Emerging economies are often thought of as environmental laggards; they're perceived to be focused more on addressing poverty than on protecting the planet. But when the Boston Consulting Group and the World Economic Forum went looking for the best sustainable business practices in the developing world, their researchers uncovered many visionary enterprises that defied that stereotype. These organizations show that in markets where resource depletion is most keenly felt, conservation efforts can be a wellspring of innovation--and a source of competitive advantage. Some of these enterprises pursue sustainability out of pragmatism; some out of idealism. But all have consistently generated above-average (and in some cases, astounding) growth rates and profit margins. They've achieved them by following one or more of three general approaches: (1) taking a long view and investing in initially more-expensive sustainable operating methods that eventually lead to dramatically lower costs and higher yields; (2) bootstrapping--making small adjustments that generate big savings, which then fund purchases of advanced technologies; and (3) extending their sustainability efforts to the operations of their customers and suppliers (and in the process, devising new business models). Collectively, these companies demonstrate that there need be no trade-off between sustainability and financial performance. Rather, the pursuit of sustainability can be a powerful path to reinvention for all.

This is an MIT Sloan Management Review article. The Internet has created new markets, customers, products, and modes of conducting business. But it also has given currency to some dangerous half-truths. Subramanian Rangan and Ron Adner, professors of management and strategy at INSEAD in France, explain why seven popular strategies are not the path to profitable growth. First-mover advantage, for example, gets too much credit for e-business success. Companies believe that they can lock in customers and trigger a winner-take-all dynamic, but there is no guarantee that those benefits will go to first movers. The allure of reach--increasing the number of customer segments--causes many companies to ignore fit, the coherence with which their activities reinforce one another. Another tempting growth strategy is to provide customer solutions, offering products or services that complement a company's core offering. But offering solutions can dilute a company's focus. Targeting the right Internet sector is one way to maintain focus. When companies view the Internet as an undifferentiated landscape, they are less able to distinguish the drivers of customer value and performance--or the metrics to measure them. Some companies see best-of-breed-partner leverage as the secret of profitable growth. But although the Internet makes it easier and cheaper to align activities across company boundaries, it does not do much to align interests--a requirement for the creation of joint value. Another misconception is the belief that an Internet business will automatically be successful abroad. The last, and perhaps most dangerous, misconception is managers' belief that technology can substitute for strategy. Companies that understand their technology better than they understand their customers and competition won't succeed in any economy, old or new.