Enabling sustainable business performance through digital transformation: evidence from Pakistan’s manufacturing sector

This study aimed to investigate how digital transformation enablers and the Human Resource (HR) strategic role influence Sustainable Competitive Advantage (SCA), and how SCA subsequently impacted Sustainable Business Performance (SBP) in Pakistan’s manufacturing sector. It also assessed the mediating role of SCA between four independent variables, Information Technology Managerial Resources (IMR), IT Implementation Success (IIS), Technological Innovation Factors (TF), and HR Strategic Role (HSR) with SBP, while exploring the moderating effect of Digital Communication on the SCA-SBP relationship. A cross-sectional, quantitative research design was adopted, grounded in Dynamic Capability Theory (DCT). Data were collected through a structured, self-administered questionnaire targeting mid-to-senior managers involved in digital and strategic operations. Purposive sampling was used to retain 252 valid responses from manufacturing firms undergoing digital transformation. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) via SmartPLS 4. Results revealed that all four independent variables had a significant positive impact on SCA, which in turn strongly influenced SBP. SCA fully mediated the relationships between digital enablers and SBP. Moreover, Digital Communication significantly moderated the SCA-SBP relationship, enhancing its effect when communication capabilities were strong. The findings validated a novel framework linking digital and human capabilities with sustainable outcomes. The study offered both theoretical contributions and actionable insights for firms and policymakers. It emphasized the importance of aligning digital transformation efforts with sustainability goals, thereby supporting broader international agendas such as the United Nations Sustainable Development Goals (SDGs).