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Digital transformation and its multidimensional impact on sustainable business performance: evidence from a meta-analytic review

Author

Listed:
  • Dedrix Stephenson Bindeeba

    (Mbarara University of Science and Technology)

  • Eddy Kurobuza Tukamushaba

    (University of Doha for Science and Technology)

  • Rennie Bakashaba

    (Mbarara University of Science and Technology)

Abstract

Digital transformation has become a strategic driver of sustainable business performance, offering new pathways for firms to achieve economic, environmental, and social goals. This study conducts a meta-analysis to synthesize empirical evidence on the relationship between digital transformation and sustainable business performance. A total of 153 effect sizes from 44 empirical studies, comprising 17,284 observations, were analyzed using Comprehensive Meta-Analysis software and a random-effects model. The findings reveal a significant positive relationship, with the strongest impact observed on economic performance, followed by environmental and social performance. Among the technologies examined, smart factories, big data analytics, and the Internet of Things emerged as the most influential enablers of sustainability outcomes. Subgroup analyses showed higher impacts in lower-middle-income countries and specific sectors such as telecommunications and manufacturing. Methodologically, studies using structural equation modeling reported stronger effect sizes than those using regression analyses. These results demonstrate the multidimensional benefits of digital transformation, particularly in improving productivity, reducing environmental impact, and fostering stakeholder engagement. The study contributes a comprehensive evidence base for guiding digital adoption strategies and policymaking in support of sustainable development.

Suggested Citation

  • Dedrix Stephenson Bindeeba & Eddy Kurobuza Tukamushaba & Rennie Bakashaba, 2025. "Digital transformation and its multidimensional impact on sustainable business performance: evidence from a meta-analytic review," Future Business Journal, Springer, vol. 11(1), pages 1-21, December.
    • Handle: RePEc:spr:futbus:v:11:y:2025:i:1:d:10.1186_s43093-025-00511-z
    DOI: 10.1186/s43093-025-00511-z
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