Business Model Innovation Through Sustainability Integration: Cases from the Sharing Economy in Iraq
Abstract
This study investigates the integration of sustainability principles into business model innovation within Iraq's emerging sharing economy platforms. The research examines how incorporating sustainability affects financial, social, and environmental performance outcomes through a quantitative analysis of 397 survey responses from sharing platform founders, managers, and executives. Using structural equation modeling, the study tests hypothesized relationships between sustainability integration, business model innovation, and triple bottom line performance measures. Results demonstrate that higher levels of sustainability integration positively influence business model innovation, which in turn enhances financial performance. Direct positive effects were also found between sustainability integration and both social performance and environmental performance. The findings reveal that Iraqi sharing enterprises successfully combining sustainability principles with innovative business models achieve superior outcomes across multiple performance dimensions. This research contributes to the emerging literature on sustainable sharing economy business models in developing market contexts while offering practical insights for entrepreneurs and policymakers fostering sustainable platform development during post-conflict reconstruction. The study suggests that intentionally nurturing sharing platforms with integrated social, environmental, and economic aspirations can positively transform multiple aspects of Iraqi society from employment to ecological rehabilitation. Limitations include the relatively small sample size given the nascent stage of Iraq's sharing economy, indicating opportunities for future research through comparative studies across the Middle East and North Africa region and in-depth case analyses of successful sustainable sharing platforms.
References
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Ganapati, S., & Reddick, C. G. (2018). Prospects and challenges of sharing economy for the public sector. Government Information Quarterly, 35(1), 77–87.
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Tichy, W. F., Lukowicz, P., Prechelt, L., & Heinz, E. A. (1995). Experimental evaluation in computer science: A quantitative study. Journal of Systems and Software, 28(1), 9–18.
Toual, H., Al-Shaibani, M. A. A. J., & Almasoodi, M. F. (n.d.). AN ANALYTICAL STUDY OF THE FACTORS AFFECTING THE CHOICE OF TOURISTS FOR HOTELS (A FIELD STUDY OF A SAMPLE OF TOURISTS WHO GO TO THE STATE OF KERBELA–IRAQ). Management, 9(37), 115–135.
Trabucchi, D., Muzellec, L., & Ronteau, S. (2019). Sharing economy: seeing through the fog. Internet Research, 29(5), 996–1013.
Vaskelainen, T., & Münzel, K. (2018). The effect of institutional logics on business model development in the sharing economy: The case of German carsharing services. Academy of Management Discoveries, 4(3), 273–293.
Wu, X., Zhao, Z., & Zhou, B. (2019). Legitimacy in adaptive business model innovation: An investigation of academic ebook platforms in China. Emerging Markets Finance and Trade, 55(4), 719–742.
Yang, S., Song, Y., Chen, S., & Xia, X. (2017). Why are customers loyal in sharing-economy services? A relational benefits perspective. Journal of Services Marketing, 31(1), 48–62.
Zachariadis, M., Hileman, G., & Scott, S. V. (2019). Governance and control in distributed ledgers: Understanding the challenges facing blockchain technology in financial services. Information and Organization, 29(2), 105–117.
Zhang, W., Daim, T., & Zhang, Q. (2019). Exploring the multi-phase driven process for disruptive business model innovation of e-business microcredit: A multiple case study from China. Journal of the Knowledge Economy, 10, 590–617.
Al-Muttar, M. Y. O., Basheer, Z. M., Sahib, A. A., Wafqan, H. M., Ali, M. H., Abd Al Mahdi, R., & Hasan, H. Q. (2022). Moderating effect of international relations among information capital, supplier trade integration and performance: An evidence from international trade business in Iraq. Croatian International Relations Review, 28(90), 193–213.
Alhasnawi, M. Y., Alshdaifat, S. M., Aziz, N. H. A., & Almasoodi, M. F. (2024). Artificial Intelligence and Environmental, Social and Governance: A Bibliometric Analysis Review. International Conference on Explainable Artificial Intelligence in the Digital Sustainability, 123–143.
Allawi, A. H., & Al-Jazaeri, H. M. J. (2023). A new approach towards the sustainability of urban-rural integration: The development strategy for central villages in the Abbasiya District of Iraq using GIS techniques. Regional Sustainability, 4(1), 28–43.
Almasoodi, M. F., & Rahman, S. (2023). Determining Domestic Tourists’ Satisfaction of Tour Guide’s Service Quality Using SERVQUAL Model at Historic City of Babylon. Kurdish Studies, 11(2), 2175–2200.
ALmasoodi, M. F., & Rahman, S. (2023). International Tourists’ Satisfaction with Tour Guide’s Service Quality at Babylon Archaeological Site. International Journal of Sustainable Development & Planning, 18(1).
Almasoodi, M. F., Rahman, S., Al-shammari, S. A., & Alnaqeeb, R. T. A. (2024). Tourists’ Perception of Smart Tourism Experiences in Babylon City, Iraq. International Journal of Business and Technology Management, 6(3), 832–850.
ALmasoodi, M. F., Rahman, S., Basendwah, M., & ALfarra, A. N. (2023). Leveraging Digital Transformation to Enhance Quality Tourism Services in Babylon City, Iraq. International Journal of Sustainable Development & Planning, 18(10).
Almasoodi, M. F., Rahman, S., Basendwah, M., & Sleibi, F. F. (2023). Human Resource Management Challenges In The Tourism Industry In Iraq. International Journal of Business and Technology Management, 5(4), 424–434.
Almasooudi, M. F., & Rahman, S. (n.d.). AN EMPIRICAL EVALUATION OF TOUR GUIDE AND TOURISM POLICY: THE CASE OF BABYLON IRAQ. Management, 9(35), 72–105.
Almasooudi, M. F., Rahman, S., Basendwah, M., ALfarra, A. N., & Al-sakkaf, M. A. (2023). EFFECT OF EMOTIONAL DISPLAY RULES ON FUNCTIONALITY SATISFACTION OF TOURISM COMPANIES MANAGEMENT IN IRAQ: THE MODERATING EFFECT OF EMOTIONAL INTELLIGENCE. Intelligence, 8(33), 62–81.
Alyasiri, O. M., Selvaraj, K., Younis, H. A., Sahib, T. M., Almasoodi, M. F., & Hayder, I. M. (2024). A Survey on the Potential of Artificial Intelligence Tools in Tourism Information Services. Babylonian Journal of Artificial Intelligence, 2024, 1–8.
Amagtome, A. H., & Alnajjar, F. A. (2020). Integration of Financial Reporting System and Financial Sustainability of Nonprofit Organizations: Evidence from Iraq. International Journal of Business & Management Science, 10(1).
Arab, H. R., & Atan, T. (2018). Organizational justice and work outcomes in the Kurdistan Region of Iraq. Management Decision, 56(4), 808–827.
Atiyah, A. G., Alhasnawi, M., & Almasoodi, M. F. (2023). Understanding Metaverse Adoption Strategy from Perspective of Social Presence and Support Theories: The Moderating Role of Privacy Risks. International Multi-Disciplinary Conference-Integrated Sciences and Technologies, 144–158.
Basukie, J., Wang, Y., & Li, S. (2020). Big data governance and algorithmic management in sharing economy platforms: A case of ridesharing in emerging markets. Technological Forecasting and Social Change, 161, 120310.
Belezas, F., & Daniel, A. D. (2023). Innovation in the sharing economy: A systematic literature review and research framework. Technovation, 122, 102509.
Chen, Y., & Bellavitis, C. (2020). Blockchain disruption and decentralized finance: The rise of decentralized business models. Journal of Business Venturing Insights, 13, e00151.
Clauss, T. (2017). Measuring business model innovation: conceptualization, scale development, and proof of performance. R&d Management, 47(3), 385–403.
Cucculelli, M., & Bettinelli, C. (2015). Business models, intangibles and firm performance: evidence on corporate entrepreneurship from Italian manufacturing SMEs. Small Business Economics, 45, 329–350.
Curtis, S. K., & Lehner, M. (2019). Defining the sharing economy for sustainability. Sustainability, 11(3), 567.
Dadwal, S. S., Jamal, A., Harris, T., Brown, G., & Raudhah, S. (2020). Technology and sharing economy-based business models for marketing to connected consumers. In Handbook of research on innovations in technology and marketing for the connected consumer (pp. 62–93). IGI Global.
De Filippi, P., & Lavayssière, X. (2020). Blockchain technology: Toward a decentralized governance of digital platforms? The Great Awakening. Punctum Books, 185–222.
Frenken, K. (2017). Political economies and environmental futures for the sharing economy. Philosophical Transactions of the Royal Society A: Mathematical, Physical and Engineering Sciences, 375(2095), 20160367.
Frey, A., Trenz, M., & Veit, D. (2019). A service-dominant logic perspective on the roles of technology in service innovation: uncovering four archetypes in the sharing economy. Journal of Business Economics, 89, 1149–1189.
Ganapati, S., & Reddick, C. G. (2018). Prospects and challenges of sharing economy for the public sector. Government Information Quarterly, 35(1), 77–87.
Gu, J. (2022). Sharing economy, technological innovation and carbon emissions: Evidence from Chinese cities. Journal of Innovation & Knowledge, 7(3), 100228.
Hwang, J. (2019). Managing the innovation legitimacy of the sharing economy. International Journal of Quality Innovation, 5(1), 1–21.
Liu, Z., Ma, L., Zhu, Y., & Ji, W. (2019). An investigation on responsible innovation in the emerging shared bicycle industry: Case study of a Chinese firm. Journal of Open Innovation: Technology, Market, and Complexity, 5(3), 42.
Ranjbari, M., Morales-Alonso, G., Carrasco-Gallego, R., & Grijalvo, M. (2017). Business model innovation in sharing economy: a benchmark approach. Proceedings of the 2nd International Conference on New Business Models–Exploring a Changing View on Organizing Value Creation: Developing New Business Models, Graz, Austria, 20–23.
Rojanakit, P., de Oliveira, R. T., & Dulleck, U. (2022). The sharing economy: A critical review and research agenda. Journal of Business Research, 139, 1317–1334.
Sanford, J. E. (2003). Iraq’s economy: past, present, future.
Santana, C., & Albareda, L. (2022). Blockchain and the emergence of Decentralized Autonomous Organizations (DAOs): An integrative model and research agenda. Technological Forecasting and Social Change, 182, 121806.
Spieth, P., & Schneider, S. (2016). Business model innovativeness: designing a formative measure for business model innovation. Journal of Business Economics, 86, 671–696.
Tichy, W. F., Lukowicz, P., Prechelt, L., & Heinz, E. A. (1995). Experimental evaluation in computer science: A quantitative study. Journal of Systems and Software, 28(1), 9–18.
Toual, H., Al-Shaibani, M. A. A. J., & Almasoodi, M. F. (n.d.). AN ANALYTICAL STUDY OF THE FACTORS AFFECTING THE CHOICE OF TOURISTS FOR HOTELS (A FIELD STUDY OF A SAMPLE OF TOURISTS WHO GO TO THE STATE OF KERBELA–IRAQ). Management, 9(37), 115–135.
Trabucchi, D., Muzellec, L., & Ronteau, S. (2019). Sharing economy: seeing through the fog. Internet Research, 29(5), 996–1013.
Vaskelainen, T., & Münzel, K. (2018). The effect of institutional logics on business model development in the sharing economy: The case of German carsharing services. Academy of Management Discoveries, 4(3), 273–293.
Wu, X., Zhao, Z., & Zhou, B. (2019). Legitimacy in adaptive business model innovation: An investigation of academic ebook platforms in China. Emerging Markets Finance and Trade, 55(4), 719–742.
Yang, S., Song, Y., Chen, S., & Xia, X. (2017). Why are customers loyal in sharing-economy services? A relational benefits perspective. Journal of Services Marketing, 31(1), 48–62.
Zachariadis, M., Hileman, G., & Scott, S. V. (2019). Governance and control in distributed ledgers: Understanding the challenges facing blockchain technology in financial services. Information and Organization, 29(2), 105–117.
Zhang, W., Daim, T., & Zhang, Q. (2019). Exploring the multi-phase driven process for disruptive business model innovation of e-business microcredit: A multiple case study from China. Journal of the Knowledge Economy, 10, 590–617.
Published
2024-12-01
How to Cite
FAAEQ ALMASOODI, Muthana et al.
Business Model Innovation Through Sustainability Integration: Cases from the Sharing Economy in Iraq.
International Journal of Advanced Research in Economics and Finance, [S.l.], v. 6, n. 4, p. 1-15, dec. 2024.
ISSN 2682-812X.
Available at: <https://myjms.mohe.gov.my/index.php/ijaref/article/view/28394>. Date accessed: 10 july 2025.
Section
English Section
