Navigating Paradoxes in Phygital Systems: A Yin–Yang Framework for Human-Centric Business Models

This conceptual paper synthesizes 642 articles to theorize the paradoxical nature of phygital systems as sociomaterial infrastructures. Adopting a Yin–Yang dialectic, we show how Yang outcomes—personalization, agency, and expanded access—are inseparable from Yin consequences such as surveillance, exclusion, and ecological strain. Four paradoxes emerge: the Personalization Paradox, where empowerment coexists with exploitation; the Access Paradox, where inclusion generates exclusion; the Sustainability Paradox, where ecological optimization conceals hidden inversions; and the Identity Paradox, where multiplicity is enabled yet reduced into algorithmic profiles. These tensions arise from infrastructural affordances—datafication, immersion, and co-presence—that produce systemic flips in which empowerment becomes manipulation and access fosters inequality. Building on paradox theory and systemic perspectives, we advance a framework that positions paradoxes as constitutive rather than anomalous. Our contribution lies in showing how they can be navigated through multi-level practices—individual, organizational, and societal—toward human-centric business models prioritizing well-being, equity, and sustainability.