DIGITAL TRANSFORMATION AND SUSTAINABILITY: MAPPING RESEARCH GAPS AND THEMATIC CONNECTIONS

Purpose 3D printing has been warmly welcomed by clothing enterprises for its customization capacity in recent years. However, such clothing enterprises have to face the digital transformation challenges brought by 3D printing. Since the business model is a competitive weapon for modern enterprises, there is a research gap between business model innovation and digital transformation challenges for 3D-printing garment enterprises. The aim of the paper is to innovate a new business model for 3D-printing garment enterprises in digital transformation. Design/methodology/approach A business model innovation canvas (BMIC), a new method for business model innovation, is used to innovate a new 3D-printing clothing enterprises business model in the context of digital transformation. The business model canvas (BMC) method is adopted to illustrate the new business model. The business model ecosystem is used to design the operating architecture and mechanism of the new business model. Findings First, 3D-printing clothing enterprises are facing digital transformation, and they urgently need to innovate new business models. Second, mass customization and distributed manufacturing are important ways of solving the business model problems faced by 3D-printing clothing enterprises in the process of digital transformation. Third, BMIC has proven to be an effective tool for business model innovation. Research limitations/implications The new mass deep customization-distributed manufacturing (MDC-DM) business model is universal. As such, it can provide an important theoretical reference for other scholars to study similar problems. The digital transformation background is taken into account in the process of business model innovation. Therefore, this is the first hybrid research that has been focused on 3D printing, garment enterprises, digital transformation and business model innovation. On the other hand, business model innovation is a type of exploratory research, which means that the MDC-DM business model’s application effect cannot be immediately observed and requires further verification in the future. Practical implications The new business model MDC-DM is not only applicable to 3D-printing garment enterprises but also to some other enterprises that are either using or will use 3D printing to enhance their core competitiveness. Originality/value A new business model, MDC-DM, is created through BMIC, which allows 3D-printing garment enterprises to meet the challenges of digital transformation. In addition, the original canvas of the MDC-DM business model is designed using BMC. Moreover, the ecosystem of the MDC-DM business model is constructed, and its operation mechanisms are comprehensively designed.

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The literature argues that a real digital transformation of firms requires holistic changes of the business model. Despite knowledge about this ambitious goal, understanding of how digital business model transformation can be achieved is still very limited. In this article, we explore how firms achieve digital business model transformation. We apply a case study design to investigate how incumbents have changed their respective business model dimensions during digital transformation. Our findings center on interview data and complementary archival records from 15 cases. We present a framework for digital business model transformation along the dimensions of value proposition, value creation, and value capture. Our results emphasize the importance of a preparatory phase in which the strategic course is set. Furthermore, our findings demonstrate that transforming a company's business model is most effective when a single person, namely the Chief Digital Officer, is responsible. Our findings contribute to the business model literature, by providing a more holistic view on how business model innovation can be utilized during digital transformation.

The digital transformation and digital technologies find ample application in service as well as in manufacturing. Advances in digitalization and digital technology adoption encourage service sectors to incorporate new digital technologies into their processes to increase efficiency and productivity. The trend towards up-to-datedness and remote control mechanisms increases service industries' awareness of digital technologies in the era of Industry 4.0 and Society 5.0. A transparent and instant management approach with real-time data becomes possible with digital innovation in service. In the digital ecosystem, personalization is more likely to be possible if the increasing diversity in demands for a particular product/service is disruptive. In these collaborative platforms, the prosumer is at the center of the business and acts as designer, customer and consumer. In this digital ecosystem, the consumer is involved in the design phase at the beginning of the process. A new business model is required due to the overall digitalization of the organization. After talking about the digital revolution and transformation, traditional tools for customer demand/relationship management, sales marketing and operations should be examined. The Internet of Things (IoTs), cloud computing, blockchain infrastructure, and business intelligence, are the basic components of digital transformation. This chapter mainly focuses on the digital transformation of the service industry, service innovations, service business platforms and service business model transformation using digital tools. All these digitalization efforts are made possible by innovation in business models. This new digital business model innovation is defined as a unique and significant change in the fundamental elements of the enterprise's business model and value chain architecture. BM analyzes and redesigns operations, content, structure and management to create value by taking advantage of business opportunities. Especially in an environment where organizations and operations, data and processes become open, the concepts of participation in processes and collaboration come to the fore. Sharing economies and platforms where everyone meets on common ground constitute today's new business models. Platform businesses are shared networks and interfaces that create a common structure in which flexibility in design can be achieved, fixed costs can be saved, and efficiency can be increased. Platforms are divided into two: internal and external, and internal platforms are defined as areas where cooperation is carried out within the business or with the business and suppliers for a specific purpose. The study revealed that the labor-intensive and competitive service sector could not avoid this trend. Within the scope of this section, the concept is intended to be concretized through platform works and sample applications. In summary, all this change has caused physical worlds to be moved to small screens and virtual worlds. No matter how perfect the resulting physical product is, it will always be incomplete unless it is supported by accurate and complete services. In today's cyber-physical environment, perfect service platforms will be able to meet the needs and produce real-time and creative solutions to customer demands. These solutions can be provided through innovative and smart technologies such as artificial intelligence and business intelligence. It can be stated with certainty that service businesses that invest in these technologies will stand out from their competitors.

The circular economy became a widely accepted economic model among businesses and policymakers as it aims to maximise resources while reducing waste, and energy usage, and mitigate the impact on climate and the environment. The digitalization and digital transformation of the circular economy make this business model even more sustainable and inclusive by improving resource flow and empowering consumers to make better-informed decisions. This case focuses on how Oddbox—a circular economy enabler company, uses digital transformation to facilitate a food rescue mission and promote sustainable growth. The discussion centres on how digitalization and digital transformation in the circular economy have enabled a more sustainable business model that creates social impact and captures value.

Business model innovations (BMIs) are an art of increasing advantages and creativity by mutually supporting the changes in the organization and the customer's value in its underlying operational models. Management consulting firms (MCFs) help their advisory or implementing services to improve the business model strategies and organizational and operational performances in their required capacity. Digital transformation is the perfect bridge between BMIs and MCFs. The current research is an exploratory study that has been conducted to analyze the effect of digital transformation on business model innovation when management consulting firms explore and implement their ideas using advanced business through information technology (IT) to improve and satisfy their customers. The research highlighted that by adopting digital transformation, management consulting firms could find innovative technology to improve operational performance by developing strategies and digital impact transformation. Management consulting firms, through digital technology, redefine the business model innovation that fulfils the global market requirements and technology upgradation. The global market realizes e-commerce and advanced technology to increase their global customers. Hence, the research concluded that information technology innovation has the ability to make the business model comply with customers' activities and strategies accordingly.

This review paper critically examines the role of strategic innovation in business models, with a focus on how emerging technologies can be leveraged to gain a competitive advantage. By synthesizing existing literature, the paper explores the transformative potential of technologies such as artificial intelligence, blockchain, and the Internet of Things (IoT) on traditional and contemporary business models. The review identifies key patterns and trends in how businesses across various industries are integrating these technologies to enhance their value propositions, streamline operations, and create new revenue streams. The findings suggest that companies that successfully incorporate emerging technologies into their business models are better positioned to outpace competitors and adapt to the rapidly changing market landscape. The paper also discusses the challenges and barriers to technology adoption, such as high implementation costs, skill gaps, and organizational inertia, offering insights into strategies that can mitigate these obstacles. The paper underscores the importance of strategic innovation as a critical driver of sustained competitive advantage in the digital era. It highlights that leveraging emerging technologies is not merely an option but a strategic necessity for businesses aiming to thrive amidst ongoing technological disruption. By embracing these innovations, companies can significantly transform their business models, unlock new opportunities, and secure long-term success. Keywords: Business Model Innovation, Emerging Technologies, Sustainable Practices, Strategic Innovation, Partnerships, Open Innovation, Circular Economy, Organizational Agility, Continuous Improvement, Competitive Advantage, Digital Transformation, Market Adaptation, Technological Integration, Collaborative Innovation, Resilient Business Models.

Purpose To identify and analyze the relevant themes in the literature on digital transformation and internationalization, revealing opportunities for future studies. Design/methodology/approach A systematic literature review was developed using the Scopus and Web of Science databases. Initially, 156 publications were identified. Based on inclusion/exclusion criteria, a final sample of 74 articles was reached. A bibliometric and qualitative analysis were developed. Findings Eight main themes related to internationalization, such as internationalization strategy, internationalized companies, marketing-related issues, export, global supply chain, entrepreneurship and new ventures, SMEs internationalization and internationalization of educational institutions, were identified. Eight main themes related to digital transformation were also identified, including internationalization drivers, digital technologies, business model innovation, digitalization, Industry 4.0, digital platforms and e-commerce, people and digital transformation and digital institutional environment. Originality/value In recent years, the term digital transformation has become part of the daily lives of many organizations and of life in society itself. For internationalized companies, this discussion has also become present. Although a relationship between digital transformation and internationalization is often presented, the dimensions of analysis of this relationship are still very fragmented, and this study presents a systemic view of the themes. These themes represent opportunities for future studies.

In the era of the Internet of Things, innovative business model initiatives continue to deepen, and the trend of search domains continues to expand. This paper aims to scientifically analyze research trends of the Internet of Things in relation to Business Model Innovation through bibliometric studies. The data were collected using the Clarivate Web of Science (WoS) Core Collection (SSCI and SCI indexed) from 2005 to 2022 (November). However, the publications for the research domains started in 2015. The results show that scientific publications on the Internet of Things in relation to Business Model Innovation have increased gradually since 2019. The WoS database is utilized for analyses because it contains journals and conference proceedings deemed more relevant by the academic domain and highly reputable sources for bibliometric studies. The VOS viewer, R Language, and Microsoft Excel were also used to analyze and complete the study. Bibliometric and scientometric analyses were conducted to identify publication patterns, text analysis, most important keywords (co-word, word cloud, and co-occurrence), trends for the topicality, and content clustering for the publication periods. The visualization of the research trends of the Internet of Things in relation to Business Model Innovation resulted in four co-occurrence clusters leading to some of the topic areas mentioned as follows: (1) The Internet of Things, (2) Business model innovation, (3) Technology infrastructure, and (4) Digital transformation and capabilities. The results of this study will assist academics in identifying worldwide research trends related to the Internet of Things and Business Model Innovation as well as recommending future research areas.

Innovative and sustainable business models in the fashion industry: Entrepreneurial drivers, opportunities, and challenges

New digital business models are disrupting established businesses and creating new ways of doing and understanding business. Consequently, companies are forced to identify new business models to ensure future growth and development, and digital transformation and digital technologies may be the key. Literature reveals clear research gaps in our understanding of how digital transformation impacts business model innovation and in understanding the role of individual digital technologies (e.g. Internet-of-Things, IoT) in developing new business models. Thus, the purpose of this paper is to understand how digital transformation and the application of IoT provide leverage to digital business models (DBM). Drawing on business models and digital transformation as theoretical lenses, we explore how digital transformation and IoT are applied as leverages for DBMs. The study identifies six pathways of how companies use IoT applications and devises in developing DBM. This paper contributes theoretically to digital transformation and business model literature in understanding the influence of IoT and digital transformation on digital business models. Furthermore, the study provides key challenges and implications for managers to consider in successful use of IoT in digital business development.

Text analysis was used in this study to construct the index of digital transformation degree in manufacturing enterprises. On this basis, an empirical test was conducted on the relationship between digital transformation, ambidextrous innovation, and enterprise value. The results show that: digital transformation has a significant positive impact on the enterprise value of manufacturing enterprises. Digital transformation can promote the rise of enterprise value through technological innovation, business model innovation, and their combination, where ambidextrous innovation plays a mediating role. For manufacturing enterprises, the impact of digital transformation on enterprise value has a single-threshold effect and a double-threshold effect, respectively, with technological innovation and business model innovation being the threshold variables. The synergy of technological innovation and business model innovation plays a stronger mediating role compared with a single innovation model. The conclusions of this study have certain theoretical and practical significance for systematically revealing the intermediate mechanism of digital transformation affecting enterprise value and then promoting manufacturing enterprises to make remarkable accomplishments in digital transformation.

Purpose. Digital transformation in the global sport industry has resulted in digitally focused business strategies, innovative business models, targeted social media marketing strategies, increased consumer, and sponsor demand, accelerated growth in women’s sports, and streaming media (OTT) worldwide. This paper aims to study the case of the U.S.-based National Basketball Association’s (NBA) digital transformation, including multiple interactions of actors in the digital transformation process. A key aim is understanding the synergies resulting from the league’s integration of digital technologies, its business strategy, the evolution of its hybrid business model and the increase in revenue and global branding. Design/methodology/approach. An explanatory case study design was selected to examine the NBA’s integration of digital technologies, digital and social media marketing strategies, business model innovation, multimedia partnerships, and strategic sponsorships. Data was derived from: (1) academic journals; (2) research based white papers; (3) sport industry reports and periodicals; (4) selected sport industry websites; and (5) recorded interviews with selected NBA officials. Gleaned content was analysed with a theory-oriented triangulation approach. The study period was from 2000 to 2023. Findings. The NBA’s digital transformation, led by an entrepreneurial management team contributed to a successful business strategy aimed at engaging with digitally focused consumers across multiple media channels. The NBA developed an ecosystem-based consumer-focused hybrid business model, content-focused digital assets, and partnerships with media, brands, and cultural events. Its media partnerships and strategic sponsorships are synergistic with its business and marketing objectives, digital initiatives, and acquisitions. By the 2017-2018 season, the NBA had validated its position as a successful global entertainment property. Originality/value. This paper examined the NBA’s digital transformation, including how the league integrated digital technologies with its business strategy and model to increase revenue and create a global brand. The analysis examined how the NBA’s digital transformation facilitated the league’s business strategy, enhanced the NBA fan experience, generated revenue from innovative digital products and services, and transformed its business model. The NBA’s business strategy and hybrid business model provide an exemplar for professional teams, leagues, and federations worldwide seeking to digitally transform their enterprises.

The rapid acceleration of digital transformation has changed the business landscape worldwide, but micro, small, and medium enterprises (MSMEs) in developing regions continue to face structural gaps in digital readiness and inclusion. In Medan, Indonesia, where MSMEs are the backbone of the economy, limited digital adoption and uneven readiness hinder their ability to maintain competitiveness and contribute to inclusive economic growth. This phenomenon highlights the importance of analysing how digital transformation variables interact with innovation processes and collaborative ecosystems to generate sustainable economic outcomes. The objective of this study is to investigate the indirect effects of digital readiness, digital inclusion, and digital transformation on sustainable local economic development through the dual mediation of innovation business models and ecosystem business models. Using an explanatory quantitative design, data were collected from 200 SMEs in Medan that had been involved in digitalisation for at least two years. Structural Equation Modelling–Partial Least Squares (SEM-PLS) was applied to test the proposed Digital Ecosystem Innovation Model (DEIM). The results show that digital readiness, inclusion, and transformation do not have a direct effect on sustainable economic growth. Instead, their impact becomes significant when mediated by innovation and ecosystem business models. Digital readiness strongly drives innovation, while digital inclusion enhances both innovation and ecosystem collaboration. Furthermore, the ecosystem business model emerges as the strongest predictor of sustainable local economies, highlighting the importance of coordinated value creation among stakeholders. This study concludes that digital transformation should not be viewed as an end goal, but rather as a systemic process requiring business model adaptation and the development of collaborative ecosystems. This research contributes theoretically by expanding the Technology–Organisational Environment (TOE) framework through the DEIM model, integrating readiness, inclusion, and innovation into a holistic approach. Practically, this research provides policy insights to improve the resilience of MSMEs through digital literacy, innovation capacity, and cross-sector collaboration.

Background The internal audit function is a strategic infrastructural function of a company, organisation, or institution. Its digital transformation process must align with the organisation-wide digital business transformation process. The main determinants distinguishing successful from unsuccessful companies and internal audit functions are their overall business models. Objectives The main aim of this paper is to propose and design a unique digital business model canvas for the internal audit function and test its usefulness in practice. It also aims to investigate the current state and characteristics of internal audit functions’ business models and their innovations in the financial sector. Methods/Approach A combination of a comprehensive literature review and qualitative empirical research is applied to achieve the defined objectives. Results A unique canvas for designing the internal audit function’s business model is proposed. It summarises, on one page, how the function creates, delivers, and captures value for its stakeholders. This theoretically developed and empirically validated model is suitable for developing, describing, analysing, and synthesising customer segments, value propositions, channels, customer relationships, strategic direction, key resources, key activities, key partnerships, and operational direction. Conclusions Empirical investigation of the current state and characteristics of internal audit functions’ business model innovations and their compliance with global digital transformation trends shows that, in the Croatian financial sector, internal audit functions digitally innovate some elements but do not yet holistically transform all aspects. Thus, their digital business models differ in digital maturity, though digital transformation processes within the internal audit function align with those at the institutional level.