Financial Risks in Green Digital Business Models: A Review of Uncertainty and ROI

Lakshana S Nair

doi:10.36948/ijfmr.2026.v08i03.80733

Financial Risks in Green Digital Business Models: A Review of Uncertainty and ROI

Author(s)	Ms. Lakshana S Nair
Country	India
Abstract	Green digital business models (GDBMs) are increasingly positioned at the intersection of sustainability and digital transformation; however, existing literature offers fragmented insights into their financial risk dynamics and return on investment (ROI). Despite growing scholarly attention, there remains a lack of an integrated understanding of how financial uncertainties influence the viability and scalability of these models, constituting a critical research gap. This study adopts a systematic literature review approach, drawing on peer-reviewed articles indexed in Scopus, Web of Science, and Google Scholar. A structured selection process using defined inclusion and exclusion criteria was employed to analyse studies published between 2015 and 2025, ensuring methodological rigor and relevance. The review develops a theoretically grounded classification of financial risks in GDBMs by synthesizing insights through the lenses of risk-return trade-off theory, sustainability transition theory, and innovation diffusion theory. The analysis categorizes financial risks into four key dimensions: investment risk, market uncertainty, regulatory volatility, and technological obsolescence, while also examining their interdependencies and impact on ROI realization. Findings reveal that financial risks in GDBMs are not merely cost-related but are structurally embedded within evolving market ecosystems, where delayed returns, intangible benefits, and policy fluctuations complicate traditional financial evaluation models. The study further identifies a mismatch between short-term financial expectations and long-term sustainability value creation, which acts as a major barrier to adoption. This paper contributes to the literature by proposing a conceptual risk–ROI framework that integrates financial uncertainty with sustainability outcomes, offering both theoretical advancement and practical guidance for managers, investors, and policymakers. The framework enables better strategic decision-making by aligning financial planning with sustainability objectives.
Keywords	Green digital business models; financial risk; return on investment (ROI); sustainability, risk-return trade-off theory, sustainability transition theory, and innovation diffusion theory
Field	Business Administration
Published In	Volume 8, Issue 3, May-June 2026
Published On	2026-06-08
DOI	https://doi.org/10.36948/ijfmr.2026.v08i03.80733

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Financial Risks in Green Digital Business Models: A Review of Uncertainty and ROI

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