Impacts of digital transformation on eco-innovation and sustainable performance: Evidence from Chinese manufacturing companies

Companies actively seek digital transformation to achieve sustainable development in a volatile and uncertain environment. This study investigates the effects of digital transformation (digital strategy and capability) on eco-innovation (eco-process, eco-product, and eco-management innovation) and sustainable performance. The partial least squares structural equation modeling is employed for assessing the model using data collected from 210 manufacturing companies in China. We find that digital strategy and digital capability significantly improve eco-process, eco-product and eco-management innovation. Eco-process, eco-product and eco-management innovation also improve sustainable performance. Meanwhile, eco-innovation partially mediates the positive relationship between digital transformation and sustainable performance. The results not only enrich the theoretical framework of digital transformation and sustainability but also provide guidelines for achieving sustainable development by implementing digital transformation and eco-innovation.