise framework compatible with natural and social science. Organization & Environment, 29(1), pp.97-123.

Visser, W. and Kymal, C., 2015. Integrated value creation (IVC): beyond corporate social responsibility (CSR) and creating shared value (CSV). Journal of International Business Ethics, 8(1), pp.29-43.

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