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Digitalisation and sustainability strategies at the firm level

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  • Horbach, Jens

Abstract

The paper analyses the relationship between digitalisation and sustainability strategies at the firm level. In a first step, operational definitions of digitalisation and sustainability allowing the development of fitting empirical indicators are discussed. The possible technical and social transmission channels of the effects of digitalisation on a sustainable firm development are analysed. From a technical side of view, less energy consumption induced by intelligent sensoring systems or the reduction of meetings in presence by video conferences or the promotion of home office work leading to less travel activities might lead to a more sustainable production. Digitalisation might also act as pre-condition of eco-process innovations (e. g. the introduction of intelligent control systems leading to material and energy savings). From a societal perspective, digitalisation might lead to a higher availability of information on sustainability issues promoting a faster spread of environmentally related social norms. The empirical analysis is based on firm data of the recent Eurobarometer 486/2020 of the European Commission. The econometric results show that "digitally active" firms seem to be more sustainable for all available indicators. All considered digitalisation measures such as artificial intelligence, machine learning, or the use of smart devices and intelligent sensors are positively correlated to eco-innovation and other sustainability-related activities of the questioned firms.

Suggested Citation

  • Horbach, Jens, 2023. "Digitalisation and sustainability strategies at the firm level," Ruhr Economic Papers 1001, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen, revised 2023.
    • Handle: RePEc:zbw:rwirep:1001
    DOI: 10.4419/96973167
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    References listed on IDEAS

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    4. Axenbeck, Janna & Berner, Anne & Kneib, Thomas, 2022. "What drives the relationship between digitalization and industrial energy demand? Exploring firm-level heterogeneity," ZEW Discussion Papers 22-059, ZEW - Leibniz Centre for European Economic Research.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Digitalisation; sustainability; eco-innovation; probit analysis; negative binomial regression;
    All these keywords.

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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