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Digitalization, Sustainable Development, and the Role of Company Size: Evidence From Germany, Austria, and Switzerland

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  • Julia Jäger
  • Markus Federau

Abstract

The concept of digitainability considers digitalization to be a key driver for sustainability. The objective of this study is to examine the influence of digitalization on the sustainable development of large corporations by employing a mixed‐methods approach. Building on a comprehensive literature review, we develop a regression model to assess the impact of a company's level of digitalization on its environmental and sustainability performance, the latter being proxied by ESG scores from Refinitiv. The model was applied to a sample of 74 large stock corporations in Germany, Austria, and Switzerland between 2014 and 2021. Our results reveal a statistically significant relationship; however, it is fully mediated by company size. To deepen insights, we additionally conducted semi‐structured interviews with digitalization and sustainability experts. Based on our findings, we propose a framework for a successful implementation of digitainability in practice.

Suggested Citation

  • Julia Jäger & Markus Federau, 2025. "Digitalization, Sustainable Development, and the Role of Company Size: Evidence From Germany, Austria, and Switzerland," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(6), pages 9352-9371, December.
    • Handle: RePEc:wly:sustdv:v:33:y:2025:i:6:p:9352-9371
    DOI: 10.1002/sd.70155
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