leading to major redesigns of the business model. Companies pursuing this approach develop innovative, socially, and environmentally exceptional products and services, using sustainability as a source of competitive advantage. This strategy not only enhances profits and reputation but also attracts skilled employees and creates entirely new value propositions. For the execution of the business strategy, SMEs must consider the correct organisational structure to effectively integrate sustainability. Unlike larger corporations, SMEs benefit from their inherent agility, which allows for faster adaptation to sustainable practices and decision-making. As highlighted by Global (2021), SMEs should prioritise flexible governance structures that embed sustainability into core processes rather than treating it as an add-on. Leadership commitment is particularly critical in SMEs, where senior managers often directly influence organisational culture and strategic direction. Furthermore, engaging employees at all levels can foster innovation and a shared sense of purpose in sustainability efforts. Collaboration with external networks, such as other SMEs, non-profits, or government initiatives, can also provide the necessary resources and knowledge to overcome scalability challenges. By focusing on these tailored approaches, SMEs can align their organisational structures with sustainability objectives, ensuring coherence, efficiency, and long-term resilience. Yet, it is not only the strategy and organisation that is essential, but also the technology used, as it plays a critical role in embedding ecological sustainability into the core of business models. Digital technologies, such as the Internet of Things (IoT) and blockchain, enhance resource efficiency by enabling real-time monitoring and transparency across supply chains, significantly reducing waste and energy consumption. These technologies also facilitate circular economy practices by tracking product lifecycles, promoting higher strategies on the R-ladder and sustainable sourcing. Advanced data analytics and simulation tools aid in designing products with minimal environmental impact throughout their lifecycle. Moreover, digital innovations such as subscription-based services and sharing platforms allow businesses to adapt their models for long-term sustainability, aligning ecological priorities with economic success Lüdeke-Freund et al. (2020). By integrating these technologies, companies can transform their operations and innovate business models that drive both environmental and financial performance. Business models based on the circular economy are key to reducing waste, optimising resources, and ensuring economic viability over the long term. 40 7.3 Sustainable Business Modelling
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