The digital-sustainability nexus: Business model innovation as the bridge from technology to environmental performance

Abstract

This study investigates how digital innovation (DII) drives sustainable performance (SUS) through the mediating role of business model innovation (BMI) and the moderating effects of servitization (SER) and relational orientation (REO). Drawing on Service-Dominant Logic, a survey was conducted among 167 medium and large Swedish enterprises in manufacturing, packaging, logistics, and environmental technology. Using partial least squares structural equation modeling, results show that DII significantly enhances BMI, which in turn improves SUS. Servitization strengthens the DII-BMI link, while relational orientation amplifies the BMI-SUS relationship. The findings advance theory by integrating digital innovation, service strategies, and stakeholder collaboration into a sustainability context. Practically, the study provides actionable insights for managers seeking to integrate sustainability into their business models through technology-enabled services and multi-stakeholder ecosystems. This research contributes to the growing body of work on digital-sustainable transformation pathways in advanced economies.