Digital Transformation and Firm Performance in Green Industries: A Goal-Oriented Management Perspective on New Energy and Electric Vehicle Enterprises

Abstract

In today's ever-changing business landscape, digital transformation is a major strategic concern for businesses looking for performance gains. Yet, prior studies were disjointed in three fields: digital transformation, firm performance, and green industry environment (new energy and electric vehicle companies). This article examines the impact of digital transformation from a goal-oriented management viewpoint on new companies that aim to achieve their goals through new energy and electric vehicles. It relies on goal setting theory and a Management by Objectives (MBO) approach to examine how digitalisation can lead to better financial performance, operational efficiency, cost reduction, innovation capability and sustainability performance. The literature indicates that digital transformation has the potential to positively influence the multidimensional firm performance through business processes, resource optimisation, innovation potential and sustainability governance. In addition to the pressure of green transition, the restructuring of the supply chain, the high environmental uncertainty and the pressure of continuous innovation of new technologies, there are also high frequencies of energy and electric vehicle enterprises' sensitivity to digital transformation. In this study, the authors suggest a conceptual integration framework of the digital transformation, goal-oriented management mechanisms, dynamic capabilities and multidimensional firm performance. It contributes to the literature by offering a theoretical explanation of how digital transformation is translated into performance outcomes in the green industry context.