Transforming Vegetable Seed Agribusiness through Sustainable Business Models and Knowledge Management in the Digital Era

Abstract

Although digital transformation and sustainability have received increasing scholarly attention, there is limited empirical evidence on how digital-enabled business models drive sustainable performance through organizational capabilities, especially within agribusiness. This study investigates the impact of digital-enabled sustainable business models on sustainable business performance, focusing on digital knowledge management capability as a mediating factor. Survey data collected from 262 stakeholders in the Indonesian vegetable seed agribusiness sector are analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to evaluate the hypothesized relationships. The findings demonstrate that digital-enabled sustainable business models significantly enhance both digital knowledge management capability and sustainable business performance. Furthermore, digital knowledge management capability partially mediates this relationship, underscoring its strategic importance in advancing sustainability outcomes. These results indicate that sustainability-oriented digital transformation is most effective when underpinned by strong knowledge management processes. The study provides actionable recommendations for agribusiness firms seeking to align digitalization, knowledge management, and sustainability within integrated strategic frameworks.