In an era of accelerated digital transformation and growing sustainability challenges, Moroccan agricultural cooperatives are increasingly required to reinvent their practices to strengthen their competitiveness. This research examines the impact of digital capabilities on cooperative performance, focusing on the mediating role of Cooperative Business Model Innovation. Based on a quantitative approach involving a sample of 150 agricultural cooperatives and analyzed through Partial Least Squares Structural Equation Modeling, the study shows that digital capabilities significantly enhance cooperative performance, both directly and indirectly through business model innovation. By integrating technologies such as smart irrigation systems, soil sensors, process automation, and digital marketing tools, cooperatives improve not only their financial outcomes but also member satisfaction and positive societal externalities. The findings confirm that business model innovation serves as a crucial strategic lever, enabling cooperatives to transform digital capabilities into sustainable value creation. This research offers practical implications for cooperative leaders and policymakers, emphasizing the need for an integrated strategy that combines digitalization and organizational transformation to boost the performance and sustainability of agricultural cooperatives in Morocco.
