Introduction Digitalization

Chapter 1 Introduction 1.1 Introduction Digitalization has a revolutionary impact on our global world, allowing us to connect with people from all corners of the planet and access information and services at incredible speeds (Nisar & Prabhakar, 2017). Electronic commerce (E-commerce) has become a vital part of the digitalization process. E-commerce is a form of commerce that involves buying and selling goods and services over the Internet. In recent years, e-commerce has grown tremendously as more businesses turn to online platforms to reach customers worldwide (Pauwels et al., 2011). E-commerce provides an invaluable tool for companies looking to remain competitive in today’s ever-evolving digital world (Gupta, 2014). There are several types of ecommerce models available, including B2B (Business to Business), B2C (Business to Consumer), C2C (Consumer to Consumer), and M-Commerce (Mobile Commerce) (Gupta, 2014). Companies’ implementation of e-commerce has had many beneficial effects. Ecommerce has enabled businesses to access new markets and customers, reducing costs and improving efficiency in their operations (Singh, 2002). The level of digitalization of a business can significantly impact its overall operations. Eremina et al. (2019) noted that the extent of a company’s digital maturity positively affects its performance. E-commerce, as one of a business’s digital tools, is no exception to this positive effect. A company’s successful e-commerce implementation is crucial nowadays (Lasi et al., 2014). Hassan (2016) states that using digital technologies for marketing has allowed businesses to create personalized customer experiences, thus increasing customer loyalty and satisfaction. In order to assess the e-commerce level of a business within the digital landscape and identify potential areas for improvement to enhance its competitive advantages, it is essential to establish performance metrics for evaluating and measuring e-commerce performance (Griffin et al., 2008). Anderson and Ellerby (2022) reinforce this claim, concluding that in today’s world, it is essential to evaluate the achievements 1 of digital investments using a fresh set of key performance indicators, inspiring retailers to reconsider their digital tactics and services within the market. Historically, financial metrics have served as the bedrock of performance measurement systems (Zairi, 1994). However, recent trends have shifted away from relying solely on financial data as the basis for performance evaluation, instead considering them as part of a more extensive array of potential indicators (Zairi, 1994). This enormous array currently results in a broader approach considering information about a firm’s market and competitors. Consequently, performance metrics should benchmark an organization’s competitive position within the digital landscape. Prior research indicates a necessity to strike a balance and enhance understanding of sustainable e-commerce within digital marketplaces (Olah et al., 2018). For a business to succeed, developing and maintaining a sustainable competitive advantage is crucial. Previous research has demonstrated that the expansion and proliferation of e-commerce lead to environmental consequences, encompassing both adverse and favorable effects (Carrillo et al., 2014). Olah et al. (2018) add that sustainability consciousness’s significance in e-commerce cannot be overstated. Considering the above, performance metrics related to sustainable e-commerce and environmental consequences are required. Environmentally responsible e-commerce refers to the fact that companies are responsible for protecting the ecosystem, preventing ecological destruction, and contributing to humanity’s sustainable survival (Ammenberg et al., 2013). The social aspect of responsible e-commerce entails that businesses must not solely focus on profit maximization but also consider the well-being of employees and customers related to societal demands while generating job opportunities (Harrington, 2021). The environmental and social consequences highlight reveal, led in earlier studies by Elkington (1999) and Lan & Hywel (2006). Due to the requirement for performance metrics related to sustainable e-commerce, this study aims to bridge that gap by combining sustainable, responsible e-commerce across three 2 dimensions using the Triple Bottom Line framework: environmental, economic, and social. The Triple Bottom Line framework, abbreviated to TBL, is a corporate principle suggesting that businesses should pledge to assess their societal and environmental effects alongside their financial outcomes instead of concentrating exclusively on profit-making, which is the conventional “bottom line” (Miller, 2020). The three dimensions of this study are described below. The environmental dimension focuses on creating sustainable (e-commerce) business development solutions that leverage economies of scale (Miller, 2020). Sustainable development is crucial for maintaining a balanced ecology from an environmental aspect (Lan & Hywel, 2006). Economics pertains to how companies should efficiently utilize available resources to maximize profits and secure favorable stakeholder returns (Miller, 2020). Businesses with a clear mission realize their capability to utilize their enterprises to bring about beneficial transformations in the world without compromising their financial results. Implementing sustainability initiatives has fostered business growth (Miller, 2020). Examples show that businesses offer eco-label products at minimal costs and employ reusable packaging to minimize environmental pollution and energy efficiency and focus on sustainable development goals (SDG) (Miller, 2020; Olah et al., 2018). The social dimension encompasses human necessities and cultural advancement (Elkington, 1999). Within this dimension, the positive impact of (e-commerce) businesses on consumers, employees, and communities is a crucial consideration. Stakeholders desire improved health, a cleaner environment, and socially responsible communities throughout their online business interactions (Miller, 2020; Van Loon et al., 2015). Companies can engage in basic methods to contribute to society, such as establishing equitable recruitment policies and promoting volunteer activities among employees. Furthermore, companies can extend their influence beyond their walls to instigate broader societal changes with effective strategic alliances with nonprofit organizations that align with their mission-driven objectives (Gavin, 2019). 3 Priambodo et al. (2022) argue that measuring the influence of social and environmental (like social and environmental) factors on e-commerce performance and maturity is a difficult task due to their inherently complex nature, resulting in the fact that there is currently too little insight into the influence of these factors on e-commerce performance. The concept of “maturity” denotes a progression towards achieving a particular ability or target, evolving from an initial state to a desired or typical end stage, as defined by Mettler et al. (2010, p. 334). According to Kotler and Jain (2002) and Priambodo et al. (2022), to measure performance accurately, organizations must develop metrics around maturity-related maturity-related factors that affect their ability to compete effectively against competitors operating within similar industries. A higher level of maturity in any business process leads to better control of results, more reliable predictions of goals, costs, and performance, greater efficacy in achieving set objectives, and the management’s ability to propose higher performance (McCormack et al., 2008). E-commerce maturity models represent a suitable framework for measuring performance. Maturity models divide progress into stages or levels that follow a logical path from the initial state to the final level of maturity (Becker et al., 2009; Mettler et al., 2010). Maturity models use these levels and stages to prioritize and derive improvement measures and manage the pace of change, as noted by Iversen et al. (1999). Starting from the first stage, progressing to stage five or maturity level, this phase is marked by a widespread application of measurements to oversee and enhance performance (Iversen et al., 1999). Studies by Morais et al. (2007) and Al Ghamdi et al. (2014) show that several maturity models can be found in the literature. Models used include the Model of Grant (Grant, 1999), Stages of Growth for E-business (SOG-E model) (McKay et al., 2000), and the Electronic Commerce Component Model (ECCM) of Chan and Swatman (2000). Grant’s model (1999) emphasizes the strategic importance of a firm’s resources and capabilities as critical sources of competitive advantage (Grant, 1999). The SOG-E model delineates the evolutionary path of e- 4 business maturity through distinct stages, highlighting the progression from essential online presence to full integration and optimization of e-business functions (McKay et al., 2000). The ECCM by Chan and Swatman (2000) provides a modular framework for understanding and decomposing electronic commerce activities, emphasizing the interconnected components and layers that contribute to holistic e-commerce operations (these models will be elaborated in Chapter 2). However, most frameworks do not consider, or only to a limited extent, the factors related to social, environmental, and economic aspects of e-commerce. Moreover, research on maturity models is predominantly concentrated in the areas of software development and engineering, while considerably less focus has been put on e-commerce and retail (Wendler, 2012). In response to increasing calls from the literature for further research on sustainability aspects within e-commerce (Al Ghamdi et al., 2014; Morais et al., 2007; Dey & Nath, 2012; Olah et al., 2018; Wendler, 2012), this study aims to explore how retail companies can measure their ecommerce maturity level related to sustainability using a TBL perspective, leading to the following research question: ‘How can retail companies determine the maturity level of their e-commerce activities from a sustainability perspective?’ 1.2 Theoretical contribution This study aims to facilitate environmentally conscious and socially responsible ecommerce by merging three essential dimensions based on the TBL: environmental, economic, and social. While these dimensions are critical for e-commerce companies, a theoretical gap exists in understanding how they enable organizations to assess their maturity level in ecommerce operations from a TBL standpoint. Studies by Morais et al. (2007) and Al Ghamdi et al. (2014) show that several maturity models, like the Model of Grant (Grant, 1999), SOG-E model (McKay et al., 2000) and ECCM (Chan & Swatman, 2000), can be found in the literature. However, most frameworks need to consider, or only to a limited extent, the factors related to 5 social and environmental aspects and (e-commerce) business performance. Wendler (2012) reinforces that there is only a limited extent of knowledge on environmental and social factors by stating that most of these models are predominantly concentrated in software development and engineering. This research addresses the gap by developing an e-commerce maturity model incorporating TBL dimensions and business performance. This model will allow businesses to evaluate their e-commerce status and pinpoint areas for improvement based on sustainability aspects using the e-commerce maturity model, thus contributing to filling the identified gap in the literature. The maturity model will be broken down into stages or levels, following a logical path from the initial state to the final level of maturity, as proposed by Becker et al. (2009) and Mettler et al. (2010). The maturity model helps, as noted by Iversen et al. (1999), in prioritizing improvement measures and managing the pace of change. Furthermore, the model assists in establishing crucial metrics for assessing e-commerce development from a TBL perspective. (Griffin et al., 2008). Sustainability awareness and financial outcomes within e-commerce are paramount (Olah et al., 2018). Existing literature indicates that e-commerce growth leads to negative and positive environmental and social impacts (Carrillo et al., 2014). This indication highlights the research gap that this study aims to fill by integrating environmentally and socially responsible ecommerce across the TBL dimensions. 1.3 Practical implications In light of the doubling of e-commerce sales over the past five years and the predicted doubling of e-commerce markets by 2026, corporations are making substantial investments in their e-commerce capabilities (Arorra et al., 2022). The digital realm has transcended its role as a mere tool for improving customer interactions; it now serves as a fundamental platform for 6 establishing fresh connections with various stakeholders, such as staff members, corporate associates, or prominent social figures (Gartner, 2022). The issue is that many of these businesses are stuck in an outmoded perspective of ecommerce as just an “add-on” to their core company, as stated by Deloitte (Arorra et al., 2022). Mature organizations are tackling supplementary signature aspects of transformation while overcoming the fundamental hurdles of digital transition, simultaneously reaping most of the financial benefits (Deloitte, 2022). The maturity framework developed in this study can aid businesses in assessing their ecommerce standing and inform future strategic decisions. Furthermore, the organization can identify areas of potential improvements concerning TBL dimensions in addition to performance and overall success because managers gain the capacity to comprehend the organization’s position regarding e-commerce maturity. This paper examines sustainable ecommerce, anchored in TBL factors, utilizing three fundamental dimensions: environmental, economic, and social. 1.4 Research method This research is based on qualitative research methodology. Qualitative research aims to investigate and comprehend the meanings that individuals attribute to their experiences (Tuffour, 2017). This study conceptualizes a maturity evaluation framework for e-commerce, which builds upon the existing studies (see Chapter 2). Semi-structured interviews with retail companies will collect data to evaluate the framework empirically. Semi-structured interviews can gather data from important informants with relevant personal experiences, attitudes, opinions, and beliefs (DeJonckheere, 2018). The semi-structured interviews help to obtain fresh, exploratory data about a study subject, to triangulate with other data sources, or to confirm findings by member verification (Tuffour, 2017). The interviewees include CEO’s or managers from retail firms engaged in e-commerce activities. Based on a non-probability sampling 7 approach, the participants are chosen, and an open-coding approach is utilized for the analysis of data (see Chapter 3 for a complete description of the research methods). 1.5 Reader’s guide The organization of this paper will commence with an introduction, followed by a comprehensive literature review that outlines the relevant concepts related to the research question and the underlying theoretical framework. The methodology chapter will then outline the methods used to conduct the study. The results section will present the findings from the interviews about the literature review. Finally, the conclusion and discussion chapter will answer the research question, summarize the findings, discuss the limitations, and offer suggestions for future research. CHAPTER 2 LITERATURE REVIEW 2.1 E-commerce 2.1.1 General introduction to e-commerce E-commerce has revolutionized consumer consumption patterns, allowing them to shop anywhere, anytime (Gupta, 2014). Manzoor (2010) describes commerce as exchanging goods for money and e-commerce as trade through the Internet. The term has expanded broadly to include pre-sale and post-sale across the internet supply chain. E-commerce has evolved from defining the sale of services and products over digital channels to using internet services to promote brands, determine customer preferences, recruit customers, retain customers, and increase revenue (Kedah, 2023). Rayport and Jaworski (2004) explain e-commerce as processes, 8 institutions, and actions supported by Internet technology for producing, communicating, and delivering value to consumers and other stakeholders. As the present study investigates how retail companies can measure their e-commerce maturity level related to sustainability using a triple bottom line perspective, the American Marketing Association definition was adopted in this research. Generally, e-commerce is classified into various types, including business-to-business (B2B), Business-to-government (B2G), Business to Employee (B2E), Business to Customer (B2C), Peer to Peer (P2P), Consumer to Government (C2G), Mobile Commerce (M-commerce) and Customer to Customer (C2C) models (Davis & Benamati, 2003; Laudon & Traver, 2010). The study will focus on the B2C model, subdivided into the content provider, service provider, market creator, online retailer, portal, community provider, and transaction broker. Of these ecommerce types, B2B is the largest, with a market value of approximately USD 7907.04 billion in 2022 (Shankar, 2022). Within the B2C model, this study will focus on online retailing as an online version of traditional retail, which includes virtual merchants (online retail store only), Bricks and-Clicks e-retailers (online distribution channel for a company that also has a physical store), Catalog Merchants (the online version of direct mail catalog) and Manufacturers selling directly over the web. 2.1.2 Evolution of e-commerce over the years E-commerce systems have evolved since the 1960s and have witnessed several phases (Dos Santos et al., 2017). From the adoption of Electronic Data Interchange (EDI) to the launch of online marketplaces like Amazon and eBay in the 1990s, e-commerce has continuously transformed business landscapes (Manzoor, 2010; Gajewska et al., 2020). Today, the role of ecommerce is undeniable in many global sectors (Nanehkaran, 2013; Abdulaali et al., 2019). However, the reach and impact of e-commerce differ globally. For instance, while 70% of residents in developed countries engage in online shopping, the figure is just 2% in some of the least developed nations (UNCTAD, 2017). Despite these disparities, e-commerce offers 9 growth opportunities, especially for under-industrialized countries, by optimizing profits and overcoming geographical limitations (Dan, 2014; Taher, 2021). The recent COVID-19 pandemic emphasized the importance and growth of ecommerce. Quarantine measures led to a spike in online shopping and a decline in traditional trade (Bhatti et al., 2020; Latif et al., 2021). This shift, as observed by Kurniawati (2022) and Tran (2021), promises sustained consumer preference for e-commerce and challenges in terms of increased transportation and distribution. This surge in transport, especially during the pandemic, doubles in some cities, leading to significant environmental concerns and sustainable development challenges (Settey et al., 2021). The duality of e-commerce’s positive and negative impact on the environment necessitates a closer look at its trajectory and sustainability prospects (Sui & Rejeski, 2002). Surprisingly, there is a dearth of research on e-commerce sustainability, particularly in the cutthroat, low-margin retail sector (Schubert et al., 2013). 2.1.3 The transition toward sustainable e-commerce As the digital market’s prominence has grown, there has been an increased recognition of the potential for e-commerce to contribute positively to sustainable practices. This shift is motivated by a growing understanding of the need for sustainability in all aspects of life and business and the unique opportunities and challenges presented by e-commerce in this context (Jones et al., 2016). E-commerce’s rapid growth and widespread adoption have spurred significant changes in the traditional retail landscape. However, alongside these developments, there has been a rising consciousness regarding the environmental footprint of business activities, including those in the e-commerce sector. As mentioned earlier, the considerable ecological implications of heightened e-commerce activity underline the need for sustainable practices within this sector (Settey et al., 2021). The journey towards sustainable e-commerce has gained momentum in recent years. Businesses and consumers alike have been increasingly acknowledging the environmental 10 implications of their actions. As a result, sustainable e-commerce has emerged, combining the efficiency, convenience, and innovation of e-commerce with sustainability principles (Gold et al., 2015). Sustainable e-commerce refers to the application of sustainable practices in the operations of e-commerce businesses. It encompasses various strategies, including efficient use of resources, minimizing waste, reducing energy consumption, and promoting fair trade and ethical business practices (Hassini et al., 2012). Significant research has been devoted to understanding the impacts of e-commerce on sustainability. However, the link between these two concepts is multifaceted, as the implications of e-commerce on sustainability can be both positive and negative (Jones et al., 2016). The efficient use of resources, reduced need for physical infrastructure, and minimized transportation requirements are some positive effects, demonstrating the potential for e-commerce to contribute to sustainability. Conversely, the rapid pace of e-commerce growth can exacerbate waste generation and energy consumption, underlining the need for businesses to integrate sustainability into their operations actively (Hassini et al., 2012). The transition towards sustainable e-commerce has its challenges. E-commerce businesses face difficulties such as the lack of clear sustainability guidelines, the need for significant changes in business practices, and the challenge of balancing economic viability with environmental responsibility (Hassini et al., 2012). Despite these challenges, many businesses have been proactive in adopting sustainable practices, driven by a sense of social responsibility and recognizing that sustainability can also bring economic benefits in the long run (Giménez et al., 2012). In conclusion, the transition towards sustainable e-commerce represents a crucial development within the digital market landscape. As businesses continue to navigate this transformation, it is essential to consider the opportunities and challenges presented by this shift. Various factors influence this journey, one being the motives driving businesses and consumers towards sustainable practices. Looking ahead, the potential for e-commerce to contribute to 11 sustainable development presents an exciting prospect for the sector’s future. However, it is also essential to understand social, environmental, and economic motives in shaping this transition. By exploring these driving forces, we can gain a deeper understanding of the future trajectory of sustainable e-commerce. 2.2 Role of Social, Environmental and Economic Motives in E-commerce An intricate intersection of social, environmental, and economic dynamics largely influences the rapid progression towards sustainable e-commerce. Elkington’s “Triple Bottom Line” (1997) significantly contributes to understanding these facets, asserting that a business’s sustainability should be evaluated not only on its economic performance but also on its environmental and social impacts. The social dimension pertains to a business’s ethical conduct and societal contributions. This encapsulates matters like fair trade, workplace equality, and community engagement. Research has illustrated a growing consumer inclination towards companies demonstrating their commitment to societal welfare. Peloza and Shang’s (2011) study revealed that consumer affinity extends beyond product and price, stretching into the ethical realm. The outdoor apparel brand Patagonia exhibits this. Their strong commitment to ethical sourcing and fair trade is prominently displayed on their e-commerce platform, earning widespread customer appreciation and loyalty and driving their commercial success (Gelles, 2020). Hence, integrating societal values into business operations can become a unique selling proposition, bolstering the growth of sustainable e-commerce. On the environmental front, sustainable e-commerce businesses strive to minimize their ecological footprint. This encompasses many concerns, including carbon emissions associated with e-commerce operations, waste management, and judicious resource usage. For instance, Amazon’s “Frustration-Free Packaging” initiative aims to eliminate excessive packaging and promote recycling, thus addressing an environmental issue that is particularly significant in ecommerce (Amazon, 2020). This initiative is a testament to how environmental stewardship can 12 be effectively woven into an e-commerce business model. Moreover, businesses like Ikea have adopted a circular economy approach, selling second-hand goods online to minimize waste and resource usage and demonstrating innovative environmental strategies in e-commerce (Brandi et al., 2019). The economic dimension of sustainable e-commerce lies in the balance between achieving business profitability and pursuing sustainable practices. This involves maintaining cost efficiency while simultaneously integrating sustainable practices into core operations. As such, optimizing logistics for economies of scale reflects this delicate balance, as demonstrated by ecommerce businesses. An optimal logistics system ensures business efficiency and customer satisfaction while reducing environmental impacts (Carrillo et al., 2014; Slack et al., 2010). For instance, ASOS, a leading e-commerce retailer, has successfully incorporated technology into its supply chain, reducing operational costs and carbon emissions (Godfrey, 2018). Each of these social, environmental, and economic dimensions is intertwined with the others, indicating the complexity of the transition to sustainable e-commerce. Businesses cannot merely adopt a singular perspective; they must consider all three dimensions simultaneously to embrace sustainability fully. In the quest for sustainable e-commerce, companies must consider their operations’ social, environmental, and economic aspects. As businesses incorporate these considerations more fully, they begin to evolve. This shift towards a more comprehensive approach to sustainability could be likened to a company moving on the e-commerce maturity scale. A maturity model related to e-commerce provides a way to understand the different stages of growth an e-commerce business can experience (Gartner, 2022). Moving up the maturity model from an e-commerce perspective is about more than just improving business practices or capturing a larger market share. It is about integrating sustainability into the core of a company’s business model. This deep integration of sustainable practices signifies a mature, evolved approach to e-commerce. So, as businesses embrace these principles and adapt, they are moving towards a mature stage of e-commerce, where 13 sustainability is not just a bonus but a fundamental part of how they operate. This shift paves the way for a new phase in the e-commerce industry. 2.3 E-commerce Maturity Maturity models are critical in assessing the growth of organizations. According to Morais et al. (2007, p. 2), a maturity model “offers a structured way of analyzing how an organization meets certain requirements and which areas demand attention to reach mature levels.” The models are frameworks that allow for the assessment of the current state of a business organization. Given that the maturity models are conceptual frameworks that consist of parts that describe the progression of a specific area of interest over time (Lasrado et al., 2015), they are vital evaluation and analysis tools when applied in different industries (Shackleton et al., 2004). Lasrado et al. (2015) state that these maturity models assess a business’s growth stage from the start-up face to maturity. Maturity models are also stages-of-growth models (Röglinger et al., 2012). Röglinger et al. (2012) argue that a logical connection exists between the different stages of the maturity model, with each stage having distinct characteristics. Maturity models can help identify areas in the business that need improvement while enhancing progress in the firm’s processes. Determining and presenting the current maturity level of the business enables stakeholders to know its capabilities in a particular area or domain. Adding to their descriptive nature, the models also provide comparison frameworks in benchmarking. For example, retail companies can compare their growth status with their past performances or direct competitors (Röglinger et al., 2012). According to Lasrado et al. (2015), maturity models highlight beliefs on how a company’s capabilities develop continuously along a logical path. Researchers are intensely interested in the acceptability of maturity models because of the fast-paced innovation in the digital world (Morais et al., 2007). Various maturity models have been designed for use in specific or general organizations. However, the changes in the business environment, particularly in the retail sector, 14 require maturity models for growth evaluation (Shackleton et al., 2004). The specific models can help investors, business owners, and stakeholders determine the maturity level of retail organizations and decide on their next steps. Röglinger et al. (2012) state that maturity models can be classified into two categories. These include specialized and generic models. The generic maturity models can be used across industries and sectors, while specialized models are designed for a given company type. The models can also be classified according to the type of company, e.g., non-specific businesses, small and medium-sized enterprises, and large enterprises (Schumacher et al., 2016). According to McKay et al. (2000), maturity models emerged alongside initial studies on quality management, representing a significant step toward adopting performance improvement strategies. The stages of growth model designed by Nolan in 1973 is one of the most famous maturity models for assessing organization information systems. Nolan’s model was later modified in 1974 and 1979 by Gibson and Nolan and Nolan, respectively (McKay et al., 2000). The model was also subjected to frequent modifications and adaptations to align with the managerial realities of the 1990s and the evolution of information technologies in recent years. Hameed et al. (2012) argue that these adjustments were necessary because the first model did not account for emerging elements such as micro-computing or the Internet, even though they could still be used to assess the computing maturity level within an organization. Since then, practitioners and researchers have developed new maturity models that effectively adapt to e-commerce realities. Studies focused on the growth of e-commerce have highlighted the efficacy of these models in describing a firm’s development levels in terms of ecommerce and its potential future growth (Snellen, 2012). Some of the existing maturity models include the Capability Maturity Model Integration (CMMI), the Sustainability Maturity Model (SMM), the Stage of Growth e-business (SOG-e), the Digital Maturity Matrix (DMM), the Connected Maturity Model (CMM), and Forrester’s eBusiness and Digital Marketing Maturity Model (DMMM). Below, these maturity models are elaborated. 15 The Capability Maturity Model Integration (CMMI) is one of the most famous maturity models. The CMMI offers a five-step framework that serves as a basis for evaluating the maturity of organizations and specific projects. The CMMI was designed to be adaptable to various needs and approaches (Arad et al., 1997). The model features a conceptual structure with components that assess a specific area of interest over time (Hameed et al., 2012). While generic models like the Capability Maturity Model Integration (CMMI) offer broad insights, their applicability to the e-commerce landscape must be more credible. The CMMI, for instance, may focus more on processes and less on outcomes critical to e-commerce, such as customer engagement and rapid innovation. Once heralded as holistic, the CMMI faces scrutiny for possibly not addressing all e-commerce imperatives (Hameed et al., 2012). Forrester’s eBusiness and Digital Marketing Maturity Model (DMMM) has significantly contributed to the growth and advancement of companies, helping them transition into worldclass organizations (Berghaus & Back, 2016). Forrester designed a comprehensive scoring framework that allows cross-functional digital leaders to evaluate the effectiveness of their organizations’ digitalization efforts in enhancing customer experiences, creating operational agility, and driving competitive strategy. The DMMM comprises four maturity levels. The first level, called ‘Sceptics,’ is related to companies beginning the digital journey. ‘Adopters’ is the name of the second level and is related to investments in infrastructure and skills. The third level is called ‘Collaborators,’ where companies break down traditional silos. Lastly, leveraging data to drive customers’ obsession is related to the final level, ‘ Differentiators.’ The DMM maturity framework assesses the organization’s digital intensity (Grover & Damle, 2020). The DMM has four maturity stages: digirati, conservatives, fashionistas, and beginners. Each stage gives insight into an organization’s digital intensity and maturity (Grover & Damle, 2020). The different stages can be described as follows i.e., level one (beginners) which refers to organizations with limited digital initiatives and understanding, operating without a clear digital strategy (ad-hoc and less/unstructured practices and interventions); level two 16 (fashionistas) that implies enthusiastic yet disjointed organizations that chase digital trends without a cohesive, overarching strategy (well-considered and structured practices and interventions); level three (conservatives) that includes organizations that acknowledge digital’s importance but use it reactively, primarily for efficiency gains (integrative best-practices and interventions based on strategic thinking) and level four (digirati) digital leaders with a clear strategy, leveraging technology for growth, innovation, and competitive advantage (most ideal and innovative practices and interventions). However, while the DMM provides valuable insights, it has also pointed out imprecision, ambiguity, and areas that need to be fully addressed in sustainable e-commerce (Schumacher et al., 2016). For instance, while many models, including the DMM, have robust frameworks for assessing technological and process maturity, they might not delve deeply into sustainability aspects that are becoming crucial in today’s e-commerce environment. Despite these concerns, this research has chosen to adopt the DMM because of its comprehensive structure, established reputation, and focus on digital intensity, a crucial aspect of e-commerce. Furthermore, the intention is not to utilize the model in isolation but to integrate it with the TBL perspectives (environmental, economic, and social). This study aims to create a more holistic tool to assess sustainable e-commerce practices, bridging the identified gaps in existing models. In conclusion, integrating the TBL perspectives with the DMM Model provides a foundation for a comprehensive e-commerce maturity assessment tool. The following section delves deeper into the TBL aspects, which are fundamental to the integrated maturity model discussed at the end of this chapter. 2.4 Integrated TBL maturity framework for e-commerce In the evolving business landscape, addressing sustainability has become paramount. Integrating sustainable principles offers firms a strategic edge, driving long-term value creation. While many frameworks aim to guide businesses towards this end, the TBL stands out as a compelling structure, especially for e-commerce enterprises. Originating from Elkington in 1997, 17 the TBL encapsulates the holistic approach to sustainability, encompassing environmental, social, and economic dimensions. This triad ensures businesses do not view sustainability in a silo but as an interconnected web of responsibilities. For e-commerce businesses, in particular, the TBL offers a guide and a managerial structure. It aids in aligning sustainability efforts with an organization’s core mission and vision. Furthermore, it provides a roadmap detailing critical focus areas to realize a strategic vision. However, the pressing challenge for most organizations lies in operationalizing the TBL. Selecting appropriate measures or indicators that holistically gauge business sustainability can be daunting. However, with the TBL framework’s comprehensive approach, businesses can navigate this challenge, effectively integrating and assessing sustainability’s social, economic, and environmental facets. 2.4.1 Environmental dimension of maturity framework The environmental dimension of the TBL framework underscores the importance of organizations committing to sustainable practices for the planet’s long-term health (Elkington, 1997). This dimension is paramount in the e-commerce context due to environmental challenges arising from industrial growth and online trading (Epstein & Widener, 2010; Thompson, 2015). Addressing such challenges, one of the primary concerns for e-commerce companies has been carbon emissions. The rise in online shopping intensifies transport demands. Last-mile delivery, in particular, is an environmental challenge, representing a substantial portion of emissions (Ren et al., 2019). The issue of emissions leads to a closely related topic: the resource efficiency challenge presented by e-commerce’s reliance on packaging materials. The sector’s move towards sustainable packaging is evident, aiming to counteract the heavy use of materials (Verghese et al., 2015; Smith & Browne, 2018). However, another emerging challenge tied to e-commerce operations and material use is the culture of ‘buy-return-buy.’ Managing product returns, with a significant portion ending as waste, is a pressing environmental concern (Hobbs, 2018; Rogers & Hudson, 2001). With 18 initiatives like AI forecasting to minimize returns, there is an increasing focus on sustainable solutions for returned goods, emphasizing recycling, donating, or refurbishing (Pallathadka et al., 2023; Ramcharran, 2017). Regulatory frameworks further bolster these efforts. The EU Green Deal, for instance, has direct implications for e-commerce. It champions the circular economy, impacting product design and waste management (Fetting, 2020). Regulations like the EU Directive on WEEE, ‘Dutch Waste Regulations’ (in Dutch’ Nederlandse Afvalstoffenregeling,’ and the Dutch Packaging Decree (in Dutch’ Nederlands Verpakkingsbesluit’) guide e-commerce practices, especially concerning product waste management and packaging (Torretta et al., 2013; Loos, 2012; Rouw & Worrel, 2011). In line with such regulations and the circular economy’s principles, e-commerce businesses now emphasize the lifecycle of their products, considering their environmental impacts from production to disposal (Saidani et al., 2021). This integrated view of circular economy principles not only reduces their ecological footprint but also strengthens their market position, possibly giving them a competitive edge (Fetting, 2020) To conclude, the TBL’s environmental dimension is vital for e-commerce companies. By intertwining carbon reduction, resource optimization, regulatory adherence, and circular economy principles, they align their operations toward sustainability and potential business success. 2.4.2 Social dimension of maturity framework The second dimension of the TBL framework is social impact, which is crucial in ecommerce. It evaluates the impact of e-commerce organizations on human interactions encompassing employees, shareholders, customers, suppliers, and communities (Elkington, 1997; Epstein & Widener, 2010; Svensson et al., 2016). E-commerce is increasingly spotlighting social sustainability. Promoting equity, diversity, and inclusion internally and externally is imperative for companies, which enhances creativity and decision-making inclusiveness (Høgevold & Svensson, 2012). 19 A significant facet of the evolving e-commerce industry is employee well-being. Emphasizing flexible work schedules, especially with the advent of remote work, fosters worklife balance. This reduces stress and positively affects job satisfaction, productivity, and employee retention (Smith et al., 2021; Gajendran & Harrison, 2007; Bonau, 2020). A supportive work environment is tantamount, with open communication, employee recognition, and professional growth playing key roles (De-la-Calle-Durán & Rodríguez-Sánchez, 2021). Further, e-commerce businesses foster employee wellness through comprehensive programs spanning fitness facilities and mental health resources (Smith et al., 2021). Prioritizing safety and promoting a healthy work-life balance prevents burnout and optimizes workforce morale. A healthier workforce decreases absenteeism and heightens satisfaction (Grawitch et al., 2017). Externally, e-commerce businesses are strengthening community ties. Philanthropic endeavors and collaborations with community initiatives bolster their reputation and trust among customers and stakeholders (Seuring & Müller, 2008). Aligning with modern consumers, e-commerce can resonate by offering products with a positive social impact, augmenting customer loyalty, attracting investors, and solidifying long-term success (D’Almeida et al., 2019; Saidani et al., 2021). Incorporating the TBL’s social dimension into e-commerce maturity models guides businesses towards heightened social responsibility in the industry. Ensuring equitable practices, promoting inclusion, and understanding product impact is imperative. Companies’ integration of these principles achieves advanced social sustainability and carves a more responsible ecommerce future. 2.4.3 Economic dimension of maturity framework The third dimension of the TBL framework centers on the economic impact of a company’s practices on the economic system (Elkington, 1997). E-commerce enterprises, amidst their continuous evolution, need to weave this economic dimension into their business strategies to ensure sustainable growth and prosperity. This involves everything from inventory management to ethical sourcing practices (Brown et al., 2008). 20 As highlighted by Li et al. (2018), efficient inventory management stands pivotal. With data-driven analytics and demand forecasting, e-commerce entities can ensure optimal inventory levels, reducing costs and bolstering profitability (D’Almeida et al., 2019). The economic dimension extends its roots into ethical sourcing practices, too. Aligning with responsible suppliers who uphold fair labor and environmental standards becomes essential (Høgevold & Svensson, 2012). Such measures cement long-term supplier relationships and reinforce local economies, ultimately creating a ripple of economic welfare (Brown et al., 2008). Logistics also plays an integral role in the economic dimension, in addition to sourcing. E-commerce businesses, by optimizing their supply chains through eco-friendly transportation and efficient delivery systems, carve a niche of economic and environmental sustainability (D’Almeida et al., 2019; Saidani et al., 2021). Circular economy principles present another cornerstone. Emphasizing the reuse and recycling of products, these principles pivot ecommerce towards resource conservation and open doors to opportunities like refurbished product sales (Saidani et al., 2021; Tilman et al., 2017). Investing in innovative R&D initiatives complements this drive, guiding companies to craft eco-friendly solutions and unique market offerings, leading to responsible profits (Rogers & Hudson, 2011; Seuring & Müller, 2008). Beyond sheer profit, the economic dimension underscores the value for all stakeholders. Fair compensation, support for local suppliers, and an inclination towards community development become crucial instruments in this economic symphony (Epstein & Widener, 2010; Høgevold & Svensson, 2012). With a rising wave of consumers valuing responsible business practices, e-commerce firms can harness this dimension to enhance their brand reputation (D’Almeida et al., 2019). To conclude, e-commerce entities in the retail sector position themselves for sustainable growth by weaving the economic dimension of the TBL framework into their operations. Sustainable growth is not just about financial prosperity but about creating an ecosystem that values resources, stakeholders, and long-term viability. 21 To clarify the insights gathered in Chapter 2, a visual representation is offered in Table 1, termed “DMM sustainability-based Extension.” This table clearly illustrates the different components associated with each trait, which can fluctuate based on an organization’s degree of maturity. Furthermore, these facets are specifically tailored to address the nuances of companies immersed in the e-commerce landscape. (See below table 1 for the proposed integrated view of literature) 22 Table 1: DMM sustainability-based Extension Environment Components Clustered Components References • Importance of Sustainable practices: Epstein & Widener, 2010; • Importance of Thompson, 2015; Ren et sustainable practices sustainable practices al., 2019; Verghese et al., • Environmental for the planet 2015; Smith & Browne, challenges from • Environmental for the planet industrial growth and challenges from Rogers & Hudson, 2011; online trading industrial growth Pallathadka et al., 2023; • Carbon emission and online trading Fetting, 2020; Torretta et concerns in e- • Carbon emission al., 2013; Loos, 2012; commerce concerns in e- Rouw & Worrel, 2011; • Increased transport commerce Saidani et al., 2021; Lai et demand from online Logistics & shopping Transportation: • Last-mile delivery’s • Increased transport environmental impact • Resource efficiency demand from due to e-commerce online shopping packaging • Shift to sustainable packaging • ‘Buy-return-buy’ culture challenge 23 2018; Hobbs, 2018; • Last-mile delivery’s environmental impact al., 2020 • Environmental issues from product returns • AI forecasting to Packaging & Waste Management: • efficiency due to reduce returns • Sustainable solutions e-commerce for returned goods packaging • Impact of EU Green • packaging • Regulatory frameworks: EU • ‘Buy-return-buy’ culture challenge Directive on WEEE, Dutch Waste Shift to sustainable Deal on e-commerce • Environmental Regulations, Dutch issues from Packaging Decree product returns • E-commerce product • Sustainable lifecycle emphasis solutions for • Integrated approach returned goods for reduced ecological Technology & footprint Forecasting: • Integration of carbon reduction, resource • AI forecasting to reduce returns optimization, Regulation & regulatory adherence, Compliance: and circular economy in e-commerce 24 Resource • Impact of regulatory frameworks Integrated Environmental Strategies: • E-commerce product lifestyle emphasis • Integrated approach for reduced ecological footprint • Integration of carbon reduction, resource optimization, regulatory adherence, and circular economy in e-commerce 25 Social • Focus on social sustainability in e- Work Environment & Epstein & Widener, 2010; Employee Wellbeing: Svensson et al., 2016; Importance of Høgevold & Svensson, employee well- 2012; Smith et al., 2021; being Gajendran & Harrison, Flexible work 2007; Bonau, 2020;(De-la- schedules and Calle-Durán & Rodríguez- remote work’s Sánchez, 2021) schedules and remote role in work-life ; Grawitch et al., 2017; work’s role in work-life balance Seuring & Müller, 2008; Effects on stress D’Almeida et al., 2019; • Effects on stress reduction, job Saidani et al., 2021 reduction, job satisfaction, satisfaction, productivity, and productivity, and employee employee retention retention commerce • • Emphasis on equity, diversity, and inclusion • Importance of • employee well-being • Flexible work balance • Role of a supportive 26 • • Role of a work environment: supportive work open communication, environment: recognition, and open professional growth communication, • Employee wellness recognition, and programs: from fitness professional to mental health growth • Importance of work- • Employee life balance and wellness preventing burnout programs: from fitness to mental • E-commerce’s health philanthropic efforts and community ties • Importance of • Products with positive work-life balance social impact boosting and preventing customer loyalty and burnout attracting investors Equity, Diversity & • Integration of the Inclusion: TBL’s social • Focus on social dimension for greater sustainability in social responsibility e-commerce • Emphasis on equitable • Emphasis on practices, inclusion, equity, diversity and understanding and inclusion product impact Social Impact & Community Engagement: • E-commerce’s philantrophic efforts and community ties 27 • Products with positive social impact boosting customer loyalty and attracting investors Integration & Strategy for Social Responsibility: • Integration of the TBL’s social dimension for greater social responsibility • Emphasis on equitable practices, inclusion, and understanding product impact Economic • Economic impact of a company’s practices • Integration of the economic dimension 28 Economic Brown et al., 2008; Li et Sustainability & al., 2018; D’Almeida et al., Growth: 2019; Høgevold & Svensson, 2012; Saidani et for sustainable growth Economic al., 2021; Tilman et al., in e-commerce impact of a 2017; Rogers & Hudson, • Importance of company’s 2011; Seuring & Müller, practices 2008; Epstein & Widener, Integration of 2010 • inventory management and ethical sourcing • • Role of data-driven the Economic analytics and demand dimension for forecasting in optimal sustainable inventory levels growth in e- • Significance of ethical commerce sourcing and Inventory, Sourcing & alignment with Logistics: responsible suppliers • inventory • Reinforcement of local economies through management and strong supplier ethical sourcing relationships • Role of datadriven analytics • Role of logistics in economic and demand sustainability: eco- forecasting in friendly transportation optimal and efficient delivery inventory levels systems 29 Importance of • Role of logistics • Importance of circular in economic economy principles: sustainability: reuse, recycling, and eco-friendly resource conservation transport and efficient delivery • Opportunities in systems refurbished product sales • Investment in innovative R&D for Supplier Relations & Local Economy: • eco-friendly solutions ethical sourcing and market offerings and alignment • Value proposition for with responsible suppliers all stakeholders: fair compensation, local • Reinforcement supplier support, and of local community economies development through strong supplier • E-commerce’s relationships potential to harness brand reputation Circular Economy & through responsible Conservation: business practices 30 Significance of • Importance of • Emphasis on not just circular economy financial prosperity but principles: reuse, valuing resources, recycling, and stakeholders, and long- resource term viability conservation • Opportunities in refurbished product sales Investment, Innovation & R&D: • Investment in R&D for ecofriendly solutions and market offerings Stakeholder Value & Brand Reputation: • Value proposition for all stakeholders: fair compensation, local supplier support, and community development • E-commerce’s potential to harness brand reputation 31 through responsible business practices Holistic Economic Approach: • Emphasis on not just financial prosperity, but valuing resources, stakeholders, and long term viability 32 CHAPTER 3 METHODOLOGY Chapter three discusses the methodology used to answer the research question. It starts with the research approach, followed by information on the data collection method. Next comes the data collection instrument, which discusses sampling and ethical concerns. The last paragraphs consist of the data analysis and qualitative assessment. 3.1 Research approach and philosophy This research examines e-commerce maturity, focusing on the social, environmental, and economic factors and business performance that influence retail companies. Qualitative research methods were chosen because they were appropriate for exploring the subjective experiences and interpretations related to these factors. Qualitative research is widely adopted across various academic disciplines, often prevalent in social sciences and extending to market research and beyond (Denzin & Lincoln, 2005). As Smith (1987) articulated, qualitative research is empirical in nature, like all other research methods, as it involves collecting real-world data about the studied phenomenon, organizing the acquired data, and placing it against ideas, hypotheses, and categorical definitions as a means of examination. However, it is essential to ensure the accuracy of sourced references to validate claims (Smith, 1984). While understanding human behavior is a significant aspect of qualitative research, this study’s objective is not centered around behavior but the various facets of e-commerce maturity. This study’s choice of qualitative research is grounded in its inherent exploratory nature. It is designed to delve into uncharted territories, making it apt for developing a novel maturity model. Instead of merely testing pre-existing hypotheses, qualitative research often forms the bedrock for theory evolution, though qualitative research is not the only method for such theory development (Denzin & Lincoln, 2005). Qualitative research is particularly beneficial when there is limited existing literature or knowledge about a topic. By allowing for open-ended inquiries, it 33 illuminates previously unexplored or underexplored areas, paving the way for subsequent focused investigations (Oun & Bach, 2014).) Transitioning into the domain of research philosophy, two critical paradigms shape the landscape of research philosophy: post-positivism and interpretivism (Livingston, 2015). Owing to its fundamental aim of comprehending the meanings that individuals ascribe to their experiences, interpretivism is identified as the approach of choice for qualitative studies of this nature (Livingston, 2015). Consequently, the interpretive paradigm, which places a greater emphasis on deep understanding as opposed to mere observation, aligns perfectly with the objectives of this study. 3.2 Data collection method Qualitative data is typically collected using interviews or questionnaires. This study decided to use interviews as they allowed participants to share their perspectives in depth (Denzin & Lincoln, 2005). Interviews are valuable because they provide insights into participants’ perspectives, emotions, and viewpoints using their own words (Bourgeault et al., 2013). Employing the interview method creates a more relaxed and natural environment, fostering a comprehensive understanding of the subject matter (Wengraf, 2001). The initial phase of data analysis involves transcribing the collected data, which, in this study, are derived from the semi-structured interviews conducted (Bourgeault et al., 2013). Audio equipment (Amberscript Pro, 2023 version) is used to record the interviews, which were subsequently transcribed. 3.3 Data collection instrument The integrity of the data collection procedures in qualitative research profoundly influences the research’s quality and findings (Kitto et al., 2008). This study used semi-structured interviews for data collection, and twelve interviews were conducted, as suggested by multiple studies as the recommended minimum (Francis et al., 2010). 34 Understanding the research subject is essential when employing semi-structured interviews, as the questions are based on prior knowledge (Bourgeault et al., 2013). Even though they might appear simple, creating a practical interview guide requires careful consideration of the scope and depth of the information needed (Wengraf, 2001). The research developed an interview protocol to provide a structured framework (see Appendix A). The interview protocol consists of the main components of the research. The process began with a brief introduction and an explanation of the participants’ role in the study. This was followed by descriptive questions to understand the participants’ current positions. The main questions were then posed, focusing on the participants’ experiences and insights. The interview questions were centered around the three primary aspects of the research: environment, social, and economic (see Appendix A). These questions aided in the development of the maturity stages for the framework. 3.3.1 Sampling This study focuses on developing an e-commerce maturity model tailored for organizations in the retail sector. To do so, obtaining insights from organizations with a significant presence or influence in the e-commerce landscape was essential. The Benelux region’s retail companies (small, medium, and big) were chosen as the target sample. The Benelux region, encompassing Belgium, the Netherlands, and Luxembourg, is a significant hub for retail, making it pertinent for this study(Gomez-Herrera et al., 2014). An online investigation was carried out to identify potential interviewees, where companies’ contact details and profiles were sourced from industry databases. The rationale behind such a selection method was to ensure that the chosen organizations have a rich understanding of the e-commerce environment in this region. Based on the information collected, interview invitations were sent to key personnel within these organizations, ensuring a good mix of perspectives. For a detailed look into the interview invitation format, refer to Appendix B. 35 Given the deliberate choice of interviewees, mainly targeting organizations with a known presence in e-commerce within the Benelux, a non-probability sampling method was used. The method used implies a purposive selection rather than a random one. Finally, the research used twelve e-commerce organizations from the region, with one interview from each providing the necessary data. Table 2: Respondents of the research # Reference Company size Industry Role Years of experience 1 P1 Small company Fashion Founder and 12 CEO 2 P2 Small company Computer, Location Telephony and manager 8 Gadgets 3 P3 Medium Beauty company 4 P4 Medium P5 Large company 10 CEO Fashion company 5 Founder and Founder and 15 CEO ICT (solutions Founder and for e- CEO 28 commerce) 6 P6 Large company ICT (solutions Senior for e- director 24 commerce) 7 P7 Large company Fashion Founder and CEO 36 10 8 P8 Small company Production Founder and 6 CEO 9 P9 Medium Furniture company 10 11 12 P10 P11 P12 Large company Small company Medium company Founder and 8 CEO Boiling water E-commerce tap specialist Home Founder and products CEO Fashion Marketing 8 1 4 specialist 3.3.2 Ethical concerns In order to uphold ethical standards and respect privacy concerns, anonymity was ensured for the participants involved in this research, including the organizations they represent. Furthermore, all entities engaged in the study willingly offered their participation, provided their identities were kept confidential. 3.4 Data analysis After transcription, coding will be employed to analyze the gathered data. In preparation, the researcher will carefully read the transcriptions to recognize recurring patterns, themes, and notions (Nowell et al., 2017). Following this preparation, the process of coding the interviews will begin. The initial coding table will pinpoint codes, categories, sub-categories, and their definitions (Appendix D). According to Holloway (2005), coding fundamentally entails the researcher selecting the most significant data. (Nowell et al. (2017) add that the process of coding aids in forming categories and sub-categories, thus providing the means to identify patterns and themes. 37 The initial template, suggested by Nowell et al. (2017), was formulated by clustering-like codes rooted in the study’s core dimensions, namely environmental, social, and economic aspects (refer to Appendix A). A comprehensive coding template was crafted (Nowell et al., 2017), encompassing maturity levels, distinct themes, and precise codes (refer to Appendix E). The initial coding template evolved into the final version by integrating the interview data. Subsequent refinement of this template utilized practical methods. Using this refined template, the research results were showcased. The draft was thoroughly reviewed against the code structure’s final version as a concluding action. This crucial last review confirmed the accurate analysis of all pertinent data, ensuring any inconsistencies or errors were rectified before finalizing the manuscript (Nowell et al., 2017). Ultimately, this paves the way to formulate conclusions and affirm findings. 3.5 Qualitative Assessment Researchers must uphold certain quality benchmarks to guarantee the reliability and precision of results (Wengraf, 2001). Downe and Walsh (2006) highlight that the most critical quality indicators for qualitative research include clarification and justification, methodological rigor, representativeness, interpretative thoroughness, reflexivity and evaluative diligence, and transferability. The researcher comprehensively outlines the study’s design, methods, and analytical techniques. This outline included a thoughtful selection of strategy, philosophy, and an investigative qualitative design. By doing this selection process, fresh insights emerged from the primary data set, diminishing over-reliance on prior assumptions. The related approach to data analysis enabled a profound grasp of the subjects’ views and convictions related to the research topic. A set of 12 semi-structured interviews was initiated, with a clear-cut interview guideline, making it easier for participants to voice their thoughts and share their knowledge. Recognizing the varied backgrounds of the participants was pivotal in contextualizing the primary outcomes (Kitto et al., 2008). 38 By rooting interpretations in solid evidence and employing a stringent data assessment method, the research showcased its commitment to interpretative integrity and self-reflection throughout the study. 39 CHAPTER 4 RESULTS Chapter four shows the insights acquired through the semi-structured interviews, utilizing a finalized template to showcase the outcomes. The results are methodically arranged, adhering to the Sustainability Characteristics Framework, which encompasses the following four progressive stages of maturity: These were identified as themes from the 12 interviews. The stages include Beginners, Conservatives, Fashionistas, and Digirati. 4.1 Environment Based on the interview questions, the respondents provided insight into the character traits related to the Environmental dimension within each level of maturity, including beginners, fashionistas, conservatives, and digirati. This notion relates to the maturity model highlighted in Chapter 2 by Morais et al. (2007). According to Morais et al.’s (2007) maturity model, there are different levels relating to the progress of a business growth at different stages. An insight collected from the 12 participants shows that the beginners’ stage, the preliminary stage of e-commerce maturity, displays unique traits in their approach to environmental sustainability. Results in this stage show that companies adopt sporadic environmental initiatives while embracing e-commerce. These initiatives need to be more consistent and are intermittent. Despite recognizing the significance of environmental considerations, significant measures or efforts still need to be adopted in the company’s core operations. One of the participants highlighted that “Environmental considerations are more like occasional endeavors, rather than integral aspects of our company’s operation strategies.” Another intervention recorded from the interviews was basic route optimization, where companies displayed significant efforts in optimizing their transportation routes. A respondent mentioned that they ensure route optimization by minimizing unnecessary mileage, but there is room to improve by leveraging advanced technologies. Other unstructured practices and interventions experienced by the respondents include standard recycling measures, manual forecast monitoring, and isolated environment efforts. This 40 further relates to the TBL framework by Elkington (1997), highlighted in Chapter 2, where the primary concern is carbon emission within this stage. Therefore, companies observe different measures, such as the standard recycling measures, which adhere to conventional recycling methods but do not need to observe a strategic and comprehensive approach. According to respondent 8: “Regardless of whether we observe recycling measures, it is not deeply ingrained in sustainability strategies, and it is just a normal routine practice.” The isolated environment efforts intervention experienced by the respondents highlighted a need for more integration on these initiatives, where they operate in isolation. Some respondents stressed that these initiatives are isolated, calling for a cohesive approach that observes environmental considerations. At the second stage of e-commerce maturity, Fashionistas, new insights were recorded, and they depicted how companies adopted heightened commitments to a sustainable environment. As Chapter 2 by Verghese et al. (2015) highlights, the stage is marked with structured and well-considered practices, reflecting the strategic integration of green initiatives into the company’s operations. The interview question on how well-structured and considered interventions and practices were experienced by the respondents helped reveal critical traits linked to this stage. Defined green policies were a significant characteristic, where companies articulated comprehensive and transparent policies that guided their environmental interventions. Respondent 7 mentioned, “The green policies implemented in the company serve as a foundation, which outlines the company’s commitment to achieving sustainability in different facets of the operations.” Other interventions were investments to achieve eco-friendly operations, including transportation and packaging materials. Respondents mentioned instances where their companies introduced environment-friendly transportation measures to reduce carbon footprints. Also, these companies observed a deliberate reduction in harmful packaging materials. Respondent 8 states, “Our company has always implemented strategies to reduce packaging waste, not only to improve sustainability but also to ensure cost-effectiveness and efficiency on the packaging resources.” 41 The interview results from the participants revealed new concepts within this stage, more than those explored in the literature. This included other structured practices and interventions recorded on the respondents’ companies at the environmental level, including adherence to international standards, environmental considerations, and introduction of forecasting technologies. Active adherence to international standards is a significant aspect that ensures that companies not only observe regulatory requirements but also align their business operations with environmental standards at the international level. This also involves environmental considerations, embedding sustainability measures in the company’s strategic decisions, and recognizing the connection between environmental responsibility and business. Respondent 7 mentioned, “Our Company ensures the incorporation of environmental measures at different stages, including how we execute the business operations.” Implementing forecasting technologies as a significant intervention was highlighted as a unique intervention involving leveraging technological tools to monitor and forecast environmental impact. This, in return, allows the implementation of practice approaches to achieve sustainability. At the conservative level, representing a matured stage of e-commerce sustainability, it showcases significant integrative interventions and best practices. From the recorded results, different respondents advised on various interventions, with strategic thinking as the basis they experienced at their companies at the environmental level. A full-fledged sustainability program and predictive environmental forecast models were a preliminary intervention and best practice. Respondent 5 underscored the importance of the sustainability program, including its help in addressing the diverse aspects of the environment: “Our sustainability program aids in covering different aspects from energy consumption to supply chain practices.” In addition, these programs involved predictive environment models based on a data-driven approach. According to the interview respondents, they were employing these data-driven modeling techniques significantly mitigated and anticipated the potential environmental impacts. 42 Other integrative best practices and interventions recorded include environmental strategies, which include zero-waste initiatives, advanced logistic planning, and observing regulatory strategies. Respondents emphasized the significance of introducing environmental strategies, ensuring they are observed in core business decisions. Respondent 4 emphasized, “These fundamental environmental strategies are essential, integrated into all our business operations, which defines the strategic decisions.” The zero-waste initiatives involved strategies adopted to help minimize waste across different business operations. Some of these initiatives involved recycling waste. Also, advanced logistics, as a notable conservative-level practice, involves introducing better logistic measures that prioritize environmental sustainability and efficiency. Respondent 4 emphasized again, “Implementing advanced logistics is a greater approach for incorporating environmental considerations, which ensures sustainable supply chain operations.” Overall, the different interventions recorded by the respondents highlight the strategic commitments towards sustainable practices. The Digirati level represents the pinnacle of e-commerce maturity, where the companies showcase the most innovative and ideal interventions and practices. Respondents advised different interventions and practices within this level, from experiences at their companies at the environmental dimension. Industry-learning sustainable innovation emerged as a paramount intervention, where respondents highlighted scenarios as their organizations aimed at introducing sustainable initiatives that supersede the industry norms. AI-driven supply chain optimization was another innovative intervention where the companies leveraged AI technologies to achieve minimal environmental impact while achieving maximum efficiency. Responded three explained, “Integrating AI in our supply chain has played a dynamic role, as we can easily optimize our operations while observing environmental considerations.” An example presented is that introducing AI could aid in adopting strategic environmental innovations, helping achieve a forward-thinking approach and addressing complex environmental challenges. Also, the respondents highlighted that compliance with the environmental aspects is vital at the Digirati level, as it ensures taking leadership roles in shaping and influencing the compliance standards. 43 4.2 Social Based on the interview questions, the respondents provided insight into the character traits related to the Social dimension within each level of maturity, including beginners, fashionistas, conservatives, and digirati. According to Elkington (1997), the TBL framework explored in Chapter 2, within the social dimension, involves how companies promote equity, diversity, and inclusion. The results recorded from the interviews incorporate the TBL’s framework social dimension into the e-commerce model. At the beginner level, respondents’ interview answers highlighted how companies demonstrated limited engagement in the social dimension. A character trait identified in this level is minimal HR policies, reflecting on the basic framework used to support and manage the workforce within a company. Responded 11 explained, “Our HR policies are minimal, only focused on the basic requirements, but there is room to develop and achieve wider social components.” Also, the respondents highlighted the presence of basic safety and health measures at this level. According to the respondents, this involved basic safety and health measures in place but needed more sophisticated components seen at more mature levels. This relates to Smith et al. (2021) view relating to employees’ well-being policies, which need to be better integrated within a company at this stage. Respondents added that ad-hoc diversity initiatives are done to address inclusion and diversity within the working environment fully. Regarding respondent 8, “the implemented diversity initiatives foster diversity, where they are unstructured and occasional fully.” Another highlighted ad-hoc or unstructured intervention at this level is occasional charity donations. Companies observing corporate social responsibility (CSR) is a significant approach to improving social interactions. Respondents advised that companies at this stage engage in sporadic charity contributions within a strategic and comprehensive approach to CSR. For example, respondent eight states, “Our Company adopts occasional charitable donations, mostly driven by individual initiatives.” Respondent added that CSR is perceived as a different business activity, not a core business strategic approach. In 44 an overview of the social dimension at the beginner level, respondents present different ad-hoc and less or unstructured practices and interventions, which highlight the foundational social practices at the primary stage of e-commerce maturity. At the fashionistas’ e-commerce maturity level, respondents presented that companies exhibit structured and improved practices within the social dimension. An employee engagement program is a primary character trait that emerged, which is crucial for improving social practices. The respondents emphasized that adopting employee engagement programs promotes collaboration and fosters a positive working environment. Respondent 5 advised, “Introducing engagement programs within our company has always helped improve employees’ motivation, satisfaction, and overall well-being.” In addition to engagement programs, respondents highlighted that comprehensive health programs are also observed at this level as well. Companies in this stage adopt better health initiatives, which extend beyond the basic health requirements, helping address mental and physical health components. Other structured practices and interventions experienced by respondents at this level include structured diversity policies, strategic corporate social responsibility, partnership with community organizations such as NGOs, and integration of CSR into the business operations or functions. The structured diversity policies intervention underscores the company’s intentional approach to fostering inclusion and diversity in its workplace. According to respondent six feedback, companies at the fashionista level adopt defined diversity policies, creating a working environment that values and celebrates their differences, “Our diversity policies are actively enforced, striving to develop an inclusive and diverse culture.” Integrating the CSR intervention was identified as a strategic approach companies could use to align with social aspects. Respondents advised the significance of adopting CSR considerations to develop better community partnerships. Respondent 6 stated, “The CSR considerations should be part of business function, and not considered as a separate function, as this collaboration goes beyond the financial contribution including addressing social concerns.” 45 This emphasized the need for businesses to integrate CSR considerations into their core business operations. The Conservatives level presented the mature stage of e-commerce social maturity. Advanced workplace interventions are significant practices that go beyond the traditional benefits. Respondents advised that companies invested in workplace interventions adopt different initiatives such as flexible work options, diversity, and healthcare programs. Respondent 7 stated, “Our company observes well-being initiatives, ensuring better physical health for everyone, ensuring a healthy workforce, a key to achieving company success.” Respondent 10 highlighted, “Adopting healthcare programs is crucial, as employees feel acknowledged, helping improve their priority and satisfaction.” According to the respondents, adopting advanced workplace interventions is essential as it boosts employee morale, a key driver to the company’s success. Diversity as another workplace intervention emerged as an imperative strategy that shows the company’s commitment to fostering a diverse and inclusive workplace. According to respondent 12, companies at a conservative level do not observe inclusive workplaces for compliance with set requirements, but, as a strategic approach to improve creativity, innovation, and business performance, “Our company embeds diversity as a business tactic, which brings innovation to our business.” The respondents further added that social impact measure is another core trait at the conservative level, which aids in measuring impacts on social interactions. Respondent 9 stated, “We do not just engage in social interventions; we ensure that we assess and evaluate if we are making any impact.” This depicts that companies at this level go further by assessing their efforts, ensuring they create a sustainable and meaningful change. In addition, this further helps to adopt better programs, which signifies social responsibility. This revolves around corporate social responsibility, where these companies adopt programs beyond charitable donations. Respondent 10 advised, “CSR is not an add-on in the company; it is part of the business, which ensures a significant relationship to the society.” Overall, at the Conservative level of the social component, marked by different interventions collected from the respondents, there is a greater emphasis on adopting 46 diversity, flexible work options, social impact measures, community development programs, and embedding corporate social responsibility in the business functions. As businesses continue to experience challenges in adopting better social dimension interventions to improve human interactions, introducing advanced critical practices is a prominent feature. Respondent One emphasized that companies actively investing in better workplace interventions go beyond average employee benefits, which include other important aspects such as balancing employees’ work-life balance. Respondent 6 stated, “Our workplace adopts better interventions, which include flexibility, allowing us to balance work and other life activities, improving emotional and mental well-being.” The respondents added that cutting-edge employee satisfaction tools and experience are integrated at the Digirati level. For instance, a company actively utilizes late technologies, improving employees’ experience and fostering a better working environment and higher satisfaction. Also, at the Digirati level, companies are characterized by inclusion leadership and global diversity, exemplifying businesses’ commitment to an inclusive working environment internationally. Respondent 5 argues, “Our company adopts global diversity interventions, aimed to lead uniquely on the inclusive working environment.” Also, these companies further ensure long-term community investment in addressing the community’s needs. This entails long-term collaboration with communities integrating CSR with the company’s function. Respondent 7 highlighted, “The CSR initiatives adopted in our company go beyond addressing social needs, but as a source of inspiration and driver to achieve future growth.” Overall, at the Digirati level, companies at this pinnacle social-maturity e-commerce level are characterized by significant interventions and practices, including cutting-edge employee experience and satisfaction tools, global diversity and inclusion leadership, long-term investment to the community, and adopting CSR programs as aspirations for growth and innovation. 47 4.3 Economic This is the third dimension of the Elkington (1997) TBL framework explored in chapter two. It highlights how companies continue to evolve as they integrate different business strategies to achieve sustainable growth and prosperity. Based on the interview questions, the respondents provided insight into the character traits related to the Economic dimension within each level of maturity, including beginners, fashionistas, conservatives, and digirati. Different beginners were recorded from the literature, and the study findings were based on the beginner’s maturity level. For instance, one of the study participants stated, “The emphasis of the financial outcomes is less considered on the long-term economic growth of the business.” This statement underscored that companies at the beginning of the economic dimension prioritize short-term financial gains over the long term. Respondents further highlighted different scenarios where companies at this level showed limited endurance on long-term financial stability. One of these scenarios is essential inventory management, characterized by rudimentary systems, potentially resulting in stockouts, overstocking, and inefficiencies. Respondent 11 highlighted, “Our inventory management uses a basic system, sometimes resulting in shortage and excess on the stocks.” Another scenario recorded is a poor transactional supplier relationship involving a less strategic approach to managing the suppliers. The lack of long-term economic aspect is evident in the scenario as the company missed the collaboration and negotiation opportunities, which could improve supply chain resilience and contribute to cost-efficiency. Respondent 1 states, “We have a transactional relationship with our suppliers, which affects our strategic collaborations with them.” Additional traits for companies at this level included basic stakeholder engagement, lack of research and development investment, and poor utilization of resources. The basic stakeholder engagement interventions involve adopting an approach that addresses and understands the stakeholders’. These stakeholders include everyone affected by the business operations, including customers, suppliers, shareholders, employees, and society. According to respondent 11, “Our stakeholder strategies are basic, which limits our capability to address the stakeholders’, 48 including customers.” Also,” the lack of research and development limits the company from researching and finding improvement areas to capture new markets and stay relevant and competitive. At the fashionista level, further insights were recorded, emphasizing how companies at this stage allocate their resources. One of the respondents stated, “Our investment strategy aims to improve in different ways, helping the company tap into new markets and opportunities.” This statement highlights a trait of the company at the fashionista level, where resources and better economic interventions, such as streamlined processes and advanced technologies, are effectively allocated. In a different statement, a respondent mentioned, “Our company adopts effective strategies and commitment to improve supply chain efficiency, which also involves partnering with suppliers.” Specfically, this statement records how fashionista companies are motivated to cultivate collaboration with suppliers, ensuring these relationships go beyond short-term transactions. At the Conservative level, interview findings from the 12 interview participants helped identify how companies at this level show high maturity at the economic dimension. Based on the respondents, companies at this level of e-commerce economic maturity exhibit wellconsidered and structured practices, with adopted long-term sustainable growth interventions. Respondent 8 explains, “Our company’s is on the long-term sustainable improvement, which guides all the strategic investment decisions.” This” statement depicts how companies at this level adopt sustainable growth strategies while considering economic aspects. A different respondent, number 12, states, “Our company observes logistic and optimized sourcing measures to ensure cost-effective and economic success.” The “esponrespondents’ment underscores how companies at the Conservative level actively seek efficiencies in their business operations aimed to save costs, practically contributing to long-term economic sustainability. Also, these companies adopt strong brand identities linked to better relationships with stakeholders, strategic supplier relationships, and a balanced approach to sustainable growth and profit. Referencing the statement of respondent 9, “Our company adopts strategic supplier relationship aimed to strengthen the relationship, achieving a long-term benefit.” Moreover, 49 companies at these levels observe structured practices to achieve short- and long-term economic success. At the digirati level, one of the statements of respondent five stated, “Our company’s sustainability efforts are intricately linked to the learning market position, helping align with market demand to achieve future long-term economic success.” This” statement underscores that companies at this level are positioned in the market as leaders in sustainability, acknowledging how sustainable practices can aid in achieving long-term and market differentiation success. Respondent 10 stated, “Our company observes circular economic principles, which are integral to the supply chain initiatives.” This” emphasizes how Digirati-level companies embrace circular economy principles and business model innovations such as aimed to create closed-loop systems, promote recycling, and minimize waste. Another trait of the company at the Digirati level is a complete integration of the economic model, which includes the brand as a leader in corporate social responsibility. According to respondent 10, “Our company is a leader in CSR, which involves a strategic approach to impact perceptions among the stakeholders positively.” The “full integration of the economic model involves recognizing the relationship between social, economic, and environmental components to develop a resilient and profitable business. 50 Chapter 5 Discussion This chapter examines critical findings about the three sustainability dimensions per TBL. It uses feedback from interviews to discuss the parts of the maturity model: beginners, Conservatives, Fashionistas, and Digirati. Chapter Five examines the study’s three main parts: environmental, Social, and Economic. 5.1 Environment 5.1.1 Beginners Verghese et al. (2015) present that companies at this level display foundation and sporadic intervention to achieve environmental sustainability. Additionally, the feedback from the interview by Verghese et al. (2015) helped identify various traits related to companies at this level. Some identified traits include sporadic environmental initiatives such as standard recycling measures and isolated environmental efforts. Based on the collected feedback signifies that companies at this level need more integrated approaches. Lai et al. (2020) emphasize that this level is foundational to environmental maturity. To advance beyond the sporadic and isolated environmental strategies, the company may introduce better comprehensive environmental strategies such as governance structures, clear vision, and integrated approaches to environmental sustainability. Companies at this level should invest in training and education programs to improve environmental awareness and a long-term understanding of environmentfriendly business practices and their benefits. Besides, this would introduce a team dedicated to environment management, facilitating the transition to another maturity level or a more integrated and systematic approach. 5.1.2 Fashionistas The fashionistas present the intermediate level, which showcases better-improved interventions in the environmental dimension. Interviews recorded by the respondents helped identify different traits related to companies at this level, including defined green policies, ecofriendly transportation, better packaging strategies, and adherence to set international standards, 51 depicting more structured and intentional environmental approaches. Also, the respondents explore that companies in this stage recognize the importance of environmental considerations in their business, hence, structured environment considerations in business planning. A studyA study conducted by Widener (2010) highlights that this level shows improved environmental practices, and companies could further improve their strategic focus, improving their integration. For instance, this could involve aligning with environmental considerations across different business functions, including the supply chain. In addition, the enhanced efforts could aim to assess the set interventions by setting sustainable metrics and measurable goals in the performance evaluation. The respondents also highlighted reduced packaging of materials, but there is a need to introduce other strategies, such as optimizing the resources to ensure no wastage. Also, there is a need to collaborate with peers in the industry, which may entail participating in sustainable measures aimed at elevating a collective environmental impact. 5.1.3 Conservatives At a conservative level, most companies demonstrated an integrated and mature approach to environmental sustainability. For instance, this involved full-fledged sustainability programs such as zero-waste programs and better environment interventions integrated into business functions. The collected interviews emphasize companies at this level adopting strategic thinking, observing proactive regulatory strategic aspects, and long-term investing in the community. This depicts that companies at conservatives, having achieved sustainability as a core business function, need to aim for the leadership role. This could be achieved by adopting strategies such as industry partnerships, collaboration, and sharing, helping facilitate insight exchanges, and helping achieve collective commitment to sustainable practices. Also, more investment in advanced training among employees would be crucial, ensuring the solidification of positions as pioneers of sustainable business practices. 52 5.1.4 Digirati Based on the interview results, companies at the Digirati level emerged as pioneers of environmental innovation. In addition, this included these companies adopting circular economy packaging, AI-driven optimization, and lead-sustainability innovations. As pioneers of sustainable innovations, Digirati companies do not need to be content with adopted strategies, which calls for commitment to push the boundaries to reach new heights. Hudson (2011) and Pallathadka et al. (2023) further support this study, calling the need for these companies to leverage their influence in the industry to increase environmental impact. In addition, the results suggest that this could involve companies advocating and actively participating in global sustainability initiatives. In addition, these companies could engage in cross-industry partnerships, collaborate with other sectors, and share their edge-cutting strategies. Also, this calls for further investment in R&D to identify new approaches to attaining environmental sustainability, positioning these Digirati Companies as catalysts for global impact. 5.2. Social 5.2.1 Beginners The literature review demonstrated that companies at this level demonstrate a rudiment understanding of the social aspects (Widener, 2010). According to Widener (2010), their practices need to be better integrated, which include occasional charity donations, basic safety and health measures, minimal human resource policies, and ad-hoc diversity interventions. The results suggest that Beginner-level companies need to adopt better HR practices, which ensure better inclusion, diversity, and well-being of the employees, which is crucial. For instance, this could include developing a policy framework that supports employees’ safety and rights. Based on the study results, companies at this level fail to consider charity donations as part of their business functions. This suggests the need to improve community engagement, allowing these companies to create opportunities for sustained community involvement and support. Even though not all startup companies show less engagement with communities, businesses should 53 foster a culture of CSR, which could involve actively communicating and participating in social initiatives. 5.2.2 Fashionistas The results demonstrated that companies at this stage have an improved understanding of social aspects. For instance, these companies exhibit intentional and structured social practices such as structured diversity policies, comprehensive health interventions, and engagement programs. The results suggest that companies at this level recognize social aspects as not just compliance but essential elements in the business model’s sustainability. To improve this and attain other maturity levels in the social components, companies may consider broadening their social responsibility interventions, helping address broader social issues. Specifically, it revolves around improving understanding of the impact of the company’s operations on human interactions. In addition, other personalized and innovative approaches could be adopted regardless of the presence of engagement programs. Also, the results suggest the need to develop long-term and strategic partnerships with community organizations. For instance, this would allow collaboration on essential programs that aid in community development. Based on the conducted literature and results, adopting such measures would deepen the companies’ engagement with social responsibility and improve an inclusive working environment. 5.2.3 Conservatives The results depict that companies at this stage successfully showcase better integrative interventions on the social components. However, there is room for improvement to achieve better interventions. For instance, Conservative companies show advanced workplace strategies such as diversity and health support programs. In addition, these companies go beyond the isolated strategies and actively involve social responsibility. The study presented by Høgevold and Svensson (2012) emphasizes that with their mature approach to social components, Conservative companies can improve their interventions through transparency, community, and strategic integrations. This would involve implementing advanced assessment measures, enabling 54 the assessment of the effectiveness of the introduced or implemented interventions. In addition, to improve their reputation, these companies could further recognize their employees’ involvement, improving their perspectives toward social responsibility. This, in return, could aid in improving the existing practices and developing new innovative ideas. 5.2.4 Digirati The results demonstrate that companies at the Digirati level showcase the best transformative social interventions. This includes long-term intervention strategies, strategies on social innovation, and global leadership in diversity and inclusion. For instance, these companies adopt long-term investment strategies in the community, considering CSR a primary aspect of business function. Based on the conducted literature, sustaining innovation at this level is critical, which aids these companies in maintaining leadership positions in social components. For instance, in addition to exploring edge-cutting strategies, these companies may leverage other aspects, such as technologies, including data analytic models, to help explore other opportunities. In the long run, this would enhance the effectiveness of the social interventions. Studies presented by Grawitch et al. (2017) and Saidani et al. (2021) highlight that a significant area of improvement in maintaining a leadership position for these companies is ensuring their corporate social responsibility serves as a critical driver for growth and innovation. This contrasts with other maturity levels, which consider CSR a static checklist. The findings highlight the importance of research and development at this level as it encourages a learning and experimentation culture, helping improve the evolution of the social component strategies. In addition to the highlighted interventions, these companies should collaborate with other government bodies, non-profit organizations, and industry peers to amplify the interventions’ implications for the communities. Besides, the introduced strategic partnerships may aid in broader societal contributions, knowledge exchange, and shared resources. 55 5.3 Economic 5.3.1 Beginners According to the study findings, beginner-level companies exhibit short-term financial focuses and fail to adopt future-oriented strategies. Therefore, the results suggest that these companies must go beyond simple or essential inventory management and adopt more sustainable economic practices. The study recorded in the literature by Li et al. (2018) further supports the findings and highlights how this should involve long-term investment and financial planning. Beginner companies must transition from their short-term financial considerations and adopt future-oriented perspectives. For instance, this could involve comprehensive planning processes such as risk management, forecasting, and budgeting, contributing to sustainable and resilient financial outcomes. The results further suggest that the…

Collepals.com Plagiarism Free Papers

Are you looking for custom essay writing service or even dissertation writing services? Just request for our write my paper service, and we'll match you with the best essay writer in your subject! With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.

Get ZERO PLAGIARISM, HUMAN WRITTEN ESSAYS

Why Hire Collepals.com writers to do your paper?

Quality- We are experienced and have access to ample research materials.

We write plagiarism Free Content

Confidential- We never share or sell your personal information to third parties.

Support-Chat with us today! We are always waiting to answer all your questions.