ACHIEVING SUSTAINABILITY THROUGH BUSINESS MODEL INNOVATION AND CROSS-SECTOR COLLABORATION IN BIOTECHNOLOGY STARTUPS IN INDONESIA
Various initiatives to achieve social and environmental justice have occurred all over the world in the rapid hike of sustainability concern of the earth’s citizens. In the last decade, movements to bolster sustainability in every facet of life have been growing from the developed countries. Foll...
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Format: | Theses |
Language: | Indonesia |
Online Access: | https://digilib.itb.ac.id/gdl/view/40232 |
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Institution: | Institut Teknologi Bandung |
Language: | Indonesia |
Summary: | Various initiatives to achieve social and environmental justice have occurred all
over the world in the rapid hike of sustainability concern of the earth’s citizens. In
the last decade, movements to bolster sustainability in every facet of life have been
growing from the developed countries. Following this trend, enterprises are more
and more considering sustainable innovations into their business model hence the
research dwelling on this respect are increasing in the past few years. Innovations
in business processes were carried out in many enterprises to compensate the harm
they release to the environment. This study tries to focus on biotechnology industry
that is said important in attaining sustainability objectives, as it is stated in
Sustainable Development Goals (SDGs) of the 2030 Agenda for Sustainable
Development. This industry is deemed to operate and generate environmentallysafer
processes and products.
Nowadays, more and more business startups are created to be impactful. They are
important in sustainability development as they possess a broad space for business
model innovation than the older businesses. Today, biotechnology industry is
developing extraordinarily in cluster locations all over the world. Cross-sector
collaborations have been demonstrated to be the main requirement of sustainable
biotechnology business. However, in spite of flourishing research scrutinizing on
business model innovation for sustainability, there is no research found
incorporating the cross-sector collaboration into the sustainable business model
innovations on startups. Furthermore, many researches have concluded that they are
important to enhance the competitive advantages of firms that is especially
necessary for developing countries.
Therefore, using qualitative approach, this study tries fill the gap by exploring the
elements’ characteristics of business model innovation in contributing to the
balance in economy, social, and environmental development and cross-sector
collaboration efforts within it in biotechnology business startups. This research
flows in five stages: 1) phenomena observation, literature review, and problem
identification; 2) case selection; 3) data collection and transcription; 4) coding and
ii
data analysis; and 5) writing finalization. Indonesia is chosen for the case study as
it is a country with the fourth biggest populations in the world with rapid growth in
economy that provides a proper example to represent the developing countries
especially the Southeast Asia. The data collection lasted during March until
November 2018 in Bandung and Jakarta primarily through interviews with five
biotechnology business startup owners. This study uses multi-case analysis
underpinned by business model innovation concept to elaborate the sustainabilityoriented
activities along their supply chain and the role of each actors involved in
the actions.
The analysis yields in the general description of current sustainable business model
innovation of the cases, the motives of why the cases attain sustainable business
model innovation, the model development of the sustainable business model
innovation, and the cross-sector collaboration activities in achieving sustainability.
This study found that business model innovations for sustainability in
biotechnological startups are derived from three drivers: 1) market demand; 2)
value chain improvement; and the 3) non-business motive. These three drivers
create different characters in three approaches of innovation in business model:
content, structure, and governance. The content is determined as products based on
market demand and as services based on business owner’s non-business motive. A
new value in the market-demand’s products would affect the structure and not
always the governance, while the non-business services only affect the governance.
The structure is the value chain of the products which sometimes needs governance
change regarding to sustainability value improvement of the firm. Cross-sector
collaboration of the cases are related to the structure and governance of the
sustainable business model innovation. The firms collaborate with eight external
partners: supplier, customer, other business, research institutes, communities, nongovernmental
organization (NGO), government, and investor. Among all, supplier
and customer are generally the most important partners for business as they are
involved in most of the structure innovation. For non-business activities, only NGO,
communities, other business, and the government are taking roles. Two important
notes found in this study is that all biotechnology startups initiated their business
regarding the owner's value of sustainability; and that they perform non-business
activites regularly mainly by sharing knowledge to the society. These
characteristics are uncommon to be found in large companies which in general
focusing only on the economic gain.
The findings shed light regarding the practiced strategy of business model
innovation and cross-sector collaborations of biotechnology startups to achieve
sustainable development, especially in Indonesia. They are important as a reference
for sustainability-focused future study and as guidance for starting enterprises in
biotechnology, especially focusing in developing countries. |
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