Sustainability

Editorial

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5 pages, 208 KiB

Open AccessEditorial

Digital Transformation and Sustainable Business Models

by Evangelos Katsamakas

Sustainability 2022, 14(11), 6414; https://doi.org/10.3390/su14116414 - 24 May 2022

Cited by 17 | Viewed by 4224

Abstract

This article explores several aspects of digital transformation, including definition, enabling technologies, and strategies. It argues that firms seeking to maximize the impact of their digital transformation strategy should aim to build a Sustainable Business Model (SBM). In addition, it introduces the seven [...] Read more.

This article explores several aspects of digital transformation, including definition, enabling technologies, and strategies. It argues that firms seeking to maximize the impact of their digital transformation strategy should aim to build a Sustainable Business Model (SBM). In addition, it introduces the seven articles of the Special Issue. Overall, the article takes a systems approach that appreciates the dynamic complexity of digital transformation and suggests some directions for future research. Full article

(This article belongs to the Special Issue Digital Strategy, Digital Transformation, and Sustainable Business Models)

Research

Jump to: Editorial

12 pages, 541 KiB

Open AccessArticle

Digital Platforms for the Common Good: Social Innovation for Active Citizenship and ESG

by Evangelos Katsamakas, Kostapanos Miliaresis and Oleg V. Pavlov

Sustainability 2022, 14(2), 639; https://doi.org/10.3390/su14020639 - 7 Jan 2022

Cited by 24 | Viewed by 5525

Abstract

The platform business model has attracted significant attention in business research and practice. However, much of the existing literature studies commercial platforms that seek to maximize profit. In contrast, we focus on a platform for volunteers that aims to maximize social impact. This [...] Read more.

The platform business model has attracted significant attention in business research and practice. However, much of the existing literature studies commercial platforms that seek to maximize profit. In contrast, we focus on a platform for volunteers that aims to maximize social impact. This business model is called a platform for the common good. The article proposes a Causal Loop Diagram (CLD) model that explains how a platform for the common good creates value. Our model maps the key strategic feedback loops that constitute the core structure of the platform and explains its growth and performance through time. We show that multiple types of network effects create interlocking, reinforcing feedback loops. Overall, the article contributes towards a dynamic theory of the platforms for the common good. Moreover, the article provides insights for social entrepreneurs who seek to build, understand, and optimize platforms that maximize social value and managers of companies that seek to participate in such platforms. Social entrepreneurs should seek to leverage the critical feedback loops of their platform. Full article

(This article belongs to the Special Issue Digital Strategy, Digital Transformation, and Sustainable Business Models)

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24 pages, 1523 KiB

Open AccessArticle

Video Platforms’ Value-Added Service Investments and Pricing Strategies for Advertisers

by Gang Liu and Fengyue An

Sustainability 2021, 13(24), 13701; https://doi.org/10.3390/su132413701 - 11 Dec 2021

Viewed by 2135

Abstract

Using a game-theoretical approach, this paper develops a duopoly model and examines value-added service (VAS) investments and pricing strategies on video platforms with opposite inter-group network externalities between two groups. We consider two scenarios with VAS investment, namely, a single platform investing in [...] Read more.

Using a game-theoretical approach, this paper develops a duopoly model and examines value-added service (VAS) investments and pricing strategies on video platforms with opposite inter-group network externalities between two groups. We consider two scenarios with VAS investment, namely, a single platform investing in VASs for advertisers (S-Model) and both platforms investing in VASs for advertisers (B-Model). We found the following: (i) In the S-Model, the investing platform’s VAS level remains maximum when the marginal investing cost is low; otherwise, it decreases with the cost. Investing and non-investing platforms’ advertising prices are unaffected by the marginal investing cost if the cost is low; otherwise, the prices decrease and increase with the cost, respectively. Furthermore, the investing platform’s advertising price is higher than the non-investing platform’s. (ii) In the B-Model, the two platforms’ VAS levels remain maximum if the marginal investing cost is low; otherwise, they decrease with the cost. The two platforms’ advertising prices are equal and irrelevant to the marginal investing cost. (iii) The investing platform’s VAS level in the S-Model is higher than or the same as that in the B-Model and the investing platform’s advertising price in the S-Model is higher than that in the B-Model. (iv) Compared to the scenario without VAS investment, the investing platform’s advertising price is higher in the S-Model, but the same in the B-Model. Full article

(This article belongs to the Special Issue Digital Strategy, Digital Transformation, and Sustainable Business Models)

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24 pages, 7002 KiB

Open AccessArticle

COVID-19 and Financial Sustainability of Academic Institutions

by Oleg V. Pavlov and Evangelos Katsamakas

Sustainability 2021, 13(7), 3903; https://doi.org/10.3390/su13073903 - 1 Apr 2021

Cited by 16 | Viewed by 4490

Abstract

The COVID-19 pandemic has had a significant impact on higher education. Steering academic institutions through the pandemic is a complex and multifaceted task that can be supported with model-based scenario analysis. This article studies the short-term and long-term effects of the pandemic on [...] Read more.

The COVID-19 pandemic has had a significant impact on higher education. Steering academic institutions through the pandemic is a complex and multifaceted task that can be supported with model-based scenario analysis. This article studies the short-term and long-term effects of the pandemic on the financial health of a college using scenario analysis and stress testing with a system dynamics model of a representative tuition-dependent college. We find that different combinations of the pandemic mitigation protocols have varying effects on the financial sustainability of an academic institution. By simulating six individual components of the COVID-19 shock, we learn that due to the causal complexity, nonlinear responses and delays in the system, the negative shocks can propagate widely through the college, sometimes with considerable delays and disproportionate effects. Scenario analysis shows that some pandemic mitigation choices may destabilize even financially healthy institutions. The article concludes that higher education needs new sustainable business models. Full article

(This article belongs to the Special Issue Digital Strategy, Digital Transformation, and Sustainable Business Models)

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25 pages, 1146 KiB

Open AccessArticle

Digitalizing the Closing-of-the-Loop for Supply Chains: A Transportation and Blockchain Perspective

by Abdelghani Bekrar, Abdessamad Ait El Cadi, Raca Todosijevic and Joseph Sarkis

Sustainability 2021, 13(5), 2895; https://doi.org/10.3390/su13052895 - 8 Mar 2021

Cited by 90 | Viewed by 7757

Abstract

The circular economy is gaining in importance globally and locally. The COVID-19 crisis, as an exceptional event, showed the limits and the fragility of supply chains, with circular economy practices as a potential solution during and post-COVID. Reverse logistics (RL) is an important [...] Read more.

The circular economy is gaining in importance globally and locally. The COVID-19 crisis, as an exceptional event, showed the limits and the fragility of supply chains, with circular economy practices as a potential solution during and post-COVID. Reverse logistics (RL) is an important dimension of the circular economy which allows management of economic, social, and environmental challenges. Transportation is needed for RL to effectively operate, but research study on this topic has been relatively limited. New digitalization opportunities can enhance transportation and RL, and therefore further enhance the circular economy. This paper proposes to review practical research and concerns at the nexus of transportation, RL, and blockchain as a digitalizing technology. The potential benefits of blockchain technology through example use cases on various aspects of RL and transportation activities are presented. This integration and applications are evaluated using various capability facets of blockchain technology, particularly as an immutable and reliable ledger, a tracking service, a smart contract utility, as marketplace support, and as tokenization and incentivization. We also briefly introduce the physical internet concept within this context. The physical internet paradigm proposed last decade, promises to also disrupt the blockchain, transportation, and RL nexus. We include potential research directions and managerial implications across the blockchain, transportation, and RL nexus. Full article

(This article belongs to the Special Issue Digital Strategy, Digital Transformation, and Sustainable Business Models)

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14 pages, 838 KiB

Open AccessArticle

Algorithmic Pricing and Price Gouging. Consequences of High-Impact, Low Probability Events

by Juan Manuel Sánchez-Cartas, Alberto Tejero and Gonzalo León

Sustainability 2021, 13(5), 2542; https://doi.org/10.3390/su13052542 - 26 Feb 2021

Cited by 4 | Viewed by 2500

Abstract

Algorithmic pricing may lead to more efficient and contestable markets, but high-impact, low-probability events such as terror attacks or heavy storms may lead to price gouging, which may trigger injunctions or get sellers banned from platforms such as Amazon or eBay. This work [...] Read more.

Algorithmic pricing may lead to more efficient and contestable markets, but high-impact, low-probability events such as terror attacks or heavy storms may lead to price gouging, which may trigger injunctions or get sellers banned from platforms such as Amazon or eBay. This work addresses how such events may impact prices when set by an algorithm and how different markets may be affected. We analyze how to mitigate these high-impact events by paying attention to external (market conditions) and internal (algorithm design) features surrounding the algorithms. We find that both forces may help in partially mitigating price gouging, but it remains unknown which forces or features may lead to complete mitigation. Full article

(This article belongs to the Special Issue Digital Strategy, Digital Transformation, and Sustainable Business Models)

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15 pages, 254 KiB

Open AccessArticle

Online Sustainability Reporting and Firm Performance: Lessons Learned from Text Mining

by Xue Ning, Dobin Yim and Jiban Khuntia

Sustainability 2021, 13(3), 1069; https://doi.org/10.3390/su13031069 - 21 Jan 2021

Cited by 22 | Viewed by 4983

Abstract

As a corporate social responsibility (CSR) initiative, firms are increasingly disclosing sustainability indicators on online platforms to attract stakeholders’ interests. It is vital to understand what indicators reflect more on a firm’s performance and valuations. This study focuses on deriving value-oriented business intelligence [...] Read more.

As a corporate social responsibility (CSR) initiative, firms are increasingly disclosing sustainability indicators on online platforms to attract stakeholders’ interests. It is vital to understand what indicators reflect more on a firm’s performance and valuations. This study focuses on deriving value-oriented business intelligence from the voluntary disclosure of sustainability reports. The analysis in this study involves a three-stage approach: (1) Latent Dirichlet allocation (LDA) based topic modeling algorithm to identify and summarize typical contents expressed in various documents, (2) firm’s sustainability maturity modeled as a function of its strategic intent using a latent Markov model (LMM) to estimate the statistical significance and the extent of their relationships, and (3) empirical analysis using random effect linear and non-linear probit models to explore the impact of antecedents and firm performance consequences of three strategic intents. This study highlights using an advanced business analytics approach, specifically with latent Dirichlet allocation (LDA) topic modeling, to codify intangible knowledge embedded in annual sustainability reports to infer a firm’s strategic intent behind voluntary disclosure. In addition, this study aims to analyze the influence of the firm’s sustainability strategic intent on its financial performance. A secondary panel dataset consisting of information on 680 firms in 3 years was constructed by matching the text mined data with information from other sources. Results indicate that, on the one hand, while external stakeholder engagement is the primary motivation behind voluntary disclosure of sustainability reporting, firms are starting to engage internal stakeholders through workforce practices. On the other hand, internal employee-oriented intent has more influence on firm performance than external customer-oriented intent. This study demonstrates a toolset to index firms’ sustainability indicators and evaluates firms’ sustainability practice as an intangible asset and its impact on firms’ financial performance. Full article

(This article belongs to the Special Issue Digital Strategy, Digital Transformation, and Sustainable Business Models)

14 pages, 1346 KiB

Open AccessArticle

Tacit Collusion on Steroids: The Potential Risks for Competition Resulting from the Use of Algorithm Technology by Companies

by Christophe Samuel Hutchinson, Gulnara Fliurovna Ruchkina and Sergei Guerasimovich Pavlikov

Sustainability 2021, 13(2), 951; https://doi.org/10.3390/su13020951 - 19 Jan 2021

Cited by 2 | Viewed by 3799

Abstract

Digitalization has a growing impact on everyone’s life. It influences the way consumers purchase products, read online news, access multimedia content, and even meet or interact socially. At the core of digital products lies algorithm technology, decision-making software capable of fulfilling multiple tasks: [...] Read more.

Digitalization has a growing impact on everyone’s life. It influences the way consumers purchase products, read online news, access multimedia content, and even meet or interact socially. At the core of digital products lies algorithm technology, decision-making software capable of fulfilling multiple tasks: data mining, result ranking, user matching, dynamic pricing, product recommendations, and ads targeting, among others. Notwithstanding the perceived benefits of algorithms for the economy, the question has been raised of whether the use of algorithms by businesses might have countervailing effects on competition. Although any anti-competitive behavior typically observed in traditional markets can be implemented by this technology, a particular issue highlighted in discussions between researchers and practitioners is the concern that algorithms might foster collusion. Because of their capacity to increase market transparency and the frequency of interactions between competing firms, they can be used to facilitate parallel collusive behavior while dispensing competing firms with the need for explicit communication. Consequently, it is not excluded that algorithms will be used in the years to come to obtain the effects of a cartel without the need to enter into restrictive agreements or to engage in concerted practices. We evaluate the collusion risks associated with the use of algorithms and discuss whether the “agreement for antitrust purposes” concept needs revisiting. The more firms made use of types of algorithms that enable direct and indirect communication between the competitors, the more likely those companies may be considered liable. Full article

(This article belongs to the Special Issue Digital Strategy, Digital Transformation, and Sustainable Business Models)

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