Role of Green Innovation Between the Relationship of Digital Transformation Strategy and Environmental, Social, and Governance (ESG) Performance: A Strategic Alignment Model

In the age of the digital economy, digital technology opens up new avenues for business growth. Businesses' potential and degree of development are determined by how far they have digitally transformed. India's long-term low-carbon development goal is affecting the sector significantly. Based on the digitalization and sustainable development objectives of businesses, as well as the positioning of enterprise digital transformation level through the strategic alignment model (SAM), the relationship between digital transformation strategy and environmental, social, and governance (ESG) performance is examined. A sample of 145 respondents from medium-sized manufacturing companies provided data via a questionnaire survey, which was used for empirical testing using the Multiple Regression method. These are the findings of the empirical research -

(1) Enterprise ESG performance is positively and significantly impacted by digital transformation strategies. It is particularly evident in the two facets of the plan for digital transformation— platform and business digitalization—both of which significantly improve enterprise ESG performance. (2) To strengthen the association between enterprise ESG performance and digital transformation strategy, enterprise green innovation plays a vital intermediary function. (3) Green process innovation and green product innovation, the two facets of green innovation, both moderate the advancement of business digitalization and platform digitalization concerning corporate ESG performance. In summary, through encouraging green processes and green product innovation, business. To establish conducive conditions for attaining sustainable growth, businesses should thus make clear the progression of their digital transformation strategy's development, strongly emphasize green innovation, and consistently enhance their ESG performance