A Process Perspective on Failure of Sustainable Business Model Innovation for Social Value: Qualitative Meta-analysis

The literature on sustainable innovation often portrays sustainable business model innovation

(SBMI) as a win-win solution for positive social impact and profit. However, empirical evidence

indicates that most SBMIs fail, while the key question of how and why these failures occur remains

a puzzle. This study addresses this gap by examining the mechanisms underlying SBMI failure

through the dual lenses of economic and social value generation over time. Using a qualitative

meta-analysis we overcome the limitation of the small number of studies, usually associated with

the case study method, by examining 21 previously published empirical case studies, focusing on

the processes through which SBMIs fail to deliver socio-economic value. Our analysis identifies

two process archetypes of SBMI failure – Disharmonic Orchestra and Consumer Altruism Fallacy – demonstrating that failures typically arise from the breakdown of collaborative dynamics shaped

by sequences of catalyst and inhibitor mechanisms across multiple levels. By shifting from static

barrier-based explanations to a processual perspective on SBMI failure, this research advances the

literatures on business model innovation and sustainable innovation failure, providing actionable

insights for firms navigating the complexities of implementing SBMIs.