Jul 2026· Business Strategy and the Environment· 1 citation· 26 references
Abstract
Manufacturing firms in emerging economies face growing pressure to address environmental challenges while adopting digital technologies. However, how digital transformation translates into sustainability improvements remains unclear. Drawing on stakeholder theory and dynamic capability theory, this study examines a capability–innovation pathway linking digital transformation to sustainable performance. Data from 286 Vietnamese manufacturing firms were analyzed using partial least squares structural equation modeling. The results show that digital transformation is not directly associated with green innovation or sustainable performance but is positively associated with AI capability and corporate social responsibility (CSR). AI capability is associated with sustainable performance indirectly through green innovation, indicating that technological capabilities may need to be translated into environmentally oriented innovation to create sustainability benefits. Green innovation shows the strongest direct association with sustainable performance, while CSR and green organizational culture are associated with stronger sustainability outcomes by promoting responsible behavior and embedding environmental values into practices. These findings clarify how digital transformation supports sustainability in emerging economy manufacturing firms.
This study aimed to better understand how SMEs may enhance their sustainability performance with the use of smart digital capacity, green innovation and related concepts. Data from SMEs in West Java was analyzed using Partial Least Square Structural Equation Modeling. We adopted a quantitative method. The evidence indi...
O. R. Yustian, C. I. Ratnapuri· International Conferences on...· 0 citations
As firms increasingly face sustainability pressures and digital disruption, understanding how digital transformation contributes to long-term competitiveness has become an important research and managerial challenge. However, the mechanisms through which digital transformation enhances sustainable competitiveness remai...
Achieving sustainability performance has become a strategic imperative for small and medium‐sized enterprises (SMEs) as they strive to balance economic competitiveness with environmental stewardship and social responsibility in an increasingly dynamic business environment. Although Fintech adoption is widely associat...
Md. Sharif Hassan, E. Saraswati· Business Strategy & Deve...· 0 citations
This study examines how Industry 4.0 adoption breadth and organisational capabilities are associated with environmental sustainability in manufacturing SMEs. Drawing on a capability‐based perspective, it develops and tests a contingency model linking Industry 4.0 adoption, managerial commitment, market demand for sus...
Guillermo Bermúdez-González, Ana Isabel González-Fernández, E. Sánchez-Teba· Corporate Social Responsibil...· 0 citations
This study investigates how digital innovation (DII) drives sustainable performance (SUS) through the mediating role of business model innovation (BMI) and the moderating effects of servitization (SER) and relational orientation (REO). Drawing on Service-Dominant Logic, a survey was conducted among 167 medium and large...
Shivam Gupta, Sachin Modgil, Vinit Parida et al.· Journal of Environmental Man...· 0 citations
Digital transformation has come to the fore as a pivotal force behind corporate green innovation in the digital economy. Although previous research has documented that digital transformation can promote green innovation, the underlying organizational mechanisms remain theoretically fragmented. Moreover, the external co...
