First, digital transformation which includes digital capability and digital strategy can promote eco-innovation which includes eco-process, eco-product, and eco-management innovation. Second, eco-process, eco-product, and eco-management innovation can enhance sustainable performance.
The Observatory approaches eco-innovation as a persuasive phenomenon present in all economic sectors and therefore relevant for all types of innovation, defining eco-innovation as follows: "Eco-innovation is any innovation that reduces the use of natural resources and decreases the release of harmful substances across the whole life-cycle".
Digitalization’s ability to facilitate business ecosystem collaboration across geographies and organizations is central to the realisation of a global circular economy. To observe the successful digitalization of the business ecosystem, we need to examine a new set of market leaders that use digital platform models to achieve this position.
As a result, digitalization can promote green process innovation ( Wei and Sun, 2021) and boost sustainable performance for a company and the entire supply chain ( Gupta et al., 2020; Nayal et al., 2022 ). However, there are still many uncertainties in the outcomes of digital transformation, which may result in adverse effects.