Facilitation of water-related environmental measures to support business model innovation for sustainability in agricultural business

The implementation of water-related environmental measures (WREMs) in agricultural businesses presents an opportunity to align food production with sustainable value creation through ecosystem services. However, the complexity of adopting these measures, and making them a part of business models, necessitates the involvement of intermediaries to facilitate business opportunities that align with governmental sustainability goals. This study investigates the role of government-affiliated intermediaries in facilitating agricultural business plans, motives, and support needs for implementing WREMs. Using baseline and follow-up questionnaire data from 255 agricultural business managers, the study finds that intermediaries play a crucial role in fostering long-term sustainability commitments. Their facilitation, through expert advice, knowledge transfer, and resource mobilization, significantly increased the likelihood of businesses planning semi-long-term WREMs. However, the correlation between WREMs and market-driven value creation remained weak, highlighting the need for enhanced support in developing financially viable sustainability solutions. These findings underscore the importance of aligning intermediation strategies with business managers’ financial incentives to drive broader adoption of sustainable agricultural practices.