Open innovation for circular and sustainable business models: case evidence from the bioeconomy sector

This study explores the integration of Open Innovation (OI) models with archetypes of sustainable business in Forest-based Bioeconomy (FBB) companies in the digital age. Utilising a multiple case study methodology, four FBB companies were examined to understand their strategic orientations and sustainability practices. Case studies provide detailed insights into processes and interactions within specific contexts, making them suitable for examining emerging phenomena like the Circular Economy (CE). Although OI, CE, and sustainability have been individually studied, little empirical research explores their intersection in the FBB. Existing literature often focuses on theoretical foundations or isolated applications, neglecting how OI supports circular and sustainable business models in the FBB. Additionally, the challenges and opportunities for FBB companies in the Global South remain largely unexamined, despite their importance in global sustainability transitions. Therefore, this research addresses a significant gap by exploring how companies operating in the forest-based bioeconomy sector exploit OI models to enhance circular and sustainable business models in the digital age. The findings reveal that sustainability approaches are dynamic and overlapping strategies rather than fixed archetypes. The study highlights how OI models facilitate the use of both external and internal knowledge at various stages of innovation, demonstrating that the choice of sustainability archetypes both influences and is influenced by companies' OI models. These insights are valuable for scholars, managers, and policymakers aiming to promote sustainable economic development and environmental stewardship.