DIGITAL TRANSFORMATION AND ENVIRONMENTAL PERFORMANCE: THE MEDIATING ROLE OF GREEN INNOVATION AND THE MODERATING ROLE OF ORGANIZATIONAL LEARNING CAPABILITY

Abstract

This study examines how digital transformation affects environmental performance, with green innovation as a mediator and organizational learning capability (OLC) as a moderator. The theoretical framework draws on dynamic capability theory, resource-based view, and organizational learning theory. Survey data from 326 manufacturing firms in Vietnam were analysed using structural equation modelling and hierarchical regression. Digital transformation positively predicted both green innovation and Environmental Performance. Green innovation partially mediated the digital transformation-ESG relationship, meaning ESG gains are stronger when digital capabilities translate into environmentally sustainable products and processes. OLC strengthened the digital transformation-green innovation link: firms with stronger learning cultures converted digital resources into sustainable innovations more effectively. The findings extend the digitalization-ESG literature to an emerging-economy context and suggest that managers should treat organizational learning as a precondition for translating digital investment into sustainability outcomes.