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Related Experiment Video

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Measuring Engagement of Spectators of Social Digital Games

Measuring Engagement of Spectators of Social Digital Games

Published on: July 3, 2021

Digitization path to improve ESG performance: A study on organizational perspectives.

Feifei Zhao¹, Zhipeng Han², Liguo Wang³

¹School of Economics and Management, Shandong Youth University of Political Science, Jinan, China.

|December 4, 2024

Summary

Digital technology significantly enhances Environmental, Social, and Governance (ESG) performance by fostering organizational resilience. This study reveals how digitization drives sustainable development and stakeholder value in Chinese listed firms.

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Area of Science:

Business and Economics
Information Systems
Sustainability Studies

Background:

Digital technology offers new avenues for evaluating Environmental, Social, and Governance (ESG) performance.
The digital economy necessitates understanding digitization's impact on corporate ESG performance for sustainable development.
Enhancing firm competitiveness and stakeholder value is crucial in the current economic landscape.

Purpose of the Study:

To investigate the mechanisms through which digitization influences ESG performance.
To examine the role of organizational resilience and redundancy in the digitization-ESG performance relationship.
To provide theoretical and practical insights for improving ESG performance in the digital era.

Main Methods:

Empirical analysis of 3,827 listed A-share companies in China from 2003 to 2021.
Robustness tests to validate findings.
Mechanism analysis and heterogeneity analysis to explore moderating effects and contextual factors.

Main Results:

Digitization significantly improves ESG performance.
Organizational resilience mediates the positive effect of digitization on ESG performance.
Organizational redundancy positively moderates the relationship between organizational resilience and ESG performance.

Conclusions:

Digitization is a key driver of enhanced ESG performance.
Firms can leverage organizational resilience and redundancy to maximize the benefits of digitization for sustainability.
The findings offer a theoretical foundation and practical strategies for Chinese companies navigating the digital era to improve ESG outcomes.