Scaling Sustainable Business Models through Strategic Design

Abstract

Sustainability's role in the current business environment is increasing for several reasons, such as regulatory requirements and consumers favouring eco-friendly practices. Nevertheless, sustainability-focused startups often struggle to scale their impact due to several challenges, including the lack of a comprehensive framework that helps them transform their Sustainable Business Model to be scalable and resilient. This study seeks to connect this gap by creating a framework that aids startups in scaling their operations and impacts using strategic design. The research methodology is structured around the Double Diamond Design Process, starting with an extensive literature review focusing on sustainable business model innovation and scalability, several frameworks that enable them, and some strategic design tools. This is followed by empirical studies involving semi-structured interviews with founders of sustainable startups and a business case workshop, where students are asked to create scale-up strategies for an imaginary startup through a pre-framework developed in the previous phases.
This results in the development of the Sustainability Scale-Up Framework (SSF), which enables sustainable startups to develop resilient scale-up strategies using strategic design. The SSF consists of several interconnected components: Vision, which involves establishing a clear and compelling vision aligned with the startup's sustainability goals and worldview; Value Propositions, which focus on developing innovative products and services that meet stakeholder needs; Value Creation Mechanisms, aimed at optimising processes and operations to enhance efficiency; and Impacts & Strategies, which create implementable strategies to maximise impact. This multifaceted approach ensures that startups can navigate the scaling process effectively while maintaining their commitment to sustainable vision. The study also identifies some common challenges to scaling, like vision alignment and sustainability value tensions, and underscores the role of strategic design in overcoming these challenges by fostering innovation and adaptability. By integrating strategic design thinking with business strategy, the SSF provides a structured and iterative approach to addressing the complexities of scaling sustainable startups.
In conclusion, the SSF offers significant theoretical and practical contributions to the field of Sustainable Business Model Innovation and Business Scalability. It provides a structured approach for startups to scale their impact sustainably, addressing critical barriers and leveraging innovative strategies. Future research could explore the long-term implementation of the framework across various industries and geographies, further refining its components and validating its efficacy. This thesis presents a robust framework that integrates strategic design principles to support the scalability of sustainable startups, paving the way for these businesses to achieve long-term success and impact.