Introduction
In today’s business environment, two transformative and overarching megatrends are simultaneously reshaping the competitive landscape and influencing the future of industries: first, the advent of smart technologies embedded in the context of the Fourth Industrial Revolution (Industry 4.0), and second, the growing pressure from stakeholders and policymakers to achieve sustainable development across economic, social, and environmental dimensions.
Industry 4.0 technologies—such as the Internet of Things (IoT), blockchain, artificial intelligence (AI), big data, machine learning (ML), virtual and augmented reality (VR/AR), and digital platforms—have created new novel foundations in business models. These technologies facilitate automation, enhance decision-making accuracy, optimize resource use, and enable personalized customer experiences, thereby paving the way for the reinvention of traditional business models.
At the same time, the concept of sustainability has become one of the fundamental organizational imperatives for the organizational performance. Global crises such as climate change, resource depletion, social inequalities, and growing expectations for corporate accountability have led stakeholders, regulators, and even customers to demand greater responsiveness from organizations. This shift has compelled companies embedding sustainability as a core guiding principle.
In this context, a deeper understanding of Industry 4.0 technologies and their intersection with sustainability is a priority, and the emergence of innovative business models is inevitable. These new models go beyond economic profitability to align with social and environmental objectives which allow organizations to create competitive advantage in the market, respond to societal demands, foster public trust, and ultimately build sustainable competitive advantages.
In recent years, the concept of sustainability has gained increasing attention in Iran’s business ecosystem too. This is evidenced by the ratification and enforcement of the “Corporate Governance Guidelines for Listed Companies” by the Securities and Exchange Organization of Iran in 2022. This guideline aimed at protecting investors’ rights, preventing misconduct, and fostering a transparent and fair market, makes repeated references to sustainability principles and provides mandatory guidelines for organizations to uphold stakeholder rights and encourage active collaboration to promote sustainable practices.
Methodology
Given the growing body of literature on sustainability, the increasing expectations of stakeholders for organizations to integrate sustainable values into their business models, and the legal obligations at both global and national levels—such as the aforementioned corporate governance directive—combined with the transformative impact of smart technologies, there is a clear need for an in-depth investigation into how organizations can incorporate sustainable values into their business models.
Accordingly, the primary aim of this study is to identify and develop a comprehensive framework for sustainable value propositions grounded in smart technologies.
In the first phase of this study, the seven-step meta-synthesis model proposed by Sandelowski and Barroso was used. Meta-synthesis is a qualitative method that systematically reviews existing literature and uses the findings of prior qualitative studies on a specific topic as its data. In essence, it provides a distilled, systematic, and scholarly synthesis of existing research in a particular domain.
In the first step, the research questions were formulated, followed by a structured and systematic literature review on the Web-of-Science database. Keywords such as “Digital Technology”, “Sustainability”, “Sustainable Value Proposition”, “business Model” and “Industry 4.0” were used. From an initial pool of 328 articles, 55 were selected based on their titles, abstracts, and content relevance for in-depth content analysis.
Subsequently, components and indicators related to sustainable value propositions from a technology-driven perspective were extracted, coded, and categorized. To enhance the validity of the findings, expert opinions from academic and industry professionals were incorporated. The relationships between the identified components were then analyzed across multiple levels.
In the second phase, Interpretive Structural Modeling (ISM) was employed and structural self-interaction matrix (SSIM), reachability matrix, final reachability matrix were developed, along with level partition matrices. These matrices facilitated a multi-level analysis of the interrelationships between the components and led to the construction of a conceptual model for fostering sustainable value propositions in the insurance sector.
Findings
The analysis of the literature resulted in the extraction of 78 sustainable value propositions derived from the use of smart technologies. After expert review, 12 propositions were excluded. validated values represent an integration of economic benefits with social and environmental aspects in the structure of modern business models in the insurance industry. Based on thematic similarities, the propositions were grouped into nine main categories including: Digitally Data Collection, Agility, Automation, Digital Culture, Corporate Sustainability, Digital Marketing, Innovation and Co-Value Creation, Health and Well-being, Economic Prosperity.
Following this, the ISM method was employed to classify the research criteria into hierarchical levels based on their driving and dependence power. The conceptual model as the output of second phase consists of four hierarchical levels. Level 4, represented by the criterion of Automation, is identified as the most influential level. It directly affects three level-3 criteria: Agility, Digital Marketing, and Innovation & Co-Value creation. The four criteria located at level 1—namely, Digital Tracking, Digital Culture, Health and Well-being, and Economic Prosperity —are the most influenced and dependent elements within the model.
Conclusion
In a rapidly evolving global marketplace, reliance on traditional business models and value propositions centered exclusively on customer benefits is no longer a viable approach. Integrating smart technologies with sustainability approaches has become a strategic necessity—especially in the financial and insurance sectors which operate at the intersection of risk management and long-term value creation. Organizations that design business models centered around multidimensional, sustainability-aligned values are more likely to achieve long-term competitive advantage, enhance stakeholder trust, and deliver superior performance across financial and non-financial metrics.
This study proposes a practical framework designed to support more targeted technological investments and strategic realignment within the insurance industry. The framework also addresses the growing complexity of aligning business operations with global sustainability standards. Embracing sustainable business models alongside technological innovation not only serves as a response to regulatory requirements but also enriches the process of digital transformation by integrating human, social, and environmental dimensions into the future architecture of the insurance industry. This integration ensures not only compliance, but also long-term organizational resilience and relevance in an increasingly conscious global economy.