IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i11p4342-d1398885.html
   My bibliography  Save this article

Exploring the Impact of Digital Transformation on Manufacturing Environment, Social Responsibility, and Corporate Governance Performance: The Moderating Role of Top Management Teams

Author

Listed:
  • Qin Yang

    (College of Business, Gachon University, Seongnam 13120, Republic of Korea)

  • Shanyue Jin

    (College of Business, Gachon University, Seongnam 13120, Republic of Korea)

Abstract

In the digital economy era, digital transformation is crucial for competitiveness in traditional industries, particularly in manufacturing. This study aimed to examine how digital transformation impacts the manufacturing environment, social responsibility, and corporate governance (ESG), with a focus on the role of senior executive teams. Using empirical analysis of Chinese A-share listed companies from 2010 to 2019, this study found that digital transformation promotes ESG performance in the manufacturing industry. The findings revealed that the educational level, CEO tenure, and professional background diversity of senior management teams moderate this relationship, enhancing ESG performance. This study enriches and expands the existing knowledge system on this topic by integrating theories related to the digital economy and resource-based theories. It provides methodological guidance for the manufacturing industry to improve its environmental, social, and governance performance and achieve rapid development. Additionally, it offers practical suggestions for the government, manufacturing enterprises, and senior executive teams on how to better play their performance in digital transformation and ESG governance. This will assist the manufacturing industry enhance its level of digital transformation and continuously improve its ESG management and governance.

Suggested Citation

  • Qin Yang & Shanyue Jin, 2024. "Exploring the Impact of Digital Transformation on Manufacturing Environment, Social Responsibility, and Corporate Governance Performance: The Moderating Role of Top Management Teams," Sustainability, MDPI, vol. 16(11), pages 1-22, May.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:11:p:4342-:d:1398885
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/11/4342/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/11/4342/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Xingguang Guo & Xi Chen, 2023. "The Impact of Digital Transformation on Manufacturing-Enterprise Innovation: Empirical Evidence from China," Sustainability, MDPI, vol. 15(4), pages 1-19, February.
    2. Shaojian Chen & Hui Mao & Junqin Sun, 2022. "Low-Carbon City Construction and Corporate Carbon Reduction Performance: Evidence From a Quasi-Natural Experiment in China," Journal of Business Ethics, Springer, vol. 180(1), pages 125-143, September.
    3. Llopis-Albert, Carlos & Rubio, Francisco & Valero, Francisco, 2021. "Impact of digital transformation on the automotive industry," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    4. Li, Lixu & Ye, Fei & Zhan, Yuanzhu & Kumar, Ajay & Schiavone, Francesco & Li, Yina, 2022. "Unraveling the performance puzzle of digitalization: Evidence from manufacturing firms," Journal of Business Research, Elsevier, vol. 149(C), pages 54-64.
    5. Guandalini, Ilaria, 2022. "Sustainability through digital transformation: A systematic literature review for research guidance," Journal of Business Research, Elsevier, vol. 148(C), pages 456-471.
    6. Shiyu Wu & Xinyi Li & Xiaosen Du & Zexin Li, 2022. "The Impact of ESG Performance on Firm Value: The Moderating Role of Ownership Structure," Sustainability, MDPI, vol. 14(21), pages 1-22, November.
    7. Pedersen, Lasse Heje & Fitzgibbons, Shaun & Pomorski, Lukasz, 2021. "Responsible investing: The ESG-efficient frontier," Journal of Financial Economics, Elsevier, vol. 142(2), pages 572-597.
    8. Zhong, Xi & Ren, Ge, 2023. "Independent and joint effects of CSR and CSI on the effectiveness of digital transformation for transition economy firms," Journal of Business Research, Elsevier, vol. 156(C).
    9. Sisi Zheng & Shanyue Jin, 2023. "Can Enterprises in China Achieve Sustainable Development through Green Investment?," IJERPH, MDPI, vol. 20(3), pages 1-25, January.
    10. Ferreira, João J.M. & Fernandes, Cristina I. & Ferreira, Fernando A.F., 2019. "To be or not to be digital, that is the question: Firm innovation and performance," Journal of Business Research, Elsevier, vol. 101(C), pages 583-590.
    11. Porfírio, José António & Carrilho, Tiago & Felício, José Augusto & Jardim, Jacinto, 2021. "Leadership characteristics and digital transformation," Journal of Business Research, Elsevier, vol. 124(C), pages 610-619.
    12. Genni Perlangeli & Andrea Rea, 2021. "The Industry 4.0, the Corporate Social Responsibility and the Impacts of Brand in the Digital Transformation," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 13(4), pages 1-54, December.
    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. Hua Zhang & Qiwang Zhang, 2023. "How Does Digital Transformation Facilitate Enterprise Total Factor Productivity? The Multiple Mediators of Supplier Concentration and Customer Concentration," Sustainability, MDPI, vol. 15(3), pages 1-18, January.
    2. Wang, Jianli & Wang, Shaolin & Dong, Minghua & Wang, Hongxia, 2024. "ESG rating disagreement and stock returns: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 91(C).
    3. Li, Chengming & Huo, Peng & Wang, Zeyu & Zhang, Weiguang & Liang, Feiyan & Mardani, Abbas, 2023. "Digitalization generates equality? Enterprises’ digital transformation, financing constraints, and labor share in China," Journal of Business Research, Elsevier, vol. 163(C).
    4. Liukai Wang & Caiting Wang & Larisa Yarovaya & Heshu Huang, 2024. "Trade credit and corporate digital transformation: The role of managerial ability," The Financial Review, Eastern Finance Association, vol. 59(3), pages 779-806, August.
    5. Lihua Chen & Yilang Chen, 2023. "A Metaorganizations Perspective on Digital Innovation and Corporate Social Responsibility: Evidence from China," Sustainability, MDPI, vol. 15(14), pages 1-19, July.
    6. Jinkai Liang & Ke Du & Dandan Chen, 2023. "The Effect of Digitalization on Ambidextrous Innovation in Manufacturing Enterprises: A Perspective of Empowering and Enabling," Sustainability, MDPI, vol. 15(16), pages 1-23, August.
    7. Qiao, Penghua & Liu, Siting & Fung, Hung-Gay & Wang, Chen, 2024. "Corporate green innovation in a digital economy," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 870-883.
    8. Wang, Sai & Wen, Wen & Niu, Yuhao & Li, Xin, 2024. "Digital transformation and corporate labor investment efficiency," Emerging Markets Review, Elsevier, vol. 59(C).
    9. Singh, Shiwangi & Sharma, Meenakshi & Dhir, Sanjay, 2021. "Modeling the effects of digital transformation in Indian manufacturing industry," Technology in Society, Elsevier, vol. 67(C).
    10. Claudiu George Bocean & Anca Antoaneta Vărzaru, 2023. "EU countries’ digital transformation, economic performance, and sustainability analysis," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-15, December.
    11. Chen, Zhongfei & Jiang, Kangqi, 2024. "Digitalization and corporate investment efficiency: Evidence from China," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 91(C).
    12. Xuejun Jin & Xiao Pan, 2023. "Government Attention, Market Competition and Firm Digital Transformation," Sustainability, MDPI, vol. 15(11), pages 1-27, June.
    13. Zhi-Guang Li & Yanrui Wu & Yao-Kuang Li, 2023. "Technical Founders, Digital Transformation and Corporate Technological Innovation: Empirical Evidence from Listed Companies in China’s STAR Market," Economics Discussion / Working Papers 23-03, The University of Western Australia, Department of Economics.
    14. Di Ye & Bin Xu & Bingling Wei & Linlin Zheng & Yenchun Jim Wu, 2024. "Employee work engagement in the digital transformation of enterprises: a fuzzy-set qualitative comparative analysis," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-15, December.
    15. Sun, Bing & Zhang, Yanfeng & Zhu, Kunyan & Mao, Hongying & Liang, Tian, 2024. "Is faster really better? The impact of digital transformation speed on firm financial distress: Based on the cost-benefit perspective," Journal of Business Research, Elsevier, vol. 179(C).
    16. Chi Zhang & Xinyu Tian & Xiaojie Sun & Jian Xu & Yu Gao, 2024. "Digital Transformation, Board Diversity, and Corporate Sustainable Development," Sustainability, MDPI, vol. 16(17), pages 1-22, September.
    17. Zhang, Kaixia & Bu, Caiqi, 2024. "Top managers with information technology backgrounds and digital transformation: Evidence from small and medium companies," Economic Modelling, Elsevier, vol. 132(C).
    18. Xing, Xinpeng & Chen, Tiantian & Yang, Xiaoming & Liu, Tiansen, 2023. "Digital transformation and innovation performance of China's manufacturers? A configurational approach," Technology in Society, Elsevier, vol. 75(C).
    19. Zahid Sarwar & Jingmei Gao & Adnan Khan, 2024. "Nexus of digital platforms, innovation capability, and strategic alignment to enhance innovation performance in the Asia Pacific region: a dynamic capability perspective," Asia Pacific Journal of Management, Springer, vol. 41(2), pages 867-901, June.
    20. Cheng, Zhuo & Kai, Zhe & Zhu, Shouwenjun, 2023. "Does green finance regulation improve renewable energy utilization? Evidence from energy consumption efficiency," Renewable Energy, Elsevier, vol. 208(C), pages 63-75.

    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:11:p:4342-:d:1398885. 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.