Digital sustainable business model innovation: applying dynamic capabilities approach (DSBMI-DC)

Abstract

Purpose

How to respond to social and environmental concerns while pursuing economic goals remained a dilemma for today’s businesses. Besides, the digital revolution has profoundly changed people's lifestyles, turning out the challenge of how to present products and services to the new generations of consumers through emerging digital channels. To overcome these challenges, a business needs to rely on its internal capabilities but must make them dynamic and modify them, when necessary, in response to or anticipation of external changes. This study aims to propose a model for business model innovation (BMI) with the goal of pursuing sustainability and adapting to the changes of the digital age pursuing dynamic capabilities principles.

Design/methodology/approach

This study followed a mixed-method design, using meta-synthesis in its first phase (qualitative) and interpretive structural modelling in its second phase (quantitative).

Findings

The proposed model consists of four layers including approach, aspect, dimension and component. Based on quantitative results, the 16 dimensions were categorised in four main levels of “sustainable computing”, “sustainable execution”, “sustainable engagement” and “sustainable results”. Considering sustainability and digital transformation as main change drivers for contemporary businesses, this paper proposes a novel framework in the field of BMI.

Originality/value

The results of this study suggest that BMI requires not only proper business design based on social and environmental sustainability and digital transformation requirements but also attention to a new component called sustainable engagement, which represents the need for engaging with social and environmental issues in addition to customers.