IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i10p4310-d1398142.html
   My bibliography  Save this article

Digital Transformation as a Driver of Sustainability Performance—A Study from Freight and Logistics Industry

Author

Listed:
  • Ibrahim Mutambik

    (Department of Information Science, College of Humanities and Social Sciences, King Saud University, Riyadh P.O. Box 11451, Saudi Arabia)

Abstract

Over the past two decades, environmental sustainability has become a key corporate and organisational issue. Today, firms are increasingly turning to existing and emerging digital technologies to help ensure that they meet the medium and long-term needs and expectations of customers and other stakeholders with respect to sustainability performance. This raises the important question of which digitisation factors most significantly impact environmental sustainability performance, as well as the mediating factor of sustainability innovation balance (the ability of a firm to balance the exploration of new innovations with the exploitation of existing innovations). A comprehensive survey instrument was developed and refined through expert feedback and a pilot study, leading to data collection from 374 professionals in the Freight and Logistics industry in Saudi Arabia, all of whom held senior positions in areas such as business development, IT, and Environmental, Social, and Governance (ESG) departments. This data was then analysed using structural equation modelling (SEM). The results of this analysis showed that the key factors impacting sustainability performance were digital competence, strategy alignment, digital adaptability, innovation exploitation and innovation exploration. These findings contribute to the current literature by expanding our understanding of the real-world drivers of sustainability performance. In practical terms, the study will help managers improve sustainability performance by enhancing resource efficiency, streamlining, and supply chain management, as well as improving employee engagement and training, fostering a culture of sustainability within the organisation.

Suggested Citation

  • Ibrahim Mutambik, 2024. "Digital Transformation as a Driver of Sustainability Performance—A Study from Freight and Logistics Industry," Sustainability, MDPI, vol. 16(10), pages 1-19, May.
  • Handle: RePEc:gam:jsusta:v:16:y:2024:i:10:p:4310-:d:1398142
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/10/4310/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/16/10/4310/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ibrahim Mutambik & John Lee & Abdullah Almuqrin & Justin Zuopeng Zhang, 2023. "Transitioning to Smart Cities in Gulf Cooperation Council Countries: The Role of Leadership and Organisational Culture," Sustainability, MDPI, vol. 15(13), pages 1-22, July.
    2. Ibrahim Mutambik, 2023. "The Global Whitewashing of Smart Cities: Citizens’ Perspectives," Sustainability, MDPI, vol. 15(10), pages 1-16, May.
    3. AlNuaimi, Bader K. & Kumar Singh, Sanjay & Ren, Shuang & Budhwar, Pawan & Vorobyev, Dmitriy, 2022. "Mastering digital transformation: The nexus between leadership, agility, and digital strategy," Journal of Business Research, Elsevier, vol. 145(C), pages 636-648.
    4. Kai Hockerts, 2015. "A Cognitive Perspective on the Business Case for Corporate Sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 24(2), pages 102-122, February.
    5. Wu, Linfei & Sun, Liwen & Chang, Qing & Zhang, Die & Qi, Peixiao, 2022. "How do digitalization capabilities enable open innovation in manufacturing enterprises? A multiple case study based on resource integration perspective," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    6. Hair, Joe F. & Howard, Matt C. & Nitzl, Christian, 2020. "Assessing measurement model quality in PLS-SEM using confirmatory composite analysis," Journal of Business Research, Elsevier, vol. 109(C), pages 101-110.
    7. Yildiz, H. Emre & Murtic, Adis & Zander, Udo, 2024. "Re-conceptualizing absorptive capacity: The importance of teams as a meso-level context," Technological Forecasting and Social Change, Elsevier, vol. 199(C).
    8. Assunta Di Vaio & Anum Zaffar & Daniel Balsalobre-Lorente & Antonio Garofalo, 2023. "Decarbonization technology responsibility to gender equality in the shipping industry: a systematic literature review and new avenues ahead," Journal of Shipping and Trade, Springer, vol. 8(1), pages 1-20, December.
    9. Fan Zeng & Stacy Hyun Nam Lee & Chris Kwan Yu Lo, 2020. "The Role of Information Systems in the Sustainable Development of Enterprises: A Systematic Literature Network Analysis," Sustainability, MDPI, vol. 12(8), pages 1-29, April.
    10. Salzmann, Oliver & Ionescu-somers, Aileen & Steger, Ulrich, 2005. "The Business Case for Corporate Sustainability:: Literature Review and Research Options," European Management Journal, Elsevier, vol. 23(1), pages 27-36, February.
    11. Naimatullah Shah & Nisren Farouk Moawad & Mitho Khan Bhatti & Nadia A. Abdelmegeed Abdelwahed & Bahadur Ali Soomro, 2023. "Orientation and absorptive capacity towards sustainability: a missing link between sustainability and performance," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 73(5), pages 1535-1562, July.
    12. Antonio Miceli & Birgit Hagen & Maria Pia Riccardi & Francesco Sotti & Davide Settembre-Blundo, 2021. "Thriving, Not Just Surviving in Changing Times: How Sustainability, Agility and Digitalization Intertwine with Organizational Resilience," Sustainability, MDPI, vol. 13(4), pages 1-17, February.
    13. Caroline Fischer & John Siegel & Isabella Proeller & Nicolas Drathschmidt, 2023. "Resilience through digitalisation: How individual and organisational resources affect public employees working from home during the COVID-19 pandemic," Public Management Review, Taylor & Francis Journals, vol. 25(4), pages 808-835, April.
    14. Fei Li & Yang Zhao & Jaime Ortiz & Yan Chen, 2023. "How Does Digital Technology Innovation Affect the Internationalization Performance of Chinese Enterprises? The Moderating Effect of Sustainability Readiness," Sustainability, MDPI, vol. 15(14), pages 1-25, July.
    15. Asif Khan & Chih-Cheng Chen & Kwanrat Suanpong & Athapol Ruangkanjanases & Santhaya Kittikowit & Shih-Chih Chen, 2021. "The Impact of CSR on Sustainable Innovation Ambidexterity: The Mediating Role of Sustainable Supply Chain Management and Second-Order Social Capital," Sustainability, MDPI, vol. 13(21), pages 1-25, November.
    16. Ibrahim Mutambik & John Lee & Abdullah Almuqrin & Justin Zuopeng Zhang & Mohammed Baihan & Abdulrhman Alkhanifer, 2023. "Privacy Concerns in Social Commerce: The Impact of Gender," Sustainability, MDPI, vol. 15(17), pages 1-22, August.
    17. Sofwan Farisyi & Mochammad Al Musadieq & Hamidah Nayati Utami & Cacik Rut Damayanti, 2022. "A Systematic Literature Review: Determinants of Sustainability Reporting in Developing Countries," Sustainability, MDPI, vol. 14(16), pages 1-18, August.
    18. Philippe Aussu, 2023. "Information overload: coping mechanisms and tools impact," Post-Print hal-04179618, HAL.
    19. Decai Tang & Wenya Chen & Qian Zhang & Jianqun Zhang, 2023. "Impact of Digital Finance on Green Technology Innovation: The Mediating Effect of Financial Constraints," Sustainability, MDPI, vol. 15(4), pages 1-16, February.
    20. Abdullah Almuqrin & Ibrahim Mutambik & Abdulaziz Alomran & Justin Zuopeng Zhang, 2023. "Information System Success for Organizational Sustainability: Exploring the Public Institutions in Saudi Arabia," Sustainability, MDPI, vol. 15(12), pages 1-25, June.
    21. Davide Aloini & Riccardo Dulmin & Valeria Mininno & Alessandro Stefanini & Pierluigi Zerbino, 2020. "Driving the Transition to a Circular Economic Model: A Systematic Review on Drivers and Critical Success Factors in Circular Economy," Sustainability, MDPI, vol. 12(24), pages 1-14, December.
    22. Navaneetha Krishnan Rajagopal & Naila Iqbal Qureshi & S. Durga & Edwin Hernan Ramirez Asis & Rosario Mercedes Huerta Soto & Shashi Kant Gupta & S. Deepak & Muhammad Ahmad, 2022. "Future of Business Culture: An Artificial Intelligence-Driven Digital Framework for Organization Decision-Making Process," Complexity, Hindawi, vol. 2022, pages 1-14, July.
    23. Ibrahim Mutambik & John Lee & Abdullah Almuqrin & Abdulrhman Alkhanifer & Mohammed Baihan, 2023. "Gulf Cooperation Council Countries and Urbanisation: Are Open Government Data Portals Helping?," Sustainability, MDPI, vol. 15(17), pages 1-22, August.
    24. Ciampi, Francesco & Faraoni, Monica & Ballerini, Jacopo & Meli, Francesco, 2022. "The co-evolutionary relationship between digitalization and organizational agility: Ongoing debates, theoretical developments and future research perspectives," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ibrahim Mutambik & Abdullah Almuqrin, 2024. "The Best of Both Worlds: How Financial Growth Can Engender Improved Sustainability for Businesses," Sustainability, MDPI, vol. 16(11), pages 1-23, June.
    2. Ibrahim Mutambik, 2024. "Culturally Informed Technology: Assessing Its Importance in the Transition to Smart Sustainable Cities," Sustainability, MDPI, vol. 16(10), pages 1-21, May.
    3. Tukiran, Martinus & Sunaryo, Widodo & Ghufron, Nurul & Rusli, Zil Irvan & Dalilah, Elih, 2022. "Public sector management: indispensable facilitating factors in sculpting organizational ambidexterity," MPRA Paper 113982, University Library of Munich, Germany, revised 21 Mar 2022.
    4. Ibrahim Mutambik & Abdullah Almuqrin & Fawaz Alharbi & Majed Abusharhah, 2023. "How to Encourage Public Engagement in Smart City Development—Learning from Saudi Arabia," Land, MDPI, vol. 12(10), pages 1-16, September.
    5. Michal Kaššaj & Tomáš Peráček, 2024. "Sustainable Connectivity—Integration of Mobile Roaming, WiFi4EU and Smart City Concept in the European Union," Sustainability, MDPI, vol. 16(2), pages 1-37, January.
    6. Dahl, Andrew J. & Peltier, James W. & Swan, Eric L., 2023. "Anticipatory value-in-use in early-stage digital health service transformations: How consumers assess value propositions before and after abrupt, exogenous shocks," Journal of Business Research, Elsevier, vol. 163(C).
    7. Timo Busch & Marcel Richert & Matthew Johnson & Sven Lundie, 2020. "Climate inaction and managerial sensemaking: The case of renewable energy," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(6), pages 2502-2514, November.
    8. Hazem Ahmed Khairy & Asier Baquero & Bassam Samir Al-Romeedy, 2023. "The Effect of Transactional Leadership on Organizational Agility in Tourism and Hospitality Businesses: The Mediating Roles of Organizational Trust and Ambidexterity," Sustainability, MDPI, vol. 15(19), pages 1-21, September.
    9. Rajat Panwar & Erlend Nybakk & Eric Hansen & Jonatan Pinkse, 2017. "Does the Business Case Matter? The Effect of a Perceived Business Case on Small Firms’ Social Engagement," Journal of Business Ethics, Springer, vol. 144(3), pages 597-608, September.
    10. Chen, Yu & Wang, Yuandi & Zhao, Changyi, 2024. "From riches to digitalization: The role of AMC in overcoming challenges of digital transformation in resource-rich regions," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    11. Laura F. Sasse-Werhahn & Claudius Bachmann & André Habisch, 2020. "Managing Tensions in Corporate Sustainability Through a Practical Wisdom Lens," Journal of Business Ethics, Springer, vol. 163(1), pages 53-66, April.
    12. Clare Jane M. Burns & Luke Houghton & Heather Stewart, 2020. "Sustainability – A key to Australian finance directors improving their organisation's CSR culture," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 1164-1176, March.
    13. Ibrahim Mutambik & Abdullah Almuqrin, 2024. "Employee Acceptance of Digital Transformation: A Study in a Smart City Context," Sustainability, MDPI, vol. 16(4), pages 1-21, February.
    14. DeBoer, Jennifer & Panwar, Rajat & Kozak, Robert & Cashore, Benjamin, 2020. "Squaring the circle: Refining the competitiveness logic for the circular bioeconomy," Forest Policy and Economics, Elsevier, vol. 110(C).
    15. Ibrahim Mutambik & John Lee & Abdullah Almuqrin & Abdulrhman Alkhanifer & Mohammed Baihan, 2023. "Gulf Cooperation Council Countries and Urbanisation: Are Open Government Data Portals Helping?," Sustainability, MDPI, vol. 15(17), pages 1-22, August.
    16. Dalenogare, Lucas Santos & Le Dain, Marie-Anne & Benitez, Guilherme B. & Ayala, Néstor F. & Frank, Alejandro G., 2022. "Multichannel digital service delivery and service ecosystems: The role of data integration within Smart Product-Service Systems," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    17. Max M. Weber, 2023. "The Relationship between Resilience and Sustainability in the Organizational Context—A Systematic Review," Sustainability, MDPI, vol. 15(22), pages 1-26, November.
    18. Mai Mostafa Awad & Abd‘Elazez Hashem & Hend Mohamed Naguib, 2022. "The Impact of Lean Management Practices on Economic Sustainability in Services Sector," Sustainability, MDPI, vol. 14(15), pages 1-27, July.
    19. Maria Björklund & Helena Forslund, 2019. "Challenges Addressed by Swedish Third-Party Logistics Providers Conducting Sustainable Logistics Business Cases," Sustainability, MDPI, vol. 11(9), pages 1-15, May.
    20. Priom Mahmud & Sanjoy Kumar Paul & Abdullahil Azeem & Priyabrata Chowdhury, 2021. "Evaluating Supply Chain Collaboration Barriers in Small- and Medium-Sized Enterprises," Sustainability, MDPI, vol. 13(13), pages 1-28, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:10:p:4310-:d:1398142. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.