Analyzing how digital orientation contributes to organizational innovation and environmental, social and governance performance through digital inclusion and capabilities

Xin Xie (), Shaokang Wu (), Ghulam Subhani () and Sakina ()
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Xin Xie: Guangzhou College of Commerce
Shaokang Wu: Beijing Canghai Shibei Technology Co., LTD
Ghulam Subhani: Riphah International University
Sakina: Bahria University

International Entrepreneurship and Management Journal, 2025, vol. 21, issue 1, No 83, 22 pages

Abstract: Abstract This study explores how digitalization influences innovation performance and ESG (Environmental, Social, and Governance) outcomes in Turkey’s business sector. Using Smart PLS 3.3.3 and Partial Least Squares Structural Equation Modeling (PLS-SEM), the study examined how digital orientation affects digital inclusion, digital capabilities, and the innovation performance of manufacturing firms in Turkey. The findings of the study reveal that digital orientation significantly affects digital inclusion and capabilities, which in turn positively influences both innovation performance and ESG performance. However, digital inclusion alone does not significantly impact innovation performance. These results underscore the importance of a strong digital orientation in driving both technological advancements and sustainable practices within Turkey’s business landscape to promote environmental and socially acceptable governance. Graphical abstract

Keywords: Digital orientation; Digital inclusion; Digital capabilities; ESG performance; PLS-SEM; PSL (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s11365-025-01087-4

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