Sustainable business models and success factors for smart city governance

Cities worldwide are adopting smart city initiatives to leverage digital technologies for urban sustainability, but there remains a critical need for viable business models that align technological innovation with public value. This doctoral research addresses that need by investigating how sustainable business models can be designed and implemented in smart city governance. The overall objective of the thesis is to develop both conceptual frameworks and empirical insights to guide urban leaders in managing innovation for long-term sustainability and "smart" growth. Adopting an interdisciplinary approach that spans innovation management, public policy, and urban planning, the study ensures that advances in IoT, AI, and data analytics are harnessed through robust business model designs that promote not only efficiency but also resilience, equity, and public value in cities. The thesis employs a qualitative multiple case study methodology covering four key smart city domains: Smart Mobility, Smart Energy, Smart Living, and Smart Tourism (as part of the urban public ecosystem). Across these domains, in-depth case analyses were conducted to identify critical success factors and to develop new frameworks tailored to each area. In the Smart Mobility domain, a comparative study of leading cities (including New York, Copenhagen, Singapore, Bari, and Barcelona) revealed that urban mobility innovations succeed when supported by integrated governance, real-time data utilization, and active citizen engagement. These findings culminated in a Smart Mobility framework for Euro-Mediterranean cities, providing guidance on balancing technological efficiency with inclusivity in transportation systems. In the Smart Energy domain, analysis of European pilot projects using IoT and blockchain technologies led to a novel IoT-enabled smart grid business model. The study found that decentralized energy platforms (e.g. peer-to-peer energy trading networks) can enhance efficiency and renewable integration, but only if accompanied by new business models fostering transparency, cross-sector partnerships, and prosumer participation. Within the Smart Living domain, exemplified by smart building solutions, the research showed how companies are extending traditional services through home automation and energy management innovations. This highlights that improving urban quality of life (smart living) requires combining technological infrastructure with user-centric services and collaborative delivery models. In the Smart Tourism domain, the thesis developed and validated a Smart Tourism Model Canvas (STMC) through case studies in major city destinations. This framework demonstrated how integrating cultural heritage preservation, digital innovation, and stakeholder co-creation in tourism services can simultaneously enhance visitor experience and urban sustainability. Collectively, these domain-specific findings underscore that successful smart city initiatives demand an integrated approach: technology must be paired with institutional innovation, stakeholder engagement, and a clear sustainability focus. The implications of this research are both theoretical and practical. Theoretically, the thesis advances the literature on smart cities by bridging the gap between entrepreneurial business model innovation and public-sector governance. It introduces new frameworks – such as the Smart City Business Model Canvas and the STMC – that incorporate social and environmental dimensions into business models, moving beyond the conventional profit-centric view. This contributes to a deeper understanding of how public value can be co-created by government, firms, and citizens in digital urban ecosystems. Practically, the findings provide city policymakers and managers with evidence-based guidance and tools for smart city planning. For example, the frameworks and success factors identified can help urban decision-makers align smart initiatives with broader sustainability goals and citizen needs. City governments are advised to foster open data policies, public–private partnerships, and community participation to strengthen the business models behind smart services. Likewise, tools like the Smart City Business Model Canvas and Smart Tourism Canvas offer practical templates for designing and evaluating smart city projects in a holistic manner. In sum, this research delivers a comprehensive blueprint for smart city governance, one that ties technological innovation to sustainable business models and inclusive value creation for the benefit of urban communities.