Digitalisation provides access to an integrated network of information that can benefit society and businesses. However, the evidence of sustainability in business is less researched. In our paper, by building up the research approach, we address the relevant gap by investigating how sustainable development goals represent the interrelationship between digitalisation and sustainability. Such research is particularly important because understandings of digitalisation and sustainability determine how different actors, including business managers and policymakers, act in response to those imperatives to develop future employees skills starting from school age. Following a multi-method approach, we have combined our analysis into two steps examining the relationship between digitalisation and sustainability. Building digital networks, business managers and policy makers using digital means can create some unique opportunities to strategically address sustainable development challenges for the United Nations Targets (SDG) to ensure higher productivity, education, and an equality-oriented society. This point of view describes the potential of digitalisation for society and businesses of the future. The authors revise the links between digitalisation and sustainability in the European Union countries by using data available in Eurostat and UNECE public databases. The two-stage methodology for the identification of the relationship between ICT and sustainability is used in the paper and a linear regression model is applied. The results showed tiers with five SDGs, focusing on business, and all these tiers are fixed in the constructed equations for each SDG. The recommended solution is statistically valid and proves the novelty of this research. Among digitalisation indicators, only mobile-cellular subscriptions and fixed-broadband sub-basket prices in part do not affect researched sustainable development indicators.

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Digitalisation as the Indicator of the Evidence of Sustainability in the European Union

This study focused on how the strategic readiness of companies for digital operations is managed. The empirical evidence was derived from case studies on 11 industrial companies. The study's findings show that most of the studied companies face challenges in adjusting their digital operations. In response, we propose that to facilitate strategic readiness for digital operations, companies should find a balance between intuitive and data-based decision making; develop leadership capabilities related to strategic development, technology adoption, and culture creation; find a balance between their own and customers' readiness and willingness to accept digital operations; and increase inter-organizational collaboration in the use of digital technologies to allow for simultaneous upgrading of all partners' strategic readiness for digital operations. This study is among the first to examine the strategic readiness of companies for digital operations by attempting to determine how digital operation can be integrated effectively into daily practice. 

Managing the strategic readiness of industrial companies for digital operations

This study demonstrates algorithms that assist municipal administrations to make the best environmental decisions. The algorithms developed by large alpha-class municipal governments with assistance of department of environmental agency data analyst. Mathematical and econometric modeling techniques as well as optimum solution theories adhered to develop a model, and the criteria is functionality, which reflects a balance between maximum profit, comfort in living circumstances, the environment, and the need to avoid a market failure scenario. The ensuing results allow for the most optimal administrative decisions, such as the rate of environmental taxes. The empirical findings show that higher environmental, social and governance performance and digital finance has improved the corporate financing efficiency, as well as the influence of ESG performance on energy efficiency, all at a 1% significance level.

Sustainable Energy Efficient Human-Centered Digital Solutions for ESG Megacities Development

Digital transformation is important not only in the manufacturing sector but can also help service-based organizations to achieve competitive advantage. Therefore, this study has examined the impact of digital transformation on competitive advantage and the mediating role of entrepreneurial orientation. Innovation capability is considered a moderator between digital transformation and competitive advantage. The data for the research were gathered from service companies in Jordan, and AMOS was utilized for the analysis. The results revealed that digital transformation not only influences competitive advantage but also affects entrepreneurial orientation. Entrepreneurial orientation significantly mediates the relationship between digital transformation and competitive advantage. In addition, innovation capabilities moderate the relationship between digital transformation, competitive advantage, and entrepreneurial orientation. Innovation, production, and operational managers as well as owners of service companies can use the results of this research as a guideline for policy-making in order to develop a competitive advantage.

https://www.mdpi.com/2071-1050/15/3/2077/pdf?version=1675426497

Digital Transformation and Competitive Advantage in the Service Sector: A Moderated-Mediation Model

Digital business model transformation (DBMT) necessitates new managerial capabilities, yet the existing literature lacks an empirical understanding of managerial capabilities as antecedents to strategic change and firm performance. This paper builds on dynamic managerial capabilities theory to argue that managerial human capital—composed of leadership and entrepreneurial skills—is a critical facilitator of DBMT and resultant firm performance. Further, the research model proposes that managers' social capital and cognition positively moderate the relationship between human capital and DBMT. The study's findings from a sample of German Industry 4.0 firms provide new insights into the significance of managerial capabilities in a digital economy. This study advances management literature by demonstrating that the benefits of managers' human capital for DBMT are contingent on its form: entrepreneurial skills facilitate digital transformation integral for firm performance, while leadership skills have no impact on firm performance—neither directly nor indirectly through DBMT. Thus, this study provides strong evidence of the importance of entrepreneurial skills in driving DBMT to increase firm performance. Further, the findings offer a nuanced account of the interrelationships between dynamic managerial capabilities, revealing that higher levels of social capital and lower levels of cognition increase the positive effect of entrepreneurial skills on DBMT. This study altogether reaffirms the significance of managers' dynamic capabilities for strategic change enabled by DBMT and their performance benefits, yet it reveals that the effect mechanisms differ from those found in nondigital research settings. 

Managerial capabilities as facilitators of digital transformation? Dynamic managerial capabilities as antecedents to digital business model transformation and firm performance

As digital transformation is changing entire industries, organizations are struggling to keep up with these changes. Scholars are viewing organizational capabilities as a central mean for organizations to master digital transformation. Based on a comprehensive literature review, this study identifies a broad set of relevant organizational capabilities and introduces a conceptual framework in which organizational capabilities are clustered into seven relevant themes for managing digital transformation. These capabilities are then embedded in the logic of the dynamic capability theory, highlighting the development of organizational capabilities throughout the digital transformation process. The results reveal that a differentiated perspective on the digital transformation process is beneficial to account for changing needs of organizational capabilities during the transformation process. Just as organizations themselves change during the process, various capabilities at different time points are needed to support and enable organizations during digital transformation. The developed conceptual framework gives organizations guidance for the development of organizational capabilities throughout the digital transformation process.

Jens Konopik

Papers

Mastering the digital transformation through organizational capabilities: A conceptual framework