Chuyển đổi số, đổi mới bền vững và kinh tế tuần hoàn - UEH 2024

BỘ GIÁO DỤC VÀ ĐÀO TẠO TRƯỜNG ĐẠI HỌC KINH TÉ TP. HÒ CHÍ MINH BÁO CÁO TỎNG KÉT ĐÈ TÀI NGHIÊN cưu KHOA HỌC THAM GIA XÉT GIẢI THƯỞNG “NHÀ NGHIÊN cúu TRẺ UEH” NĂM 2024 DIGITAL TRANSFORMATION, SUSTAINABLE INNOVATION, AND CIRCULAR ECONOMY: THE INNOVATIVE POTENTIAL OF START-UPS IN AN EMERGING ECONOMY Thuộc nhóm chuyên ngành: Công nghệ và Đôi mới sáng tạo TP. HỒ Chí Minh, tháng 02/2024 Abstract The main purpose of this paper is to explore how startup companies leverage the potential of digital transformation and circular business models to pursue sustainable development. For the purpose of supplementing and developing the Triple Bottom Line (TBL) and Business Experiment (BE) theories, this study employs a qualitative approach to establish a comprehensive scale, which can be applied to leaders, managers, and directors.

After collecting 248 valid survey data from Vietnamese startups, the study's hypotheses were tested using the partial least squares technique for structural equation modeling (PLS-SEM). In the context of entrepreneurship, the research demonstrates the positive impact of digital transformation (DT) on sustainable innovation (SI) and circular business model innovation (CBMI), an aspect that has not been previously explored. Moreover, the study evaluates the impact of DT on sustainable corporate performance (SCP) and tests the mediating role of CBMI and SI. Additionally, based on studies on the characteristics of environmental dynamism (ED), we discovered a positive aspect in the moderating role of ED in the relationship between CBMI and SCP, between SI and SCP.

Integrating digital technologies and fostering innovation can drive sustainable growth, while adopting a circular business model can reduce waste and create new revenue streams. Collaborating with stakeholders can help build a sustainable and resilient business ecosystem. This approach can help organizations thrive in a rapidly changing business environment. This study analyzes the important factors related to business model innovation and builds a dynamic business environment.

Therefore, it makes a significant contribution to expanding the research literature on sustainable development and circular economic models in the era of digital transformation. The study also provides an in-depth understanding of the mediating mechanisms related to business model innovation and the moderating role of a vibrant business environment, which is an important contribution to the research community and managers in enhancing sustainable performance. Keywords: Digital transformation, Sustainable innovation, Circular business model innovation, Sustainable enterprise performance, Environmental dynamism. 1 TABLE OF CONTENTS CHAPTER 1: INTRODUCTION.

Contextual details derived from research and an issue description. Objectives of the study. The importance of research.10 CHAPTER 2: LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT 12 2. Circular Business Model Innovation (CBMI).

Sustainable Corporate Performance (SCP). Research Framework and Hypothesis Development. The interconnection between DT and CBMI. The nexus between DT and SI.

The relationship between DT and SCP. The moderator role of ED. The Intermediary Function of SI and CBMI.22 CHAPTER 3: RESEARCH METHODOLOGY. Qualitative research methods.

Quantitative research methods.35 CHAPTER 4: RESEARCH RESULTS. Measurement Model Evaluation. Goodness of Fit (GoF). Structural Model Evaluation.

4J CHAPTER 5: DISCUSSION AND IMPLICATIONS. 47 CHAPTER 6: CONCLUSION, LIMITATIONS AND THE FUTURE RESEARCH DIRECTIONS. Limitations and the future research directions. APPENDIX I: GROUP DISCUSSION OUTLINE.

APPENDIX 2: QUESTIONNAIRE - VIETNAMESE VERSION. APPENDIX 3: QUANTITATIVE RESULTS. 70 3 LIST OF TABLES Table 3. Variables and items.

Fornell-Larcker criterion. Results of HTMT. Assessment of the structural model.43 4 TABLE OF FIGURES Figure 2. The Recommended Research Model.

SEM analysis results. 43 5 TABLE OF ABBREVIATIONS BE Business Experimentation BMI Business Model Innovation CBM Circular Business Model CBMI Circular Business Model Innovation DT Digital Transformation ED Environmental Dynamism LE Linear Economy SBMI Sustainable Business Model Innovation SCP Sustainable Corporate Performance SDGs Sustainable Development Goals SI Sustainable Innovation TBL Triple Bottom Line 6 CHAPTER 1: INTRODUCTION 1. Contextual details derived from research and an issue description The shift towards sustainable development has been extensively discussed in recent decades. In order to promote a global Sustainable Development Revolution and create a better future, the United Nations introduced the 17 Sustainable Development Goals (SDGs) in 2015.

More recently, Huan et al. (2021) developed the Composite SDG Index to assess the comprehensive effectiveness of achieving SDGs within a country. At a smaller scale, for businesses, Elkington (1997) introduced the Triple Bottom Line (TBL) framework to evaluate the sustainable development of businesses through their operations. Regardless of the scale, the critical aspects of sustainable development include the synchronized growth of the economy, environment, and society.

While entrepreneurship has been extensively studied from various perspectives in recent decades (Mendez-Picazo et al., 2021), most studies have focused on analyzing the potential impacts of entrepreneurship on economic growth, considering the benefits that economic growth brings in terms of employment and welfare (Nissan et al., 2012; Castano et al., 2016; Aeeni et al. However, sustainable development encompasses economic, environmental, and social factors. Therefore, to ensure sustainable existence and development, entrepreneurial businesses need to adopt SI strategies (Schaltegger et al., 2016; Spender et al. This means that businesses need to assess the impact of their activities on the environment and society, engage in responsible business practices, and utilize green technologies.

Applying sustainable innovation helps entrepreneurial businesses create sustainable value for the community and improve their business efficiency. Moreover, innovation in business models (BMI) is recognized as a fundamental approach to realize sustainability-oriented innovations (Evans et al. According to Geissdoerfer et al. (2020), BM1 is exploring, adjusting, improving, redesigning, modifying, innovating, developing, applying, and transforming business models.

When BMI aims for sustainable development, it is referred to as Sustainable BMI (SBMI), which focuses on sustainable development, positive impacts, minimizing adverse effects on the environment, society, and long-term prosperity of the organization and its stakeholders, or applying solutions or features that promote sustainability in value 7 propositions, creating and capturing value factors or value networks. However, to implement comprehensive SBMI, businesses must address challenges related lo TBL, mindset, resources, technological innovation, external relationships, methods, and tools (Evans et al. Due to the trade-offs between economic, social, and environmental characteristics - the criteria for a sustainable business model, integrating all these factors into a business model is a significant challenge for businesses, especially startups that may lack the resources to carry out such integration. For example, this may occur when a new technology's efficiency outweighs the environmental benefit ofclosing the loop with the old technology or the negative consequences of going around in circles for employee working conditions (Geissdoerfer et al.

Therefore, SBMI may be limited in addressing the new challenges and opportunities of the market within the context of startup businesses. Instead of solely focusing on SBMI, businesses are gradually shifting towards adopting Circular Business Model Innovation (CBMI), a type of SBMI that is particularly suited to a circular economy model (Khan et al., 2021; Guldmann et al., 2019; de Sousa Jabbour et al., 2019; Tseng et al. CBMI creates sustainable business value through proactive and long-term vision-driven stakeholder management and closing, minimizing, enhancing, dematerializing, and narrowing resource loops within the CBM (Bocken et al. CBMI offers several advantages over the linear economy (LE), a traditional economic model that we currently employ.

LE is based on the 'take-make-waste' model, where resources are extracted, products are manufactured and consumed, and ultimately discarded. In contrast, CBMI focuses on generating business value within recycling and resource reuse cycles (Guldmann et al. The innovation of business models towards circularity positively contributes to the sustainable performance of businesses (SCP) (Sudusinghe et al. In a study by Le et al.

(2022), the authors affirmed the positive contribution of SI in enhancing SCP. Therefore, CBMI and SI are essential in helping businesses enhance sustainable performance (SCP) by minimizing negative environmental and societal impacts while creating economic value and market competitiveness. Moreover, several studies have shown that environmental dynamism (ED) hurts the majority of causal relationships (Hou et al., 2019; Wamba et al., 2020; Yuan et al., 2021; Zhang et al., 2021; Ahmed et al. However, based on studies on the characteristics of ED, such as dynamism, 8 flexibility, and commitment (Xu et al., 2022), this research explores the positive aspect of the regulating role of ED in the relationship between CBMI and SCP, SI and SCP.

Digital technologies play a crucial role in transforming existing production systems and business models by creating closed loops and retaining the value of materials at different stages of the product life cycle. Thus, digital technologies are essential in driving CBMI and sustainable development. Digital technologies such as loT, AI, blockchain, big data, and cloud computing collect, analyze, and share data among relevant parties, ensuring transparency and integrity throughout the production and consumption processes (Rejeb et al. For example, loT can be used to monitor and manage the energy performance of devices, helping to minimize unnecessary electricity consumption (Ding et al.

As a result, a digitalized business will help create a technological platform that supports improved intelligence and operational processes (Ahmed et al. However, this does not imply that DT will directly impact SCP, especially in startup enterprises. Digital technology emphasizes the technological roots of ICT and the linkage between ICT and business. It helps businesses sense environmental changes to design an innovative model to maximize their survival opportunities through adaptation or redefining core activities, such as implementing sustainable innovation or adopting circular business models (Vial, 2019).

This study analyzes essential factors related to BMI. It establishes a dynamic business environment, significantly expanding the research literature on sustainable development and CEM in the era of DT, particularly in the context of startup enterprises. The research also provides a deep understanding of the mediating mechanisms related to BMI and the regulating mechanisms of a vibrant business environment, thus making an essential contribution to the research community and managers in enhancing sustainable performance. Notably, this is the first study that integrates the framework of DT, SI, and circular innovation to assess sustainable performance, especially in the context of startup enterprises in Vietnam.

Based on the findings of this research, managers can make informed policy decisions and development strategies that support startup enterprises and promote their sustainable development. Objectives of the study The potential of DT, circular economy models, and SI for businesses, particularly startups, is a highly regarded topic. Yet, there still needs to be a research gap in this area. Based on the unresolved issues and the mentioned approach, this paper raises the following research questions: • RQI: How does digital transformation impact sustainable innovation and circular business models? • RQ2: How do CBMI and SI mediate the impact of DT on SCP? • RQ3: In which direction does environmental dynamism regulate the relationship between CBMI and SCP, as well as SI and SCP? The study is structured into crucial sections.

Section 2 provides an overview of the theoretical framework, including concepts, literature review, hypotheses, and the research model. Section 3 explains the sampling procedure, measurement scales, and questionnaire design. Section 4 examines the research outcomes from the collected data. Section 5 discusses the significance of the findings for startup enterprises and presents implications.

Finally, Section 6 summarizes the study's conclusions and limitations, outlining the research's scope and constraints. Research subjects Research subjects: Sustainable Corporate Performance in Ho Chi Minh City. Respondents: Managers and directors at start-up enterprises in HCMC. Research scope Research space: Ho Chi Minh City area.

Period: From September 2023 to December 2023. The importance of research • Theoretically 10 This study applies the TPL theory to explain sustainable development and emphasizes financial efficiency and equal importance of social and environmental aspects to improve SCP in businesses. BE is used to explain the impact of CBMI and SI on SCP, creating a new business model adhering to CBMI and SI. Startups in Vietnam leverage technology for process optimization and creating new business models.

The study explores the mediating role of CBMI and SI in the impact of DT on SCP, enhancing understanding of these relationships. ED positively moderates the SI-SCP relationship but has a negative effect on the CBMI-SCP relationship. • Practical significance Start-ups play a vital role in job creation, innovation, efficiency, and addressing social and environmental challenges.