Digital Transformation, Board Diversity, and Corporate Sustainable Development

Chi Zhang, Xinyu Tian (), Xiaojie Sun, Jian Xu and Yu Gao ()
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Chi Zhang: College of Management, Ocean University of China, Qingdao 266100, China
Xinyu Tian: School of Business, Qingdao University, Qingdao 266071, China
Xiaojie Sun: School of Business, Qingdao University, Qingdao 266071, China
Jian Xu: School of Economics and Management, Qingdao Agricultural University, Qingdao 266109, China
Yu Gao: School of Business, Qingdao University, Qingdao 266071, China

Sustainability, 2024, vol. 16, issue 17, 1-22

Abstract: The rapid advancement of information technologies, such as the Internet of Things and big data, has created favorable conditions for digital transformation, which has main effects on the sustainable development of enterprises. Drawing upon stakeholder theory, this article employs text analysis to construct indicators for corporate digital transformation using data from A-share listed companies between 2015 and 2022. Meanwhile, ESG performance is utilized as a measure of corporate sustainable development. Through both theoretical inquiry and case study, this study investigates the influence of digital transformation on sustainable development in enterprises and arrives at the following conclusions: (1) Digital transformation exerts a substantial positive effect on the sustainable development of enterprises. Board diversity plays a moderating role in this relationship; age diversity and gender diversity weaken its promoting effect while experience diversity enhances its positive influence. These findings remain robust after conducting various tests to ensure validity and addressing endogeneity concerns; (2) Heterogeneity tests reveal that compared to non-state-owned enterprises and high-tech firms, digital transformation has a more pronounced promoting effect on sustainable development levels within state-owned enterprises and non-high-tech companies. This article offers novel research perspectives on how digitization drives corporate sustainability in the digital era while providing practical insights for companies aiming to achieve both digital transformation and sustainable development.

Keywords: digital transformation; corporate sustainable development; board diversity; stakeholder theory (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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