From innovation to sustainability: exploring how digital transformation and green innovation foster sustainable waste management through circular economy practices

The intensive rate of urbanization and the increase in environmental pressures have heightened the call for sustainable waste management practices. In this context, digital transformation is becoming an important enabler of eco-friendly waste management systems. This study examines how determinants of digital transformation affect sustainable waste management practices (SWMP), particularly with respect to the contribution of green innovation (GI) and other organizational factors. A conceptual model was developed by incorporating the frameworks of sustainability and digital transformation and empirically assessed using the survey information collected from organizational stakeholders. The researcher employed a quantitative research approach. The data were collected from the managers working in the manufacturing sector, resulting in a final data set of 309 respondents. Empirical data were analyzed using SMART partial least squares structural equation modeling (PLS-SEM). Findings showed that identified drivers of digital transformation have a substantial positive impact on sustainable waste management performance (SWMP), which highlights the importance of technology-based processes in achieving environmental sustainability goals. Although green innovation holds a salient strategic position in the model, it does not always have a direct effect on SWMP, suggesting that its effects can be mediated by indirect or contextual mechanisms rather than acting as a direct predictor. These findings offer practical recommendations to policymakers and organizational leaders who are trying to leverage digital technology in advancing clean and green waste management behaviors.