Digital transformation, sustainable business practices, and business performance: evidence from the Albanian retail sector

Abstract

The increasing pressure for sustainable business practices, combined with rapid digitalisation, is reshaping organisational strategies worldwide. This study investigates the impact of digital transformation on sustainable business practices, environmental sustainability, and business performance in the Albanian retail sector. A quantitative research approach was employed, using survey data collected from retail firms and analysed through reliability, correlation, regression, and moderation analyses. The findings indicate that digital transformation has a positive and statistically significant effect on sustainable business practices and environmental sustainability, while exerting its strongest influence on business performance. The results further reveal that support mechanisms, including training, financial assistance, and institutional support, significantly enhance the effectiveness of sustainable digital transformation. In contrast, organisational barriers, such as limited infrastructure and low levels of digital literacy, do not have a direct significant effect; however, their negative impact is mitigated by the presence of support mechanisms, confirming a moderating effect. These findings highlight the critical role of digital transformation as a driver of both sustainability and organisational performance. The study contributes to the existing literature by providing empirical evidence from the context of an emerging economy and offers practical implications for managers and policymakers seeking to promote sustainable digital development.