A digital business soft power framework for sustainable strategies in the retail industry

Abstract

In the digital era, global retail faces persistent decline, with shrinking margins. Traditional strategies, such as the marketing mix, show limited flexibility. This constrains adaptation and challenges long-term sustainability. Soft power is increasingly applied in retail but faces contextual and legitimacy challenges. Consequently, soft-power strategies in digital retail remain underexplored. This study extends soft power into digital business, examining its regional manifestations and retail implications. A blended literature review of theory, phenomenon, and practice is employed across 70 retail cases. The analysis covers Southeast/East Asia and Europe/Oceania. Analysis utilizes the Digital Business Comprehensive Soft Power Framework (D-CSPF) and the preliminary Sustainable Digital Growth Strategy Model (SDGSM). Findings reveal regional variation but an absence of sustained growth strategies. Soft power in retail remains symbolic, primarily enhancing legitimacy rather than driving sustainable transformation. Theoretically, this study extends soft power into digital business. The D-CSPF explains macro-level agility. Meanwhile, the SDGSM clarifies micro-level conceptual interactions between accelerated and sustainable growth. The D-CSPF guides policymakers in hybrid policies, and the SDGSM provides retailers readiness-based strategies through collective organisation and collaboration. Reconsidering policy–retailer alignment is vital for enhancing digital sustainability.