The emergence of new business models

This article is part of the ‘Inspiring Transformations’ series promoted by Esade Entrepreneur Institute for its 30th anniversary.

The rise of new business models isn't just an economic shift — it's a revolution. Some of these new business models embody a broader transformation, reshaping industries, catalyzing organizational transformation, and having a profound societal impact. As we stand at this pivotal moment, it is essential to delve deep into how these new paradigms will influence our future. 

We learned from Schumpeter that the dynamism of entrepreneurship and the ever-evolving spirit of innovation lies at the heart of economic growth and job creation. Nowadays, we are witnessing a fast growth of transformative business models. From platform-based ecosystems and subscription services to freemium offerings and the sustainable thrust of the circular economy—these aren't mere trends but gigantic shifts that are radically altering the landscape of industries and sectors. 

New firms leveraging these new business models are forging increasing market relevance and impact. Their achievements highlight an essential message: businesses, when aligned with models emphasizing both gains and societal good, become industry trailblazers. 

Business models that champion the careful use of resources are on the rise

The emergence of new business models isn't something that established companies can overlook. Many are coming to terms with a simple truth: ‘adapt or perish’. As a result, an increasing number of established businesses are embracing organizational transformation programs to harness the potential of these avant-garde business models, ensuring they remain relevant in a shifting marketplace. 

An imprint on society 

The profound effects of innovative business models are also evident in their impact on society. The current business landscape is marked by the rise of new business models that champion the careful use of resources, working against wastefulness and excess production. In addition, they are ushering in a new era where the focus is on fostering inclusivity and bridging gaps that previously marginalized vulnerable communities. 

Many avant-garde business models place sustainability at their core. This shift redefines traditional investment benchmarks, recalibrates business objectives, and nurtures a harmonious triad between purpose, profit, and societal impact. 

In essence, the impact of these new business models transcends the confines of the corporate world, leaving a transformative imprint on our global society. They stimulate transformative organizational shifts and pave the way for a world that's not just profit-driven but also inclusively and sustainably oriented. 

In this rapidly evolving landscape, Esade aims to be more than a mere observer. We strive to understand, facilitate, and amplify these transformations. Our goal is to meld prosperity with sustainability and inclusivity, advocating for societal progress. Our guiding principle? “Do Good. Do Better.” 

References and recommended readings 

• Foss, N.J. and Saebi, T. (2017), “Fifteen years of research on business model innovation: how far have we come, and where should we go?”, Journal of Management, Vol. 43 No. 1, pp. 200-227. 
• Lüdeke-Freund, Florian & Schaltegger, Stefan. (2023). “Business Model Innovation for Sustainability” in Corporate Sustainability, pp.388-411. 
• Markides, Constantinos. (2023). Business Model Innovation: Strategic and Organizational Issues for Established Firms. 
• Purtik, H. & Arenas, D. (2017). “Embedding Social Innovation: Shaping Societal Norms and Behaviors Throughout the Innovation Process”. Business & Society, Vol. 58. 
• Vives, L., Lessard, D. R., Aguilera, I. (2023). “CEMEX: Building a Greener Future”. Esade Business School Case. 
• Vives, L. & Svejenova Velikova, S. (2011). “To, from and beyond the margins: Business models: Towards an integrative framework”. Management Research: The Journal of the Iberoamerican Academy of Management, Vol. 9 No. 3, pp. 230-242.