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 |
| 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) | Healthy and organic products: beneficial for individual well-being and environmentally sustainable (products grown without damaging the soil or polluting the environment) | 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) | Design and creation of hydroponic greenhouses. Vegetable growing is automated and managed by computers | 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 | (ES-T) | (I) |
| Firm 2 | New energy-efficient machinery | 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 | Better service and higher precision for customers (mostly retailer chains) | Production cost reduction, greater efficiency | (T) | (E) |
| Firm 3 | European patent to produce wine without added sulfites | Offering sustainable wine that contributes to preserving the environment, the landscape, and local culture, going beyond carbon neutrality (i.e. carbon negative) | 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) | Development of decision support systems to predict grapevine diseases, collecting data through weather stations | Establishment of an online shop for consumers (the main customer segment of this firm) | Some minor cost reductions due to more advanced tractors and efficiency | (ES) | (I) |
| Firm 4 | Using the so-called “integrated farming system” to sustainably grow olives | Offering “farm-to-fork” quality certifications to customers (i.e. olive oil bottlers) | 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 | Sale of by-products (e.g. olive pits) | New technologies have improved efficiency | (ES-T) | (I-E) |
| 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) | 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 | 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) | (T) | (I) |
| 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 | Use of probes measuring the electrical conductivity of the soil to optimize water usage | Offering higher quality wines | Reduction of necessary working hours per hectare and rationalization of costs | (ES) | (I) |
| Firm 7 | Implementation of circular economy approach | Offering certified organic products | Offering organic products allows the firm to be a supplier of food service businesses | Creation of a virtual showcase for product sales | Convenience for customers who can make purchases using the virtual showcase | Energy cost savings and more efficiency | (ES) | (E) |
| Firm 8 | Sustainability is integrated into the firm’s corporate social responsibility efforts | Offering healthy products for a healthy diet and lifestyle | 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 | Implementation of 4.0 technologies (e.g. new machinery), which increased the efficiency of internal production processes | New, rich, technology-enabled experiences for consumers | Data-driven approaches have improved production, distribution, and sales processes, thus sustaining margins | (ES) | (E) |
| Firm 9 | Recycling has become a priority for the firm: materials are always 100% recyclable | 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’s own e-commerce store enabled direct relationships with consumers | Waste reduction resulted in significant cost reduction | (ES-T) | (I-E) |
| 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 | 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 is appealing, resulting in positive market performance | (ES) | (I) |
| 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) | 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) |
| 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) | 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) |
| 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 | Offering 100% plant-based, no-sugar-added, packaged ice creams (the first with these characteristics in the European market) | As 100% plant-based, the firm’s products meet the needs of niche consumers with lactose intolerance | (ES) | (E) |
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
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