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

Article Open access Shaofeng Wang Scientific Reports 14 , Article number: 24516 (2024) Cite this article Metrics 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. Introduction The rapid pace of technological change has made digital transformation a critical imperative for businesses seeking to maintain competitiveness and ensure long-term viability 1 , 2 , 3 […]

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