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Digital Transformation, Absorptive Capacity and Enterprise ESG Performance: A Case Study of Strategic Emerging Industries

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  • Wenjun Li

    (School of Applied Economics, Guizhou University of Finance and Economics, Guiyang 550025, China
    Guizhou Institution for Technology Innovation & Entrepreneurship Investment, Guizhou University of Finance and Economics, Guiyang 550025, China)

  • Mu Zhang

    (Guizhou Institution for Technology Innovation & Entrepreneurship Investment, Guizhou University of Finance and Economics, Guiyang 550025, China)

Abstract

Digital transformation provides new drivers for economic performance growth in enterprises, but can it further improve ESG performance and support sustainable development? Based on the perspective of resources and capabilities, this article uses the relevant data of 1588 listed companies in strategic emerging industries from 2011 to 2021 to study the impact of digital transformation on enterprise ESG performance examines the intermediary role of absorptive capacity and the moderating role of regional digitalization level, and further analyzes the heterogeneity of property rights and industrial nature. The research results indicate that: firstly, digital transformation of enterprises can positively promote the improvement of ESG performance; secondly, absorptive capacity serves as a conduit through which digital transformation influences a company’s ESG performance; thirdly, the regional digitalization level positively moderates the promotion effect of digital transformation on enterprise ESG performance; fourthly, the impact of digital transformation on ESG performance of enterprises is significantly differentiated in the nature of enterprise property rights and industrial nature, and the ESG performance of state-owned enterprises and high-end equipment manufacturing enterprises is more sensitive to digital transformation. The research conclusion is based on a digital perspective, providing relevant insights for improving the ESG performance of strategic emerging industry enterprises and expanding their ESG development paths.

Suggested Citation

  • Wenjun Li & Mu Zhang, 2024. "Digital Transformation, Absorptive Capacity and Enterprise ESG Performance: A Case Study of Strategic Emerging Industries," Sustainability, MDPI, vol. 16(12), pages 1-18, June.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:12:p:5018-:d:1413535
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    References listed on IDEAS

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    1. Trang Doan Do & Ha An Thi Pham & Eleftherios I. Thalassinos & Hoang Anh Le, 2022. "The Impact of Digital Transformation on Performance: Evidence from Vietnamese Commercial Banks," JRFM, MDPI, vol. 15(1), pages 1-15, January.
    2. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    3. Verhoef, Peter C. & Broekhuizen, Thijs & Bart, Yakov & Bhattacharya, Abhi & Qi Dong, John & Fabian, Nicolai & Haenlein, Michael, 2021. "Digital transformation: A multidisciplinary reflection and research agenda," Journal of Business Research, Elsevier, vol. 122(C), pages 889-901.
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    Cited by:

    1. Hantao Liu & Xiaoyun Zhang & Yang He, 2025. "Digital Transformation and ESG Performance—Empirical Evidence from Chinese Listed Companies," Sustainability, MDPI, vol. 17(13), pages 1-23, July.
    2. Lyudmila Davidenko & Alexey Titkov & Nurzhanat Sherimova & Ansagan Beisembina, 2024. "Economic Aspects of Sustainable Development: Eco-Branding in Manufacturing Enterprises from Kazakhstan," Sustainability, MDPI, vol. 17(1), pages 1-28, December.
    3. Yu, Yang & Chan, Hau-Ling & Cho, Erin, 2026. "Enhancing ESG performance through digital transformation: Recent development, cases and relationships," Journal of Business Research, Elsevier, vol. 202(C).
    4. Jiamin Sun & Lijun Ran & Bingbing Wang, 2025. "ESG Performance and Digital Transformation: Evidence from Chinese A-Listed Companies," Sustainability, MDPI, vol. 17(18), pages 1-17, September.
    5. Puhao Guo & Xiangqian Wang & Huaiyin Jiang & Xiangrui Meng, 2025. "Does Digital Transformation Improve Manufacturing ESG Performance: Evidence from China," Sustainability, MDPI, vol. 17(16), pages 1-19, August.

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