Regulatory Innovations for Addressing Emerging Digital Business Models

Abstract

This study aimed to explore how regulatory innovations can address the unique challenges and opportunities associated with emerging digital business models. A qualitative research design was employed, utilizing semi-structured interviews with 21 participants, including policymakers, industry leaders, and academics with expertise in digital business regulation. Participants were recruited using purposive sampling and interviews were conducted online. Data were analyzed using thematic analysis with NVivo software to identify key themes related to regulatory challenges, opportunities, and impacts. The study identified three overarching themes: challenges in regulation, opportunities in regulatory innovation, and the impact of these innovations. Challenges included a lack of clarity in digital business laws, rapid technological advancements, international legal disparities, data privacy concerns, and high compliance costs for startups. Opportunities for regulatory innovation were seen in collaborative policymaking, flexible and adaptive frameworks, proactive monitoring mechanisms, and the harmonization of global standards. Regulatory innovations were found to drive economic growth, enhance consumer protection, improve regulatory efficiency through technology, and promote social equity and digital inclusion. The findings underscore the need for agile and inclusive regulatory approaches to address the dynamic nature of digital business ecosystems. Effective regulatory innovation requires a combination of collaboration, adaptability, and technological integration to meet the challenges posed by emerging digital business models. Policymakers should prioritize global harmonization and inclusivity, while businesses must engage proactively in regulatory processes to ensure alignment with societal and market needs. These efforts will help balance innovation with ethical governance, fostering sustainable growth in the digital economy.