Exploring the Determinants of Digital Transformation for Sustainable Business Model Innovation: A Study in the Architecture, Engineering, and Construction (AEC) Industry

Abstract

The Architecture, Engineering, and Construction (AEC) industry is undergoing a significant transformation driven by the convergence of digital technologies and sustainability imperatives. However, many AEC firms face challenges in aligning their digital transformation initiatives with sustainable business model (SBM) innovation. This study investigates the key organisational and technological determinants that enable such alignment, with a particular focus on the Hong Kong AEC sector. Drawing on the Triple Bottom Line (TBL) framework and integrating the constructs of Entrepreneurial Orientation (EO), Sustainability Orientation (SO), and Digital Orientation (DO), the study proposes a multidimensional conceptual model. Data were collected from 158 professionals through a survey and analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The results reveal that TBL-aligned digital traits significantly influence SBM innovation both directly and indirectly through EO and SO. Furthermore, DO was found to moderate the relationship between SO and SBM, highlighting the importance of digital maturity as a strategic enabler. The study introduces the 3P2SBMI framework, which conceptualises purpose (SO), people (EO), and platform (DO) as foundational enablers of SBM innovation. A TBL Digital Traits – Organisational Capability Matrix is developed to help firms assess their strategic positioning and transformation readiness. The findings contribute to theory by linking sustainability and digital transformation through a unified model, and offer practical insights for AEC firms, industry leaders, and policymakers. By highlighting how digital capabilities and organisational orientations interact to drive sustainability-oriented innovation, the insights of this study provide a strategic roadmap for advancing digital-sustainability transitions in complex project-based industries.