IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i3p936-d313548.html
   My bibliography  Save this article

Sustainable Business Model Based on Digital Twin Platform Network: The Inspiration from Haier’s Case Study in China

Author

Listed:
  • Xiao Li

    (Management School, Hangzhou Dianzi University, Hangzhou 310018, China)

  • Jiarou Cao

    (Management School, Hangzhou Dianzi University, Hangzhou 310018, China)

  • Zhenggang Liu

    (Management School, Hangzhou Dianzi University, Hangzhou 310018, China)

  • Xinggang Luo

    (Management School, Hangzhou Dianzi University, Hangzhou 310018, China)

Abstract

Sustainability and digitalization have become the main direction of transformation of enterprises. Building a digital twin platform network can provide enterprises with a comprehensive view of products, manufacture, supply chain, customer experience, and profitability, which is conducive to the construction of a sustainable business model. The purpose of this paper is to study how enterprises use digital twin platform networks to generate economic, social and environmental benefits in various dimensions and their coupling relationships. Based on the literature review, this paper constructs a five-dimensional framework of a sustainable business model, and analyses the coupling relationship between dimensions. Using Haier as a way to verify the five-dimensional framework, it explores the dynamic mechanism of the Haier digital twin platform network, constructs an integrated framework based on coupling perspective and compares it with other two home appliance enterprises. The study shows that, through the digital twin platform network, enterprises can remove the disadvantage of focusing on a single product life cycle, and form a comprehensive network, so as to promote overall sustainable upgrades. This paper draws generic strategies and digital transformation suggestions for enterprises to innovate the sustainable business model. The conclusion enriches the research on sustainable business models both theoretically and practically and provides a feasible reference for the transformation of enterprises in digital economy environment.

Suggested Citation

  • Xiao Li & Jiarou Cao & Zhenggang Liu & Xinggang Luo, 2020. "Sustainable Business Model Based on Digital Twin Platform Network: The Inspiration from Haier’s Case Study in China," Sustainability, MDPI, vol. 12(3), pages 1-26, January.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:3:p:936-:d:313548
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/3/936/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/3/936/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Cinzia Battistella & Maria Rosita Cagnina & Lucia Cicero & Nadia Preghenella, 2018. "Sustainable Business Models of SMEs: Challenges in Yacht Tourism Sector," Sustainability, MDPI, vol. 10(10), pages 1-20, September.
    2. Vinit Parida & David Sjödin & Wiebke Reim, 2019. "Reviewing Literature on Digitalization, Business Model Innovation, and Sustainable Industry: Past Achievements and Future Promises," Sustainability, MDPI, vol. 11(2), pages 1-18, January.
    3. Morris, Michael & Schindehutte, Minet & Allen, Jeffrey, 2005. "The entrepreneur's business model: toward a unified perspective," Journal of Business Research, Elsevier, vol. 58(6), pages 726-735, June.
    4. Karl Widerquist, 2018. "The Bottom Line," Exploring the Basic Income Guarantee, in: A Critical Analysis of Basic Income Experiments for Researchers, Policymakers, and Citizens, chapter 0, pages 93-98, Palgrave Macmillan.
    5. Sorescu, Alina & Frambach, Ruud T. & Singh, Jagdip & Rangaswamy, Arvind & Bridges, Cheryl, 2011. "Innovations in Retail Business Models," Journal of Retailing, Elsevier, vol. 87(S1), pages 3-16.
    6. Nazim Hussain & Ugo Rigoni & René P. Orij, 2018. "Corporate Governance and Sustainability Performance: Analysis of Triple Bottom Line Performance," Journal of Business Ethics, Springer, vol. 149(2), pages 411-432, May.
    7. Jaepil Choi & Heli Wang, 2009. "Stakeholder relations and the persistence of corporate financial performance," Strategic Management Journal, Wiley Blackwell, vol. 30(8), pages 895-907, August.
    8. Junyon Im & Sunny Sun, 2015. "Profits and outreach to the poor: The institutional logics of microfinance institutions," Asia Pacific Journal of Management, Springer, vol. 32(1), pages 95-117, March.
    9. Steve Evans & Doroteya Vladimirova & Maria Holgado & Kirsten Van Fossen & Miying Yang & Elisabete A. Silva & Claire Y. Barlow, 2017. "Business Model Innovation for Sustainability: Towards a Unified Perspective for Creation of Sustainable Business Models," Business Strategy and the Environment, Wiley Blackwell, vol. 26(5), pages 597-608, July.
    10. Chibuike Kingsley Nduneseokwu & Ying Qu & Andrea Appolloni, 2017. "Factors Influencing Consumers’ Intentions to Participate in a Formal E-Waste Collection System: A Case Study of Onitsha, Nigeria," Sustainability, MDPI, vol. 9(6), pages 1-17, May.
    11. Ying Qu & Ying Yu & Andrea Appolloni & Mengru Li & Yue Liu, 2017. "Measuring Green Growth Efficiency for Chinese Manufacturing Industries," Sustainability, MDPI, vol. 9(4), pages 1-18, April.
    12. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    13. Marco Savastano & Carlo Amendola & Francesco Bellini & Fabrizio D’Ascenzo, 2019. "Contextual Impacts on Industrial Processes Brought by the Digital Transformation of Manufacturing: A Systematic Review," Sustainability, MDPI, vol. 11(3), pages 1-38, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jingbo Hu & Taohua Ouyang & William X. Wei & Jiawei Cai, 2020. "How Do Manufacturing Enterprises Construct E-Commerce Platforms for Sustainable Development? A Case Study of Resource Orchestration," Sustainability, MDPI, vol. 12(16), pages 1-18, August.
    2. Kamble, Sachin S & Gunasekaran, Angappa & Parekh, Harsh & Mani, Venkatesh & Belhadi, Amine & Sharma, Rohit, 2022. "Digital twin for sustainable manufacturing supply chains: Current trends, future perspectives, and an implementation framework," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    3. Junping Yang & Ruiqi Wu & Haochun Yang, 2023. "Digital Transformation and Enterprise Sustainability: The Moderating Role of Regional Virtual Agglomeration," Sustainability, MDPI, vol. 15(9), pages 1-21, May.
    4. Rafael Martínez-Peláez & Alberto Ochoa-Brust & Solange Rivera & Vanessa G. Félix & Rodolfo Ostos & Héctor Brito & Ramón A. Félix & Luis J. Mena, 2023. "Role of Digital Transformation for Achieving Sustainability: Mediated Role of Stakeholders, Key Capabilities, and Technology," Sustainability, MDPI, vol. 15(14), pages 1-27, July.
    5. Ukeje Jacob Agwu & John Bessant, 2021. "Sustainable Business Models: A Systematic Review of Approaches and Challenges in Manufacturing," RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração, vol. 25(3), pages 200202-2002.
    6. Hossein Rahnama & Kerstin Johansen & Lisa Larsson & Anna Öhrwall Rönnbäck, 2022. "Collaboration in Value Constellations for Sustainable Production: The Perspective of Small Technology Solution Providers," Sustainability, MDPI, vol. 14(8), pages 1-20, April.
    7. Peter M. Bican & Alexander Brem, 2020. "Digital Business Model, Digital Transformation, Digital Entrepreneurship: Is There A Sustainable “Digital”?," Sustainability, MDPI, vol. 12(13), pages 1-15, June.
    8. Broccardo, Laura & Zicari, Adrián & Jabeen, Fauzia & Bhatti, Zeeshan A., 2023. "How digitalization supports a sustainable business model: A literature review," Technological Forecasting and Social Change, Elsevier, vol. 187(C).
    9. Albérico Travassos Rosário & Joana Carmo Dias, 2023. "The New Digital Economy and Sustainability: Challenges and Opportunities," Sustainability, MDPI, vol. 15(14), pages 1-23, July.
    10. Weng Siew Lam & Weng Hoe Lam & Pei Fun Lee, 2023. "A Bibliometric Analysis of Digital Twin in the Supply Chain," Mathematics, MDPI, vol. 11(15), pages 1-24, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ancillai, Chiara & Sabatini, Andrea & Gatti, Marco & Perna, Andrea, 2023. "Digital technology and business model innovation: A systematic literature review and future research agenda," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    2. Maria Rosa De Giacomo & Raimund Bleischwitz, 2020. "Business models for environmental sustainability: Contemporary shortcomings and some perspectives," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3352-3369, December.
    3. Yi Liang & Chenyu Zhao & Min-Jae Lee, 2023. "Institutional Pressures on Sustainability and Green Performance: The Mediating Role of Digital Business Model Innovation," Sustainability, MDPI, vol. 15(19), pages 1-14, September.
    4. Cao, Lanlan & Navare, Jyoti & Jin, Zhongqi, 2018. "Business model innovation: How the international retailers rebuild their core business logic in a new host country," International Business Review, Elsevier, vol. 27(3), pages 543-562.
    5. Fornasari, Tommaso, 2020. "Il ruolo dei comitati di responsabilità sociale nella corporate governance [The Role of CSR Committees in Corporate Governance]," MPRA Paper 111192, University Library of Munich, Germany.
    6. Julija Winschel & Martin Stawinoga, 2019. "Determinants and effects of sustainable CEO compensation: a structured literature review of empirical evidence," Management Review Quarterly, Springer, vol. 69(3), pages 265-328, September.
    7. Schiavone, Francesco & Leone, Daniele & Caporuscio, Andrea & Lan, Sai, 2022. "Digital servitization and new sustainable configurations of manufacturing systems," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    8. Svante Andersson & Göran Svensson & Francisco‐Jose Molina‐Castillo & Carmen Otero‐Neira & John Lindgren & Niklas P. E. Karlsson & Hélène Laurell, 2022. "Sustainable development—Direct and indirect effects between economic, social, and environmental dimensions in business practices," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1158-1172, September.
    9. De Silva, Muthu & Al-Tabbaa, Omar & Khan, Zaheer, 2021. "Business model innovation by international social purpose organizations: The role of dynamic capabilities," Journal of Business Research, Elsevier, vol. 125(C), pages 733-749.
    10. Nurlan Orazalin & Mady Baydauletov, 2020. "Corporate social responsibility strategy and corporate environmental and social performance: The moderating role of board gender diversity," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(4), pages 1664-1676, July.
    11. Wiebke Reim & David Sjödin & Vinit Parida, 2021. "Circular business model implementation: A capability development case study from the manufacturing industry," Business Strategy and the Environment, Wiley Blackwell, vol. 30(6), pages 2745-2757, September.
    12. Ali Uyar & Cemil Kuzey & Merve Kilic & Abdullah S. Karaman, 2021. "Board structure, financial performance, corporate social responsibility performance, CSR committee, and CEO duality: Disentangling the connection in healthcare," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(6), pages 1730-1748, November.
    13. Amandine Maus & Sylvie Sammut, 2018. "Business model innovation in incubators: the role played by dynamic capabilities theory," Post-Print hal-02466175, HAL.
    14. Sebastian Schroedel, 2023. "The Sustainable Business Model Database: 92 Patterns That Enable Sustainability in Business Model Innovation," Sustainability, MDPI, vol. 15(10), pages 1-27, May.
    15. María E. Aguilar-Fernández & José Ramon Otegi-Olaso, 2018. "Firm Size and the Business Model for Sustainable Innovation," Sustainability, MDPI, vol. 10(12), pages 1-27, December.
    16. John Manso Frimpong & Jacob Kuutoume & Christiana Abrafi Gyamfi, 2024. "Supply Chain Integration and Organizational Resources and Capabilities: The Moderating Effect of Stakeholders’ Support," International Review of Management and Marketing, Econjournals, vol. 14(4), pages 72-82, July.
    17. Nadia Preghenella & Cinzia Battistella, 2021. "Exploring business models for sustainability: A bibliographic investigation of the literature and future research directions," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2505-2522, July.
    18. María Luisa Pajuelo Moreno & Teresa Duarte-Atoche, 2019. "Relationship between Sustainable Disclosure and Performance—An Extension of Ullmann’s Model," Sustainability, MDPI, vol. 11(16), pages 1-33, August.
    19. Melinda Cahyaning Ratri & Iman Harymawan & Khairul Anuar Kamarudin, 2021. "Busyness, Tenure, Meeting Frequency of the CEOs, and Corporate Social Responsibility Disclosure," Sustainability, MDPI, vol. 13(10), pages 1-22, May.
    20. Child, John & Hsieh, Linda & Elbanna, Said & Karmowska, Joanna & Marinova, Svetla & Puthusserry, Pushyarag & Tsai, Terence & Narooz, Rose & Zhang, Yunlu, 2017. "SME international business models: The role of context and experience," Journal of World Business, Elsevier, vol. 52(5), pages 664-679.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:12:y:2020:i:3:p:936-:d:313548. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.