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Digital Opportunities And Challenges For The GCC Research Paper

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Business Model Environmental Impact Sustainable Development Literature Review
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Adoption and diffusion of sustainable digital business model in the GCC: Opportunities and Challenges

Abstract

The adoption and widespread diffusion of the sustainable digital business model (SDBM) is an important step towards promoting sustainable development and reducing the environmental impact of business operations in the Gulf Cooperation Council (GCC) region. The implementation of SDBMs, though, faces multiple challenges that are directly related to the unique socioeconomic and cultural characteristics of the GCC member-states, as well as the limited awareness and understanding of the concept of sustainability among many public and private sector practitioners. To help address these gaps in the current body of knowledge, this research examines the various opportunities and challenges that are involved when building SDBM practices in the GCC region. The paper provides a systematic review of the literature and a statistical analysis of the collected data from reliable sources. The findings indicate that the adoption of digital SBMs could help overcome several challenges faced by traditional business model, such as lack of resources and high costs, by leveraging the advantages of digital technologies. The findings also indicate that the implementation of SDBM requires addressing several challenges, including the need for regulatory support, the establishment of suitable infrastructure, and the development of relevant skills and competencies. The study concludes that while the adoption of digital SBMs in the GCC region is still in its early stages, it holds significant potential for promoting sustainable development and reducing environmental impact.

Keywords:

Business model; Sustainability; GCC; Digital; Environmental impact; Opportunities; Challenges

Introduction

Because time is running out and peak oil may have already been reached, sustainable development has become an increasingly critical global issue in general and in the GCC region in particular, with organizations of all types and sizes playing a crucial role in developing viable, sustainable practices (Anser et al., 2020). In response, the sustainable digital business model (SDBM) has received increasing attention based on its demonstrated abilities to promote innovative practices that prioritize sustainability. In this regard, the results of a study of SDBMs by Hajiheydari et al. (2023) concludes that:

Business model innovation requires not only proper business design based on social and environmental sustainability and digital transformation requirements but also attention to a new component called sustainable engagement, which represents the need for engaging with social and environmental issues in addition to customers. (p. 420)

As discussed further below, identifying opportunities to develop sustainable business practices has assumed new importance and relevance in the Middle East today.

At present, the Gulf Cooperation Council (GCC) region is comprised of six member-states: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia (KSA), and the United Arab Emirates (UAE). While these countries share a common language, heritage, history and religious values, they are all uniquely situated and differ with respect to their resources and national objectives, all of which can have an impact on the uptake of SDBMs (Freer & Kherfi, 2020).

There remains a dearth of timely and relevant research in this area, however, meaning that there is still limited understanding and awareness of the concept of sustainability the GCC region. To address this gap, the objective of this research is to examine the opportunities and challenges in building SDBM in the GCC region, with a focus on how digital technologies can help overcome challenges faced by traditional business model, by conducting a literature review and quantitative analysis of data collected from various sources.

Objectives

The objectives of this research are three-fold follows:

1. To examine the opportunities and challenges in building SDBM in the GCC region.

2. To identify the key factors that influence the adoption and diffusion of SDBM in the GCC region.

3. To evaluate the potential of SDBM in promoting sustainable...

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…traditional SBMs. The implementation and diffusion of these technologies, though, face several hurdles, primarily related to regulatory support, infrastructure, and the availability of necessary skills and competencies.

Notwithstanding the foregoing considerations, another key challenge identified is the limited understanding and awareness of sustainability concepts within the region's business sector. This lack of awareness significantly impedes the adoption and diffusion of SDBMs. To address these challenges and foster the growth of SDBMs in the GCC most effectively, it is also reasonable to conclude that there remains a crucial need for promoting awareness and education on the importance of sustainability in business practices. By focusing on these areas, the GCC region can create a more conducive environment for the adoption and successful implementation of SDBMs, ultimately contributing to more sustainable economic development and improved environment.

Limitations of the Study

Although this study provides timely, valuable insights, there are also a number of corresponding limitations that warrant consideration. For example, the reliance on self-reported data from the surveyed firms in GCC member-states introduces the potential for response bias which could affect the accuracy of the findings and their interpretation. Further, the cross-sectional design of the research limits the ability to establish any precise causal relationships between variables, limiting the depth of understanding of the phenomena under investigation. Likewise, while the sample size is representative, it may not fully encompass the diverse range of businesses operating within the GCC region, potentially overlooking unique characteristics or challenges faced by certain sectors or company sizes or types. These limitations underscore the importance of interpreting the results with caution and point to opportunities for future research to address these constraints, such as employing longitudinal designs, incorporating objective data sources, or expanding the sample to ensure broader representation of the GCC business landscape.

Future Further Study

Future research on the adoption of SDBMs in…

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References

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Appendix AMain Survey Questions:1. What are the major opportunities for building digital sustainable business models in the GCC region?2. What are the biggest challenges facing businesses in the GCC region when building digital sustainable business models?3. How important is digital transformation in the GCC region for achieving sustainable development goals?4. What are the key factors that drive the adoption and diffusion of digital sustainable business models in the GCC region?5. What are the main barriers to the adoption of digital sustainable business models in the GCC region?6. To what extent are businesses in the GCC region aware of the potential benefits of digital sustainable business models?7. How important is collaboration among stakeholders in promoting the adoption of digital sustainable business models in the GCC region?8. What is the role of government policies in promoting the adoption of digital sustainable business models in the GCC region?9. What are the potential economic benefits of digital sustainable business models in the GCC region?10. How can digital sustainable business models help reduce environmental impact in the GCC region?11. What are the key technological enablers for the adoption of digital sustainable business models in the GCC region?12. What are the most successful digital sustainable business models implemented in the GCC region and why were they successful?13. What are the current trends in digital sustainable business models in the GCC region?14. How important is customer awareness and engagement in promoting the adoption of digital sustainable business models in the GCC region?15. What are the future prospects for digital sustainable business models in the GCC region?Appendix BQuestionnaire Items – Likert ScaleItem12345How important do you think digital transformation is for achieving sustainable development goals in the GCC region? (On a scale of 1-5)To what extent do you agree that there are significant opportunities for building digital sustainable business models in the GCC region? (1=strongly disagree, 5=strongly agree)How challenging do you perceive building digital sustainable business models to be in the GCC region? (1=not challenging at all, 5=very challenging)To what extent do you believe that collaboration among stakeholders is important in promoting the adoption of digital sustainable business models in the GCC region? (1=not at all important, 5=very important)How aware are businesses in the GCC region of the potential benefits of digital sustainable business models? (1=not aware at all, 5=very aware)To what extent do you agree that government policies can promote the adoption of digital sustainable business models in the GCC region? (1=strongly disagree, 5=strongly agree)How important do you think it is to reduce environmental impact in the GCC region through the adoption of digital sustainable business models? (1=not important at all, 5=very important)To what extent do you agree that there are key factors that influence the adoption and diffusion of digital sustainable business models in the GCC region? (1=strongly disagree, 5=strongly agree)How important do you think it is to consider customer awareness and engagement in promoting the adoption of digital sustainable business models in the GCC region? (1=not important at all, 5=very important)To what extent do you believe that digital sustainable business models can have a positive economic impact in the GCC region? (1=not at all, 5=very much)How important do you think technological enablers are for the adoption of digital sustainable business models in the GCC region? (1=not important at all, 5=very important)To what extent do you agree that the adoption of digital sustainable business models can promote sustainable development in the GCC region? (1=strongly disagree, 5=strongly agree)How aware are businesses in the GCC region of the current trends in digital sustainable business models? (1=not aware at all, 5=very aware)To what extent do you agree that digital sustainable business models can address the challenges of sustainability in the GCC region? (1=strongly disagree, 5=strongly agree)How much potential do you believe digital sustainable business models have in reducing environmental impact in the GCC region? (1=very little potential, 5=very high potential)19

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