Green Digital Transformation and Corporate Sustainability
DOI:
https://doi.org/10.31305/rrijm.2026.v11.n10.007Keywords:
Sustainability-Driven Digital Transformation, Digital Transformation, ESG Performance, Green Innovation, Corporate SustainabilityAbstract
This study examines the relationship between Sustainability-Driven Digital Transformation (SDT) and corporate sustainability within the Triple Bottom Line (TBL) framework. Drawing on empirical evidence from energy-intensive firms across Asia and the Middle East, alongside digital retail platforms, the study investigates how digital transformation influences Environmental, Social, and Governance (ESG) performance, while examining the roles of human capital, environmental regulation, and green innovation. The findings indicate that AI-enabled digital transformation positively influences ESG performance and overall corporate sustainability. However, this relationship is significantly shaped by human capital development, particularly through skilled recruitment and workforce upskilling. The findings further suggest that stringent environmental regulations may weaken the positive effect of digital transformation by constraining workforce expansion and capability development. In addition, the study identifies a green innovation paradox, whereby substantial investments in green processes and technologies may negatively moderate the short-term relationship between digital transformation and corporate sustainability due to high implementation costs, resource requirements, and extended realization periods. The study contributes to the emerging literature on digital transformation and sustainability by integrating technological, human, regulatory, and organizational dimensions within a unified SDT framework. The findings also provide practical implications for managers and policymakers seeking to align digital innovation, human capital development, environmental investments, and long-term corporate sustainability.
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