Sustainable business model innovation (SBMI) as a complex and multi-faceted concept has been gaining the attention of researchers and practitioners as an approach for addressing socio-environmental challenges. It embraces transformations of business models to strengthen the ability of companies to achieve sustainable development by integrating sustainability goals into business models and simultaneously gain profits. However, inasmuch as the literature on SBMI portrays it as a win-win approach, practice shows that the overwhelming majority of SBMIs fail. Therefore, in this study, we aim to answer the question: why do SBMI initiatives so frequently fail?

Focusing on the innovation literature, we explore SBMI failure from a process perspective to identify underlying failure mechanisms using the methodology of qualitative meta-analysis. This theoretical study examines a large dataset and identifies the mechanisms of SBMI shortcomings in creating both sustainable value for society and profit for companies. The practical value of this research project is providing an in depth understanding on reducing SBMI failures and increasing successful business model innovations that successfully combine profit with societal benefit.