Studying the Requirements and Socioeconomic Challenges of Digitalization on Sustainability: An Applied Study in the Petrochemical Industry

Integrating digitalization into industrial sectors presents significant opportunities and socioeconomic challenges, particularly in advancing sustainability goals. This study explores the digitalization requirements and socioeconomic challenges influencing sustainability within the petrochemical industry –a sector pivotal to economic development and environmental impact. Key prerequisites for digital adoption are examined, including technological infrastructure, leadership commitment, and workforce readiness, while the moderating role of organizational culture is analyzed in relation to these factors. In 2024, a structured survey was administered among selected petrochemical firms in Egypt, with a specific focus on managers and technical staff. Respondents were asked to provide information regarding digital readiness, sustainability practices, encountered challenges, and organizational cultural traits. The collected data were analyzed using SPSS29 and AMOS28 software, employing descriptive statistics, factor analysis, and structural equation modeling methods. The study employs empirical data and statistical analysis to reveal that digitalization contributes positively to sustainability by optimizing resource utilization and reducing environmental footprints. However, its implementation is often constrained by socioeconomic challenges such as financial limitations, resistance to organizational change, and regulatory barriers. These challenges underscore the need for coordinated efforts between industry stakeholders and policymakers. Additionally, the results show that a strong company culture improves digital readiness, boosting sustainability results even with existing economic challenges. This research fills a gap in the literature on digital sustainability, particularly in the context of developing economies, and provides practical insights for strategic decision-making. It emphasizes the importance of integrated policies that address socioeconomic challenges while aligning digital transformation with environmental and economic objectives.