How does digital supply chain transformation determine environmental, social, and governance (ESG) performance? Mediating role of firm integration and moderating effect of organizational digital culture

Shaofeng Wang () and Hao Zhang ()
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Shaofeng Wang: Fuzhou University of International Studies and Trade
Hao Zhang: Zhejiang Shuren University

Operations Management Research, 2025, vol. 18, issue 3, No 7, 960-986

Abstract: Abstract Digital technology has substantial potential to enhance both internal and external integration and firms’ supply chains’ Environmental, Social, and Governance (ESG) performance. However, further exploration into these effects is needed. This study combines FTSE Russell’s ESG scores with data from 371 targeted questionnaire responses. Using Partial Least Squares Structural Equation Modeling (PLS-SEM), Importance-Performance Map Analysis (IPMA), and Fuzzy-set Qualitative Comparative Analysis (fsQCA), we discovered the following: 1) Digital supply chain transformation positively impacts various aspects of firm integration, including process synchronization and information sharing; 2) This transformation bolsters firm integration and later enhances ESG performance; 3) Organizational digital culture moderates the relationship between integration and ESG performance, indicating that a supportive digital culture amplifies these benefits. These insights can improve our understanding of digital supply chain transformation’s impact on ESG performance, offering firms actionable ESG management strategies and promoting sustainable development. Furthermore, this research provides valuable decision support for policymakers and relevant institutions in promoting sustainable digital supply chain transformation and ESG management practices.

Keywords: Digital supply chain transformation; Firm integrations; ESG performance; Organizational digital culture; PLS-SEM; FsQCA (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s12063-025-00561-0

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