Balancing on the Triple-Bottom-Line: Tensions in the Success Factors of Digital Business Models for Sustainability

Abstract

We need innovations that enable a sustainable economy and sustainable private consumption to meet the grand challenges of the UN Sustainable Development Goals. As an essential source of innovation, startups play a crucial role in improving sustainability by creating innovative and sustainable products and services as part of their business models (BMs). Since BMs are at a firm's core, BMs are a decisive factor that influences whether startups fail or thrive; we analyze the success factors of sustainable BMs. We interviewed 16 experts from 15 startups implementing sustainable BMs based on digital technologies and one incubator specializing in sustainability. We identify six success factors representing tensions in digital BM design that entrepreneurs need to address. Our analysis shows how the design of sustainable digital BMs differs from regular digital BMs and how the tensions affect the success of startups. For established firms, the results guide BM design and technology use.