Reconciling people, planet, and profit: A business model innovation perspective in high-technology start-ups

Amid mounting social and environmental pressures, sustainable business models must balance social responsibility (people) and ecological stewardship (planet) with financial performance (profit). While business model innovation (BMI) offers a mechanism to address these challenges, the strategic trade-offs start-ups make to reconcile conflicting triple-bottom-line (TBL) goals remain elusive. Addressing this gap, a multiple-case study of 24 high-technology start-ups is employed to uncover the mechanisms used to reconcile sustainability and profitability. Grounded in BMI and configuration theory, this research identifies nine reconciliation dimensions that structure how start-ups manage these competing priorities. These dimensions shape distinct business model configurations, revealing four archetypical reconciliation strategies. Each represents a context-specific pathway to iteratively align sustainability and profitability through specific strategic orientations, technology integration and business model assessment. Our findings contribute to extant literature in three primary ways. First, we refine sustainable BMI theory by identifying coherent configurations across the nine dimensions that reflect start-ups' business model archetypes. Second, we extend configuration theory by framing reconciliation as an iterative process of managing persistent tensions. Third, we show that evolving start-ups transition between configurations, underscoring the permeability of archetypes. In doing so, the study offers nuanced and actionable insights for entrepreneurs, investors, and policymakers. • Start-ups need to reconcile diverging sustainability and profit objectives. • A multiple-case study of 24 European high-technology start-ups was conducted. • Nine dimensions were identified that shape coherent reconciliation configurations. • Four distinct archetypes emerged by grouping case reconciliation configurations. • Start-ups adapt configurations over time, demonstrating archetype permeability.