Digital readiness meets sustainable business strategy: leveraging data‐driven innovation to transform entrepreneurial orientation into ESG performance

Khalid Mehmood (), Salwa Saleh Almasabi, Reeti Agarwal, Bhumika Gupta () and Armando Papa
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Khalid Mehmood: School of Economics and Management, Yangtze University, Jingzhou, 434023, Hubei, P.R. China.
Salwa Saleh Almasabi: Princess Nourah Bint Abdulrahman University
Reeti Agarwal: Jaipuria Institute of Management [Lucknow]
Bhumika Gupta: LITEM - Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) - UEVE - Université d'Évry-Val-d'Essonne - Université Paris-Saclay - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris], IMT-BS - MMS - Département Management, Marketing et Stratégie - TEM - Télécom Ecole de Management - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris]
Armando Papa: UNISA - Università degli Studi di Salerno = University of Salerno

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Abstract: Today's organizations encounter increasing pressure to address sustainability challenges. This study explores how sustainable entrepreneurial orientation influences environmental, social, and governance outcomes through data-driven innovation capabilities and green technological advancements. Grounded in the dynamic capabilities perspective, it highlights the mediating roles of innovation capabilities and green technologies while examining how sustainable entrepreneurial culture and technology readiness strengthen the relationship between innovation efforts and green outcomes, offering insights into achieving enhanced sustainability performance across organizational contexts. By using a time-lagged design across three waves, and drawing data from manufacturing SMEs in China, our results reveal a positive relationship between sustainable entrepreneurial orientation, data-driven innovation capabilities, green technological innovation, and environmental, social, and governance outcomes. Further, the findings suggest that the sequential mediation mechanism is supported by sustainable entrepreneurial culture and readiness to adopt sustainable technologies to attain superior environmental, social, and governance outcomes. The study provides theoretical implications and practical insights for contemporary organizations aiming to enhance their environmental, social, and governance practices amid the sustainability challenges.

Date: 2026
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Published in Business Strategy and the Environment, inPress, ⟨10.1002/bse.70457⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05488472

DOI: 10.1002/bse.70457

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