Digital Transformation Strategy and Environmental Performance: A Case Study

Abstract

Digital technology has drastically transformed businesses’ activities, operations, and processes. Today, digital efficiencies have inspired companies to take initiatives to leverage the firm’s environmental performance. The study’s primary purpose was to examine how a digital transformation strategy affects environmental performance under the mediating role of innovation capabilities and moderating role of digital organizational culture. The data was obtained from manufacturing industry employees in Pakistan. The results reveal that digital transformation strategy (DTS) positively and significantly affects innovation capabilities and environmental performance. The link between digital transformation and environmental performance is mediated by innovation capabilities, while digital organizational culture moderates the relationship between innovation capabilities and environmental performance.

Sustaining the future: How green capabilities and digitalization drive sustainability in modern business

“…Therefore, investigating the IGSCM, our findings confirm the positive role of ICSCM in FP, GCA, and EVP (i.e., H2a (1,2,3)). With this, we also found manufacturing businesses to adopt novel technologies, substantially ensuring their FP and EVP [ 9 ] and competitiveness (i.e., H3a (1,2,3)). In green supply chain management, it is essential to eliminate the level of industrial pollution in the ecosystem.…”

“…Over the years, climate change has made firms alter their economic structure [ 2 ]. Companies that see the new technological advancement as an advantage raise their output [ 9 ]. Green technology adoption refers to the utilization of eco-friendly digital tools in business operations [ 52 ].…”

“…The main motive of the firms is to strengthen the country’s economy by minimizing energy usage [ 8 ]. Recently, the excessive use of natural resources has made Chinese manufacturing enterprises face difficulty in coordinating the firms' performances (i.e., financial and environmental performance) [ 9 ]. Developing a cost-effective green dynamic capabilities (GDC) is key to achieving environmental performance (EVP) and financial performance (FP).…”

The Nexus of Corporate Affinity for Technology and Firm Sustainable Performance in the Era of Digitalization: A Mediated Model

“…In recent years, discussion surrounding technological abilities has always been controversial. In previous studies that have studied these relationships, this paradox has inspired scholars to examine the factors linking digitalization to a firm's sustainable performance in light of RBV theory [94]. Today, the sustainable performance of global organizations has drastically evolved with the changing business environment, wherein digital technologies have swept the business landscape with advanced innovations and tools.…”