Transformative Sustainable Business Models in the Light of the Digital Imperative—A Global Business Economics Perspective

Abstract

The considerable body of literature on business models, business model innovation, and sustainable business models has yet to fully account for the impact of external dynamics—including the digital imperative—on generating sustainable value propositions. To address this issue, we developed a multifaceted framework of transformative sustainable business models, spanning three levels: the external environment, the organization, and the individual. We drew on the resource-based view and the literature on digitization to explain how organizations can capitalize on dynamic transformative capabilities to generate novel value propositions, based on both reconstructionist logic and shared-value logic. These include elements such as co-creation, usage-based pricing, agility, closed-loop processes, asset sharing, and collaborative business ecosystems.

Using reputation for corporate sustainability to tackle banks digitalization challenges

“…Moreover, the digital banking context, and online services in general, reduce consumer switching costs (Brenner, 2018; Caruana & Ewing, 2010; Raitani & Vyas, 2014). Switching costs create barriers to changing from one service provider to another (Jones, Mothersbaugh, & Beatty, 2002).…”

The Influence of Innovation on Corporate Sustainability in the International Banking Industry

“…Additionally, innovations derived from the use of big data analytics allow better assessment of client needs, providing customized services in alignment with risk profiles and investors' preferences [69]. These innovations lead to customer-centric strategies that facilitate access, increase price transparency and thus empower clients [70]. Other financial innovations such as green mortgages associated with real estate energy efficiency or socially responsible investment funds may also derive improved corporate sustainability appraisals [71].…”

The Impact of Corporate Sustainability and Digitalization on International Banks’ Performance

“…The digital revolution produces major threats to individuals (Scholz, ) with the potential to transform our economy and society (Helbing, ). In this manner, digitalization is known as a double‐edged sword which entails potential negative consequences for individuals and societies (Brenner, ) as a result of the asymmetries of information that it generates. In other words, the asymmetric information created by the digital environment may prompt client vulnerabilities in the form of privacy loss (Helbing, ) or increased cybercrimes contingencies (Yar, ).…”

“…Big data can create value for banks since it offers the possibility of predicting customer behavior (George et al, ). The digital ecosystem produces competitive advantages from external data, as opposed to traditional business focused on an efficient allocation of internal resources (Brenner, ). A customer centric digital strategy consists of predictive analytical tools (Davenport and Dyché, ) that help in understanding the customer relationship and improve lending decisions.…”