{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,6,15]],"date-time":"2026-06-15T20:50:24Z","timestamp":1781556624049,"version":"3.54.5"},"reference-count":58,"publisher":"MDPI AG","issue":"4","license":[{"start":{"date-parts":[[2026,4,3]],"date-time":"2026-04-03T00:00:00Z","timestamp":1775174400000},"content-version":"vor","delay-in-days":0,"URL":"https:\/\/creativecommons.org\/licenses\/by\/4.0\/"}],"content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":["Systems"],"abstract":"<jats:p>Service industries are fast turning digital, and they are disrupting the manner in which firms organize and relate to their customers. Nevertheless, mechanisms that allow digital capabilities to be converted to better customer experience remain poorly understood, especially in the emerging economies. This paper presents the dual-mediation model to investigate the effects of Digital Supply Chain Integration (DSCI) and capabilities of digital customer engagement (DCEC) on Customer Experience Outcomes (CXO) based on Sustainable Business Model Innovation (SBMI) and Customer Value Co-Creation (CVC) with references to Dynamic Capabilities Theory and Service-Dominant Logic. The data were collected by a cross-sectional survey of 360 managers of the banking, telecom, healthcare, and hospitality organizations in Pakistan and analyzed with the help of Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings indicate that the customer experience is enhanced well beyond what is feasible alone by means of Sustainable Business Model Innovation due to the Digital Supply Chain Integration, whereas customer experience is enhanced by the Digital Customer Engagement Capabilities through Customer Value Co-Creation. The results also show that the mechanisms of co-creation have the largest impact on the outcome of customer experience. The research is an addition to the body of literature on digital transformation because it illustrates how digital integration, innovation that is focused on sustainability, and relational co-creation can collectively convert digital capabilities into experiential value. The results also provide practical factors that should be considered by service companies when embarking on digital transformation programs to align the programs with sustainability and customer engagement mechanisms.<\/jats:p>","DOI":"10.3390\/systems14040390","type":"journal-article","created":{"date-parts":[[2026,4,6]],"date-time":"2026-04-06T03:11:28Z","timestamp":1775445088000},"page":"390","update-policy":"https:\/\/doi.org\/10.3390\/mdpi_crossmark_policy","source":"Crossref","is-referenced-by-count":2,"title":["Sustainability-Driven Digital Transformation and Customer Experience in Emerging Markets: The Interplay of Business Model Innovation and Value Co-Creation"],"prefix":"10.3390","volume":"14","author":[{"ORCID":"https:\/\/orcid.org\/0000-0003-1922-287X","authenticated-orcid":false,"given":"Asad Abbas","family":"Jaffari","sequence":"first","affiliation":[{"name":"Department of Management, Business and Marketing, Birmingham City University, Birmingham B4 7BD, UK"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"ORCID":"https:\/\/orcid.org\/0000-0002-1422-1790","authenticated-orcid":false,"given":"Asif","family":"Muzaffar","sequence":"additional","affiliation":[{"name":"Department of Management, Business and Marketing, Birmingham City University, Birmingham B4 7BD, UK"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"ORCID":"https:\/\/orcid.org\/0000-0002-8879-2334","authenticated-orcid":false,"given":"Saba","family":"Shaikh","sequence":"additional","affiliation":[{"name":"Department of Management Sciences, Hyderabad Campus, Shaheed Zulfikar Ali Bhutto Institute of Science and Technology (SZABIST) University, Hyderabad Campus, Hyderabad 71000, Pakistan"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"ORCID":"https:\/\/orcid.org\/0000-0003-4718-4508","authenticated-orcid":false,"given":"Asad Hassan","family":"Butt","sequence":"additional","affiliation":[{"name":"Department of Marketing, University of Tabuk, Tabuk 71491, Saudi Arabia"}],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"1968","published-online":{"date-parts":[[2026,4,3]]},"reference":[{"key":"ref_1","doi-asserted-by":"crossref","first-page":"371","DOI":"10.1007\/s13520-021-00137-8","article-title":"Supply Chain 4.0: The Impact of Supply Chain Digitalization and Integration on Firm Performance","volume":"10","author":"Liu","year":"2021","journal-title":"Asian J. Bus. Ethics"},{"key":"ref_2","doi-asserted-by":"crossref","first-page":"107439","DOI":"10.1016\/j.ijpe.2019.07.012","article-title":"Supply Chain Digitisation Trends: An Integration of Knowledge Management","volume":"220","author":"Schniederjans","year":"2020","journal-title":"Int. J. Prod. Econ."},{"key":"ref_3","doi-asserted-by":"crossref","first-page":"1339","DOI":"10.1057\/s41599-025-05695-x","article-title":"Unlocking the Potential of Supply Chain Digitalization for Enhancing Enterprise Green Transformation Performance: Evidence from China","volume":"12","author":"Wang","year":"2025","journal-title":"Humanit. Soc. Sci. Commun."},{"key":"ref_4","doi-asserted-by":"crossref","unstructured":"Oubrahim, I., Sefiani, N., and Happonen, A. (2023). The Influence of Digital Transformation and Supply Chain Integration on Overall Sustainable Supply Chain Performance: An Empirical Analysis from Manufacturing Companies in Morocco. Energies, 16.","DOI":"10.3390\/en16021004"},{"key":"ref_5","doi-asserted-by":"crossref","unstructured":"Zhang, Z., and Chen, M. (2025). How Digital Transformation Enhances Quality Chain Value Co-Creation Efficiency in Manufacturing: Evidence from Beijing. Sustainability, 17.","DOI":"10.3390\/su17125486"},{"key":"ref_6","doi-asserted-by":"crossref","first-page":"135","DOI":"10.25300\/MISQ\/2015\/39:1.03","article-title":"Service Innovation in the Digital Age","volume":"39","author":"Barrett","year":"2015","journal-title":"MIS Q."},{"key":"ref_7","doi-asserted-by":"crossref","first-page":"124444","DOI":"10.1016\/j.techfore.2025.124444","article-title":"Integrating explainable AI and corporate social responsibility for sustainable practices","volume":"223","author":"Chen","year":"2026","journal-title":"Technol. Forecast. Soc. Change"},{"key":"ref_8","doi-asserted-by":"crossref","unstructured":"Lankauskien\u0117, R., Bandyopadhyay, P.K., and Roy, S. (2025). Evolution of Customer-Centric Innovations in Modern Ecosystems: Servitization Approach. Sustainability, 17.","DOI":"10.3390\/su17114754"},{"key":"ref_9","unstructured":"Kokub, S. (2025). The Role of Digital Servitization in Driving Sustainability: A Systematic Literature Review, University of Vaasa."},{"key":"ref_10","doi-asserted-by":"crossref","unstructured":"West, S., Meierhofer, J., and Mangla, U. (2022). Moving Beyond Manufacturing: Building a Research Agenda for Servitizing Service Firms and Ecosystems. Smart Services Summit, Springer International Publishing. Progress in IS.","DOI":"10.1007\/978-3-030-97042-0"},{"key":"ref_11","doi-asserted-by":"crossref","unstructured":"Tulcanaza-Prieto, A.B., Cortez-Ordo\u00f1ez, A., Rivera, J., and Lee, C.W. (2025). Exploring Customer Perceptions of Business Model Innovation in Family Economic Groups: Evidence from Ecuador. Sustainability, 17.","DOI":"10.3390\/su17198793"},{"key":"ref_12","doi-asserted-by":"crossref","unstructured":"Russo Spena, T., and Bifulco, F. (2021). Digital Engagement and Customer Experience. Digital Transformation in the Cultural Heritage Sector, Springer International Publishing. Contributions to Management Science.","DOI":"10.1007\/978-3-030-63376-9"},{"key":"ref_13","doi-asserted-by":"crossref","first-page":"2074","DOI":"10.1108\/BIJ-07-2021-0415","article-title":"Journey of Customers in This Digital Era: Understanding the Role of Artificial Intelligence Technologies in User Engagement and Conversion","volume":"29","author":"Bag","year":"2022","journal-title":"Benchmarking Int. J."},{"key":"ref_14","doi-asserted-by":"crossref","first-page":"69","DOI":"10.1509\/jm.15.0420","article-title":"Understanding Customer Experience Throughout the Customer Journey","volume":"80","author":"Lemon","year":"2016","journal-title":"J. Mark."},{"key":"ref_15","doi-asserted-by":"crossref","unstructured":"Gao, W., and Jiang, N. (2025). Enhancing Omnichannel Customer Experience: From a Customer Journey Design Perspective. J. Theor. Appl. Electron. Commer. Res., 20.","DOI":"10.3390\/jtaer20040277"},{"key":"ref_16","doi-asserted-by":"crossref","first-page":"479","DOI":"10.1108\/EJIM-09-2021-0451","article-title":"Innovation in the Supply Chain and Big Data: A Critical Review of the Literature","volume":"25","author":"Centobelli","year":"2022","journal-title":"Eur. J. Innov. Manag."},{"key":"ref_17","doi-asserted-by":"crossref","first-page":"401","DOI":"10.1016\/j.jclepro.2018.06.240","article-title":"Sustainable Business Model Innovation: A Review","volume":"198","author":"Geissdoerfer","year":"2018","journal-title":"J. Clean. Prod."},{"key":"ref_18","doi-asserted-by":"crossref","unstructured":"Molina-Castillo, F.-J., Sinkovics, N., and Sinkovics, R.R. (2021). Sustainable Business Model Innovation: Review, Analysis and Impact on Society. Sustainability, 13.","DOI":"10.3390\/su13168906"},{"key":"ref_19","doi-asserted-by":"crossref","first-page":"1319","DOI":"10.1002\/smj.640","article-title":"Explicating Dynamic Capabilities: The Nature and Microfoundations of (Sustainable) Enterprise Performance","volume":"28","author":"Teece","year":"2007","journal-title":"Strateg. Manag. J."},{"key":"ref_20","doi-asserted-by":"crossref","first-page":"1","DOI":"10.1007\/s11747-007-0069-6","article-title":"Service-Dominant Logic: Continuing the Evolution","volume":"36","author":"Vargo","year":"2008","journal-title":"J. Acad. Mark. Sci."},{"key":"ref_21","doi-asserted-by":"crossref","first-page":"103773","DOI":"10.1016\/j.respol.2019.03.018","article-title":"The Digital Transformation of Innovation and Entrepreneurship: Progress, Challenges and Key Themes","volume":"48","author":"Nambisan","year":"2019","journal-title":"Res. Policy"},{"key":"ref_22","doi-asserted-by":"crossref","first-page":"224","DOI":"10.1016\/j.jclepro.2018.08.215","article-title":"Dynamic Capabilities and Organizational Routines for Managing Innovation towards Sustainability","volume":"203","author":"Mousavi","year":"2018","journal-title":"J. Clean. Prod."},{"key":"ref_23","first-page":"11","article-title":"Digital Transformation and Its Environmental Implications in Supply Chain Management","volume":"2","author":"Dubey","year":"2025","journal-title":"J. Big Data Anal. Bus. Intell."},{"key":"ref_24","doi-asserted-by":"crossref","first-page":"547","DOI":"10.1108\/IJLM-12-2020-0494","article-title":"Contributions of Industry 4.0 to Supply Chain Resilience","volume":"33","author":"Tortorella","year":"2022","journal-title":"Int. J. Logist. Manag."},{"key":"ref_25","unstructured":"Jaffari, A.A. (2021). Influence of Employer Branding on Employer of Choice and Organisation Performance: A Study of Service Sector Employees\u2019 Perception in Pakistan. [Doctoral Dissertation, University of the West of Scotland]."},{"key":"ref_26","doi-asserted-by":"crossref","first-page":"307","DOI":"10.1057\/s41599-025-04601-9","article-title":"Can Supply Chain Digital Innovation Policy Improve the Sustainable Development Performance of Manufacturing Companies?","volume":"12","author":"Chen","year":"2025","journal-title":"Humanit. Soc. Sci. Commun."},{"key":"ref_27","doi-asserted-by":"crossref","unstructured":"Garc\u00eda Alcaraz, J.L., D\u00edaz Reza, J.R., Arredondo Soto, K.C., Hern\u00e1ndez Escobedo, G., Happonen, A., Vidal, R.P.I., and Jim\u00e9nez Mac\u00edas, E. (2022). Effect of Green Supply Chain Management Practices on Environmental Performance: Case of Mexican Manufacturing Companies. Mathematics, 10.","DOI":"10.3390\/math10111877"},{"key":"ref_28","doi-asserted-by":"crossref","first-page":"247","DOI":"10.1177\/1094670514529187","article-title":"The Role of Customer Engagement Behavior in Value Co-Creation: A Service System Perspective","volume":"17","author":"Jaakkola","year":"2014","journal-title":"J. Serv. Res."},{"key":"ref_29","doi-asserted-by":"crossref","first-page":"89","DOI":"10.1016\/j.indmarman.2017.11.016","article-title":"Developing Business Customer Engagement through Social Media Engagement-Platforms: An Integrative SD Logic\/RBV-Informed Model","volume":"81","author":"Hollebeek","year":"2019","journal-title":"Ind. Mark. Manag."},{"key":"ref_30","unstructured":"Dam, N.A.K., Le Dinh, T., and Menvielle, W. (2020, January 15\u201317). Customer Co-Creation through the Lens of Service-Dominant Logic: A Literature Review. Proceedings of the AMCIS 2020, Salt Lake City, UT, USA."},{"key":"ref_31","doi-asserted-by":"crossref","first-page":"521","DOI":"10.1016\/j.emj.2023.07.004","article-title":"How Can Value Co-Creation Be Integrated into a Customer Experience Evaluation?","volume":"41","author":"Lee","year":"2023","journal-title":"Eur. Manag. J."},{"key":"ref_32","doi-asserted-by":"crossref","unstructured":"Xu, H., Chen, Y., and Xu, P. (2024). Driving Mechanism of Customer Participation in Service-Oriented Enterprises: A Perspective of Value Co-Creation. Sustainability, 16.","DOI":"10.3390\/su16083310"},{"key":"ref_33","doi-asserted-by":"crossref","first-page":"1439","DOI":"10.1108\/IJLM-01-2024-0031","article-title":"Role of Digital Supply Chain in Promoting Sustainable Supply Chain Performance: The Mediating of Supply Chain Integration and Information Sharing","volume":"36","author":"Le","year":"2025","journal-title":"Int. J. Logist. Manag."},{"key":"ref_34","doi-asserted-by":"crossref","first-page":"7807","DOI":"10.1002\/sd.3561","article-title":"Environmentally Sustainable Development: The Role of Supply Chain Digitalization in Firms\u2019 Green Productivity","volume":"33","author":"Xue","year":"2025","journal-title":"Sustain. Dev."},{"key":"ref_35","doi-asserted-by":"crossref","unstructured":"Bocken, N. (2023). Business Models for Sustainability. Oxford Research Encyclopedia of Environmental Science, Oxford University Press.","DOI":"10.1093\/acrefore\/9780199389414.013.842"},{"key":"ref_36","doi-asserted-by":"crossref","first-page":"580","DOI":"10.1108\/ITP-01-2015-0023","article-title":"The Role of Personalization, Engagement, and Trust in Online Communities","volume":"29","author":"Kang","year":"2016","journal-title":"Inf. Technol. People"},{"key":"ref_37","doi-asserted-by":"crossref","first-page":"418","DOI":"10.1080\/10548408.2018.1553749","article-title":"The Effect of Online Interaction and Trust on Consumers\u2019 Value Co-Creation Behavior in the Online Travel Community","volume":"37","author":"Shen","year":"2020","journal-title":"J. Travel Tour. Mark."},{"key":"ref_38","doi-asserted-by":"crossref","first-page":"391","DOI":"10.1108\/08876040610691284","article-title":"Service Personalization and Loyalty","volume":"20","author":"Ball","year":"2006","journal-title":"J. Serv. Mark."},{"key":"ref_39","doi-asserted-by":"crossref","unstructured":"Rane, N., Choudhary, S., and Rane, J. (2023). Hyper-Personalization for Enhancing Customer Loyalty and Satisfaction in Customer Relationship Management (CRM) Systems. SSRN Electron. J.","DOI":"10.2139\/ssrn.4641044"},{"key":"ref_40","doi-asserted-by":"crossref","first-page":"874","DOI":"10.1108\/ITP-08-2020-0603","article-title":"How Does Business Analytics Contribute to Organisational Performance and Business Value? A Resource-Based View","volume":"37","author":"Chatterjee","year":"2024","journal-title":"Inf. Technol. People"},{"key":"ref_41","doi-asserted-by":"crossref","first-page":"776","DOI":"10.1108\/JOSM-04-2018-0113","article-title":"Customer Experience Challenges: Bringing Together Digital, Physical and Social Realms","volume":"29","author":"Bolton","year":"2018","journal-title":"J. Serv. Manag."},{"key":"ref_42","doi-asserted-by":"crossref","first-page":"2354","DOI":"10.1108\/APJML-12-2023-1188","article-title":"E-Commerce for a Sustainable Future: Integrating Trust, Green Supply Chain Management and Online Shopping Satisfaction","volume":"36","author":"Jalil","year":"2024","journal-title":"Asia Pac. J. Mark. Logist."},{"key":"ref_43","doi-asserted-by":"crossref","unstructured":"Qiao, J., Li, S., Xiong, S., and Li, N. (2023). How Does the Digital Capability Advantage Affect Green Supply Chain Innovation? An Inter-Organizational Learning Perspective. Sustainability, 15.","DOI":"10.3390\/su151511583"},{"key":"ref_44","doi-asserted-by":"crossref","unstructured":"Ahmad, F., Mustafa, K., Hamid, S.A.R., Khawaja, K.F., Zada, S., Jamil, S., Qaisar, M.N., Vega-Mu\u00f1oz, A., Contreras-Barraza, N., and Anwer, N. (2022). Online Customer Experience Leads to Loyalty via Customer Engagement: Moderating Role of Value Co-Creation. Front. Psychol., 13.","DOI":"10.3389\/fpsyg.2022.897851"},{"key":"ref_45","first-page":"317","article-title":"The Impact of Artificial Intelligence Stimuli on Customer Engagement and Value Co-Creation: The Moderating Role of Customer Ability Readiness","volume":"17","author":"Gao","year":"2023","journal-title":"J. Res. Interact. Mark."},{"key":"ref_46","unstructured":"Alexander, M., and Jaakkola, E. (2015). Customer Engagement Behaviours and Value Co-Creation. Customer Engagement, Routledge."},{"key":"ref_47","first-page":"71","article-title":"Sample Issues, Methodological Implications, and Best Practices","volume":"49","author":"Kline","year":"2017","journal-title":"Can. J. Behav. Sci.\/Rev. Can. Sci. Comport."},{"key":"ref_48","doi-asserted-by":"crossref","unstructured":"Hair, J.F., Sarstedt, M., Ringle, C.M., and Gudergan, S.P. (2017). Advanced Issues in Partial Least Squares Structural Equation Modeling, SAGE Publications.","DOI":"10.15358\/9783800653614"},{"key":"ref_49","doi-asserted-by":"crossref","first-page":"3","DOI":"10.1177\/0312896219871976","article-title":"Common Method Bias in Applied Settings: The Dilemma of Researching in Organizations","volume":"45","author":"Jordan","year":"2020","journal-title":"Aust. J. Manag."},{"key":"ref_50","first-page":"531","article-title":"Self-Reports in Organizational Research: Problems and Prospects","volume":"12","author":"Podsakoff","year":"1986","journal-title":"J. Manag."},{"key":"ref_51","doi-asserted-by":"crossref","first-page":"39","DOI":"10.1177\/002224378101800104","article-title":"Evaluating Structural Equation Models with Unobservable Variables and Measurement Error","volume":"18","author":"Fornell","year":"1981","journal-title":"J. Mark. Res."},{"key":"ref_52","doi-asserted-by":"crossref","first-page":"115","DOI":"10.1007\/s11747-014-0403-8","article-title":"A New Criterion for Assessing Discriminant Validity in Variance-Based Structural Equation Modeling","volume":"43","author":"Henseler","year":"2015","journal-title":"J. Acad. Mark. Sci."},{"key":"ref_53","first-page":"47","article-title":"The Robustness of PLS across Disciplines","volume":"1","author":"Risher","year":"2017","journal-title":"Acad. Bus. J."},{"key":"ref_54","unstructured":"Cohen, J. (1988). Statistical Power Analysis for the Behavior Science: Lawrance Eribaum Association, University of Toronto."},{"key":"ref_55","doi-asserted-by":"crossref","unstructured":"Fan, W., Shao, B., and Dong, X. (2022). Effect of E-Service Quality on Customer Engagement Behavior in Community e-Commerce. Front. Psychol., 13.","DOI":"10.3389\/fpsyg.2022.965998"},{"key":"ref_56","first-page":"375","article-title":"Harnessing AI for Enhanced CRM: Insights into Customer Satisfaction, Loyalty and Retention","volume":"1","author":"Saleem","year":"2024","journal-title":"Bull. Manag. Rev."},{"key":"ref_57","doi-asserted-by":"crossref","first-page":"122706","DOI":"10.1016\/j.techfore.2023.122706","article-title":"Mapping Digital Innovation: A Bibliometric Analysis and Systematic Literature Review","volume":"194","author":"Cheng","year":"2023","journal-title":"Technol. Forecast. Soc. Change"},{"key":"ref_58","doi-asserted-by":"crossref","first-page":"944","DOI":"10.1057\/s41270-023-00241-7","article-title":"The Central Role of Consumer\u2013Brand Engagement in Product and Service Brand Contexts","volume":"12","author":"Ndhlovu","year":"2024","journal-title":"J. Mark. Anal."}],"container-title":["Systems"],"original-title":[],"language":"en","link":[{"URL":"https:\/\/www.mdpi.com\/2079-8954\/14\/4\/390\/pdf","content-type":"unspecified","content-version":"vor","intended-application":"similarity-checking"}],"deposited":{"date-parts":[[2026,4,6]],"date-time":"2026-04-06T03:45:36Z","timestamp":1775447136000},"score":1,"resource":{"primary":{"URL":"https:\/\/www.mdpi.com\/2079-8954\/14\/4\/390"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2026,4,3]]},"references-count":58,"journal-issue":{"issue":"4","published-online":{"date-parts":[[2026,4]]}},"alternative-id":["systems14040390"],"URL":"https:\/\/doi.org\/10.3390\/systems14040390","relation":{},"ISSN":["2079-8954"],"issn-type":[{"value":"2079-8954","type":"electronic"}],"subject":[],"published":{"date-parts":[[2026,4,3]]}}}