56 | Carlos Fúquene Retamoso
• Firms that operate under a transformative perspective create new markets by developing innovative ways to tackle the needs of society or proposing novel products and services. In addition to the strategic orientation of the firm, Boons, 2009, states that environmental strategies constitute an extension of firms´ definition of ecological value which in turn is derived from the business model in relation to firm´s strategic orientation. Furthermore, Boons (2009) uses the typology of business strategic orientation to frame the environmental strategies of firms as is presented in Table 5. Table 5. Business models and environmental strategies Business Models
Characteristics
Environmental strategies
Stable
* Focus on maintaining their portion of the market and keeping the productive process as it is.
Dynamic
* Focus on increasing their Green product portion of the market. development, process redesign, green buys and product stewardship.
Transformative
*Focus on creating new markets intended to innovate the way they address the needs of society.
Pollution control, reputation management and lobbying activities.
Green systems design, transition management.
References Boons, (2009).
Boons, (2009).
Boons, (2009).
Business models concept has traditionally conceived value notion as “a unidirectional flow between businesses and customers in exchange for economic benefits” but in the course of time, there has been a shift in the perspective from business models in order to include a wide range of stakeholders (i.e. suppliers, community and employees in addition to customers and shareholders) for exchange of multidirectional value flows between businesses and stakeholders (Freudenreich et al., 2019). Furthermore, there has been an extension of the business model concept for including the creation of ecological and social value in addition to the traditional perspective about maximizing share-holder value (Lüdeke-Freund & Dembek, 2017; Yip & Bocken, 2018).
