Purpose – This article is a conceptual and empirical study of how a Transformation based on transformative thorough Sustainability and Service Innovation for sustainable business practices can create a new meaning and make a real transformative change for transformation, value creation and sustainability. Sustainable business practices are labeled 3.0 in this article to illustrate a dynamic process in which social and environmental challenges are also used innovatively and proactively to address firm-centric needs as societal challenges. In this article, an actual global transformation agenda in practice is based on the 2030 Agenda for Sustainable Development, which is a plan of action for people, planet, prosperity and partnership.

Design/methodology/approach – In this article, service research is used as an open source for transdisciplinary research to develop a noble research method for understanding transformation. This is based on transformation lab method in which values-based service, service innovation, a service perspective in business and management and sustainability/Corporate Social Responsibility (CSR) practices are in focus for meeting societal and environmental challenges for transformative change. The approach is inspired by Gummesson (2017), who provides a broader view of using cases by addressing interactive research to generate case theory in Business and Management with the deep insight that interactive research requires win/win reflection and dialogue. The methodological approach aims to create a new meaning in the dialectic between the theoretical framework and empirical context. Sustainable business practices in real contexts are shown by two enterprises: IKEA, the world leading furniture enterprise; and Löfbergs, a family-owned coffee roaster in Northern Europe that is also a global actor in the coffee & climate transformation.

Findings – There is a new reality for business and society. The old business model to only focus on the economic value and address social and environmental issues as externalities is over. Sustainability service innovation has been introduced in which a broader transformative and sustainability thinking brings ethical, social and/ or environmental dimensions into service innovation research in which the balance between people and nature come into focus for transformative change. Innovation and sustainability are interacting for more sustainable and innovative solutions. Besides, its complexity to integrate the Transformation process for transformative change. It breaks old boundaries and guiding vison- or values-based change processes in real context to something new and different moving from a Firm-Centric to Societal Perspective. Sustainable business practices has received a new meaning related from only handling economic value to an open business model and a change of mindset in which sustainability is used as a driving force for transformation and innovation (address transformation, co-creation and sustainability/CSR practice).

Study limitations/implications – This article has expanded the scope for a greater perspective in service research for a more interactive research and societal perspective in a global context in which ethical, social and environmental challenges can be approached by innovation and sustainability for transformation and prosperity growth within the planetary boundaries. The article is guided by a values-based vision/mission of shared values and shared meanings with the insight that economic growth cannot last forever.

Keyword(s): values-based, transformation, value creation, sustainability, transformation, Transformative change, sustainability service innovation, sustainable business practices, eco-system,

Article Type: conceptual research paper