Creating sustainable value through business experimentation: A study of cleantech start-ups

This paper explores the business experimentation processes of start-ups in creating sustainable value in the cleantech sector. Especially for sustainability-oriented innovations and eco-innovations, the business development process can be long and challenging. Also, there is not a clear understanding of the capability building and learning processes and activities of business experimentation in start-up. Based on the findings from seven start-up companies in cleantech, a conceptual model is created to demonstrate how start-ups conduct business experimentation, learn, and build capacity together with their customers and their stakeholders in (co-)creating sustainable value. The key theoretical contributions of the paper include further development of the Lean Startup model and our understanding of the specific learning and capability-building activities in purposeful and explorative experimentation of start-ups. The managerial implications of the study stress the application of super lean business experimentation through selling demos and fast failure, and creating sustainable value by expanding the scope of technology-driven business experimentation through a joint learning and capability-building process.