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The Role of Digital Transformation, Corporate Culture, and Leadership in Enhancing Corporate Sustainable Performance in the Manufacturing Sector of China

Author

Listed:
  • Muhammad Asif

    (School of Media, Hunan University of Science and Engineering, Yongzhou 425199, China)

  • Liu Yang

    (School of Journalism and Communication, Hengyang Normal University, Hengyang 421010, China)

  • Muhammad Hashim

    (Faisalabad Business School, National Textile University, Faisalabad 37610, Pakistan)

Abstract

The Chinese manufacturing industry faces many challenges to sustainable development. This study examines how transformational leadership, corporate culture, and digital transformation affect Chinese manufacturing organizations’ sustainability. It will also examine the moderating role of environmental dynamism and the mediating effect of innovation capabilities. A self-administered survey was distributed to 350 manufacturing companies’ owners, managers, leaders, and employees, etc. Participants were selected via convenient sampling. This data collection effort validated findings and empirically tested theories. Smart PLS structural equation modelling (PLS-SEM), quantitative research, and cross-research are used in this study. The findings suggest that corporate culture, transformational leadership, and digital transformation significantly affect organizations’ sustainability. Innovation capability does not affect the relationship between corporate culture and sustainability. However, it mediates the relationship between transformational leadership, digital transformation, and business sustainability. Innovation capabilities and business sustainability performance are moderated by environmental dynamism. This study contributes to sustainable corporate performance theory by showing managers how transformational leadership, digital transformation, and corporate culture can help manufacturing companies grow indefinitely. The findings have major implications for China, a highly industrialized nation. This study could benefit regulatory authorities, academic institutions, industry, government agencies, and researchers.

Suggested Citation

  • Muhammad Asif & Liu Yang & Muhammad Hashim, 2024. "The Role of Digital Transformation, Corporate Culture, and Leadership in Enhancing Corporate Sustainable Performance in the Manufacturing Sector of China," Sustainability, MDPI, vol. 16(7), pages 1-31, March.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:7:p:2651-:d:1362691
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    References listed on IDEAS

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    1. repec:bcp:journl:v:9:y:2025:i:28:p:482-491 is not listed on IDEAS
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    3. Jiayang Chen & Bing Xu & Shihao Zhang & Wuzhenhang Chen & Xingxia Wu & Zhiyue Ying, 2025. "Study on Influencing Factors of Industrial Design Agglomeration on Manufacturing Innovation Performance," Sustainability, MDPI, vol. 17(18), pages 1-37, September.
    4. Thuan Nguyen & Ly Thi Thao Dang, 2025. "Evaluating digital transformation preparedness among Vietnamese enterprises," HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - ECONOMICS AND BUSINESS ADMINISTRATION, HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE, HO CHI MINH CITY OPEN UNIVERSITY, vol. 15(3), pages 21-43.
    5. Xiaopeng Ding & Trairong Swatdikun & Xiaoque Chen & Nomahaza Mahadi, 2025. "Exploring the Role of Corporate Financial Strategy on Sustainability Performance: The Intervention of Corporate Culture of Automobile Companies in Guangxi, China," Sustainability, MDPI, vol. 17(19), pages 1-24, September.
    6. Musah Mohammed Saeed & Shahin Sultana Mohammed & Abiola Adeniyi & Michael Osei, 2025. "The Impact of Corporate Governance on the Contribution of Listed Firms to Sustainable Development Goals (SDGs) Disclosures in Ghana," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(3), pages 4676-4688, June.
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