Abstract
In this paper, we explore whether IT-enabled organisational transformation (ITOT) moderates the relationship between eco-innovation and the growth performance of microfirms. Our framework conceptualises ITOT in microfirms as a multistage process that includes: (i) setting a digitalisation strategy, (ii) adopting advanced information systems technology (IST) artefacts and (iii) developing in-house digital resources and capabilities. The analysis of a sample of 5015 microfirms from 39 countries indicates that eco-innovations boost firm growth when coupled with (i) a formalised digitalisation strategy, (ii) adoption of advanced IST artefacts (e.g., digital technologies that characterise Industry 4.0) and (iii) digital resources and capabilities in microfirms. These findings contribute to the growing digitalisation literature by highlighting the essential role that ITOT processes play in enabling sustainability-led growth pathways for microfirms. The paper advocates for the viability and performance benefits of a twin digital and ecological transformation and showcases the potential of ITOT for an economically successful net-zero transition that embraces microfirms.
| Original language | English |
|---|---|
| Pages (from-to) | 5031-5058 |
| Number of pages | 28 |
| Journal | Business Strategy and the Environment |
| Volume | 34 |
| Issue number | 4 |
| Early online date | 10 Mar 2025 |
| DOIs | |
| Publication status | Published - 7 May 2025 |
Bibliographical note
Publisher Copyright:© 2025 The Author(s). Business Strategy and the Environment published by ERP Environment and John Wiley & Sons Ltd.
Keywords
- digital capabilities
- digital strategy
- eco-innovation
- green growth
- IT-enabled organisational transformation (ITOT)
- microfirm
- sustainability
ASJC Scopus subject areas
- Business and International Management
- Geography, Planning and Development
- Strategy and Management
- Management, Monitoring, Policy and Law