Submit your papersSubmit Now
For Enquiries: [email protected]
IIARD LogoIIARD

Strategic Green Entrepreneurship, Digital Transformation and Sustainable Business Performance: An Integrative Review and Future Research Agenda for Emerging Economies

Uchenna Nicholas Abiakam, ., Onyiro Christopher Enyinnaya, Obiageri Felicita Onwuegbule

Abstract

The increasing challenges of climate change, environmental degradation, and resource scarcity have compelled organizations to integrate sustainability into their strategic operations. Green entrepreneurship has emerged as an effective approach for creating economic value while promoting environmental protection and social well-being. Similarly, digital transformation has become a critical organizational capability that enhances innovation, operational efficiency, and sustainable business development. However, existing studies have largely examined green entrepreneurship, digital transformation, and sustainable business performance independently, resulting in limited understanding of their interconnected roles in achieving long-term sustainability. This paper presents a systematic integrative review of literature published between 2020 and 2026 to examine the relationships among green entrepreneurship, digital transformation, business innovation, and sustainable business performance. The review synthesizes contemporary theoretical and empirical evidence to develop an integrated conceptual framework grounded in the Triple Bottom Line Theory, Dynamic Capability Theory, and Ecological Modernization Theory. The findings indicate that green entrepreneurship and digital transformation complement one another, while business innovation serves as the key mechanism through which these capabilities improve economic, environmental, and social performance. The review further highlights the importance of institutional support, green finance, technological infrastructure, and effective governance in promoting sustainable entrepreneurial ecosystems. The study contributes to sustainability and entrepreneurship literature by integrating fragmented knowledge into a unified framework and offering practical implications for entrepreneurs, managers, policymakers, and researchers seeking to advance sustainable business development.

Keywords

Green Entrepreneurship; Digital Transformation; Sustainable Business; Green Innovation; Business Sustainability; SMEs; Triple Bottom Line; Dynamic Capability; Emerging Economies.

References

Booth, A., Sutton, A., & Papaioannou, D. (2022). Systematic approaches to a successful literature review (3rd ed.). Sage. Braun, V., & Clarke, V. (2021). Thematic analysis: A practical guide. Sage. Dean, T. J., & McMullen, J. S. (2007). Toward a theory of sustainable entrepreneurship: Reducing environmental degradation through entrepreneurial action. Journal of Business Venturing, 22(1), 50–76. https://doi.org/10.1016/j.jbusvent.2005.09.003 Elkington, J. (1997). Cannibals with forks: The triple bottom line of 21st century business. Capstone. Fawaid, A., Makruf, M., Sayyidi, S., Fatmawati, S. W., & Dewi, I. O. (2026). Theoretical model of green entrepreneurship and digital transformation in enhancing the sustainability of batik MSMEs with business innovation as a mediating variable. Cleaner Production Letters, 10, 100135. https://doi.org/10.1016/j.clpl.2026.100135 Freeman, R. E., Phillips, R. A., & Sisodia, R. (2020). Tensions in stakeholder theory. Business & Society, 59(2), 213–231. https://doi.org/10.1177/0007650318773750 Geissdoerfer, M., Savaget, P., Evans, S., & Lüdeke-Freund, F. (2020). The Cambridge business model innovation process. Procedia Manufacturing, 44, 262–269. https://doi.org/10.1016/j.promfg.2020.02.234 George, G., Merrill, R. K., & Schillebeeckx, S. J. D. (2021). Digital sustainability and entrepreneurship: How digital innovations are helping tackle climate change and sustainable development. Entrepreneurship Theory and Practice, 45(5), 999–1027. https://doi.org/10.1177/1042258721992422 Gibbs, D., & O'Neill, K. (2017). Future green economies and regional development: A research agenda. Regional Studies, 51(1), 161–173. https://doi.org/10.1080/00343404.2016.1255719 International Energy Agency. (2024). World energy outlook 2024. IEA. Kotler, P., Kartajaya, H., & Setiawan, I. (2021). Marketing 5.0: Technology for humanity. John Wiley & Sons. Maharjan, S. (2025). Sustainable business through green entrepreneurship in Nepal (Master's thesis). School of Business, Master's Degree Programme in International Business Management. Mol, A. P. J., & Sonnenfeld, D. A. (2000). Ecological modernisation around the world: An introduction. Environmental Politics, 9(1), 3–16. https://doi.org/10.1080/09644010008414511 Nambisan, S., Wright, M., & Feldman, M. (2019). The digital transformation of innovation and entrepreneurship: Progress, challenges and key themes. Research Policy, 48(8), 103773. https://doi.org/10.1016/j.respol.2019.03.018 Onofrei, M., Oprea, F., & Doacă, E.-M. (2026). Green entrepreneurship as a sustainable business model: Key lessons for SMEs. Future Business Journal, 12, 124. https://doi.org/10.1186/s43093-026-00843-4 Organisation for Economic Co-operation and Development. (2018). Oslo manual 2018: Guidelines for collecting, reporting and using data on innovation (4th ed.). OECD Publishing. Organisation for Economic Co-operation and Development. (2023). SME and entrepreneurship outlook 2023. OECD Publishing. Page, M. J., McKenzie, J. E., Bossuyt, P. M., Boutron, I., Hoffmann, T. C., Mulrow, C. D., Shamseer, L., Tetzlaff, J. M., Akl, E. A., Brennan, S. E., Chou, R., Glanville, J., Grimshaw, J. M., Hróbjartsson, A., Lalu, M. M., Li, T., Loder, E. W., Mayo-Wilson, E., McDonald, S., ... Moher, D. (2021). The PRISMA 2020 statement: An updated guideline for reporting systematic reviews. BMJ, 372, n71. https://doi.org/10.1136/bmj.n71 Porter, M. E., & Kramer, M. R. (2019). Creating shared value. In G. G. Lenssen & N. C. Smith (Eds.), Managing sustainable business (pp. 323–346). Springer. Schaltegger, S., & Wagner, M. (2011). Sustainable entrepreneurship and sustainability innovation: Categories and interactions. Business Strategy and the Environment, 20(4), 222–237. https://doi.org/10.1002/bse.682 Sharma, S. N., & Subba, R. (2025). Entrepreneurship and sustainability: Analyzing the impact of green startups on economic development. Innovation and Green Development, 4, 100280. https://doi.org/10.1016/j.igd.2025.100280 Snyder, H. (2019). Literature review as a research methodology: An overview and guidelines. Journal of Business Research, 104, 333–339. https://doi.org/10.1016/j.jbusres.2019.07.039 Teece, D. J. (2007). Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), 1319–1350. https://doi.org/10.1002/smj.640 Torraco, R. J. (2016). Writing integrative literature reviews: Using the past and present to explore the future. Human Resource Development Review, 15(4), 404–428. https://doi.org/10.1177/1534484316671606 United Nations. (2023). The Sustainable Development Goals report 2023. United Nations. Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Dong, J. Q., Fabian, N., & Haenlein, M. (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 122, 889–901. https://doi.org/10.1016/j.jbusres.2019.09.022 World Bank. (2024). World Development Report 2024: The middle-income trap. World Bank.