Digital Transformation Integration and Sustainable Organizational Performance: Role of Green Innovation

Abstract

This study examines the influence of digital transformation on organizational sustainability in Indonesia manufacturing industry and the role of mediating and moderating variables. This study examines digital transformation and organizational sustainability in the manufacturing industry, highlighting the role of green innovation as mediating variables. A quantitative approach was employed using a survey method, distributing questionnaires to managers of multinational manufacturing companies in the Riau Islands, Indonesia with sample size of 214 respondents. The results indicate that digital transformation has a significant positive effect between green innovation, and organizational sustainability performance. The mediating variables of green innovation strengthen the relationship between digital transformation and organizational sustainability. The practical implications of this study highlight the importance of digitalization strategy, green innovation in enhancing organizational sustainability. This study has limitations, including its limited geographic scope and sample size, the use of cross-sectional data that cannot capture temporal dynamics, and variables that do not cover all aspects of sustainability.