Digitalization, Sustainable Development, and the Role of Company Size: Evidence From Germany, Austria, and Switzerland

Julia Jäger and Markus Federau

Sustainable Development, 2025, vol. 33, issue 6, 9352-9371

Abstract: The concept of digitainability considers digitalization to be a key driver for sustainability. The objective of this study is to examine the influence of digitalization on the sustainable development of large corporations by employing a mixed‐methods approach. Building on a comprehensive literature review, we develop a regression model to assess the impact of a company's level of digitalization on its environmental and sustainability performance, the latter being proxied by ESG scores from Refinitiv. The model was applied to a sample of 74 large stock corporations in Germany, Austria, and Switzerland between 2014 and 2021. Our results reveal a statistically significant relationship; however, it is fully mediated by company size. To deepen insights, we additionally conducted semi‐structured interviews with digitalization and sustainability experts. Based on our findings, we propose a framework for a successful implementation of digitainability in practice.

Date: 2025
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https://doi.org/10.1002/sd.70155

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Persistent link: https://EconPapers.repec.org/RePEc:wly:sustdv:v:33:y:2025:i:6:p:9352-9371

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