Qualitative design and quantitative analysis of sustainable business models using value triangular business model canvas and system dynamics

Abstract

To date, the use of three key aspects together has received little attention in studies on sustainable business models (SBMs). These aspects are a) the qualitative design of SBMs based on a valid sustainable business model canvas presented so far, b) the dynamic quantitative analysis of the designed SBMs, and c) the identification of appropriate business policies for different future scenarios, not just for one. Therefore, in this research, an attempt is made to study all three aspects by proposing a new practical framework based on one of the latest SBMs, called value triangular business model canvas (VTBMC), and system dynamics. To evaluate the proposed framework in the real world, it was implemented as a case study in Farassan Industrial and Manufacturing Company, one of the companies producing composite pipes. The results showed that the proposed framework helps business owners and managers identify the proper policies to achieve their key business objectives in the future under critical uncertainties and also create appropriate balanced values for a wide range of stakeholders, rather than just for shareholders.