Business model configurations for successful vertical farming
File(s)
Accepted version
Author(s)
Marczewska, Magdalena
Sanaullah, Ahmed
Tucci, Christopher
Type
Journal Article
Abstract
Purpose
As a response to global population growth and increasing demand for food, farmers have been complementing traditional agriculture practices with vertical farming (VF) and indoor hydroponic systems. To facilitate the growth of the VF industry, this paper aims to identify business model elements and their configurations that lead to high firm performance.
Design/methodology/approach
The research goals were met by conducting literature reviews coupled with a fuzzy-set qualitative comparative analysis (fsQCA) on five business model elements, “superior” OR “strong” performance as two possible outcomes, and the top-ranked global VF growers listed in the Crunchbase Database.
Findings
From the fsQCA results, it was observed that several business model configurations lead to strong firm performance. Vertical farms growing in urban settings and having strong customer engagement platforms, coupled with a presence of business-to-business (B2B) sales channels, are more consistently associated with superior performance. These results imply that the decision configuration of location, along with customer engagement activity and sales activity are differentiating factors between good firm performance and superior firm performance in the case of vertical farms.
Originality/value
This paper contributes to expanding the knowledge of business model theory, business model configurations and VF management, providing specific guidelines for vertical farm owners and investors related to decision-making for higher firm performance, as well as positive environmental, social and economic impact.
As a response to global population growth and increasing demand for food, farmers have been complementing traditional agriculture practices with vertical farming (VF) and indoor hydroponic systems. To facilitate the growth of the VF industry, this paper aims to identify business model elements and their configurations that lead to high firm performance.
Design/methodology/approach
The research goals were met by conducting literature reviews coupled with a fuzzy-set qualitative comparative analysis (fsQCA) on five business model elements, “superior” OR “strong” performance as two possible outcomes, and the top-ranked global VF growers listed in the Crunchbase Database.
Findings
From the fsQCA results, it was observed that several business model configurations lead to strong firm performance. Vertical farms growing in urban settings and having strong customer engagement platforms, coupled with a presence of business-to-business (B2B) sales channels, are more consistently associated with superior performance. These results imply that the decision configuration of location, along with customer engagement activity and sales activity are differentiating factors between good firm performance and superior firm performance in the case of vertical farms.
Originality/value
This paper contributes to expanding the knowledge of business model theory, business model configurations and VF management, providing specific guidelines for vertical farm owners and investors related to decision-making for higher firm performance, as well as positive environmental, social and economic impact.
Date Issued
2025-04-22
Date Acceptance
2024-01-01
Citation
European Journal of Innovation Management, 2025, 28 (4), pp.1555-1580
ISSN
1460-1060
Publisher
Emerald
Start Page
1555
End Page
1580
Journal / Book Title
European Journal of Innovation Management
Volume
28
Issue
4
Copyright Statement
Copyright © 2024 The Author(s). This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License (https://creativecommons.org/licenses/by-nc/4.0/). Marczewska, M., Sanaullah, A. and Tucci, C. (2025), "Business model configurations for successful vertical farming", European Journal of Innovation Management, Vol. 28 No. 4, pp. 1555-1580. https://doi.org/10.1108/EJIM-01-2023-0017
License URL
Subjects
Business
Business & Economics
Business model
Firm performance
fsQCA
Management
PERFORMANCE
QCA
Qualitative comparative analysis
Social Sciences
SYSTEM
Vertical farming
Publication Status
Published
Date Publish Online
2024-01-02