Where Digitalization Meets Sustainability: Opportunities and Challenges

Abstract

The purpose of this chapter is to build on the tenets of service dominant (S-D) logic and interorganizational governance models to propose a conceptual framework for a digitalized ecosystem where various stakeholders co-create value. Sustainable governance models that will potentially emerge within the proposed ecosystem are also identified. We argue that the emergence of sustainable governance models will reduce frictions and costs associated with information collection and processing, management, energy use, manufacturing, and logistics. We expect that the increased network density due to digitalization will facilitate creating a shared culture among stakeholders. Strong network ties will enable different parties benefit from relational rents, stimulate innovation processes and improve adaptability to the ever changing business environment of the twenty-first century.