Sharing economy and retailer sustainable performance: the mechanisms via business model innovation and digital capabilities

Our study aims to analyze a correlation between the sharing economy and sustainable performance in retail via business model innovation and the driver of digital capabilities. Specifically, the study investigates the role of digital capabilities for retailer sustainable performance mediated by sharing economy business model innovation (SE-BMI). The study employed a quantitative approach focused on established theoretical frameworks, utilizing primary data from 316 retailers in an emerging market and applying the partial least-squares structural equation modeling (PLS-SEM) for hypothesis testing. The results confirmed that the effect of the sharing economy via transformation of business model innovation, strengthened by digital capabilities, might significantly improve retailers' sustainable performance. This study extends the theories of transactional and resource-based views in research on retailer sustainable performance about digital capabilities and business innovation in the sharing economy.