Digital technology integration in business model innovation for carbon neutrality: An evolutionary process model for SMEs.

This study delves into the strategies employed by small and medium-sized enterprises (SMEs) to embed digital technology into their business models, aiming to reach carbon neutrality. We offer a comprehensive analysis of five high technology SMEs, unveiling an evolutionary process model that highlights their journey toward integrating technology. The integration process is delineated into three progressive stages. Initially, digital technology is seen as an 'enabler' that promotes the birth of an innovative business model, essentially transforming the mechanisms of value creation, delivery, and capture. As SMEs evolve to an intermediate stage, digital technology becomes a 'disruptor', reshaping and reinventing the business model in terms of how value is created, delivered, and captured. Entering the maturity stage, digital technology is elevated to the role of 'expertise', leading to a sophisticated business model that refines and optimizes these aspects of value. The influence of these business model innovations on carbon neutrality is complex and varies distinctly with each stage, reflecting the dynamic interplay between digital technology and business model evolution. • This study explores the unique strategies SMEs implement to weave DT into their business model innovation (BMI) with an aim to achieve carbon neutrality. • The paper presents an evolutionary process model that sheds light on this integration journey, using an in-depth analysis of five high-tech SMEs. • The paper elaborates the relationship between DT and BMI, delving into the integration of DTs and the roles they perform - as enablers, disruptors, and areas of expertise. • The paper provides insights for businesses seeking to leverage digital technologies to drive innovation and growth. [ABSTRACT FROM AUTHOR]