Digital Transformation and Corporate Resilience: The Mediating Role of ESG Performance

Abstract

Corporate resilience has become a critical capability for firms to cope with increasing environmental uncertainties and external shocks. Against the backdrop of the rapid development of the digital economy, this study examines whether digital transformation enhances corporate resilience and further investigates whether environmental, social, and governance (ESG) performance serves as a complementary transmission mechanism in this relationship. Drawing on resource orchestration theory, this study uses panel data of Chinese A-share listed companies from 2016 to 2024 and estimates a series of firm fixed-effects models. The results indicate that digital transformation significantly enhances corporate resilience, and the findings remain robust after a series of robustness checks and endogeneity tests are conducted. Further analysis reveals that ESG performance partially mediates the relationship between digital transformation and corporate resilience, suggesting that responsible business practices complement the resilience-enhancing effect of digital transformation. The results of the heterogeneity analysis further indicate that the positive effect of digital transformation is significantly stronger for high-tech firms. In addition, firms exhibit substantial variation in the consistency between digital transformation communication and actual digital investment. Further analysis suggests that greater alignment between digital transformation communication and substantive implementation is associated with stronger resilience outcomes, providing supplementary evidence on the implementation process of digital transformation. This study contributes to the literature on digital transformation and corporate resilience by revealing the resource orchestration process through which digital transformation creates organizational value and identifying ESG performance as a complementary transmission mechanism. The findings also have practical implications for firms seeking to strengthen their resilience and achieve sustainable development in an increasingly uncertain environment.