Experimentation and Learning in Business Model Innovation for Sustainability in Incumbent Firms: An Integrative Review

ABSTRACT The pressure on corporations to contribute to sustainable development is increasing. It is widely recognised that the sustainable development goals and deadlines cannot be achieved without the support of incumbent firms. Business model innovation (BMI) is identified as a means for businesses to contribute to sustainable development. Yet, BMI is a risky endeavour that often ends in failure, especially in today's dynamic and constantly evolving environmental context. Within the wider process of Business Model Innovation for Sustainability (BMIfS), the experimentation phase plays a critical role in enabling firms to learn, adapt and validate new business model configurations. Despite the burgeoning body of research, our current knowledge of the BMI process, particularly in relation to experimentation, is disparate and lacks a dynamic and comprehensive framework. Drawing on 137 studies, we address this gap through two key contributions: first, by synthesising the existing knowledge on experimentation in BMIfS, and second, by developing a conceptual framework for dynamic learning driven experimentation that explicitly recognises the inherent tensions between economic, environmental and social objectives in BMIfS. This conceptual framework can serve as a useful framework for managers seeking to engage in BMIfS as it clearly outlines the stages in the BMIfS process under highly dynamic environments. We end the paper with several avenues for future research.