Title:
Digital Infrastructure and ESG Performance: A Conceptual Framework for Sustainable Business Transformation

Authors:
Yang Yang, USA

Abstract:

This paper develops a conceptual framework that explains how digital infrastructure can enhance corporate Environmental, Social, and Governance (ESG) performance and long-term competitiveness. Building on the Resource-Based View and the Dynamic Capabilities perspective, the study applies an input–process–output model to illustrate how technologies such as cloud computing, big data analytics, artificial intelligence, and the Internet of Things contribute to sustainable outcomes. The framework emphasizes three key mechanisms through which digitalization influences ESG, namely improved information transparency, more efficient resource allocation, and innovation-driven sustainability. By integrating insights from the literatures on information systems, corporate governance, and sustainability, this study demonstrates that digital transformation should not be viewed solely as a driver of efficiency but also as a strategic enabler of ESG integration. The discussion highlights implications for business, policymakers, and academic research. Firms are encouraged to embed digital tools into sustainability strategies, policymakers are urged to align digital innovation agendas with ESG regulations, and scholars are invited to test the proposed framework through empirical analyses. Future research should employ cross-national data, conduct industry-specific comparisons, and analyze ESG sub-dimensions to better capture the heterogeneity of effects. This paper contributes to a growing body of literature that bridges digital transformation and corporate sustainability, offering both theoretical advancement and practical guidance for managers and policymakers.

DOI: https://doi.org/10.51505/IJEBMR.2025.91101