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approaches to become more profitable at the same time as they are exposed to both
internal and external pressure to become more sustainable. Internal pressure to build
a business on sustainable values may arise from the board, management, shareholders, family and employees. External pressure can be derived from competitors, customers, special interest groups and governmental regulation-legislation (Tell
et al. 2016).
There are also actors and forces working in the opposite direction, contributing
to an increasing “unsustainability” of the agri-food sector. Bernard et al. (2014)
have identified actors whose impact can lead to decision-making in the agricompany which leads to unsustainability: (i) loss-making investors and credit providers who abandon farms due to low economic returns; (ii) angry neighbours and
environmental activists engaging in silent or active conflict, because they are negatively affected by farming activities; (iii) dissatisfied customers at the endpoint of
value chains who do not trust the quality of products or disapprove of production
conditions; and (iv) overacting regulators who over-regulate farm activities. Even
though each actor perceives their actions as sustainable, they can influence agricompanies’ management path towards unsustainability. Further, Fritz and
Matopoulos (2008) have identified forces that can lead to unsustainability, such as
(i) globalization of the agri-food industry resulting in increased imports and exports;
(ii) consumer changes in consumption, resulting in a larger demand of food products, often out of season, that are transported long distances; (iii) the concentration
of the sector, which has resulted in an ever-increased power imbalance in favour of
retailers; and, finally (iv) major changes in delivery patterns with most goods now
routed through supermarket regional distribution centres using larger heavy goods
vehicles.
Despite the pressure to raise efficiency and lower costs from strong actors in the
food value chain, many agri-food companies strive to conduct a sustainable business from social and ecological perspectives as well as from an economic one.
Recent research (Cagliano et al. 2016) has identified three main integrated challenges for sustainability in the agri-food sector: first, the interdependency between
food production and environmental, human and physical resources; second, the
important role – sustainability and health aspects – of food for humans; and, third,
the special characteristics of the food supply chain, with companies of different size
and different sustainability focus.
The mindset and awareness of the owners and/or the managers of agri- companies
can be an important factor for the development of sustainability-oriented innovation
(Cagliano et al. 2016). Walker has identified this as a values-based driver (Walker
2012, 2014). Further, Barth et al. (2017) have found that many agri-food producers
have a strong “value intention” to conduct their agri-business in a sustainable way.
Explanations for this could be that many agri-companies are family businesses,
rooted in their communities and strongly connected to the land of the ancestors. The
owners/managers have experienced the effect of their actions on their land and production. They have accepted a responsibility for coming generations (Ulvenblad
et al. 2016; Barth et al. 2017).
5 Development of Sustainable Business Models for Innovation in the Swedish…
approaches to become more profitable at the same time as they are exposed to both
internal and external pressure to become more sustainable. Internal pressure to build
a business on sustainable values may arise from the board, management, shareholders, family and employees. External pressure can be derived from competitors, customers, special interest groups and governmental regulation-legislation (Tell
et al. 2016).
There are also actors and forces working in the opposite direction, contributing
to an increasing “unsustainability” of the agri-food sector. Bernard et al. (2014)
have identified actors whose impact can lead to decision-making in the agricompany which leads to unsustainability: (i) loss-making investors and credit providers who abandon farms due to low economic returns; (ii) angry neighbours and
environmental activists engaging in silent or active conflict, because they are negatively affected by farming activities; (iii) dissatisfied customers at the endpoint of
value chains who do not trust the quality of products or disapprove of production
conditions; and (iv) overacting regulators who over-regulate farm activities. Even
though each actor perceives their actions as sustainable, they can influence agricompanies’ management path towards unsustainability. Further, Fritz and
Matopoulos (2008) have identified forces that can lead to unsustainability, such as
(i) globalization of the agri-food industry resulting in increased imports and exports;
(ii) consumer changes in consumption, resulting in a larger demand of food products, often out of season, that are transported long distances; (iii) the concentration
of the sector, which has resulted in an ever-increased power imbalance in favour of
retailers; and, finally (iv) major changes in delivery patterns with most goods now
routed through supermarket regional distribution centres using larger heavy goods
vehicles.
Despite the pressure to raise efficiency and lower costs from strong actors in the
food value chain, many agri-food companies strive to conduct a sustainable business from social and ecological perspectives as well as from an economic one.
Recent research (Cagliano et al. 2016) has identified three main integrated challenges for sustainability in the agri-food sector: first, the interdependency between
food production and environmental, human and physical resources; second, the
important role – sustainability and health aspects – of food for humans; and, third,
the special characteristics of the food supply chain, with companies of different size
and different sustainability focus.
The mindset and awareness of the owners and/or the managers of agri- companies
can be an important factor for the development of sustainability-oriented innovation
(Cagliano et al. 2016). Walker has identified this as a values-based driver (Walker
2012, 2014). Further, Barth et al. (2017) have found that many agri-food producers
have a strong “value intention” to conduct their agri-business in a sustainable way.
Explanations for this could be that many agri-companies are family businesses,
rooted in their communities and strongly connected to the land of the ancestors. The
owners/managers have experienced the effect of their actions on their land and production. They have accepted a responsibility for coming generations (Ulvenblad
et al. 2016; Barth et al. 2017).
5 Development of Sustainable Business Models for Innovation in the Swedish…