This paper discusses the need for societal innovation as a systemic form of innovation for sustainable development. Sustainable development requires collective action from stakeholders in the form of system building activities, which in its turn requires societal innovation. Through societal innovation, based on multiple value creation, external costs are being prevented or reduced because of innovation-oriented explorations within a wider frame (a societal improvement perspective), ascertained by the actors. This requires design thinking and proper distribution of the costs and benefits, accepted by the participants. With this paper, we hope to advance the research agenda on societal innovation based on multi-actor improvement processes and associated intentional logics, as topics that are weakly theorized in the business literature on sustainable development and the sustainability transition literature. We are critical of triple helix models and models emphasizing shared value creation because these underestimate the importance of disinterest and conflicts of interests to be managed via multiple value creation on the basis of recursive multi-actor intentionality.

Sustainable business model innovation cannot reach its full sustainability potential if it neglects the importance of multi-stakeholder alignment. Several studies emphasize the need for multi-stakeholder collaboration to enable sustainable business model innovation, but few studies offer guidance to companies for engaging in such a collaborative process. Based on the concept of boundary work, this study presents a tested process tool that helps companies engage with multiple stakeholders to innovate sustainable business models. The tool was developed in three iterative phases, including testing and evaluation with 74 participants in six sustainable business model innovation cases. The final process tool consists of five steps to facilitate multi-stakeholder alignment for sustainable business model innovation: (1) defining a collective ambition, (2) mapping and negotiating the changing organizational boundaries, (3) exploring opportunities and tensions for aligning stakeholders, (4) defining first interventions and (5) developing a collaboration pitch. We found that the tool enables discussions and negotiations on sensitive topics, such as power reconfigurations and mutual responsibilities to help stakeholders align. For companies, the boundary tool enriches sustainable business model innovation by offering guidance in the process of redesigning their multi-stakeholder system, assessing their own organizational boundaries, exploring, negotiating and prioritizing strategic actions based on organizational boundary changes and kick-starting new partnerships.