Digital technology and business model innovation: A systematic literature review and future research agenda

Abstract

Digital technologies (e.g. Industry 4.0, Internet of Things, cloud computing, big data, blockchain, etc.), are profoundly affecting companies' activities and processes, thus leading to changes in firms' value creation, value delivery, and value capture mechanisms. Yet, despite significant investments in digital technologies and digital transformation, firms are struggling to yield the most out of them, thereby facing a digital paradox. This scenario has drawn the attention of academics and practitioners leading to a growing body of literature on the relationship between digital technology and business model innovation. Yet, the extant academic research in this area appears highly fragmented. Hence, this study conducts a systematic literature review to gather and synthesize the extant knowledge on this topic. The review identifies four main thematic areas, provides an interpretative framework, and suggests valuable future research directions within each thematic area. The article contributes to the theoretical and managerial discussion on digital-driven business model innovation.