GREEN DIGITAL BUSINESS CAPABILITY AS DETERMINANT FACTORS TO SUSTAIN FIRM PERFORMANCE. MARKET BASED MODEL INNOVATION ADDRESSES AS MEDIATED VARIABLE. A STUDY FROM THE PERFECTIVENESS OF DYNAMIC CAPABILITY THEORY

Abstract Digitalization has shaped the new business paradigm, and integration of various digitalization factors is inevitable for industries to reach performance sustainability. This research aims to investigate how various digitalization factors trigger industrial performance sustainability. Based on dynamic capability, this research focuses on the analysis of the relationship between exogenous (digital exploitation capabilities, digital exploration capabilities, digitalization strategy adoption, digital transformation, and digital infrastructure capabilities) and endogenous variables (sustainable business performance). Moreover, this study also investigates the mediating role of market-driven business model innovation and customized business model innovation. This research is the first study that explores the mechanism of the intervening variable between market-based business innovation and digital leadership capability. The findings of this model are relevant to guide the industries in current digital economics by innovating to obtain sustainable business performance. The survey was used as the data collection method by distributing questionnaires to the managers through Google Forms to the official email. 500 questionnaires were distributed, and 388 were valid for further data analysis, with a 77,6% response rate. The questionnaires were divided into two sections. The first section is dedicated to demographic information, and the second section is focused on research model variables such as Digital Exploitation Capabilities (DEC), Digital Exploration Capabilities (DEC), Digitalization Strategy Adoption (DSA, Digital Transformation (DT), Digital Infrastructure Capabilities (DIC), intervening variables such as Market-Driven Business Model Innovation (MDBMI) and Customized Business Model Innovation (CBMI). All proposed hypotheses are accepted.