CEF.UP – MaR Seminar

Monday – January 13^th, 2025 | 18:30h | Room 305

“Disruptive Technologies and Innovation as Drivers of Sustainable Business Practices in SMEs: The Role of Business Model Compatibility”

Antonio Revilla Torrejón – University Carlos III of Madrid (Spain)

Alicia Rodríguez Márquez – University Carlos III of Madrid (Spain)

Abstract:

“The rapid adoption of advanced digital technologies, along with the pressing need for the transition to a greener economy, are disrupting most industries and posing significant challenges to SMEs. In this study, we analyze how disruptive digital technologies and innovation may contribute to developing sustainable business practices in SMEs in two ways. First, the utilization of these technologies may directly reduce negative environmental impacts, enabling greater resource efficiency, waste reduction, and optimization of processes and operations. Second, as an indirect effect, these technologies may facilitate innovations that in turn may result in more sustainable business practices. Additionally, we introduce the concept of business model compatibility and analyze its role in moderating both relationships. The arguments above are captured in a moderated mediation model tested on a sample of 11,309 European Firms. The results provide empirical support for direct and indirect hypothesized relationships. Our findings also show that business model compatibility strengthens the direct relationships between disruptive technologies and sustainability. We conclude that digitalization brings significant opportunities for more environmentally-friendly businesses. We also conclude that the ability of SMEs to seize such opportunities and contribute to the transition to a greener economy partially depends on their innovation activities and the design of their business models.”