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and analyse the orientation of the practices of sustainability innovation and the
development of sustainable business models. The research questions are: (i) “How
do Swedish agri-companies apply sustainable innovation practices?”, (ii) “Which
sustainable business models do Swedish agri-companies use?”, and (iii) “How can
these innovation practices and sustainable business models be understood?”
The remaining of this chapter is organized as follows: A conceptual framework
will be articulated, and, subsequently, the methodological research approach will be
presented. Later on, eight Swedish cases including companies and cooperatives will
be illustrated and analysed. Once these cases are discussed, some aspects of theory
development will be developed. Finally, based on the most salient learnings from
the research, guidelines for agri-entrepreneurs will be provided as well as suggestions for future research.
5.2 Conceptual Framework
The theory section is organized as follows: sustainability in the agri-sector,
sustainability- oriented innovation, sustainable business models and eight types of
sustainable business models.
5.2.1 Sustainability in the Agri-sector
The field of sustainability is a relatively new discipline that has developed over the
last 15–20 years (Coad and Pritchard 2017). Nidumolu et al. (2009) showed a
decade ago that sustainability became innovation’s new frontier. They stated that
sustainability is a fundamental layer of organizational and technological innovations that yield both bottom-line and top-line returns. This has only escalated further
during the last decade. The majority of businesses are now well aware of the importance of sustainability, which represents a key driver for innovation and a challenge
in many aspects at the same time. The challenges include not only obvious aspects
such as products, processes, technologies and business models but also more
abstract dimensions like cognitive, psychological and organizational challenges
(Sharma 2017).
Sustainability in the agri-sector is of vital importance since this large sector uses
over 37% of the total land area of the world and 21% of the land area of the European
Union. If forestry is included, the area used reaches 68% of the world and 46% of
the European Union (FAO 2019). Further, the agri-sector represents a significant
component of the EU economy, accounting for about 7% of its total exports. The
agri-sector also accounts for 4.3% of the total labour market in the European Union
(Eurostat 2018).
Many businesses in the agri-sector are small companies with primary production
as the dominating aspect of their business. These companies need new ideas and
P.-O. Ulvenblad
and analyse the orientation of the practices of sustainability innovation and the
development of sustainable business models. The research questions are: (i) “How
do Swedish agri-companies apply sustainable innovation practices?”, (ii) “Which
sustainable business models do Swedish agri-companies use?”, and (iii) “How can
these innovation practices and sustainable business models be understood?”
The remaining of this chapter is organized as follows: A conceptual framework
will be articulated, and, subsequently, the methodological research approach will be
presented. Later on, eight Swedish cases including companies and cooperatives will
be illustrated and analysed. Once these cases are discussed, some aspects of theory
development will be developed. Finally, based on the most salient learnings from
the research, guidelines for agri-entrepreneurs will be provided as well as suggestions for future research.
5.2 Conceptual Framework
The theory section is organized as follows: sustainability in the agri-sector,
sustainability- oriented innovation, sustainable business models and eight types of
sustainable business models.
5.2.1 Sustainability in the Agri-sector
The field of sustainability is a relatively new discipline that has developed over the
last 15–20 years (Coad and Pritchard 2017). Nidumolu et al. (2009) showed a
decade ago that sustainability became innovation’s new frontier. They stated that
sustainability is a fundamental layer of organizational and technological innovations that yield both bottom-line and top-line returns. This has only escalated further
during the last decade. The majority of businesses are now well aware of the importance of sustainability, which represents a key driver for innovation and a challenge
in many aspects at the same time. The challenges include not only obvious aspects
such as products, processes, technologies and business models but also more
abstract dimensions like cognitive, psychological and organizational challenges
(Sharma 2017).
Sustainability in the agri-sector is of vital importance since this large sector uses
over 37% of the total land area of the world and 21% of the land area of the European
Union. If forestry is included, the area used reaches 68% of the world and 46% of
the European Union (FAO 2019). Further, the agri-sector represents a significant
component of the EU economy, accounting for about 7% of its total exports. The
agri-sector also accounts for 4.3% of the total labour market in the European Union
(Eurostat 2018).
Many businesses in the agri-sector are small companies with primary production
as the dominating aspect of their business. These companies need new ideas and
P.-O. Ulvenblad