GREEN BUSINESS MODEL VS. BUSINESS MODEL INNOVATION: CONFLICT OR CONVERGENCE IN VALUE CREATION?
GREEN BUSINESS MODEL VS. BUSINESS MODEL INNOVATION: CONFLICT OR CONVERGENCE IN VALUE CREATION?

Summary/Abstract: Businesses face increasing pressure to adopt innovative andsustainable practices in response to growing environmental and economicchallenges. This paper examines the relationship between green business mod-els (GBMs), which integrate environmental and social objectives into valuecreation, and business model innovation (BMI), which focuses on competitive-ness and growth by reconfiguring value creation and capture mechanisms. Thecentral question is whether these approaches conflict or conditionally con-verge. The study builds on sustainable business model archetypes and estab-lished frameworks such as the Business Model Canvas and the Business ModelNavigator. Using a conceptual and comparative research design, it systemat-ically analyzes how value is defined, how sustainability is positioned withinthe business model, and the depth of transformation involved. The findingsindicate that while traditional innovation logic has often prioritized short-termeconomic performance, there is a growing change toward hybrid and sustain-able business model innovation approaches that combine economic competi-tiveness with environmental and social value creation. Convergence emergeswhen sustainability is embedded within innovation processes rather than treat-ed as an external constraint. The paper concludes by proposing a conceptualtypology distinguishing innovation-focused, sustainability-focused, and inte-grated business models, offering guidance for firms and policymakers navigat-ing sustainability transitions.

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