Business model innovation (BMI) plays a key role in accelerating the transition toward greater environmental sustainability in the agri-food industry. However, knowledge of the mechanisms that activate BMI in agri-food firms remains scarce. This study aims to clarify the interdependencies between environmental sustainability and new technologies as drivers of BMI. It explores the relationships between these drivers and the locus (i.e. internal and/or external to the firm) of the stimulus activating BMI.
An in-depth analysis of 13 cases of small- and medium-sized agri-food firms that have successfully introduced BMI is performed, drawing on information collected through interviews with these firms’ decision-makers.
The analysis unveils the mechanisms behind the activation of BMI in agri-food firms. A framework combining the drivers and the locus of BMI is proposed, highlighting BMI paths in agri-food firms.
This study proposes an original framework that outlines three main paths to BMI in agri-food businesses: purpose-driven BMI, technology-exploration-driven BMI and compliance-driven BMI.
1. Introduction
The agri-food industry is facing severe challenges in meeting the United Nations’ Sustainable Development Goal (SDG) 2, which aims to “end hunger, achieve food security and improved nutrition and promote sustainable agriculture” (FAO, 2023a; United Nations, 2015). Although the sector is responsible for 30% of greenhouse gas emissions and needs to reduce its environmental impact (UNEP, 2023), it is unable to meet the nutrition and food safety needs of the growing global population (FAO, 2023b). The transformation of the agri-food sector toward greater sustainability, efficiency, resilience, and inclusivity is essential to meet the objectives of the 2030 Agenda (European Commission, 2024; FAO, 2023b). Scholars and policymakers are thus reflecting on strategies to accelerate the transition toward greater sustainability within the agri-food industry, which comprises “all those activities, sectors, and actors taking part in primary production from land and sea, food processing and distribution, logistics and storage, retail, food services (canteens, restaurants), food preparation, consumption, and nutrition for health and wellness” (European Commission, 2020, p. 20). The ongoing debate calls for developing a so-called twin transition, which acknowledges the importance of leveraging new technologies to reach higher sustainability in the agri-food industry (Myshko et al., 2024).
In this context, agri-food businesses are increasingly innovating their business models (BMs), intending to both increase their environmental sustainability and take advantage of newly available technologies (Büyüközkan and Uztürk, 2024). Business model innovation (BMI) consists of the introduction of changes in one or more of the three components of BMs: value creation, value proposition, and value capture (Zott et al., 2011). A recent literature review on agri-food BM and BMI by Miranda et al. (2023, pp. 4509–4510) indicated that “the academic literature has not paid the necessary attention to the particular case of business models in the agri-food sector” and that “new business models in the agri-food sector are a topic of recent research interest.” The few studies that were found in Miranda et al.’s (2023) review confirmed the importance of both the pursuit of sustainability and the implementation of new technologies as drivers of BMIs in agri-food firms (Barth et al., 2021; Tiscini et al., 2020).
However, the mechanisms behind the interplay between environmental sustainability and new technology adoption in successful BMI in agri-food firms remain unclear. Our study argues that two distinct but interrelated aspects need to be clarified: the activator(s) of BMI and the locus of BMI. Three activator(s) of BMI are possible: (1) the pursuit of environmental sustainability and the implementation of new technologies jointly and simultaneously act as activators of BMI; (2) the implementation of new technology is the main activator (i.e. the starting point) of BMI, stimulating the pursuit of environmental sustainability; or (3) the pursuit of environmental sustainability acts as the main activator of BMI, stimulating the implementation of new technologies. Our study suggests that the locus of BMI can be either internal to the firm (e.g. a firm’s environmental sustainability orientation) or external (i.e. it is stimulated or requested by other actors in the supply chain, such as customers, suppliers, or regulators). The available literature has repeatedly noted that new agri-food business models can be instigated by actors in the supply chain other than the studied firm (Pellegrini et al., 2023). We maintain that the joint analysis of the activator(s) and locus of BMI can shed light on the trajectories of BMI and clarify the interplay between environmental sustainability and new technologies in the activation of successful BMI.
This study thus addresses the following research question: How do the search for environmental sustainability and the implementation of new technologies interact in the successful activation of BMI in agri-food firms?
To answer this research question, we analyzed 13 case studies of agri-food firms that had successfully introduced BMI, drawing on information collected through long interviews with informants who had key decision-making roles in BMI activation within the analyzed firms. The findings of this study contribute to disentangling the roles of sustainability and technology as drivers of BMI in agri-food businesses, advancing extant knowledge on the twin transition in this context (Myshko et al., 2024). This study clarifies the interdependencies between sustainability and technology, which have been ignored by studies on BMI in agri-food firms, as emphasized by Miranda et al. (2023). Our findings provide fresh insights into the mechanisms through which new BMs are successfully activated in agri-food firms, offering practical guidance for both entrepreneurs and policymakers.
2. Theoretical background
A firm’s BM “articulates […] how a business creates and delivers value to customers. It also outlines the architecture of revenues, costs, and profits associated with the business enterprise delivering that value” (Teece, 2010, p. 173). A BM encompasses three components: value creation (outlining how the firm creates and delivers value to its customers), value proposition (describing the firm’s offering to satisfy its target customers’ needs), and value capture (indicating how the firm generates revenue streams and profits in exchange for products or services) (Richardson, 2008). Changes to one or more of these dimensions result in BMI (Baden-Fuller and Haefliger, 2013). Existing literature has emphasized the roles that new technologies and digitalization can play in pursuing innovative, sustainable BMs (Gregori and Holzmann, 2020; Guandalini, 2022). However, while extant research has underlined the strong relationships between sustainability and innovation as drivers of BMI, “The nexus amid both domains remains poorly explored and […] a responsible and well-enunciated synergy between digitalization and sustainability is unavoidable and thus far untapped” (Castro et al., 2021, p. 15).
While BMI is receiving growing attention in the agri-food industry, “research in the agri-food domain has just started to explore the notion of business model (innovation)” (Bogers and Jensen, 2017, p. 2326). Miranda et al. (2023, p. 4510) call for a deepening of our understanding of this topic, stating “There is a need to develop more systematic approaches that include both innovation and sustainability. The degree of maturity of research on business models in the agri-food sector, especially focusing on the sustainability aspect, is in its early stages”.
Several studies have argued that the implementation of new technologies by agri-food firms (including the Internet of Things, sensors, blockchain, cloud technologies, robotics, and many others) is facilitating the transition toward greater sustainability (Cassia and Magno, 2024; Myshko et al., 2024). The literature review compiled by Kamble et al. (2020) confirmed that the application of advanced technologies enables a data-driven approach in the agri-food industry, resulting in greater, more measurable sustainability. They specifically reported reductions in carbon footprints and food waste, as well as higher capabilities to face water scarcity and other climate change issues. However, studies specifically addressing BMs and BMI in the agri-food industry remain limited (Mancuso et al., 2023; Miranda et al., 2023; Tell et al., 2016).
Only a few studies have examined the drivers of BMI in agri-food firms. Pellegrini et al. (2023), for example, examined technology-based BMI and found that, in many cases, intentions to reduce the firm’s environmental impact and use resources more efficiently played a leading role in activating such BMI. Similarly, Tiscini et al. (2020) scrutinized BMI driven by the implementation of new technologies (i.e. blockchain), revealing positive effects on a firm’s environmental sustainability and food safety. Barth et al. (2021) analyzed agri-food firms’ BMI aimed at enhancing sustainability and reported that the implementation of new technologies emerged as their most important component, enabling a more efficient use of resources. De Chiara (2021) emphasized the role of sustainability as the driver of BMI in agri-food firms, reporting positive effects on firms’ competitiveness and performance. Both the pursuit of sustainability and the implementation of new technologies have emerged from the existing literature as the driving forces of BMIs in agri-food firms, but the links between these two drivers have not been examined (Miranda et al., 2023).
Similarly, only a few insights are available regarding the locus of the stimulus activating BMI in agri-food firms. Pellegrini et al. (2023) noted that several cases of BMI were driven by internal motivations while others were stimulated by external pressures from actors within the firm’s supply chain. A few other studies have indicated that consumer demand can motivate agri-food firms to engage in BMI (De Chiara, 2021; Ulvenblad et al., 2018). More broadly, extant literature has suggested that considering the relationship between the analyzed firm and other relevant actors in its supply chain can improve our understanding of BMI (Tiscini et al., 2020). However, the role of external actors other than consumers has not been analyzed. More generally, only a few studies have examined whether the stimulus activating BMI originates internally or externally (Pellegrini et al., 2023).
Valuable insights regarding the links between environmental sustainability and new technologies have developed outside the context of agri-food firms, but are useful within the context, as well. Several studies have modeled technologies as a driver of environmental sustainability. Khan et al. (2021) reported that a firm’s technology adoption leads to green practices that improve environmental sustainability. Opazo-Basáez et al. (2024) found that the implementation of green technological innovations had positive effects on environmental performance. As highlighted by Miranda et al. (2024), higher levels of digitalization have a direct positive influence on a firm’s environmental sustainability. Recently, Kumar et al. (2025) conducted a quantitative study among a sample of small and medium-sized enterprises, which revealed that greater use of smart technologies has an indirect positive effect on environmental sustainability. These findings are particularly interesting because they show that such a relationship is mediated by business sustainability, acknowledging the innovations introduced in different areas of the firm. In other words, technology adoption improves environmental sustainability by fostering BMI.
Even fewer studies have investigated the opposite relationship—environmental sustainability as a driver of BMI and its impact on the adoption of new technologies. Rantala et al. (2018) conceptualized new technologies as a solution to sustainability challenges showing that a greater valuation of environmental sustainability positively influences technological innovation and BMI. In their literature review of firms’ adoption of sustainable technologies, Fu et al. (2018, p. 239) concluded that “the limited number of available studies show that internal support from top managers […] and internal stakeholders […] have a positive effect on the sustainable technology adoption by firms.” In other words, technology is used as a means of improving environmental sustainability. In their reflections on sustainability innovation, Hermundsdottir and Aspelund (2021) indicated that such innovation (i.e. the use of new technologies) is inspired by sustainability (including environmental sustainability) considerations from the beginning.
Despite the number of studies in this area, a recent literature review of research on the relationships between sustainability and digital technologies concluded that extant knowledge is limited and more research is needed, specifically adopting the BM perspective (Chopra et al., 2024).
3. Methods
This study applied Eisenhardt’s case study method (Eisenhardt, 1989). The core purpose of this method is theory building through case studies and it is appropriate when addressing a research question for which prior knowledge is scarce, such as the research question addressed in our study (Eisenhardt, 2021). The selection of cases for analysis is guided by a theoretical sampling process, in which one chooses “cases where the focal phenomenon is likely to occur, and case designs where the similarities and differences across cases are likely to improve theory building” (Eisenhardt, 2021, p. 149). While the original formulation of the Eisenhardt method (Eisenhardt, 1989) suggested 4 to 10 cases for analysis, there is not a preferred number of cases, and researchers’ decisions on this point should be guided by both theoretical reasons and practical motivations (such as time and data availability) (Eisenhardt, 2021).
To select appropriate cases for our study, we first adopted a comprehensive view of the agri-food sector, embracing the definition provided by Fao (2025), which includes the “actors involved in getting food from field to fork [i.e.] from agricultural production and processing to distribution, consumption, and waste management.” We did not focus on a specific stage of the supply chain, such as agriculture production or distribution, instead considering all stages. To identify potential case studies, we drew on our network of contacts and interviewed five experts who had a comprehensive view of the Italian agri-food industry: the Chief Executive Officer for Research & Innovation of Confagricoltura (an organization representing about 720,000 Italian agri-food businesses); the Head of the Rural Development Services Department of Ismea (an Italian public entity supporting local governments and other agri-food institutions); the Director of Fondazione Qualivita (an Italian national scientific organization that creates and shares knowledge related to the protected designation of origin); the Managing Director of ANCC–Coop (the association representing Italian consumer cooperatives); and the Chief Executive Officer of Società Recuperiamo SRL–Regusto (which focuses on food waste management). These five interviews aimed to identify cases of agri-food firms that had successfully implemented BMI and consisted of an in-depth discussion on the concept of BMI in the agri-food industry. The experts suggested several cases of BMI that could be interesting for our research project, including firms operating at different stages of the agri-food supply chain and specializing in different products. We then contacted the owners/entrepreneurs of the recommended firms to explain the purpose of our study and asked for their cooperation in our research. As a result of this process, 13 relevant cases of small- and medium-sized agri-food firms that had implemented successful BMI were included in the analysis. The list of these cases is reported in Table 1.
Overview of the case studies
| Case study | Firm’s core business | Interviewee’s role | Number of transcript pages (single-spaced) |
|---|---|---|---|
| Firm 1 | Multifunctional agriculture farming: growing and processing organic and hydroponic products; agritourism; didactic farming | Entrepreneur/Owner | 9 |
| Firm 2 | Growing, processing, and selling mushrooms | Director of Operations and Sales | 9 |
| Firm 3 | Production of sustainable, organic wine (vertically integrated from vineyard to wine bottle) | Entrepreneur/Owner | 9 |
| Firm 4 | Growing olives; production and sales of olive oil | Chief Executive Officer | 12 |
| Firm 5 | Packaging and distribution of fresh and dried organic fruit and vegetables | Entrepreneur/Owner | 10 |
| Firm 6 | Production of sustainable wine | Technical Director/Enologist | 13 |
| Firm 7 | Production, processing, and sales of local organic vegetables and fruit | Entrepreneur/Owner | 9 |
| Firm 8 | Sales of spices and of dried fruit and vegetables | Head of Marketing | 13 |
| Firm 9 | Production and sales of baked goods (mostly biscuits and rusks) | Marketing Manager | 12 |
| Firm 10 | Growing of kiwi and production and sales of products derived from kiwi (e.g. kiwi vinegar) | Entrepreneur/Owner | 10 |
| Firm 11 | Production of bagged vegetables | Quality Director | 16 |
| Firm 12 | Provision of agriculture 4.0 solutions (i.e. crop monitoring system, through satellite images) | Agronomist | 10 |
| Firm 13 | Production of 100% plant-based ice cream | Co-founder | 11 |
Source(s): Authors’ own work
The Eisenhardt method does not indicate any preference for the type of data needed for case analysis or the collection method (Eisenhardt, 2021). Qualitative and/or quantitative data can be used, depending on researchers’ evaluations of data availability and fit with the research question. We selected long interviews (McCracken, 1988) as our data collection method because we were interested in exploring decision-makers’ reasoning and choices regarding BMI. We followed McCracken’s (1988) guidelines in detail, applying the steps of (1) reviewing the analytical categories to map the domain; (2) evaluating the researchers’ prior knowledge and assumptions on the subject; (3) designing the interview schedule and conducting the interviews; and (4) analyzing the collected evidence. We first identified the person who had made the core decision regarding the BMI in each of the 13 firms, then scheduled an interview with the identified individuals who were often the firm’s owners/entrepreneurs. An overview of the interviewees’ roles is provided in Table 1.
All interviews were recorded and transcribed, resulting in 143 single-spaced pages (Table 1). The Eisenhard method is flexible in terms of data analysis and does not involve fixed templates or protocols. As Eisenhardt (2021) suggested, the explanation of the underlying mechanisms is central to the theory-building effort and theoretical arguments already proposed by existing theories can be integrated. Overall, the process consists of continuous iterations between theory and data, with the final intent of creating accurate and generalizable conceptualizations. In our study, we first proceeded with the in-depth analysis of individual case studies. We then discuss emerging findings and combine them through a comprehensive framework based on the two dimensions of interest for this study: the activator(s) of BMI (i.e. sustainability and/or technology) and the locus of BMI (internal and/or external). Through this framework, the mechanisms or paths for successful BMIs in agri-food firms were highlighted. We embraced a collaborative and participatory approach, which involved intensive discussion among the researchers until a consensus was reached (Cascio et al., 2019).
4. Results and discussion
4.1 Case study findings
Each of the 13 cases was analyzed to identify the presence of environmental sustainability and/or technology as drivers of BMI. Table 2 details the impact of each of these two drivers on the innovation of three components of BMI (i.e. value creation, value proposition, and value capture) and indicates whether the starting driver for the activation of the BMI was environmental sustainability and/or technology. It also shows the locus of the initial stimulus activating BMI. Afterward, the main findings for each case are presented narratively.
Within case analysis
| Case | Driver: Environmental sustainability | Driver: Technology | Starting driver of BMIa | Initial stimulus and key relationships to start BMIb | ||||
|---|---|---|---|---|---|---|---|---|
| Value creation | Value proposition | Value capture | Value creation | Value proposition | Value capture | |||
| Firm 1 | The technologies invented and adopted by the firm (hydroponic greenhouses) enabled growing vegetables without pollution (no CO2 emissions; no soil pollution) Closed-loop system for the water used in greenhouses in the agri-food processing area; unused water is treated and reused | Healthy and organic products: beneficial for individual well-being and environmentally sustainable (products grown without damaging the soil or polluting the environment) Multifunctional farming: offering new services based on sustainability principles (i.e. agritourism, didactic farming, and spa) | Hydroponic products are appreciated by consumers because of their healthiness, enabling the firm to charge high prices (e.g. €20 for a kilogram of tomato puree) Waste is transformed into revenues (e.g. tomato peels are sold as a powder for making tomato bread) New services positioned on the concept of sustainability (agritourism, didactic farming, and spa) account for about one-quarter of revenues | Design and creation of hydroponic greenhouses. Vegetable growing is automated and managed by computers Creation of an e-commerce platform to directly sell products to final consumers Integration of multidisciplinary competencies, drawing on owners’ experience as engineers in the aerospace defense sector | Products are free from pathogens and heavy metals (e.g. nickel) and available all year round, thanks to hydroponic technologies | The new technology enables the firm to meet the needs of specific niches (e.g. people with nickel allergies) and sell higher-priced products Drawing on its experience, the firm started to produce and sell domestic hydroponic greenhouses of different sizes, creating new revenue streams | (ES-T) | (I) The initial stimulus for BMI was internal to the firm (particularly driven by the new entrepreneurial generation, more sensitive to technological innovation and environmental sustainability). Then, collaborations with universities, research centers, and industry experts were established to develop the needed hydroponic technologies |
| Firm 2 | New energy-efficient machinery ISO 14001 and GRASP certification. | Offering certified, traceable Italian mushrooms | New production methods based on Dutch methodology resulted in substantial energy cost savings | New Dutch methods to rationalize production processes New lines of packaging and weighing machines Placing special lamps above the conveyor belts to increase mushrooms’ vitamin D content Increasing employees’ knowledge of quality, digitalization, and technology | Better service and higher precision for customers (mostly retailer chains) New types of mushrooms enriched with vitamin D | Production cost reduction, greater efficiency | (T) | (E) Retailer chains’ required standards of food quality and safety increased |
| Firm 3 | European patent to produce wine without added sulfites Real-time data collection and analysis support organic farming (e.g. predict diseases and intervene promptly) Use of soft pruning techniques to preserve grapevines Life cycle assessment and environmental certification | Offering sustainable wine that contributes to preserving the environment, the landscape, and local culture, going beyond carbon neutrality (i.e. carbon negative) New packaging with a label made from recycled cardboard that is not glued to the bottle and can be removed New products related to wine and local herbs and vegetables | Higher margins compensate for higher costs (e.g. new packaging is ten times more expensive): final customers recognize the value of the product (thanks to the affiliation with the Italian Federation of Independent Winegrowers) Increasing revenues through eco-wine (vineyards and cellar) experiences | Development of decision support systems to predict grapevine diseases, collecting data through weather stations Wine digitalization: websites, systems for interfacing between accounting, inventory management systems, and websites | Establishment of an online shop for consumers (the main customer segment of this firm) Wine digitalization: digital labels | Some minor cost reductions due to more advanced tractors and efficiency | (ES) | (I) The initial stimulus for BMI was internal (investments in research and development up to 30% of revenues). Then, a collaboration with a university was established to develop a patented innovation |
| Firm 4 | Using the so-called “integrated farming system” to sustainably grow olives Certification of sustainability and traceability | Offering “farm-to-fork” quality certifications to customers (i.e. olive oil bottlers) Offering olive oil with a Protected Designation of Origin to emphasize the links with the territory | Margins in this industry are small, but sustainability and origin certification are needed to sustain them | Sensors are used to provide data on soil moisture and nutrient levels Weather station to collect and analyze data Experimentation with camera traps to monitor insects at regular intervals and count them using artificial intelligence Satellites are used to collect images and algorithms interpret them to identify plants under water stress, nutrient deficiencies, etc. A new remotely controlled irrigation system to minimize water dispersion and give the capability of fertilizing during irrigation. | Sale of by-products (e.g. olive pits) | New technologies have improved efficiency Investments made to develop applications for by-products resulted in additional revenue streams: olive pits sold as substitutes for wood pellets and pomace sold to biogas plants Revenues from customer visits to the farm and direct sales to customers | (ES-T) | (I-E) Customers (i.e. olive oil bottlers) required “farm-to-fork” sustainability certifications Then, collaboration with a local university to develop applications for by-products (e.g. olive pits) to create both energy and organic soil improvement The stimulus that activated BMI to improve efficiency was internal |
| Firm 5 | Completed transition from plastic to biodegradable paper packaging | Careful, wide selection of high-quality, organic food products (i.e. fresh and dried fruit and vegetables) to customers; some products are not easy to find in other channels (e.g. organic raspberry powder) Operating as a bulk store: customers can purchase the desired quantity in a biodegradable paper package | Consumers are interested in organic food and are willing to purchase it directly from the firm, resulting in higher margins | Creation of two e-commerce platforms (for domestic and foreign markets) to directly sell fresh and dried organic fruit and vegetables to final customers Investments to automate the warehouse Continuous personnel upskilling with advanced digital competencies | Convenience, responsive service, and prompt information to customers, thanks to the digital infrastructure | The margins earned through direct channels (i.e. e-commerce) are much higher than those earned in traditional channels served by the firm (i.e. wholesalers, food companies, restaurants) Efficiencies (lower costs) through the rationalization of logistics processes and automated packaging line | (T) | (I) The initial stimulus for BMI was internal to the firm. Then, relationships with selected suppliers were fundamental to guarantee high-quality, traceable, certified organic products Logistic partners play a major role in implementing the new BMI centered on customer responsiveness |
| Firm 6 | Varietal selection, cultivation technique selection, and vinification technique selection to meet sustainability (e.g. an experimental project planting 57 vine varieties) and finding the most appropriate for the local area. Certified integrated farming, encompassing caring for people and making them feel enthusiastic about what they are doing | Premium sustainable wines derived from a long-term project based on territorial identity, patience, and care for the local landscape | Cultivation techniques, selected and optimized based on local resources (soil, sun, water, etc.), resulted in higher efficiency Deliberately decided not to increase the volume of wine but has been able to charge higher prices because of its identity based on the sustainable valorization of the local territory | Use of probes measuring the electrical conductivity of the soil to optimize water usage Increasing mechanization to improve efficiency | Offering higher quality wines | Reduction of necessary working hours per hectare and rationalization of costs | (ES) | (I) The initial stimulus for BMI was internal to the firm. As a next step, the firm aims to involve other wine producers from the same territory to create and communicate a specific territorial identity |
| Firm 7 | Implementation of circular economy approach Environmental and Protected Designation of Origin certifications “Farm to fork” product traceability | Offering certified organic products Innovative assortments of both raw and processed products (e.g. nearly 250 varieties of organic chili peppers; pumpkin jam with chili peppers) | Offering organic products allows the firm to be a supplier of food service businesses New revenue streams from the introduction of processed products Waste from processing activities becomes fertilizer | Creation of a virtual showcase for product sales Mechanization and automation of processing and packaging activities Information system is used to track the products “from the farm to the fork.” Photovoltaic systems allow for nearly total energy self-sufficiency | Convenience for customers who can make purchases using the virtual showcase | Energy cost savings and more efficiency Securing (online) purchases from final customers | (ES) | (E) The firm needed to innovate to comply with its main customers’ new requirements. Food service businesses (about 70% of the revenues of this firm) started to need to provide a certification of origin, sustainability, and organic nature of the purchased products to take part in the tender to win contracts in school canteens |
| Firm 8 | Sustainability is integrated into the firm’s corporate social responsibility efforts Focused on healthy living and attention to nutrition Educational activities to communicate healthy eating habits Only seasonal fruits and vegetables are offered in the freeze-dried products line | Offering healthy products for a healthy diet and lifestyle New labels detail nutritional values, highlighting the spices as sources of iron, calcium, proteins, thiamine, etc. Introduction of new freeze-dried seasonal fruit and vegetables | Innovations have increased revenues by modifying the pricing policy and negotiation power. Now, prices are set in a more efficient way and customized for the type of product. This approach has also increased the brand’s value Market share more than doubled in four years | Implementation of 4.0 technologies (e.g. new machinery), which increased the efficiency of internal production processes Data-driven orientation to drive all processes (from production to sales) Use of tablets and QR codes to enhance consumer experience at stores (e.g. suggesting new uses for spices) Currently testing the introduction of e-commerce to directly reach final consumers | New, rich, technology-enabled experiences for consumers More cooperative relationships with distributors: some of them have become partners and co-producers of innovations | Data-driven approaches have improved production, distribution, and sales processes, thus sustaining margins | (ES) | (E) Consumer demand, specifically from millennials, drove the BMI Then, collaboration with retailer chains played a fundamental role in developing the innovation (also through the firm’s internal academy aimed to co-create innovation with other actors in the supply chain) |
| Firm 9 | Recycling has become a priority for the firm: materials are always 100% recyclable Progressively reducing the quantity of materials needed for packaging (e.g. lighter packages) Use local suppliers whenever available offering high-quality inputs Focus on renewable energy and waste reduction | Offering products that integrate environmental sustainability and quality of life, successfully anticipating market trends (e.g. “free from” products, protein-enriched food) | The ability to intercept new market trends resulted in products that were well-received by customers, increasing sales | Technological innovation (e.g. new software) has allowed the company to meticulously control every flow of material and significantly reduce waste The firm has introduced its own e-commerce site | The firm’s own e-commerce store enabled direct relationships with consumers The new software enabled higher responsiveness to market demand | Waste reduction resulted in significant cost reduction The firm’s own e-commerce store resulted in new revenues | (ES-T) | (I-E) New trends in consumer demand activated BMI Simultaneously, there was an internal stimulus for more efficiency |
| Firm 10 | Introduction of several new products, such as dried kiwi and kiwi vinegar, give new life to kiwis that were not appealing to consumers for aesthetic reasons Products are certified as sustainable and organic Reduction and rationalization of packaging (more bottles in one box) | Offering a full assortment of kiwi-based products that are totally sustainable for the environment | The choices made in terms of product diversification but also of packaging (glass) allow the firm to obtain a premium price from the market | Technical innovation in the kiwi vinegar fermentation process, resulting in two patents | The introduction of kiwi vinegar made it possible to provide consumers with the same organoleptic properties of kiwi with a longer shelf life Kiwi vinegar responds to functional dietary and health needs that had not been considered before | Kiwi vinegar is appealing, resulting in positive market performance One goal for the near future is to sell kiwi vinegar in pharmacies (given the beneficial properties of its two acids), which may provide additional revenue streams | (ES) | (I) The initial stimulus was internal to the firm and related to the entrepreneur’s vision Then, cooperation with a university was established to develop patents. Cooperations with producers from the same territory were activated, as well |
| Firm 11 | Efficiency improvements to reduce energy consumption and reduce energy costs | Good price competitiveness as a supplier of (private label) fourth-range vegetables | Thanks to its competitiveness the firm has been able to secure business with retailer chains | Innovation in the production process (i.e. washing, optical sorting) Implementation of new software to improve process efficiency | New technologies enabled the firm to offer quality products meeting the requirements of retailer chains | Innovations resulted in higher efficiency, profitability, and the ability to secure business with retailer chains, as well as greater power when negotiating with retailers’ buyers | (T) | (E) Retailer chains’ required standards of food quality, safety, and prices |
| Firm 12 | The solution invented by the firm enables farms to optimize treatments (e.g. fertilization, irrigation) based on big data, thus improving sustainability | Offering solutions that increase the sustainability of farming activities (fewer treatments, increased yields) | The solution offered by the firm is appreciated by farmers, particularly by organic farms, which need to prevent diseases without using chemical treatments | Development of a solution based on satellite images, insect traps, and sensors in the soil that produces big data, analyzes through artificial intelligence algorithms, and elaborates predictive models for disease forecasting | Farmers can use the firm’s mobile app to monitor their crops, receive alerts and forecasts, and access records of all their past treatments (e.g. fertilization, phytosanitary treatments, irrigation, pruning) The app enables farmers to safeguard and protect their crops | Farmers improve their efficiency, thus reducing costs. As a consequence, they appreciate the firm’s service and are willing to pay for it | (T) | (I) The initial stimulus was internal to the firm and related to its technological development. Then, collaborations with universities and agriculture research centers were established to test the monitoring models and technologies |
| Firm 13 | Ice cream is produced without any animal-based ingredients, thus contributing to environmental sustainability and animal welfare | Offering healthy ice cream that, beyond the many provided benefits, satisfies consumer interest in environmental sustainability and animal welfare | As 100% plant-based, the firm’s products meet the needs of niche consumers who embrace a vegan lifestyle and are sensitive to sustainability, ethics, and animal welfare | Product recipe innovation that substitutes creams and sugars while still producing tasty, creamy ice cream Implementation of a data-driven approach: using extensive data to continually implement improvements to the product’s recipes | Offering 100% plant-based, no-sugar-added, packaged ice creams (the first with these characteristics in the European market) Ice cream is rich in plant-based protein | As 100% plant-based, the firm’s products meet the needs of niche consumers with lactose intolerance | (ES) | (E) New healthy consumer habits stimulated the firm to start doing research on a new 100% plant-based, sugar-free ice cream Then, the support of financial investors and business angels was vital |
Note(s): a(ES): environmental sustainability; (T): technology; (ES-T) both environmental sustainability and technology, b(I): internal to the firm; (E) external to the firm; (I-E) both internal and external to the firm
Source(s): Authors’ own work
Firm 1 is a multifunctional agriculture farming business, whose core activity is growing and processing organic, hydroponic products, which are sold to final consumers, neighborhood shops, and food boutiques. BMI was the result of a combination of technological and environmental sustainability drivers and was centered on the creation of hydroponic greenhouses to produce healthy and organic products, free from pathogens and heavy metals (e.g. nickel), adopting a circular economy approach (“Our goal is to become a circular economy company”). The BMI stimulus was internal to the firm, as emphasized by the interviewee:
Based on my personal experience, I have understood that it is not the market that makes the company, but vice versa […] My father and I are multidisciplinary engineers, as we have always worked in the aerospace defense sector […] I physically designed the installations myself with my company, which now builds the greenhouses we see.
The firm then sought collaboration with two universities to further develop the technologies needed for hydroponic agriculture. This technological innovation made the firm “the first and we are still among the few in Europe, to cultivate in a completely artificial and completely aseptic environment,” which contributed to environmental sustainability.
The computer grows products and external environmental pollution and climate change do not have impacts. Still, regardless of external pollution from pathogens, my tomatoes will never get sick, and above all, we don’t pollute because we don’t emit CO2 into the atmosphere or pollute the ground in any way.
Drawing on its environmental sustainability mission, the firm has introduced new services, such as niche agritourism, didactic farming, and a spa. BMI resulted in multiple value appropriation improvements. The firm has been able to meet the needs of specific customer niches, such as those with nickel allergies, and is able to sell them higher-priced products (e.g. up to €20 for a kilogram of tomato puree). Drawing on its experience, the firm started to produce and sell domestic hydroponic greenhouses of different sizes. It is also working to generate revenues out of waste. The interviewee explained,
When we make tomato puree, we take the peel which is waste, filter it, reuse it, and put it back on sale as tomato powder to make tomato bread rather than to garnish the dishes […] Future opportunities will come from the tomato leaves, which are waste for us, since we need the fruit. We had the leaves analyzed by the university, and we demonstrated that there are a series of molecules that are anti-inflammatory, anti-tumor.
Firm 2 produces, processes, and sells mushrooms. Technology was the main driver of its BMI, though environmental sustainability acted as a secondary motivation. Technological innovations were introduced to respond to customers’ (i.e. large retailers) higher requirements regarding food quality, safety, and service standards. The innovations consisted of new, more sophisticated, energy-efficient machinery, which standardized production processes, increased efficiency, and resulted in more rigid procedures regarding food safety. As the interviewee noted, “There is also the possibility of placing specific lamps above the conveyor belts to increase the content of mushrooms’ vitamin D, thus also innovating the products.”
Process innovation was important, as well. The interviewee remarked that the firm engaged a Dutch expert who brought a new Dutch method:
We had our timings, but he changed these timings. The watering and irrigation of the product were done at certain times, and he made us do them at completely different times. We used to harvest at certain times and then water a certain amount of liters, which he doubled at different times […] We completely overhauled our methodology, saving a lot of kilowatt hours, leading to cost savings. Because of the setting of the CO2 control system, which calls for external air or not, he ensured that we achieved a very significant energy-saving environment.
Although environmental stability was not the primary driver of BMI, the innovations also improved the firm’s environmental sustainability. The firm was able to get environmental certifications such as ISO 14001 and to guarantee product traceability, which is enabled by new software and machinery.
Firm 3 produces organic and sustainable wine and is vertically integrated from vineyards to wine bottles. Its customers are mostly hotel, restaurant, and catering (ho.re.ca.) businesses, final consumers, and a few selected retailers. Environmental sustainability was the main driver of this firm’s BMI. The owner/entrepreneur clearly reported that they felt an internal purpose to innovate wine cultivation and production to make it sustainable and carbon-negative. As the interviewee stated: “The main theme of our innovations is sustainability. This is because we live where we work, so we protect the place where we live and want to stay for our entire lives.” Such links with the local territory and the intent to preserve the local landscape guided BMI.
Technological innovations acted more as a support for this environmental sustainability purpose than as a primary driver of BMI. For example, the firm collaborated with a local university to develop a European patent to produce wine without added sulfites. The firm also launched a project to develop a decision support system to predict grapevine diseases, collecting data through weather stations in the vineyard. The many technological innovations made the interviewee proudly remark, “In 2019, we were the first carbon-neutral vine grower in the world. Today, we are carbon negative.” The guiding role of sustainability emerged in many other facets of BMI. For example, the firm introduced a new packaging label made of recycled cardboard that is not glued to the bottle and can be easily removed. Even though this new label “costs ten times more than the traditional label because it has to be applied manually,” the interviewee noted that all these efforts are perceived by customers, and the prices are able to cover the higher costs.
Overall, for Firm 3, BMI improved value capture through higher margins and additional revenue streams, such as tours of vineyards and cellars to convey the value of sustainable wine, as well as the revenues from new wine-based preserved products. As the interviewee reported,
We decided to create preserved products where the special ingredient is wine. For example, we make a creamy onion spread with violone wine, cocoa, and hazelnut cream, which is the first of its kind in the world. These are all products that weren’t available on the market, but we have created them with special recipes.
Firm 4 grows olives and produces and sells olive oil, mostly to bottlers. Technology was the main driver of BMI, which started to meet internal needs for higher efficiency due to the lower margins in this type of business. However, environmental sustainability also played a significant role in motivating BMI, inspired by customer needs: olive oil bottlers required sustainability and origin certifications. Many technologies substantially improved the value creation stage of this firm’s BMI. As noted by the interviewee,
We use satellites. The results include collecting and interpreting images of plants under water stress situations, as well as identifying nutrient deficiencies based on leaf color […] We cooperate with an external company that develops algorithms tailored to different crops and provides guidance on necessary treatments based on the plant’s vegetative state.
In addition, the firm has installed experimental sensor technology that provides digital control and indications of plant health, along with insights on how to intervene if necessary. The sensors provide data on soil moisture and nutrient levels, replacing manual soil analysis. The firm has achieved the environmental certifications required by its customers to offer “farm-to-fork,” traceability, and sustainable products. The interviewee reported,
In the last four years, we have achieved our own sustainability certification. Therefore, we also have a product that can be labeled and marketed as sustainable. In our case, thanks to the simple fact that the olive tree is an evergreen plant and therefore absorbs CO2 all year round […] you see, we document the entire production process: the work with the tractor, the use of phytosanitary products, the energy consumption during production, and transportation […] the final balance, in our case, is positive.
Environmental-sustainability-driven innovations enabled the firm to sustain its margins, while technology-driven innovation created new revenue streams, such as the sale of by-products (mostly pomace olive pits sold as substitutes for wood pellets).
Firm 5 purchases, packages, and distributes fresh and dried organic fruit and vegetables to different types of customers, including wholesalers, food companies, and restaurants. The firm strongly believes in environmental sustainability, as stated by the entrepreneur/owner: “The key value for us is eco-sustainability.” Environmental sustainability is strongly reflected in its products that are not easy to find in other channels (e.g. organic raspberry powder). The main driver for BMI, however, was technology. The entrepreneur/owner reported that they saw an opportunity to establish two e-commerce websites (i.e. one for the Italian market and one for the broader European market) to directly sell their products to final consumers, bypassing intermediaries. They established a highly responsive e-commerce service, investing heavily in creating e-commerce platforms and a fully automated warehouse. As the interviewee summarized, “Digitalization! In recent years, our largest investments have been in the digital field. We have introduced an automated warehouse, but the majority of the investments are all related to e-commerce and logistics management software.”
The environmental sustainability driver is intertwined with, but not leading, Firm 5’s BMI. Their most important sustainability innovation is related to packaging and the possibility (enabled by automation) of opening an online bulk store to deliver the exact quantity demanded by each customer. Specifically, the interviewee emphasized,
Packaging has undergone a significant evolution, and we have kept pace with these changes. Many years ago, we started with plastic, then moved to paper, and this year, we have transitioned everything to bulk products. Therefore, customers can purchase the desired quantity in a biodegradable paper package and have the possibility to buy as if we were an online bulk store.
All these facets of BMI improved value capture and resulted in higher margins for the firm.
Firm 6 produces sustainable wine, which is sold both directly to consumers (about 30% of the volume) and through other channels (e.g. ho.re.ca.). The main driver of BMI was clearly environmental sustainability. BMI was the result of a long-term project to understand the identity of the territory and produce a wine consistent with that identity, leveraging the natural characteristics of the area and emphasizing environmental sustainability. The main purpose was to produce high-quality wines rooted in the local territory, preserve biodiversity, and adopt integrated farming:
We started with an experimental project by planting 57 varieties of vines in an area where this has never been done before […] We took a completely different approach and asked ourselves: In this territory, which variety works best if I don’t apply any treatments? […] The patience to innovate in viticulture, however, always entails respecting a fundamental aspect: what can be done and what cannot be done in agriculture.
For Firm 6, sustainability also encompassed the well-being of all people working for them. Technology played a secondary role in BMI, intended as a tool to support environmental sustainability. The interviewee emphasized that several technological innovations had been introduced, from the use of probes to optimize water usage to advanced mechanization. However, they conceded,
Every day, there are new technologies and techniques. Today we have organic, tomorrow we will have biodynamic, and the day after tomorrow we will have ancestral [techniques …], but if they are not connected to the uniqueness of a territory, they remain novelties that do not have much value.
Although Firm 6’s BMI was the result of an internal purpose felt by the owners of the firm, relationships with other actors increasingly played a key role. Specifically, the firm aims to involve other wine producers (i.e. competitors) from the same area to create and communicate a specific territorial identity, believing that such cooperation could result in higher benefits for all participating wine businesses. The BMI strengthens the firm’s value capture by enabling it to charge significantly higher prices from customers who appreciate the firm’s long-term commitment to producing a sustainable wine strongly related to the local identity. Interestingly, the interviewee concluded, “We do not feel the need to increase our production. We will not increase the number of bottles. Our land area is unique, so the volumes of [Firm 6] will not increase. I hope that our project will help to enhance this territory.”
Firm 7 produces, processes, and sells local organic vegetables and, to a limited extent, fruit to food service companies, organic food shops, and end consumers. BMI was driven by environmental sustainability, which was a prerequisite for continuing to do business with food service companies—the main customer segment of Firm 7. Food service companies, mostly canteens, started to demand certificates of origin, sustainability, and the organic nature of the product, as such certifications were required to participate in public tenders to win school canteen contracts. As noted by the interviewee,
When we made the choice to convert our production company to organic, climate change wasn’t as widely discussed as it is now. At least, climate change seemed a bit less urgent, but there was already a necessity from the outside world.
However, sustainability was quickly internalized by the firm, which deliberately decided to adopt a circular-economy-oriented approach, including nearly total energy self-sufficiency through photovoltaic systems and the use of processing waste as fertilizer. External demand for sustainable and organic products also came from final consumers, the second most important target for this firm. The interviewee emphasized, “Today, consumers are seeking products from companies that are mindful of the environment and responsive to consumer needs, including those looking for a more direct relationship with the producer.”
Technology contributed to BMI in two main ways. First, the adoption of new information systems supported the implementation of a “farm to fork” approach, enabling product traceability throughout the supply chain. Second, the firm created a virtual online showcase to enable end customers to place direct orders. The innovations in value creation and proposition are also reflected in value capture. The firm was able to comply with the requirements of its customers and thus continued to secure their business. Moreover, it added new revenue streams (e.g. nearly 250 varieties of organic chili peppers) and reduced energy and processing costs.
Firm 8 processes and sells spices and, more recently, freeze-dried seasonal fruit and vegetables. Retailer chains are its main customers, accounting for approximately 80% of its revenues. The main driver of BMI was demands from new generations of consumers, who are increasingly sensitive to environmental, health, and sustainability issues. Technology played a substantial role in supporting BMI both internally (e.g. new 4.0 machinery) and externally, as the involvement of other supply chain actors was fundamental. The interviewee noted, “The retailer chain […] has said to us, ‘Shall we put together a project?’ Thus, we have put tablets in their stores that allow the consumers, through a QR code, to see the uses of spices, the plant, the origins, and so on.” As a result of new technology implementation, the firm now embraces a data-driven approach that “has improved all processes regarding production, distribution, and sales.”
Sustainability is now integrated into the firm’s corporate social responsibility efforts. The firm focuses on healthy living and nutrition and has introduced educational activities to communicate healthy eating habits. For example, “An offering of spices and herbs, previously targeted at a niche market (such as health-conscious individuals and vegans), has been presented in an innovative way, becoming an offering for everyone.” A new product line of seasonal freeze-dried fruit and vegetables has been added to the firm’s assortments; this focus on seasonality also reflects the firm’s attention to environmental sustainability. Value capture benefited significantly from other BMI components. Sales and revenues increased substantially, and the firm’s market share doubled in four years. Technology further contributed to efficiency, sustaining the firm’s margins. Further improvements can be expected in the future, as the interviewee reported, “Now we are also doing tests to try also to reach the consumers directly through the e-commerce.”
Firm 9 produces and sells baked goods, primarily biscuits and rusks. Retailers are its most important customers. The firm’s BMI is jointly driven by environmental sustainability and new technology. On the one hand, consumer demand for more sustainable, healthier products and a higher quality of life motivated the firm to innovate its products. It was able to meet and even anticipate some market trends, such as the demand for “free from” products and protein-enriched food. Significant efforts were made to improve the product packaging, as explained by the firm’s marketing manager: “We started to lighten, that is, to reduce the amount of material used in the packaging of our products. Lightening the product means researching for years to achieve the same level of product preservation.”
On the other hand, the firm felt an internal need to implement new technology to improve its efficiency. The introduction of new software to monitor the flow of materials represented one of the most significant innovations: “Today we know at the end of each month what the production inefficiencies are, what the actual raw material costs are.” Other relevant changes concerned recycling, as 100% of used materials are now recyclable, and the use of local suppliers whenever available offering high-quality inputs. The introduction of its own e-commerce store also enabled direct relationships with consumers. The innovations in value creation and value proposition resulted in several value capture benefits. Consumers appreciated the firm’s innovative products, resulting in positive market performance. At the same time, the newly implemented technologies significantly reduced waste and, by extension, production costs. As the interviewee stressed, “The control of waste, the control of scraps, has become truly essential, not in terms of innovation, but simply for the survival of the company.”
Firm 10 produces kiwis and kiwi-based products (specifically kiwi vinegar) to sell to high-level stores, ho.re.ca. businesses, and end consumers. The stimulus for the BMI was internal to the firm and driven by the entrepreneur’s vision. The company’s aim is that “all that we produce, transform and sell must have a positive impact on the environment, be sustainable, both for people and for the environment.” Interestingly, some innovations were born with the aim of bringing value to kiwis that, for aesthetic reasons, were not appealing to consumers: “There is a lot of waste, meaning products aren’t purchased due to aesthetic reasons.” Kiwi vinegar emerged as a crucial opportunity from a mistake: “The product was born from a mistake, from the desire to make wine from kiwi, but that fermentation process did not result in wine but generated a yeast that allowed us to create a unique product.”
The firm cooperated with a university to develop the technological innovation needed to produce kiwi vinegar, resulting in two patents. The introduction of kiwi vinegar has made it possible to provide consumers with the same organoleptic properties of kiwi but with a longer shelf life: “A transformation between the sugary part and the acetic part [means that], and I say this with the support of studies and certifications, that nothing of the kiwi is lost! Except for vitamin C.” Environmental sustainability is intertwined with all the choices of the firm, and all products are certified as sustainable and organic. As the interviewee noted regarding the kiwi vinegar, “It is made with sustainable processes because we ferment entirely in glass.” In addition, the firm cooperates with other local firms to produce kiwi-based products, such as crisp bread rings with kiwi. These innovations resulted in remarkable value capture improvements. The choices made in both product diversification and packaging (i.e. glass) allow the firm to charge a premium in the market. In the near future, Firm 10 hopes to obtain a permit for kiwi vinegar to be sold in pharmacies, given its organoleptic properties.
Firm 11 produces bagged, fourth-range vegetables, mostly sold to large retailers (accounting for approximately 95% of revenues) for their private labels. BMI was activated to accommodate the quality, safety, and cost requirements of its customers. Technological innovations were needed to comply with such requirements. As explained by the interviewee,
The process, which may seem like a simple washing, drying, and packaging operation, actually involves a series of highly advanced machinery. So, there is a hydraulic, engineering, electronic, and mechanical system that together ensures that what is in our package is properly processed, checked for microbiological safety, and ready to be consumed.
Most of the investments were related to the implementation of new software:
We are making a significant investment in management software, so we are implementing a system that will allow us more effective management control. In short, the key is to work on the process, and we are focusing on improving it by identifying areas where we can make small adjustments—here and there—to recover efficiency while maintaining the same level of work quality. It’s a challenging but rewarding endeavor.
Higher environmental sustainability was more a consequence of BMI than a driver. The need for greater efficiency led the firm to innovate to reduce energy consumption and, as a result, energy costs. These innovations affected the value capture component because the firm achieved greater efficiency, remaining profitable and continuing to secure business with retailer chains.
Firm 12 offers a crop monitoring system to farmers, primarily for olive groves, vineyards, and almond orchards. The initial stimulus for BMI was internal to the firm, which developed technology based on satellite images from Copernicus (i.e. the European Union’s space program), insect traps, and soil sensors that produce big data, which is analyzed through artificial intelligence algorithms to develop predictive models for disease forecasting. The interviewee reported that the firm created
… a system of insect traps with an integrated camera. It allows for constant monitoring of insect pressure throughout the day. The 10-megapixel resolution images are sent to a platform where they are analyzed using artificial intelligence. The data is displayed as daily and total captures and provides insights into population growth over the season.
The system provides updated information on vegetation index, water stress, and food stress, recommending crop treatments (e.g. fertilization and irrigation) to farmers. Farmers can access this information through the firm’s mobile app, which “supports farmers’ decision-making by providing predictive alerts (also sent via SMS) 5, 7, or 10 days in advance to prevent olive fruit fly, moth, peacock spot, and anthracnose.”
Environmental sustainability acted as an additional driver because “from an environmental impact perspective, farmers often also want to reduce their environmental footprint. And as a result, if they use technology, they apply fewer treatments, become more efficient, and also have a smaller impact on the environment.” For irrigation purposes, for example, a weather station installed in the field can precisely detect hour humidity, temperature, rain, and dew point every hour, thus reducing water waste. Overall, the solution offered by Firm 12 is appreciated by farmers—specifically by organic farmers, who need to prevent diseases without using chemical treatments in their fields—allowing the firm to capture value from its BMI.
Firm 13 produces 100% plant-based, no-added-sugar, packaged ice cream to sell to retailer chains (approximately 85% of revenues), ho.re.ca. businesses and final consumers through e-commerce. As the founder claims, “We have managed to create the first ice cream in Europe that contains no added sugar, and it is entirely linked to a plant-based supply chain.” The main stimulus for BMI was related to sustainability, inspired by consumers’ new consumption habits focused on health, sustainability, and ethics. The interviewee noted,
The ethical and sustainability aspects […] I can refer to animal ethics or to the cacao supply chain, which is very problematic, and then the environmental sustainability aspect […] we were able to address them, and our product is certainly more sustainable and healthier compared to a traditional product, without compromising the main characteristics of ice cream, which are taste and creaminess.
As a consequence of changing consumer demand, the firm started to invest in researching and developing new ice cream recipes without the use of creams and sugars, while still “keeping the product creamy [which] was a complex challenge.” Technology-based BMI enabled the firm to create “a specific network related to ice cream product innovation.” In developing the new recipes, the firm adopted a data-driven approach: “The main asset of the company is the extensive data we’ve collected from the field over these four years of research and development, which we transformed to change the product itself.” Collaborations with investors and business angels were fundamental in supporting these continuous and expensive research and development activities. Through innovation, the firm has been able to meet the needs of a niche group of consumers who embrace a vegan lifestyle, are sensitive to environmental sustainability, ethics, and animal welfare, and/or are lactose intolerant.
4.2 Discussion and implications
The within-case analysis presented in Section 4.1 confirms that both environmental sustainability and technologies acted as drivers of BMI in the analyzed cases. The two drivers led to changes in all components of BM (i.e. value creation, value proposition, and value capture), albeit with different magnitudes. Regardless of these similarities, the paths through which BMI was activated were remarkably different. Figure 1 presents the different paths observed in the 13 cases based on the drivers (i.e. environmental sustainability, technology) and the locus (i.e. internal, external) of the BMI activation. Three main paths can be identified:
Purpose-driven BMI was followed by Firms 3, 6, and 10, starting with an internal vision for environmental sustainability that was then turned into reality. This path reflects moral motives for engaging in sustainability-oriented BMI it is deemed as the “right” thing to do (Paulraj et al., 2017). This path moves toward the technology/external cell in Figure 1, indicating that the firms subsequently looked for external partners to co-develop the technological component of BMI. Firms 3 and 10, for example, established cooperations with universities to develop patented products or processes. Firm 6 represents a peculiar case because this firm tried to share its sustainable vision with other producers from the same territory. It tried to establish a shared, sustainability-driven purpose that could drive its whole ecosystem to enable its BMI.
Purpose-driven BMI is consistent with the small number of studies that have proposed that environmental sustainability considerations are the driver of technological innovation (Hermundsdottir and Aspelund, 2021; Rantala et al., 2018) and that technology is a means to implement environmental sustainability goals (Fu et al., 2018). Our findings advance this prior knowledge by showing that the locus of this path moves from inside the firm to outside to establish cooperation with other actors in order to develop the necessary technologies.
Technology-exploration-driven BMI was followed by Firms 5 and 12. This approach starts with an internal interest in developing new technologies, which is then used to meet an external demand for greater environmental sustainability. In this case, the technological driver clearly prevails, and environmental sustainability is more of a consequence of this instrumental interest (Paulraj et al., 2017). For example, the advanced technologies developed by Firm 12 based on satellite images, artificial intelligence, sensors, etc., aimed to facilitate farmers’ performance. In turn, they also contributed to environmental sustainability by reducing water waste and limiting the number of treatments (e.g. fertilization) in the fields. The technology-exploration-driven BMI path is consistent with previous research suggesting that technologies act as the drivers of higher environmental sustainability (Kumar et al., 2025; Opazo-Basáez et al., 2024). The possibility of developing and implementing new technologies drives these firms’ BMI (Khan et al., 2021). What is unique to this path is that the stimulus to develop BMIs arises inside the firm and is related to the owner’s (or other key players’) passion or previous experience with technological development.
Compliance-driven BMI was followed by Firms 2, 7, 8, 11, and 13, which all have an external BMI stimulus in common. In other words, these firms were induced to innovate their BM to continue their relationships with customers or to meet the needs of new customers. In theoretical terms, this reflects relational motives for BMI (Paulraj et al., 2017). In some instances, such as for Firms 2, 7, and 11, the innovation was required by firms’ main customers (e.g. retailer chains) to continue their business relationship. In the other instances, such as for Firms 8 and 13, the changes were not mandatory, but were essential to meet new customers’ needs. While all the cases in this path share the external locus of the stimulus for BMI, a main distinction can be made: whether the stimulus was related to sustainability or efficiency. For Firms 7, 8, and 13, the external stimulus was connected to sustainability (i.e. the starting point is in the environmental sustainability/external cell in Figure 1). For Firm 7, for example, BMI was induced by customers’ requests for certificates of origin, sustainability, and the organic nature of the products. For Firms 2 and 11, the external stimulus concerned efficiency (i.e. the starting point is in the technology/external cell in Figure 1). In these situations, firms had to update their technology to meet quality or safety standards imposed by customers.
These findings echo the impacts of market and coercive pressures by key stakeholders highlighted by the extant literature on sustainable technology adoption (Fu et al., 2018). However, our findings identified important differences in this type of path. At Firms 2, 8, 11, and 13, the external locus of BMI may move from environmental sustainability to technology or vice versa but does not expand to the internal locus. This limitation may hinder the long-term success of BMI. Reduced external pressures and an absence of intrinsic motivation may reduce a firm’s commitment to continue developing BMI (Magno and Cassia, 2024; Paulraj et al., 2017). The external stimulus was interiorized only in the case of Firm 7.
Finally, three firms embraced hybrid paths. Firm 1 combined purpose-driven BMI and technology-exploration-driven BMI. The firm both embraced a sustainability mission and worked to explore and develop new technologies related to hydroponic greenhouses. Firms 4 and 9 combined an external stimulus for higher sustainability with internal technological exploration to increase efficiency, integrating technology-exploration-driven BMI and compliance-driven BMI. Our findings suggest that to truly understand these cases, research needs to move beyond cause-and-effect relationships between environmental sustainability and technology (Chopra et al., 2024) and embrace a circular view of the reciprocal relationships between these two drivers.
Our findings contribute to the literature on the twin transition in agri-food firms (Myshko et al., 2024), responding to the recent call for more knowledge on the interplay between technology and environmental sustainability in BMI (Chopra et al., 2024), particularly for agri-food firms (Miranda et al., 2023). They reveal that while sustainability and technology play complementary roles in the transition toward greater environmental sustainability in the agri-food industry, the paths through which these two drivers interact are varied. Specifically, our study distinguishes whether environmental sustainability or technology acted as the main driver of BMI, as well as if they simultaneously played a leading role. By providing a combined analysis of the drivers and locus of BMI, this study provides a systematization of prior research on agri-food BMI. Although previous research had indicated that BMI could be activated by internal motivations or by other actors in the firm’s agri-food supply chain (De Chiara, 2021; Pellegrini et al., 2023; Ulvenblad et al., 2018), a comprehensive framework was lacking.
The proposed framework is useful not only for agri-food entrepreneurs designing BMI paths but also for policymakers. Policymakers should take a comprehensive approach to BMI, jointly considering environmental sustainability and technology and integrating the firm’s internal competencies and resources with those of the other actors in the supply chain. Our findings indicate that interventions aimed at stimulating technology innovation have the potential to activate BMI (particularly technology-exploration-driven BMI), but not for all firms. In other cases, such as for purpose-driven BMI, interventions should first focus on the environmental sustainability awareness of the firm’s entrepreneurs and managers. In cases where BMI involves more actors, such as compliance-driven BMI, comprehensive, supply-chain-based interventions are needed. In these cases, the interventions should stimulate firms to engage in BMI beyond the short-term need to comply with new requirements from important customers.
Our analysis suggests that the identified BMI paths are complex and require time to be developed and successfully implemented by firms. Policymakers should therefore offer services that support firms during all stages of BMI, reducing disengagement or discontinuance. Such sustained efforts are needed to maximize the contribution of BMI toward greater sustainability, efficiency, resilience, and inclusivity and meet the objectives of the 2030 Agenda. Finally, policymakers should design interventions that stimulate both drivers of BMI (i.e. environmental sustainability and technologies) and encompass both internal and external loci of BMI. Such comprehensive interventions can leverage decision-makers’ intrinsic and extrinsic motivations to pursue BMIs, creating virtuous processes that engage more actors and result in more effective, long-term impacts at the societal level. As a result, healthier and fairer agri-food systems will emerge, safeguarding natural resources and environmental sustainability, enhancing people’s quality of life, and strengthening the competitiveness of small and medium-sized agri-food firms (Annosi and Brunetta, 2021; Reinhardt, 2023; Vlachopoulou et al., 2021).
5. Conclusions and limitations
Agri-food firms can make a significant contribution to the transition toward greater environmental sustainability by implementing BMI. This study advanced our knowledge of the mechanisms that activate BMI in agri-food firms. In-depth analyses of 13 cases of successful BMI were used to derive a framework combining the driver (i.e. environmental sustainability and/or technology) and the locus (i.e. internal and/or external to the firm) of the BMI stimulus. The framework identified three main paths to BMIs in agri-food businesses: purpose-driven BMI, technology-exploration-driven BMI, and compliance-driven BMI.
Despite the light shed on the twin transition in the agri-food industry by this study, several limitations must be considered. First, only successful BMI cases were analyzed in this study. New insights could be derived by also considering cases in which BMI did not achieve the expected outcomes. Second, the study considered cases covering different activities and stages within the agri-food industry. Future research could focus on specific stages to highlight more detailed features of BMI. Actors at each stage of the supply chain (e.g. farms, food processing firms, etc.) may experience differences in their BMI paths. Third, we used a retrospective approach to make sense of BMI performance through interviews. Future studies may adopt a longitudinal approach to better grasp the mechanisms behind BMI and their effects over time. As illustrated in Section 4.2, several studies have suggested that the development of BMI driven only by external pressures may cease if such pressures decrease over time when intrinsic motivation is not present. However, further research is needed to substantiate such arguments.
