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Linking organizational dynamics to digital capabilities and ESG outcomes: a market-oriented approach

Author

Listed:
  • Jiao Wang

    (Guangzhou College of Commerce)

  • Puja Sunil Pawar

    (Princess Nourah Bint Abdulrahman University Riyadh)

  • Ibrahim Alnafrah

    (Ural Federal University
    Cyprus International University, Institute of Graduate Studies and Research)

  • Asif Muzaffar

    (Birmingham City University)

Abstract

Environmental, Social, and Governance (ESG) represents a concept of sustainable development that integrates corporate governance, social responsibility, and environmental concerns. Most ESG research focuses on large-size publicly traded companies, and limited attention is paid to entrepreneurial firms. Our study explores how market orientation, organizational leadership, and organizational culture in entrepreneurial firms lead to digital capabilities and ESG performance of Chinese entrepreneurial organizations. This study outlines a comprehensive framework grounded on market orientation and resource-based theories. Using structural equation modeling, we empirically test our hypotheses where findings indicate that organizational leadership and market orientation positively influence digital capabilities and ESG performance. However, cultural factors insignificantly affect digital capabilities but positively relate to ESG performance. This research contributes to understanding corporate sustainability for academics, stakeholders, regulators, and policymakers and implies that to bolster ESG and digital performance; firms must strengthen their market orientation and provide strong leadership support. This study concludes with key theoretical and practical insights for advancing corporate sustainability.

Suggested Citation

  • Jiao Wang & Puja Sunil Pawar & Ibrahim Alnafrah & Asif Muzaffar, 2025. "Linking organizational dynamics to digital capabilities and ESG outcomes: a market-oriented approach," International Entrepreneurship and Management Journal, Springer, vol. 21(1), pages 1-24, December.
    • Handle: RePEc:spr:intemj:v:21:y:2025:i:1:d:10.1007_s11365-025-01111-7
    DOI: 10.1007/s11365-025-01111-7
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