Business models for material efficiency services: Conceptualization and application

Despite the abundant research on material flows and the growing recognition of the need to dematerialize the economy, business enterprises are still not making the best possible use of the many opportunities for material efficiency improvements. This article proposes one possible solution: material...

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Bibliographic Details
Published in:	Ecological economics Vol. 63; no. 1; pp. 126 - 137
Main Authors:	Halme, Minna, Anttonen, Markku, Kuisma, Mika, Kontoniemi, Nea, Heino, Erja
Format:	Journal Article
Language:	English
Published:	Elsevier B.V 01-06-2007 Elsevier
Series:	Ecological Economics
Subjects:	Business models Business studies Conceptualization Customers Eco-efficient services Ecology Environmental economics Management Material efficiency Sustainability Sustainable services Material efficiency Eco-efficient services Sustainable services Business models
Online Access:	Get full text
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Summary:	Despite the abundant research on material flows and the growing recognition of the need to dematerialize the economy, business enterprises are still not making the best possible use of the many opportunities for material efficiency improvements. This article proposes one possible solution: material efficiency services provided by outside suppliers. It also introduces a conceptual framework for the analysis of different business models for eco-efficient services and applies the framework to material efficiency services. Four business models are outlined and their feasibility is studied from an empirical vantage point. In contrast to much of the previous research, special emphasis is laid on the financial aspects. It appears that the most promising business models are ‘material efficiency as additional service’ and ‘material flow management service’. Depending on the business model, prominent material efficiency service providers differ from large companies that offer multiple products and/or services to smaller, specialized providers. Potential clients (users) typically lack the resources (expertise, management's time or initial funds) to conduct material efficiency improvements themselves. Customers are more likely to use material efficiency services that relate to support materials or side-streams rather than those that are at the core of production. Potential client organizations with a strategy of outsourcing support activities and with experience of outsourcing are more keen to use material efficiency services.
Bibliography:	ObjectType-Article-2 SourceType-Scholarly Journals-1 ObjectType-Feature-1 content type line 23 ObjectType-Article-1 ObjectType-Feature-2
ISSN:	0921-8009 1873-6106
DOI:	10.1016/j.ecolecon.2006.10.003