Digitalization Drives Innovation in ESG Disclosure
An Integrated Reporting Perspective
Bibliographic Data
| ID | 22418185 |
|---|---|
| Authors | Yanqi Sun (0000-0003-4660-6780, School of Economics and Management Beijing Institute of Petrochemical Technology Beijing China), Cheng Xu (0000-0001-9436-0880, Department of Strategic Management and Organisations, International Business School Suzhou Xi'an Jiaotong‐Liverpool University Suzhou Jiangsu Province China), Howard Davey (0009-0007-8495-3157, Waikato Management School The University of Waikato Te Whare Wananga o Waikato Hamilton New Zealand), Yuzhong Lu (0000-0002-2716-8917, Suzhou University of Science and Technology Suzhou City Jiangsu Province China, corresponding author) |
| Year | 2026 |
| Publication date | 2026-03-05 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Business Strategy and the Environment (JOURNAL) |
| Journal identifiers | ISSN: 0964-4733 • E-ISSN: 1099-0836 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1002/bse.70609 |
| OpenAlex | W7134170298 |
| Language | EN |
| References cited | 79 |
This study investigates how digital transformation influences the connectivity of environmental, social, and governance (ESG) disclosures—a core principle of integrated reporting (IR)—in Chinese listed firms. Drawing on the resource‐based view, stakeholder theory, and institutional theory, we conceptualize digital transformation as a strategic enabler of integrated thinking and corporate transparency. Using a novel text‐based measure of firm‐level digitalization and a content‐analysis‐based index of ESG disclosure connectivity, we empirically show that digital transformation significantly improves ESG information connectivity. Mechanism tests reveal that this effect is partially mediated by enhanced internal control quality, increased green innovation, and greater academic diversity on corporate boards, suggesting that digital capabilities translate into IR through organizational processes and cognitive diversity. Further, we find that the positive impact of digital transformation is stronger in firms with larger or more independent boards, in high‐tech industries, and in low‐marketization or policy‐neutral regions, while it is weakened in the presence of excessive educational diversity or globally experienced managers, indicating substitution or cognitive misalignment effects. These findings contribute to the literature by identifying digital transformation as a strategic driver of ESG transparency in emerging markets and offer practical insights for managers and policymakers aiming to improve ESG disclosure practices through digital capabilities.
Corporate governance · Digital transformation · Enabling · Stakeholder · Auditing, Earnings Management, Governance · Corporate Social Responsibility Reporting · Impact of AI and Big Data on Business and Society
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| Citation velocity | historical |
|---|---|
| Highly cited | No |