Systematic literature review on system dynamic modeling of sustainable business model strategies

Abstract

The need for more studies on the dynamics of business models has been recognized, especially when considering how business models need to transform to support the transition toward sustainable development and a circular economy. System dynamics business model simulations can explore relationships between business strategy, daily operations, strategy implementation, and stakeholder interactions. This study aims to synthesize and analyze findings from existing literature on system dynamic modeling of business models. Following the PSALSAR systematic literature review framework, the results highlight a noticeable focus shift in the evolution of sustainable business model strategies. Before 2016, scholars focused on resource maximization strategies and sustainable scale-up solutions. Post-2016 emphasis has revolved around strategies delivering functionality, adopting a stewardship role, and closing the resource loop. The findings support that system dynamics is a powerful tool for business model innovation, allowing risk-free testing of scenarios and helping to identify leverage points, such as regulations, policies, and product/service design. System dynamics advance the business model paradigm, especially for implementing sustainability strategies. Consequently, this study has implications for scholars, policymakers, and the business community, given its application to furthering sustainable development and the circular economy.

Keywords

• Business model
• System dynamic
• Circular economy
• Circular disruption
• Sustainable business model strategies