Impact Of Sustainability And Digitalization On Business Model Innovation In Organizations: A Research Agenda

Abstract

Digitalization and sustainability are two significant megatrends reshaping industries and business models. The integration of these trends, often called "Digitainability," highlights the potential for digital technologies to drive sustainable business practices. The intersection of digitalization, sustainability, and business model innovation (BMI) has gained significant academic attention over the past two decades. This study explores the intersection of digitalization and sustainability, examining their collective impact on business model innovation. Through a systematic literature review and bibliometric analysis spanning two decades (2000-2024), this research identifies key trends, thematic areas, and gaps in existing studies. Findings reveal that digital transformation initiatives, including artificial intelligence, big data, and IoT, significantly influence sustainable practices by enhancing efficiency and reducing environmental impact. Conversely, sustainability imperatives drive digital adoption by encouraging innovations in resource efficiency and circular economy models. The study highlights the bidirectional relationship between digitalization and sustainability,impacting the business models of organizations. It underscores the need for integrated strategies that leverage digital tools to achieve sustainable business growth. The research concludes with a conceptual framework outlining future research avenues and managerial implications for fostering business model innovation at the intersection of these two transformative forces.