This paper examines the potential of Business Model Innovation (BMI) design as a framework for understanding sustainable initiatives in large corporations, focusing on the failure case of an eco-design (ED) decision within SEB group. Grounded in complexity theory and the adaptation process, the study analyzes the value co-destruction and value generation loops that emerge from sustainability-driven business transformation. Failure-induced research suggests that failure can catalyze individuals and organizations to explore alternative solutions and redefine their strategic approaches. In this context, the case study of SBMI (Sustainable Business Model Innovation) applied to the ED method at Rowenta, a subsidiary of SEB group, provides insights into three key areas: (1) the organizational change dynamics from a complex and adaptive process perspective (2) the interplay of SBMI within organizations and beyond, considering factors such as organizational design, dynamic capabilities, stakeholder engagement, and value cocreation versus value co-destruction and (3) the adaptive strategies identified through failure-induced learning within the BMI process at SEB group. By analyzing the failure and adaptation mechanisms within a real-world sustainability initiative, this study contributes to the ongoing discourse on SBMI and offers practical implications for organizations navigating the challenges of ED implementation.
