2.1. Digital Transformation and Enterprise ESG Performance
The concept of ESG (Environmental, Social, and Governance) criteria was first explicitly introduced in 2004 through the United Nations Global Compact initiative. Since then, it has gained increasing traction as companies worldwide recognize the importance of aligning their operations with sustainability performance indicators [
17,
18]. Research on ESG has been more established and accepted in Western countries, where a robust system supports and integrates ESG practices into mainstream business operations.
In the United States, the trend toward sustainable investment has led to a surge in ESG-related investment products, including Exchange-Traded Funds (ETFs), which have grown significantly in both number and size. The European Union, too, has been proactive in legislating ESG principles, exemplified by the Non-Financial Reporting Directive (NFRD). This directive mandates the incorporation of ESG principles into legal frameworks, ensuring systematic consideration of environmental, social, and governance issues. Furthermore, the EU’s “Sustainable Finance Strategy” is designed to incentivize investors to direct capital toward environmentally friendly technologies and sustainable business models.
China, with its commitment to carbon peaking and carbon neutrality targets, has seen a rapid expansion of ESG practices. The Chinese government has ramped up its regulatory efforts to oversee corporate non-financial performance in environmental and social spheres, compelling businesses to prioritize and enhance their ESG performance for sustainable high-quality growth.
Despite these advancements, the implementation of ESG policies encounters several hurdles. One major challenge is the inconsistency and quality of ESG information disclosure. A scarcity of quantitative data compromises transparency, comparability, and reliability. Additionally, divergent methodologies employed by various rating agencies in evaluating ESG performance, characterized by differing indicators, weights, and scopes, undermine the uniformity of assessment outcomes [
19]. Moreover, while academic research suggests a positive correlation between strong ESG practices and financial performance, the long-term financial returns of ESG investments are less tangible compared to short-term financial metrics. This ambiguity can deter companies from fully committing to ESG initiatives [
20]. Another issue pertains to the lack of a precise definition for ESG funds in China, which results in few funds genuinely adopting professional ESG strategies, such as screening, integration, and shareholder engagement activities.
Within the context of the digital economy, digital transformation is seen as a pivotal strategy for companies to enhance their ESG performance. Existing research has examined the impact of digital transformation on ESG performance based on various theoretical frameworks, including agency theory [
16], dynamic capabilities theory [
21], and strategic goals [
22]. Some scholars argue that digital transformation positively influences ESG performance, while others suggest that it has both positive and negative effects [
23,
24]. Despite these multiple perspectives, the causal relationship between digital transformation and ESG performance remains unclear. Moreover, there is a lack of research focusing on the specific pathways through which digital transformation affects ESG performance. The current literature primarily analyzes the impact of digital technology on environmental indicators but lacks a systematic analysis based on the comprehensive nature of ESG. Therefore, further research is needed to explore the impact of digital transformation on ESG performance. This study aims to provide new empirical evidence on the influence and mechanisms between digital transformation and ESG performance by drawing on the diffusion of innovation theory, resource-based view theory, and stakeholder theory.
Drawing upon the diffusion of innovation theory, the proliferation of digital technologies spurs enterprises to adopt innovative management and operational paradigms, which in turn elevates their overall ESG profile [
25]. The essence of digital transformation lies in its profound impact on both internal processes and external interactions. By integrating advanced digital technologies, businesses can streamline their operations, improve efficiency, and reduce resource waste and energy consumption [
26]. This optimization not only enhances a company’s green innovation capabilities but also strengthens its commitment to social responsibility. Additionally, digital transformation can enable businesses to shift toward service-centric models by leveraging innovative technologies. As companies adopt a more service-oriented mindset, they place greater emphasis on product quality, brand reputation, and external image [
9]. Throughout this transformation, businesses are increasingly likely to consider their social and environmental impacts, adopting practices and strategies that align with ESG standards. These innovations not only boost a company’s market competitiveness but also significantly enhance its overall ESG performance.
In line with the resource-based view theory, digital transformation can significantly bolster ESG performance by optimizing the utilization and distribution of corporate resources. The Resource-Based View (RBV) highlights that a firm’s sustained competitive advantage primarily comes from its unique resources and capabilities, which must be valuable, rare, inimitable, and supported by the organization [
27]. During digital transformation, resources such as information technology and data analytics are considered strategic assets that can optimize resource allocation and boost total factor productivity. Improving total factor productivity is crucial for firms to alleviate financing constraints and invest more in ESG initiatives [
28]. Additionally, digital tools offer more precise environmental data analysis and risk forecasting capabilities, helping firms develop more effective environmental management strategies [
29] and thereby enhance their ESG performance.
Stakeholder theory posits that digital transformation enhances transparency and information dissemination, catering to stakeholders’ demands for corporate social responsibility and information accessibility, thus enriching the social and governance facets of corporate performance [
30]. As digitalization advances, internal control information disclosure becomes more robust, lending greater transparency to the supply chain. Stakeholders, encompassing investors, consumers, and regulatory authorities, gain easier access to monitor a company’s ESG performance, promoting informational parity. This enhanced visibility and external scrutiny motivate companies to prioritize ESG performance to align with stakeholder expectations. Grounded in these observations, the following hypothesis is put forth:
H1. Digital transformation can effectively improve the ESG performance of enterprises.
2.2. Digital Transformation and Supply Chain Resilience
The innovation and pilot application of industrial supply chains have entered a new stage, a pattern of integrated development among large, medium, and small enterprises is forming, autonomous control capabilities are being strengthened, and a preliminary supply chain risk management mechanism has been established [
31]. However, the modernization of supply chains still faces a series of challenges. The rise of global trade protectionism and the impact of the COVID-19 pandemic have posed severe challenges to global supply chains. The relationships among participants in vertical industrial chains are not only cooperative but also involve significant competitive pressures. This competition is manifested in opportunistic behaviors such as concealing information or actions between trading partners [
32], and also in the way that upstream and downstream trading entities leverage their advantageous positions within the supply chain and strong bargaining power to exert pressure on companies that centralize supply chain configurations [
33]. Increased external environmental uncertainty and systemic risks make centralized supply chains more prone to production interruptions and severe economic losses [
34]. Traditional supply chain operations often suffer from slow market response, low levels of information sharing between upstream and downstream, and high operational risks, severely limiting the efficient operation of corporate supply chains. There is an urgent need to deeply integrate with digital technology and move into a new phase of digital supply chains [
35].
The progress of digital transformation has illuminated new pathways for bolstering supply chain resilience. The “2021 China Enterprise Digital Transformation Index Report” underscores that digitization has emerged as a pivotal enabler for Chinese firms to fortify supply chain resilience amid the global health crisis. From an organizational resilience standpoint, prior research demonstrates that digital transformation facilitates enhanced agility. An examination of supply chain responsiveness across diverse enterprise scales reveals that augmenting supply chain flexibility, resilience, and elasticity is critical for cultivating novel green supply chain paradigms in a dual-circulation setting [
36]. Studies on the impact of digital transformation on supply chains have consistently highlighted that digital technologies predominantly elevate supply chain efficiency by refining the precision of supply–demand alignment and curtailing external transactional expenses [
37].
Presently, scholars have engaged in extensive discourse on the interplay between digital transformation and supply chain resilience, with distinct emphases observed between domestic and international academics. Domestic scholars tend to probe the theoretical underpinnings of how digitalization impacts supply chain resilience, whereas international researchers concentrate on the technical dimensions, such as the role of blockchain and artificial intelligence in enhancing supply chain resilience. This paper synthesizes both theoretical and technical perspectives to explore the inherent linkages between digital transformation and supply chain resilience.
According to the diffusion of innovation theory, digital transformation greatly enhances supply chain resilience on multiple levels by introducing emerging technologies and methods. The use of digital technologies enables real-time monitoring and forecasting, allowing for the early identification of potential risks and challenges. This capability improves the supply chain’s ability to foresee and respond to disruptions, thereby mitigating the impact of risks on supply chain stability [
38]. Concurrently, the widespread adoption of digital technologies promotes greater information transparency and facilitates a more efficient flow of resources and information among supply chain participants [
39]. This optimized configuration not only increases resource utilization efficiency but also enhances coordination and reduces information delays, improving overall supply chain coherence and flexibility. Ultimately, the broad dissemination of technological innovations transforms supply chain management into a more intelligent and adaptable system, significantly boosting overall supply chain resilience.
From the resource-based view theory, digital development provides a resource advantage for enterprises [
40]. Digital transformation enhances key resources in supply chain management by introducing advanced technologies. These technologies improve information processing capabilities, allowing the supply chain to acquire and analyze data in real time. This enhancement boosts the supply chain’s ability to forecast market dynamics and potential risks. With greater information transparency and processing efficiency, the supply chain can respond more swiftly and accurately to changes, optimizing resource allocation and scheduling. This optimization enables the supply chain to demonstrate greater adaptability and stability in the face of various internal and external disruptions, leading to more effective resource utilization. Consequently, digital transformation not only improves overall supply chain efficiency and coordination but also strengthens resilience in complex and uncertain environments.
According to stakeholder theory, digital transformation promotes the participation and collaboration of various stakeholders in the supply chain, improving the transparency of information exchange and decision making, and thus enhancing overall supply chain resilience [
41]. By mitigating reliance on any single supplier or customer, companies can reduce the risk of supply chain disruption and increase their resilience.
This paper argues that by utilizing data analysis tools, businesses can better understand market demands and identify new customer groups and market opportunities. This aids in expanding the customer base, reducing reliance on a single or a few large customers, and thus decreasing customer concentration. Digital supply chain platforms can provide comprehensive data on suppliers, enabling businesses to assess and compare the performance and risks of different suppliers. Through such systems, companies can make broader supplier selections, reducing dependence on any single supplier and ultimately decreasing supplier concentration. By decreasing both customer and supplier concentration, digital transformation diversifies and decentralizes the supply chain. This ensures that even if one link faces issues, the entire chain is not severely impacted, thereby increasing overall resilience and adaptability. Based on the preceding analysis, this paper posits the following research hypotheses:
H2. Digital transformation contributes to enhancing the resilience of the supply chain.
H2a. Digital transformation facilitates the reduction in customer concentration.
H2b. Digital transformation is conducive to diminishing supplier concentration.
2.3. Supply Chain Resilience and Enterprise ESG Performance
ESG (Environmental, Social, and Governance) investing embodies a philosophy centered on the sustainable development of corporations. It advocates for the consideration of a company’s environmental stewardship, social responsibility, and governance practices when making investment choices. Empirical research has demonstrated that various factors, including debt servicing capability, profitability, capital structure, corporate performance, and operational systems, significantly influence a firm’s ESG performance [
2,
42,
43]. This paper explores the impact of supply chain resilience on enterprise ESG performance from a novel perspective.
Suppliers and customers are important stakeholders for companies and significantly influence corporate ESG performance. The current literature indicates that excessive customer concentration can lead to corporate path dependence, pushing companies into a state of myopia. This state often results in a lack of focus on enhancing innovation capabilities and adversely affects the operational cash flow of the business. Consequently, companies fail to prioritize or develop the capacity to improve their performance in social and environmental responsibilities, thereby diminishing their ESG performance [
36,
44,
45,
46]. High customer concentration may lead to path dependency in companies, resulting in corporate myopia and a lack of focus on social responsibility [
44]. Additionally, excessive concentration in the supply chain can reduce a company’s bargaining power, potentially overlooking the overall efficiency and flexibility of the supply chain, increasing supplier risk, elevating the degree of tax avoidance, and leading to cost pressures and compliance risks. This, in turn, heightens the vulnerability of business operations [
47,
48]. Reducing supplier concentration and customer concentration helps enterprises enhance bargaining power and flexibility. This aids in diversifying risks and increasing profitability. The diversification of risks and enhancement of profitability promote overall business stability, which positively impacts the company’s performance in environmental, social, and governance (ESG) aspects. This thesis proposes the following hypotheses:
H3. Supply chain resilience contributes to the enhancement of enterprise ESG performance.
H3a. Diminished customer concentration facilitates the improvement in enterprise ESG performance.
H3b. Reduced supplier concentration aids in the enhancement of enterprise ESG performance.
The study framework is shown in
Figure 1.