Dynamic Business Modeling for Sustainability

In the last decade, both sustainability (Green & Blue Economies) and business models for sustainability (BMfS) have increased in importance. Social life cycle sustainability assessment has not fully achieved goal, mainly because sustainability‐oriented business is very complex and dynamic. System Dynamics (SD) is a powerful methodology and computer simulation modeling technique for framing, understanding and discussing complex issues and problems. This paper responds to the urgent need for a new business model by presenting a concept for dynamic business modeling for sustainability using system dynamics. The paper illustrates the key operating principles through an application from the smartphone industry with help from STELLA® software for simulation. Simulations suggest that dynamic business modeling for sustainability may contribute to sustainable business model research and practice by introducing a systemic design tool that frames environmental, social, and economic drivers of value generation into a dynamic business model causal feedback structure, therefore overcoming shortcomings of current business models when applied to complex systems