Journal Screenshot

International Journal of Academic Research in Economics and Management Sciences

Open Access Journal

ISSN: 2226-3624

The Relationship between Digital Transformation and ESG Performance of Chinese Automotive Companies

Ma Shang, Anees Janee Ali

http://dx.doi.org/10.6007/IJAREMS/v13-i4/23393

Open access

This study explores the impact of digital transformation on the Environmental, Social, and Governance (ESG) performance of automotive enterprises. Using methods such as descriptive analysis, Kernel Density Estimation (KDE), and linear regression models, an in-depth analysis was conducted on data from multiple automotive companies. The findings indicate that digitalization, environmental management, social responsibility, and corporate governance significantly influence ESG performance. The specific conclusions are as follows: companies with a higher degree of digital transformation have higher ESG scores; companies that excel in environmental protection and social responsibility also achieve higher ESG scores; and strong corporate governance structures contribute to improved ESG scores. It is recommended that companies increase investment in digital technologies, optimize environmental management policies, actively fulfill social responsibilities, and establish robust corporate governance structures to comprehensively enhance their ESG performance and sustainable development capabilities in the future.

Daugaard, D., & Ding, A. (2022). Global drivers of ESG performance: Knowledgesystems. Sustainability, 14(4), 2322.
Zhao, X., & Dong, N. (2023). Digital finance, corporate digital transformation, and ESG performance: Evidence from listed companies on the Shanghai and Shenzhen stock exchanges (2011–2021). Journal of Southwest University Social Science Edition, 49(5), 130-140. https://doi.org/10.13718/j.cnki.xdsk.2023.05.011
Zeng, F., Zheng, X., & Li, X. (2018). Research on the relationship between IT capability and corporate sustainability performance. Research Management, (4), 92-101.
Wang, Y., & Guo, Y. (2023). Firm digital transformation and ESG performance: Evidence from China’s A-share listed firms. Journal of Finance and Economics, 49(9), 94-108.Wu, J., Chen, T., Gong, Y., & Yang, Y. (2021). Theoretical framework and research outlook on enterprise digital transformation. Journal of Management, 18(12), 1871-1880.
Zhao, F., Liu, Z., & Shi, T. (2017). A comparative analysis of China Manufacturing 2025 and Industry 4.0, and the countermeasures of China’s automobile industry. Science and Technology Progress and Policy, 34(14), 85-91.
Zheng, Y., & Zhang, Q. (2023). Digital transformation, corporate social responsibility and green technology innovation: Based on empirical evidence of listed companies in China. Journal of Cleaner Production, 424, 138805. https://doi.org/10.1016/j.jclepro.2023.138805.
Wu, Z. (2019). A bright future with muddy paths: The transforming Chinese automobile industry. Shanghai Auto, (9), 1-2.
Qiao, Y., Yan, J., Zhong, Z., & Zhao, J. (2019). Research on the transformation and upgrading of China’s automobile industry. Engineering Science, 21(3), 41-46.
Yang, S. (2023). Reflections on digital transformation in Chinese regional financial holding companies. https://doi.org/10.32629/memf.v4i1.1241.
Huang, L., & Wang, Y. (2022). Difficulties and solutions of digital transformation of small and medium-sized enterprises in the era of digital economy. Frontiers in Business, Economics and Management, 5(2), 72-76https://doi.org/10.54097/fbem.v5i2.1667.
Huang, J. (2022). A digital transforming plan for the vehicle industry: Evidence from Audi. BCP Business & Management, 34, 1086-1094. https://doi.org/10.54691/bcpbm.v34i.3144.
He, M. (2019). Key factors accelerating digital transformation in the automotive industry. Software and Integrated Circuits, (7), 10-11.
Verhoef, P. C., Broekhuizen, T., Bart, Y., et al. (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 122, 889-901.
Benner, M. J., & Waldfogel, J. (2023). Changing the channel: Digitization and the rise of “middle tail” strategies. Strategic Management Journal, 44(1), 264-287. https://doi.org/10.1002/smj.3130
Yuan, C., Xiao, T., & Geng, C. (2021). Digital transformation and corporate division of labour: Specialization or vertical integration. China Industrial Economy, 402(9), 137-155. https://doi.org/10.19581/j.cnki.ciejournal.2021.09.007
Gillan, S. L., Koch, A., & Starks, L. T. (2021). Firms and social responsibility: A review of ESG and CSR research in corporate finance. Journal of Corporate Finance, 66, 101889. https://doi.org/10.1016/j.jcorpfin.2021.101889
Sebastien, L. (2023). Environmental, social, and governance (ESG) in the business industry. In Environmental, Social, and Governance (ESG) in the Business Industry (pp. 11-32). https://doi.org/10.1007/978-981-99-1564-4_2
Duarte, T. (2023). Developing an ESG strategy and roadmap: An integrated perspective in an O&G company. https://doi.org/10.4043/32600-ms
Hadiqa, A., Shahbaz, M., Yaqub, S. H., & Lee, S. H. (2023). Environmental-, social-, and governance-related factors for business investment and sustainability: A scientometric review of global trends. Environment, Development and Sustainability, 1-23. https://doi.org/10.1007/s10668-023-02921-x
Fang, M. Y., Nie, H. H., & Shen, X. Y. (2023). Can enterprise digitization improve ESG performance? Economic Modelling, 118, 106101. https://doi.org/10.1016/j.econmod.2022.106101
Wang, J., Hong, Z., & Long, H. (2023). Digital transformation empowers ESG performance in the manufacturing industry: From ESG to DESG. Sage Open, 13(4).
Krishnan, V. (2017). Research data analysis with Power BI.
Xie, H., & Lv, X. (2022). Responsible international investment: ESG and China's OFDI. Economic Research, 57(3), 83-99.
Hu, J., Han, Y., & Zhong, Y. (2023). How corporate digital transformation affects corporate ESG performance: Evidence from Chinese listed companies. Industrial Economics Review, 54(1), 105-123. https://doi.org/10.19313/j.cnki.cn10-1223/f.20221104.001
Xiao, H. (2022). Constructing a responsible platform algorithm. Journal of Xi'an Jiaotong University (Social Sciences Edition), 42(1), 120-130. https://doi.org/10.15896/j.xjtuskxb.202201013.

Shang, M., & Ali, A. J. (2024). The Relationship between Digital Transformation and ESG Performance of Chinese Automotive Companies. International Journal of Academic Research in Economics and Management Sciences, 13(4), 303–319.