Understanding Innovation and Sustainability in Digital Organizations: A Mixed-Method Approach
Abstract
:1. Introduction
- Definitions: to delineate the DIS concepts and underlying constructs;
- Operationalization: to derive the operationalization of the constructs underlying the DIS concepts;
- Positive effects: to show the positive DIS effects in organizations.
2. Materials and Methods
3. Results
3.1. Goal 1: Definitions
3.2. Goal 2: Operationalization
- BDA: enhanced decision making, the integration of different data sources, data visualization for user assistance, decomposed information for cause analysis, decreased waste, faster adaptation, longer life cycles due to analysis, optimized resource usage, utilized assets, increased recycling options, better resources usage, faster response, change in energy supply, adherence to timelines, and regular goal adjustments [30].
- Digital capabilities: external stakeholder management, market responsiveness, portfolio management, technical skills, and cost efficiency [11].
- Digital capability: digital technology acquisition, digital interactions, management of digital technologies, digital opportunity identification, tech trend search, scouting and scenario building, digital thinking, quick resource reallocation, change, new ecosystem generation, and leverage of digital knowledge [17].
- Digital dynamic capability: digital sense, digital capture, and digital transformation [17].
- Digital leadership: technical capabilities, digital governance abilities, digitalization as a competitive factor, and accurate evaluation of digital capabilities and technologies [25].
- Digital platform capability: integration capability (easy data access and seamless partner connection), real-time information exchange, and information aggregation [21].
- Digital technology capability: analytics, visualization, acquisition, connection, governance, and adoption [17].
- Digitalization: AI, cloud, Robots, SmartDev (Smart devices), BDA, HSI, and blockchain [10].
- Firm degree of digitalization: adoption of a given DT among those mentioned in the data description (AI, cloud, Robots, SmartDev, BDA, HSI, and blockchain) [10].
- 11.
- Business model innovation: from the perspective of its sub-components: value creation (new customer-oriented offers, optimized portfolio, agile service innovation process, digital application combination, and customer data leverage), value delivery (new capabilities, revised processes and roles and responsibilities, cultural change, and new infrastructure), and value capture (cost efficiency, revenue, and risk management) [34].
- 12.
- Business model innovation: evolution of the customer segments, customer relationships, and economic model; extension of platform scope [23].
- 13.
- Open innovation: inbound open innovation: knowledge or tech acquisition; external idea scouting; reaching out to external knowledge or tech; innovation ties with external parties; and outbound open innovation—info and knowledge flow to the outside, knowledge and tech sales, intellectual asset commercialization, IP purchases, and rare co-working with externals [21].
- 14.
- Organizational innovation: new ways of working; implementation of new organizational structures; innovative operations; new technology, products, and services; and entering new markets [25].
- 15.
- Corporate sustainability practices: sum of eight unknown binary variables [10].
- 16.
- Economic performance: decrease in material cost, energy consumption, and waste and increase in ROI and earnings per share [33].
- 17.
- Economic performance: better fulfillment of customer needs, stronger customer relationships, differentiation and lockout of competitors, increased revenue, identification of new markets and better response, agility, access to service data, reduced customer risk, improved technology, and reduced life cycle costs [26].
- 18.
- Environmental performance: reduced air emissions, waste, and gasoline/fuel; green organization partnerships; better environmental compliance; and use of environmentally friendly material [30].
- 19.
- Environmental performance: reduced air emissions, waste, consumption, environmental accidents, and energy [33].
- 20.
- Environmental performance: resource efficiency, longer product life, increased product usage, reuse and recycling, dematerialization, and liberty for sustainable design [26].
- 21.
- ESG management: eco-friendly ecosystems are valued, win–win supply chain, pursuance of sound governance, ethical management, and importance placed on workers’ welfare [25].
- 22.
- Managers’ cognition of sustainable opportunities: seeing the natural and social environment as controllable positive opportunities that should be promoted [17].
- 23.
- Organizational performance: market position improvement; enhanced sale volume, profit rate, and reputation [30].
- 24.
- Organizational sustainability: sales growth rate, welfare and safety improvement for employees, strong community and stakeholder relationships, reduced carbon footprint and waste emissions, and increased renewable energy and recycled materials compared to the industrial average [25].
- 25.
- Social performance: improved community and employee health and safety and reduced environmental impacts and general risks [33].
- 26.
- Social performance: increased employment; local supplier development; increased demand, health and security, and open innovation [26].
- 27.
- Sustainability benefits: economic and social benefits, process efficiency, safety, regional development, radical innovations, and adaptations to policies [19].
- 28.
- Sustainability dimensions: translating sustainability dimensions into credits and finding a business model that is sustainable and financially robust [23].
- 29.
- Sustainability performance: cost optimization, net returns, waste minimization, environmental compliance, carbon footprint, boosted income, work safety, job environment, organizational commitment, and communal contributions [11].
- 30.
- Sustainability performance: economic performance, environmental performance, and social aspects [12].
- 31.
- Sustainable business model: value proposition, value creation, value network, finance model, and customer interface [22].
- 32.
- Sustainable performance: organizational and environmental performance [30].
- 33.
- Sustainable performance: the measurement of sustainable performance is derived from work by Paulraj (2011). It consists of five items of both environmental and economic performance and three items of social performance, reflecting the development level of companies in terms of sustainability [33].
- 34.
- Sustainable technology capabilities: a logarithm of the number of green patents in the International Green List owned by the enterprise [18].
- 35.
- Digital business model innovation: digital value creation innovation, digital value proposition innovation, and digital value capture innovation [31].
- 36.
- Digital innovation orientation: digital technology usage for corporate efficiency, cost reduction, information misalignment reduction, new offerings, new working, better structures, better business models, and new stakeholder connections [22].
- 37.
- Digital innovation technology: a logarithm of the number of core digital technology patents owned by the enterprise in the Industry 4.0 field [18].
- 38.
- Digital sustainable entrepreneurship: efforts to improve social and environmental value creation, such as businesses, a competition approach, digital transformation programs, digital technology usage for better profitability, improved customer loyalty, and resource protection [17].
- 39.
- Eco-management innovation: novel systems, parts of policies, engagement and investment in eco-innovation, and adaptation to outward environmental pressure [33].
- 40.
- Eco-process innovation: manufacturing process updates, new technology, or new processes to protect the environment or save energy [33].
- 41.
- Eco-product innovation: simplifying packaging, construction, waste, or damage reduction [33].
- 42.
- Green process innovation: emission and waste reduction; waste recycling; emission reusage; a reduction in water, electricity, coal, and oil consumption; and a reduction in raw materials [30].
- 43.
- Green product innovation: emission and waste reduction; waste recycling; emission reusage; a reduction in water, electricity, coal, and oil consumption; and a reduction in raw materials [30].
- 44.
- Sustainability exploitation innovation: reactivity to stakeholders, external analysis, stakeholder participation, process variability, and goal-driven [11].
- 45.
- Sustainability exploration innovation: product design refinement, re-engineering, technology and process adoption, knowledge and skill enhancement, learning culture, and external search [11].
- 46.
- Sustainability-oriented innovation: the use of low-impact materials, improved end-of-life phase of products (e.g., improved recyclability), efficient resource/material deployment, reduced resource consumption, reduced environmental pollution and waste, decreased transportation and logistics, improved health and safety of employees, and an improved social and ethical situation [21].
- 47.
- Sustainable business model innovation: business model innovation, leverage of opportunities offered by digital technologies, and the evolution of endogenous sustainability dimensions [23].
- 48.
- Sustainable digital innovation: quality–price ratio of digital solutions is improved compared to competitors, features of digital solutions are improved compared to competitors, applications of digital solutions are improved compared to competitors, digital solutions are different from competitors, new digital solutions are minor improvements, digital solutions are new to the market (when launching), digital innovations/solutions are based on cutting costs and reducing waste (when launching), and digital solutions rely on frugal innovation (when launching) [20].
- 49.
- Sustainable digital innovation: features and applications of digital solutions are different from competitors; compared with competitors, digital solutions and the iteration have a lower cost; compared with competitors, digital solutions create new value for incumbent businesses; and compared with competitors, digital solutions can generate a larger portfolio [29].
- 50.
- Sustainable innovation capability: opportunity identification capability, innovation realization capability, and commercialization capability [24].
- 51.
- Sustainable innovation: social environmental innovation + social innovation + environmental innovation [12].
- Digitalization: Many definitions emphasize integrating and managing digital technologies, focusing on resource optimization, digital interaction, and governance. Digital transformation stands out by encompassing broader organizational changes across processes, products, and models.
- Innovation: Business models and open innovation emphasize value creation through new processes and stakeholder interactions, prioritizing agility, customer focus, and external knowledge. Sustainability-oriented innovation aligns with eco-innovation in reducing environmental impact and improving resource efficiency.
- Sustainability: Environmental and economic performance definitions converge on efficiency, waste reduction, and profitability. The dimensions of sustainability (economic, environmental, and social) connect concepts like ESG management and organizational performance.
- Digitalization: Digital dynamic capability’s narrow focus on sensing, capturing, and transforming contrasts with broader definitions like digital leadership, which includes governance and strategy.
- Innovation: Business model innovation prioritizes customer-focused value creation, while organizational innovation emphasizes structural and operational changes, sometimes misaligned with customer benefits.
- Sustainability: Stakeholder-driven sustainability exploitation contrasts with the long-term, exploratory approach of sustainability exploration. Social performance definitions vary, ranging from local supplier development to employee safety.
3.3. Goal 3: Positive Effects
- Building Digital Capabilities: Organizations develop skills and tools like data analysis and automation that make them more efficient and effective. These capabilities improve decision making and help organizations adapt to challenges quickly,
- Driving Sustainable (Digital) Innovation: Digital tools enable organizations to create new products, services, and business models that are not only profitable but also environmentally friendly. This includes innovations like renewable energy, recycling, and eco-friendly processes.
- Enhancing Sustainability Performance: Through digitalization, organizations can track and improve their environmental, social, and governance (ESG) metrics, making them more transparent and accountable.
3.4. Other Broader Insights
4. Discussion
4.1. Implications for Theory
4.2. Implications for Management
4.3. Implications for Organizations
- Applying advanced analytics to gain insights and improve decision making;
- Encouraging leadership that values adaptability and innovation;
- Integrating environmental, social, and governance (ESG) principles to achieve sustainability and a competitive edge;
- Developing a clear roadmap that applies DIS concepts to ensure continuous improvement;
- Strengthening an organization’s capacity for sustainable innovation by tailoring approaches at the environmental, organizational, and solution levels.
5. Conclusions
6. Limitations
7. Future Directions
Supplementary Materials
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Acknowledgments
Conflicts of Interest
Appendix A
Field | Selection |
---|---|
Date | 6 November 2023 |
Search within | Article Title, Abstract, Keywords |
Search documents | Sustainability AND Digital AND Innovation |
Year | 2010–2023 |
Language | English, German |
Document Type | Journal, Review |
Source Type | Journal |
Keywords | Business Development, Business Model Innovation, Business Model, Business, Business Models, Case-studies, Digital Devices, Digital Innovation, Digital Innovations, Digital Platforms, Digital Technologies, Digital Technology, Digital Transformation, Digital, Digitalisation, Digitalization, Digitization, ICT, Information and Communication Technologies, Information and Communication Technology, Information Management, Information Systems, Information Technology, Literature Reviews, Management, Open Innovation, Review, Social Innovation, Strategic Approach, Sustainability, Innovation, Sustainable Development Goal, Sustainable Development Goals, Sustainable Innovation, Systematic Literature Review, Systematic Review, Technological Innovation, Technology |
N | 1190 |
Field | Selection |
---|---|
Date | 6 November 2023 |
Search within | Article Title, Abstract, Keywords |
Search documents | Sustainable AND Digital AND Innovation |
Year | 2010–2023 |
Language | English, German |
Document Type | Journal, Review |
Source Type | Journal |
Keywords | Article, Business Development, Business Model Innovation, Business Model, Business Models, Business, Digital Devices, Digital Innovation, Digital Innovations, Digital Platforms, Digital Technologies, Digital Technology, Digital Transformation, Digitalisation, Digitalization, Digitization, Green Innovation, Green Innovations, ICT, Information and Communication Technologies, Information and Communication Technology, Information Management, Information Systems, Information Technology, Innovation, Leadership, Literature Review, Management, Open Innovation, Research And Development, Review, Sustainability, Sustainable Business, Sustainable Development Goal, Sustainable Development Goals, Sustainable Innovation, Technological Innovation, Technology Innovation, Technology |
N | 1909 |
No. | Filter | Description | Number of Publications | Number of Exclusions |
---|---|---|---|---|
1 | Keyword search | Sustainability OR Sustainable AND Digital AND Innovation | 3099 | |
2 | Duplicate removal | elimination of duplicates | 2337 | −762 |
3 | Title fit | elimination of titles without all three DIS constructs | 112 | −2225 |
4 | Ranking fit | elimination of journals ranked below VHB-JOURQUAL-C | 43 | −69 |
5 | Abstract fit | elimination of papers not focusing on one of the three paper goals, with a macro or an industry focus | 20 | −23 |
VHB-JOURQUAL Ranking 1 | Number of Publications | Percentage of Coverage |
---|---|---|
B | 6 | 30% |
C | 14 | 70% |
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Schork, S.; Özdemir-Kaluk, D.; Zerey, C. Understanding Innovation and Sustainability in Digital Organizations: A Mixed-Method Approach. Sustainability 2025, 17, 415. https://doi.org/10.3390/su17020415
Schork S, Özdemir-Kaluk D, Zerey C. Understanding Innovation and Sustainability in Digital Organizations: A Mixed-Method Approach. Sustainability. 2025; 17(2):415. https://doi.org/10.3390/su17020415
Chicago/Turabian StyleSchork, Sabrina, Dilan Özdemir-Kaluk, and Cudi Zerey. 2025. "Understanding Innovation and Sustainability in Digital Organizations: A Mixed-Method Approach" Sustainability 17, no. 2: 415. https://doi.org/10.3390/su17020415
APA StyleSchork, S., Özdemir-Kaluk, D., & Zerey, C. (2025). Understanding Innovation and Sustainability in Digital Organizations: A Mixed-Method Approach. Sustainability, 17(2), 415. https://doi.org/10.3390/su17020415