Exploring the Synergies Between Digital Transformation, Environmental Proactivity, and Green Innovation for Sustainable Business Practices

Abstract

This study explores the relationships between digital transformation (DT), environmental proactivity (EP), and green innovation (GI) in advancing sustainable business practices (SBP). It examines how AI, IoT, and big data enhance operational efficiency, reduce environmental impacts, and support sustainability goals. Drawing on the Resource-Based View (RBV), Dynamic Capabilities Theory (DCT), and Organizational Learning Theory (OLT), this research develops a framework for aligning DT with sustainability. A systematic literature review and case study analysis were conducted to investigate the interconnections among DT, EP, and GI across various industries and regions. Articles were selected based on empirical evidence demonstrating the contributions of DT and EP to SBP. Case studies illustrating proactive environmental strategies and the adoption of digital tools contextualized the findings. The study highlights DT as a strategic asset that enhances sustainability through real-time monitoring, resource optimization, and waste reduction. Furthermore, EP serves as a catalyst for adopting digital tools and driving green innovation, while Green Organizational Learning (GOL) strengthens green human capital and empowers employees to foster sustainable innovation. The synergies among DT, EP, and GI lead to improved operational efficiency, regulatory compliance, and market competitiveness. However, high initial costs and regional regulatory disparities remain significant barriers to widespread adoption. This study underscores the importance of integrating DT, EP, and GI to achieve SBP. It advocates viewing DT as a sustainability investment and fostering a proactive organizational culture and continuous learning to support green innovation, thereby enhancing resilience and competitiveness in sustainability-focused markets.