Can digital transformation improve sustainable performance of manufacturing firms? Empirical evidence based on core technology capabilities

Purpose The purpose of this study is to solve the problem that existing researches ignore the long-term and staged nature of digital transformation, failing to conduct specific discussions for different stages. It responded the call by constructing a three-stage evolutionary model to analyze the impact of digital transformation at different stages on the sustainable performance of manufacturing enterprises. The moderating effect of core technology capabilities is also explored, guided by the theory of assimilation innovation. Design/methodology/approach Based on the panel data of Chinese listed manufacturing companies from 2012 to 2020, this study empirically investigate the impact of digital transformation (digital process, digital operation and digital ecology) on sustainability performance (economic performance and environmental performance). Findings The findings indicate that digital operations and digital ecology significantly improve economic performance and environmental performance. Furthermore, the core technological capacity of the enterprise serves to modify the positive correlation between digital transformation at each stage and sustainable performance to some extent. In other words, when an enterprise is equipped with the requisite technological capacity, the digital transformation at each stage accelerates both economic performance and environmental performance, which in turn is conducive to an improvement in the enterprise’s sustainable development performance. Originality/value The findings contribute to the theoretical framework of digital transformation and sustainable development in all stages of enterprises. Furthermore, they provide guidance for achieving sustainable development through the implementation of digital transformation and the enhancement of core technological capacity.