Towards Sustainability through Business Model Dynamics in the Era of Digital Transformation

Abstract

Purpose of the article Traditional industries and incumbent players are facing increased pressure from multiple stakeholders to change their business models towards more sustainability through implementation of circular economy principles. The article aims at contribution towards the understanding of the impact of the digital transformation on implementation of business models for sustainability, its components and dynamics among them, applied in the paper making and paper converting industry in Europe.

Methodology/methods An inductive approach has been applied. A multiple case study research, examining major players in the paper industry, applying combined qualitative and quantitative methods has been conducted. Supporting secondary data, drawing on published paper making and converting companies´ sustainability reports have been collected and analyzed, too.

Scientific aim To understand the size and the scope of impact of digital transformation on business model components (value proposition, creation, delivery, capture) in the paper making and converting industry and the dynamics among them.

Findings On one hand, digital transformation puts paper making business under the threat of substitution through non-paper based products and information carriers. On the other hand, digital transformation positively contributes mainly to the ways paper making companies communicate their value proposition and value delivery through their products, made from renewable resources, to numerous stakeholders. Thus, digital transformation supports implementation and proliferation of business models for sustainability.

Conclusions The research has been conducted within the paper making and converting industry, thus the results might have limited generalizability to other industries. A short number of respondents and possible confidentiality attributable biases might partially impact reliability of the collected data. The research supports paper making and converting companies in understanding of how digital transformation can fuel the implementation of business models for sustainability. It indicates that value delivery needs to be in the center of attention.