Can Digital Technology Adoption Drive a “Win–Win” in Corporate Financial Sustainability and Energy Performance? The Role of Chief Digital Officers

ABSTRACT This study investigates whether digital technology adoption can drive both sustainable financial performance and enhanced corporate energy efficiency, which has received limited attention in previous research. Grounded in dynamic capability theory and upper echelons theory, and utilizing a two‐way fixed‐effects regression model, this study analyzes panel data from publicly listed Chinese firms from 2010 to 2022. We assess the “win–win” potential of digital technology adoption on financial and energy outcomes, with a focus on the moderating role of chief digital officers. The results demonstrate that digital technology adoption generates concurrent gains in financial sustainability and energy efficiency, and that the presence of a chief digital officer substantially strengthens these effects. Robustness and endogeneity assessments support these findings. We further identify financing constraints and green technological innovation as mediating channels through which digital technology adoption promotes dual improvements in financial and energy outcomes. Heterogeneity tests indicate stronger effects among larger firms, non‐heavy polluting enterprises, and firms located in central regions of China. These findings highlight the strategic value of digital technology in advancing financial sustainability and corporate energy efficiency, promoting broader corporate commitment to digital transformation.

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Publication Details

Journal
Business Strategy and the Environment
Published
2026-03-03
DOI
https://doi.org/10.1002/bse.70671
Primary Topic
Environmental Sustainability in Business
Type
article
Field-Weighted Citation Impact
0.00
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article

Can Digital Technology Adoption Drive a “Win–Win” in Corporate Financial Sustainability and Energy Performance? The Role of Chief Digital Officers

Tomas Baležentis, Zhiyang Shen, Fawaz Baddar ALHussan, Pin Shen
Business Strategy and the Environment
Environmental Sustainability in Business
article

Can Digital Technology Adoption Drive a “Win–Win” in Corporate Financial Sustainability and Energy Performance? The Role of Chief Digital Officers

Tomas Baležentis, Zhiyang Shen, Fawaz Baddar ALHussan, Pin Shen
article en

Abstract

ABSTRACT This study investigates whether digital technology adoption can drive both sustainable financial performance and enhanced corporate energy efficiency, which has received limited attention in previous research. Grounded in dynamic capability theory and upper echelons theory, and utilizing a two‐way fixed‐effects regression model, this study analyzes panel data from publicly listed Chinese firms from 2010 to 2022. We assess the “win–win” potential of digital technology adoption on financial and energy outcomes, with a focus on the moderating role of chief digital officers. The results demonstrate that digital technology adoption generates concurrent gains in financial sustainability and energy efficiency, and that the presence of a chief digital officer substantially strengthens these effects. Robustness and endogeneity assessments support these findings. We further identify financing constraints and green technological innovation as mediating channels through which digital technology adoption promotes dual improvements in financial and energy outcomes. Heterogeneity tests indicate stronger effects among larger firms, non‐heavy polluting enterprises, and firms located in central regions of China. These findings highlight the strategic value of digital technology in advancing financial sustainability and corporate energy efficiency, promoting broader corporate commitment to digital transformation.

Business Strategy and the Environment
Centre National de la Recherche Scientifique (FR), Université de Lille (FR), Vinci (France) (FR), Department of Commerce (AU), Institut d'Economie Scientifique Et de Gestion (FR), Lille Économie Management (FR), Lithuanian Centre for Social Sciences, Guangzhou College of Commerce, City University of Macau (MO), Széchenyi István University (HU)
Openalex Percentile: Top 38%
Environmental Sustainability in Business
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