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Digital transformation, innovation capabilities, and servitization as drivers of ESG performance in manufacturing SMEs

Year: 2024

Type: article

Abstract: This study investigates the relationship between digital transformation and Environmental, Social, and Governance (ESG) performance in the context of SMEs. Drawing upon Resource Orchestration Theory, this research proposes a theoretical model that examines the direct effect of digital transformation on ESG performance and the mediating roles of innovation capabilities and servitization level in this relationship. PLS-SEM and fsQCA were employed to analyze survey data from 215 SME executives. The results reveal that digital transformation positively influences ESG performance. Moreover, innovation capabilities and servitization level partially mediate the relationship between digital transformation and ESG performance. This research contributes to the literature by proposing and validating a comprehensive model that integrates these constructs, offering actionable insights for SME managers and policymakers to enhance ESG outcomes through strategic digital initiatives. Notably, fsQCA results highlight three distinct configurations of digital transformation components leading to high ESG performance, providing nuanced pathways for SMEs to achieve sustainable development.

Source: Scientific Reports

DOI: 10.1038/s41598-024-76416-8

Authors: Donghua Chen, Shaofeng Wang

Institutions: Zhejiang Wanli University, Fuzhou University of International Studies and Trade

Language: English

Topic: Sustainability and Innovation in Business

Subfield: Management of Technology and Innovation

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Decent work and economic growth

Open Access status: gold

Estimated APC paid: $2,590