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Resource Bundling: How Does Enterprise Digital Transformation Affect Enterprise ESG Development?

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  • Yingjia Zhong

    (Glorious Sun School of Business and Management, Donghua University, Shanghai 200051, China)

  • Hongyan Zhao

    (Glorious Sun School of Business and Management, Donghua University, Shanghai 200051, China)

  • Tianbao Yin

    (Glorious Sun School of Business and Management, Donghua University, Shanghai 200051, China)

Abstract

The value created by enterprise digitalization is not only reflected in economic value but also has social and environmental value. Using data on A-share listed companies in Shanghai and Shenzhen from 2010 to 2020 as research samples, empirically tested the impact and mechanism of enterprise digital transformation on the environmental, social, and governance (ESG) performance. Overall, enterprise digital transformation can significantly improve the ESG performance of enterprises. Further, the mechanism testing shows that there are three main driving factors in promoting digital transformation: restraining the short-sightedness of management; improving the transparency of the internal information of enterprises; and improving the technological innovation of enterprises. The conclusion of the study enriches the strategic level of enterprise sustainable development from the perspective of “resource allocation”, and reveals the “black box” of the causal relationship between digital transformation and enterprise ESG performance.

Suggested Citation

  • Yingjia Zhong & Hongyan Zhao & Tianbao Yin, 2023. "Resource Bundling: How Does Enterprise Digital Transformation Affect Enterprise ESG Development?," Sustainability, MDPI, vol. 15(2), pages 1-18, January.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:2:p:1319-:d:1031308
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    2. Cheng, Yiming & Zeng, Bo & Lin, Weixing, 2024. "Heterogenous effects of inclusive digital economy and resource distribution mismatch on corporate ESG performance in China," Resources Policy, Elsevier, vol. 92(C).
    3. Yuzhong Lu & Cheng Xu & Bingsheng Zhu & Yanqi Sun, 2024. "Digitalization transformation and ESG performance: Evidence from China," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 352-368, February.
    4. Ting Qian & Caoyuan Yang, 2023. "State-Owned Equity Participation and Corporations’ ESG Performance in China: The Mediating Role of Top Management Incentives," Sustainability, MDPI, vol. 15(15), pages 1-21, July.
    5. Guoen Xia & Zenghui Yu & Xuwu Peng, 2023. "How Does Enterprise Digital Transformation Affect Total Factor Productivity? Based on the Information Intermediary Role of Analysts’ Attention," Sustainability, MDPI, vol. 15(11), pages 1-22, May.
    6. Zhao, Zeru, 2024. "Digital Transformation and Enterprise Risk-Taking," Finance Research Letters, Elsevier, vol. 62(PA).
    7. Anjun Hu & Xianzhu Yuan & Shuangshuang Fan & Shali Wang, 2023. "The Impact and Mechanism of Corporate ESG Construction on the Efficiency of Regional Green Economy: An Empirical Analysis Based on Signal Transmission Theory and Stakeholder Theory," Sustainability, MDPI, vol. 15(17), pages 1-24, September.
    8. Ding, Jiantao & Yin, Yingkai & Kuang, Jinsong & Ding, Dezhi & Madsen, Dag.Øivind & Yang, Kunyu, 2024. "The impact of enterprise digital transformation on financial mismatch: Empirical evidence from listed companies in China," Finance Research Letters, Elsevier, vol. 66(C).
    9. Xiangyu Chen & Peng Wan & Zhefeng Ma & Yu Yang, 2024. "Does corporate digital transformation restrain ESG decoupling? Evidence from China," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-15, December.
    10. Lipeng Sun & Nur Ashikin Mohd Saat, 2023. "How Does Intelligent Manufacturing Affect the ESG Performance of Manufacturing Firms? Evidence from China," Sustainability, MDPI, vol. 15(4), pages 1-20, February.

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