IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i17p7621-d1470096.html

The Impact of Digital Transformation on ESG Performance: The Role of Supply Chain Resilience

Author

Listed:
  • Meixuan Zhang

    (School of Economics and Management, Shanghai Maritime University, Shanghai 201306, China)

  • Zongsheng Huang

    (School of Economics and Management, Shanghai Maritime University, Shanghai 201306, China)

Abstract

With the development of digital technologies, the impact of digital transformation on corporate performance in environmental, social responsibility, and governance areas warrants further research. This study aims to delve into how digital transformation may impact a company’s ESG performance from the perspective of supply chain resilience. We collect non-financial listed companies in China’s A-shares from 2009 to 2022 as research samples. The results show that digital transformation can significantly improve the ESG performance. Digital transformation can enhance supply chain resilience, namely by reducing supplier and customer concentration to improve a company’s ESG performance. We also reveal that non-heavy polluting companies, high-tech companies, and companies in the eastern regions are more sensitive to digital transformation in terms of ESG performance. This paper contributes to examining the relationship between digital transformation and corporate ESG performance, providing both a theoretical foundation and practical recommendations for guiding companies in achieving digital transformation and improving their ESG performance.

Suggested Citation

  • Meixuan Zhang & Zongsheng Huang, 2024. "The Impact of Digital Transformation on ESG Performance: The Role of Supply Chain Resilience," Sustainability, MDPI, vol. 16(17), pages 1-20, September.
  • Handle: RePEc:gam:jsusta:v:16:y:2024:i:17:p:7621-:d:1470096
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/17/7621/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/16/17/7621/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gunnar Friede & Timo Busch & Alexander Bassen, 2015. "ESG and financial performance: aggregated evidence from more than 2000 empirical studies," Journal of Sustainable Finance & Investment, Taylor & Francis Journals, vol. 5(4), pages 210-233, October.
    2. Lin, Yongjia & Fu, Xiaoqing & Fu, Xiaolan, 2021. "Varieties in state capitalism and corporate innovation: Evidence from an emerging economy," Journal of Corporate Finance, Elsevier, vol. 67(C).
    3. Pan, Wenrong & Xie, Tao & Wang, Zhuwang & Ma, Lisha, 2022. "Digital economy: An innovation driver for total factor productivity," Journal of Business Research, Elsevier, vol. 139(C), pages 303-311.
    4. Pan, Jianping & Yu, Manjiao & Liu, Jiayuan & Fan, Rui, 2020. "Customer concentration and corporate innovation: Evidence from China," The North American Journal of Economics and Finance, Elsevier, vol. 54(C).
    5. Wen, Wen & Ke, Yun & Liu, Xuejiao, 2021. "Customer concentration and corporate social responsibility performance: Evidence from China," Emerging Markets Review, Elsevier, vol. 46(C).
    6. Shan Wu & Ying Li, 2023. "A Study on the Impact of Digital Transformation on Corporate ESG Performance: The Mediating Role of Green Innovation," Sustainability, MDPI, vol. 15(8), pages 1-17, April.
    7. Hua Zhang & Qiwang Zhang, 2023. "How Does Digital Transformation Facilitate Enterprise Total Factor Productivity? The Multiple Mediators of Supplier Concentration and Customer Concentration," Sustainability, MDPI, vol. 15(3), pages 1-18, January.
    8. Xin Su & Shengwen Wang & Feifei Li, 2023. "The Impact of Digital Transformation on ESG Performance Based on the Mediating Effect of Dynamic Capabilities," Sustainability, MDPI, vol. 15(18), pages 1-22, September.
    9. Zeng, Qing & Ma, Feng & Lu, Xinjie & Xu, Weiju, 2022. "Policy uncertainty and carbon neutrality: Evidence from China," Finance Research Letters, Elsevier, vol. 47(PB).
    10. Xuan Wang & Vikas Kumar & Archana Kumari & Evgeny Kuzmin, 2022. "Impact of Digital Technology on Supply Chain Efficiency in Manufacturing Industry," Lecture Notes in Information Systems and Organization, in: Vikas Kumar & Jiewu Leng & Victoria Akberdina & Evgeny Kuzmin (ed.), Digital Transformation in Industry, pages 347-371, Springer.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hongna Tian & Yueru Lu & Huan Liu & Jingtao Chen, 2026. "Hacking the resilience code: How digital intelligence improves manufacturing industry resilience?," Operations Management Research, Springer, vol. 19(1), pages 1-28, March.
    2. Jie Li & Ning Ding & Sambock Bock Park & Zhu Zhang, 2025. "How Does Digital Transformation Impact ESG Performance in Uncertain Environments?," Sustainability, MDPI, vol. 17(10), pages 1-30, May.
    3. Xin Xu & Meiya Sun, 2025. "Digital Transformation, Internationalisation and ESG Performance of Multinational Companies," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 46(5), pages 2709-2725, July.
    4. 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).
    5. Jing, Li & Qianqiang, Li & Yantai, Chen & Qi, An, 2025. "How digital transformation facilitates ESG performance to heavy polluting enterprises:A panel fsQCA based on national big data comprehensive pilot zones," Technological Forecasting and Social Change, Elsevier, vol. 221(C).
    6. 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.
    7. Mohammed Alquraish, 2025. "Digital Transformation, Supply Chain Resilience, and Sustainability: A Comprehensive Review with Implications for Saudi Arabian Manufacturing," Sustainability, MDPI, vol. 17(10), pages 1-33, May.
    8. Yang, Lian-Xing & Zhang, Yin-Ting & Chen, Mo-Lei, 2025. "Impact of temperature variability on supply chain resilience in China: Mechanisms and insights," Finance Research Letters, Elsevier, vol. 85(PA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jin, Shaorong & Xiong, Ruoyu & Peng, Huan & Tang, Shiyu, 2025. "ESG performance and private enterprise resilience: Evidence from Chinese financial markets," International Review of Financial Analysis, Elsevier, vol. 98(C).
    2. Cai, Cen & Li, Yijia & Tu, Yongqian, 2024. "Big data capabilities, ESG performance and corporate value," International Review of Economics & Finance, Elsevier, vol. 96(PA).
    3. Xing Li & Guiyang Zhang & Fangyuan Zheng & Yong Qi, 2026. "Can Peer Effect of Digital Transformation Promote Enterprise Innovation: Evidence and Mechanism Interpretation," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 47(1), pages 126-142, January.
    4. Xiaowen He & Weinien Chen, 2024. "Digital Transformation and Environmental, Social, and Governance Performance from a Human Capital Perspective," Sustainability, MDPI, vol. 16(11), pages 1-21, June.
    5. Caiming Nie & Dor Kushinsky & Ting Ren, 2025. "Digital Transformation, CEO Compensation, and ESG Performance: Evidence from Chinese Listed Companies," Sustainability, MDPI, vol. 17(9), pages 1-23, April.
    6. Edward Idemudia Agboare & Luo Guang & Atta Ullah & Huma Iftikhar, 2025. "Impact of Tech‐Enabled Financial Disruptions and Internet Plus Initiative on Environmental, Social, and Governance (ESG) Performance in China: Evidence From a PVAR Approach," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 46(6), pages 3467-3485, September.
    7. Chang Liu & Zihao Xin, 2024. "Does environmental, social, and governance practice boost corporate human capital inflow in China? From the perspective of stakeholder response," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(4), pages 3251-3273, July.
    8. Huanhuan He & Zongwen Zuo, 2023. "Supply chain concentration and enterprise financialization: Evidence from listed companies in China’s manufacturing industry," PLOS ONE, Public Library of Science, vol. 18(5), pages 1-19, May.
    9. Jiang, Weijie & Li, Jiaye, 2024. "Digital transformation and its effect on resource allocation efficiency and productivity in Chinese corporations," Technology in Society, Elsevier, vol. 78(C).
    10. Pei Yu & Yilan Chen & Yumiao Zhao, 2025. "Overcoming the ESG Voids at Home: Supplier ESG Performance and the Internationalization of Emerging Market Multinational Enterprises," Management International Review, Springer, vol. 65(2), pages 359-395, April.
    11. Zhang, Shushan & Gu, Cheng & Zhang, Peiwen, 2025. "Alleviating dependence: High-speed rail opening and firms' supply chain dependence," Transport Policy, Elsevier, vol. 167(C), pages 116-129.
    12. 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).
    13. Zhao, Lili & Ma, Yibing & Chen, Na & Wen, Fenghua, 2025. "How does climate policy uncertainty shape corporate investment behavior?," Research in International Business and Finance, Elsevier, vol. 74(C).
    14. Yan Ping & Wu Yingqin & Wu gang & Wasi Ul Hassan Shah, 2025. "Economic efficiency evaluation, regional technological heterogeneity, and total factor productivity change in the industrial sector of China," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-18, December.
    15. Haoming Ding & Wonhee Lee, 2024. "ESG and Financial Performance of China Firms: The Mediating Role of Export Share and Moderating Role of Carbon Intensity," Sustainability, MDPI, vol. 16(12), pages 1-21, June.
    16. Zetian Cui & Qixin Wang & Xiaoting Wang & Jun Yang, 2024. "Green Technology Innovations and Corporate Customer Concentration—The Perspectives of Financing Constraints and Social Responsibility," Sustainability, MDPI, vol. 16(20), pages 1-21, October.
    17. Shan Wu & Ying Li, 2023. "A Study on the Impact of Digital Transformation on Corporate ESG Performance: The Mediating Role of Green Innovation," Sustainability, MDPI, vol. 15(8), pages 1-17, April.
    18. Li Wang & Hongyu Yang, 2024. "Digital technology innovation and corporate ESG performance: evidence from China," Economic Change and Restructuring, Springer, vol. 57(6), pages 1-32, December.
    19. Cheng, Yiming & Zeng, Bo & Lin, Weixing, 2024. "Heterogenous effects of inclusive digital economy and resource distribution mismatch on corporate ESG performance in China," Resources Policy, Elsevier, vol. 92(C).
    20. Han, Qingyang & Gao, Hongying, 2025. "Facilitating or inhibiting? The impact of climate policy uncertainty on enterprises' ESG performance in China," Economic Analysis and Policy, Elsevier, vol. 86(C), pages 1329-1345.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:17:p:7621-:d:1470096. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.