HOW DIGITAL ORIENTATION TRANSLATES INTO ESG OUTCOMES: THE MEDIATING ROLE OF SUPPLY CHAIN RESILIENCE

Abstract

Amid escalating pressures for both digital transformation and sustainable value creation, an important yet insufficiently resolved question is how firms convert a digital strategic posture into meaningful environmental, social, and governance (ESG) outcomes. Existing research has largely emphasized direct associations between digitalization and sustainability performance, while offering limited insight into the organizational capabilities through which digital strategy translates into effective ESG outcomes. Addressing this theoretical and empirical gap, the present study draws upon the resource-based view (RBV) and dynamic capabilities perspective to investigate whether supply chain resilience (SCRE) serves as a key capability mechanism connecting digital orientation and ESG performance. Digital orientation enables firms to improve information processing, strengthen inter-organizational coordination, and enhance adaptability under uncertain environments, thereby contributing to more resilient supply chain structures. Using survey data collected from 500 firms and employing partial least squares structural equation modeling (PLS-SEM), this study examines the structural relationships among digital orientation, supply chain resilience, and ESG performance. The findings reveal that digital orientation exerts a significant positive effect on supply chain resilience, while supply chain resilience positively influences ESG performance. Moreover, supply chain resilience fully mediates the relationship between digital orientation and ESG, supporting an indirect-only mediation pattern. The study contributes by providing a more nuanced capability-based explanation of how firms align digital strategic initiatives with sustainable performance outcomes and offers practical implications for managers seeking to enhance ESG performance through resilient supply chain capabilities.