Digital and Organizational Capabilities for Sustainable Business Performance: The Moderating Role of Top Management Support
TL;DR
The results indicate that digital transformation capability, innovation capability, and data-driven decision making each showed a positive and statistically significant association with sustainable business performance and the relationship becomes stronger as management support increases, although the magnitude of this amplification was modest.
Abstract
Digital investment does not automatically generate sustainable outcomes; firms require organizational capabilities, analytical decision routines, and supportive leadership conditions to translate technology into economic, environmental, and social value. Drawing on the dynamic capabilities view and contingency theory, this study examines how digital transformation capability, innovation capability, and data-driven decision making are associated with sustainable business performance and whether top management support moderates the relationship between digital transformation capability and sustainable business performance. Survey data obtained from managerial informants representing distinct large Slovenian companies were analyzed using partial least squares structural equation modeling (PLS-SEM). The results indicate that digital transformation capability, innovation capability, and data-driven decision making each showed a positive and statistically significant association with sustainable business performance. The interaction between digital transformation capability and top management support was also positive and statistically significant, indicating that the relationship becomes stronger as management support increases, although the magnitude of this amplification was modest. The study advances a differentiated capability-deployment perspective by distinguishing digitally enabled reconfiguration, innovation execution, and analytical decision routines and by identifying top management support as an amplifying condition.