How do digital ­oriented firms perform superior environmental performance? A natural resource ­based view

Purpose A global industrial revolution driven by carbon neutrality and digital technologies (DTs) is fast gaining momentum. However, the present understanding of how firms should leverage digitalization for sustainability is underdeveloped. This paper aims to explore how digital orientation can improve environmental performance from the natural resource-based view. Design/methodology/approach Using a sample set of 132 Chinese firms, the authors adopt the hierarchical regression analysis and bootstrap approach to examine the hypotheses. Findings The empirical results show that green DT usage, green DT disposal and green practices-DT fit are three factors that mediate the positive relationship between digital orientation and environmental performance. In addition, of the five possible mediational paths, only the serial mediation of green DT usage and green practices-DT fit, as well as the serial mediation of green DT disposal and green practices-DT fit, show significant effects. Originality/value The authors contribute to the current digitalization and sustainability literature by demonstrating the processes through which digital orientation influences environmental performance. The study also provides managerial implications for firms to adjust their operations.