Joint business model innovation for sustainable transformation of industries - A large multinational utility in alliance with a small solar energy company

Whereas existing business models for sustainability research have mainly focused on business model activities and sustainability outcomes for separate firms, we observe that alliances between small and large firms can influence a large firm's learning and dissemination of sustainable technologies, thereby contributing to the sustainable transformation of mass markets. According to the theoretical framework and a case study, large firms appear to choose a race-to-learn mode of appropriating most of the learning in the alliance, leaving small firms with limited learning outcomes. Within the framework, the race-to-learn mode is the optimal strategy for large firms in a joint innovation process concerning a new technology. However, for a joint innovation process concerning a business model for sustainability, the incentives for large firms to adopt a cooperative innovation mode become considerably stronger. The framework and the case study indicate that a number of factors influence the learning outcomes and longevity of joint business model innovation, leading to different modes of joint business model innovation for sustainability processes.