Enterprise Digital Transformation, Dynamic Capabilities, and ESG Performance

Digital transformation improves the operational efficiency and perceptual capabilities of businesses and creates a foundation for fulfilling ESG responsibilities. The authors use the theories of technological innovation and dynamic capabilities and select a sample of 4054 listed companies with commercial integration of ESG rating data to explore the mechanisms through which digital transformation affects ESG performance. Dynamic capabilities are further divided into innovation changeability (IT), coordination integration capability (CI), and learning absorption capability (LA) to investigate the mediating effects and summarize the causal path of “digital transformation - dynamic capabilities - ESG performance.” The research focuses on the impact of digital technology on ESG performance with the aim of helping businesses utilize technology more effectively to build dual competitive advantages in digitization and ESG.